EXPORT AND IMPORT (cont)....!
EXPORT AND IMPORT (cont)....!
EXPORT AND IMPORT....!
Customs inspection
The Chief Export Officer will decide the method of inspection to be
carried out. This should be done at the consignee's premises at the depot where
the goods are stored. He will put the necessary stamp on the customs
declaration "Inspection Committee" or "Consignment to be
inspected" or "Stamps to be checked etc. If the Chief Export Officer
deems the goods not required to be inspected, he will exclude the goods from
inspection. He will stamp the customs declaration as "EXCLUDED" and
send it to the issuing department.
Port procedures
Port charges
Port charges must be paid to the finance department of the Sri Lankan Ports Authority before dispatching the goods to the port. For payment of these charges 3 copies of the completed Bill of Lading (No. 3) should be submitted to the Department After payment of charges the Finance Manager will retain one copy and issue 02 copies to the exporter. Duties paid copies of shipping volume will be called. These charges are applicable to all ports served by the Sri Lankan Ports Authority while handling import and export transactions. These charges can be classified under the following headings.
1. Landing and Delivery Charges
2. Shipping charges
3. Bonding and warehousing charges
4. Charges for Freight
5. Holding Charges (Rent)
6. Supplementary charges for services if requested
Afternoon sack to port
At the time of delivery of the sack to the port, the following
forms shall be prepared and submitted to the Export Office (LUTUU) or TUTUU of
the Sri Lanka Duramiuga Authority.
1. 3rd Application for Fleet Note
05 copies to be attributed
2. Nu 3D Application for Sack Sending Application
06 copies to be submitted
In addition to this,
Excise Block Note (LUCU Payment Copy) and Customs Declaration Application
(Security Copy) should also be attached.
The exporter is
requested to take the sack to the ferry terminal after registration at the
export office of Sri Lanka Ports Authority and monitoring of the sack bearer.
After all the sacks are loaded the Subbam batch note is transferred to the sub-bill under the signature of the ship's seaman. The A.S. Officer at Salabai will send a supplementary bill of lading to the shipping office.
The exporter may
obtain a copy of the supplementary bill of lading from the UNSC and submit it
to the shipping agent for obtaining the bill of lading. In that case the exporter
will be required to pay the sack charges to the The exporter can obtain a copy
of the supplementary bill from the UNSC and submit it to the shipping agent for
receipt of the bill of lading. In this case, the exporter will lose. Charges
will be requested to be paid to the shipper at the appropriate places.
Submission of Claims to Commercial Bank
The final stage of the shipping block is the submission of
documents to the bank. They are
·
Commercial
invoice
·
Receipt
by landing / A.W.B. leaf
·
Insurance
·
Debit slip
for transfer (if DP or DA conditions
·
Letter of
credit
·
Certificate
of Origin; ;/ GSP Certificate
·
Packing
list
The following documents are also to be submitted as per the request
of the buyer
·
Quality
certificate
·
Health
certificate
·
Phytosanitary
Certificate.
·
No
smoking certificate
·
Ayuvar
Certificate (For Food Products)
·
Any other
certifications / inspection like Global GAP
Exports on credit
basis (to conditional
·
All of
the letters of credit received for this batch. The super volume documents should
also be submitted to the exporter's bank to ensure that all the conditions
defined in the exporter's credit card are fulfilled. In this case, the
documents can be negotiated and the exporter can get the money for this
installment. Copies of the above documents should be sent to the buyer as soon
as possible
Re conditions of export based on documents against payment
·
The
contract is based on documents against payment. En (Sri Conditional) Goods
Export Bill of Exchange (Lubaiava Detide) with postage stamp should be sent by
the importer to the buyer's bank for payment.
Exports based on non-recognised documents (Nuclear Conditions)
·
The
contract is based on non-endorsed documents. A non-acceptance slip should be
sent by the consignee to the buyer's bank along with the batch documents
Import
Determination of business object
Is the item to be depreciated restricted item? A prohibited
substance? Is it a fully permitted substance? It should be known first.
Next we decide from which country the item is being imported.
Import charges should be determined by knowing whether the product is
profitable to import and sell
We determine whether the item is due to be imported. Appropriate
steps should be taken only after studying and knowing.
Where is it produced? How is it produced? Raw material profit tax
CUT want
English (United States
Focus
1.
Finding a
seller
·
Sellers
who produce and sell directly There are sellers who buy and sell from producers
and they are either companies or individuals. Among these, we should choose the
importer knowing well from whom we are going to import.
·
It is
better to import from bulk companies as there is a lot of fraud online.
2. Determination of price
·
First of
all, the price of the imported product should be determined by knowing that the
retail price of the product in Sri Lanka is lower than the wholesale price
(including tax) of the imported product.
3. Mode of Payment
·
Choose
the best payment method for the imported product
1. Advance payment
2. Letters of credit
3. Document collection
4. Open account
5. Inventory account
·
Letter of
credit is the best method of payment.
5.Import Export Control Board
·
Complete
information on what types of goods are subject to duty waivers and what types
of goods are prohibited can be obtained from the Import Export Control Department
Letter of credit
·
A letter of credit is a document that guarantees payment
by the buyer to the sellers. It is issued by a bank. and ensures timely full
payment to the seller. The bank will pay the full or remaining amount on behalf
of the buyer even if the buyer is unable to pay such payment.
·
A letter of credit is issued against a surety language
of securities or money. Banks usually charge a fee. This means that this fee is
charged based on the size or amount of the letter of credit.
What is a letter of credit?
·
A letter of credit is a document written by a banker at
the request of a seller. Also in this letter the bank guarantees the seller to
pay half or the full amount within a specified period. And this letter can only
be used if the buyer does not fail.
·
Letters of Credit is an important document issued by the bank. It
guarantees payment by a buyer to a seller on specified terms. Thus ensuring
complete and timely payment to a vendor.
·
If the buyer fails to pay, the bank will recover the full or remaining
amount on behalf of the buyer.
·
A letter of credit, also known as a letter of
credit or documentary credit, is a primary method of payment. It can be used to
make transactions / purchase goods from another country.
·
Letters of credit are widely used in financing
international traders and parties to LC transactions:
·
The buyer or importer requests the
customer/applicant to issue a letter of credit.
·
The seller or exporter is the beneficiary of
the letter of credit. And the person company payable under the letter of
credit.
·
Issuing Bank is the bank issuing the
documentary credit.
·
Advising Bank or Selling Bank: The bank
advising the beneficiary of the letter of credit
·
Confirmation is a promise by a different bank
to include its official identifier among others to guarantee greater security
to the recipient.
·
Compliance Presentation Documents that meet the
requirements of a letter of credit
What documents are required for LC presentation?
·
To obtain payment the exporter/seller must
understand the terms and conditions of international trade by complying with
the presentation required by the letter of credit. Documents usually require an
original bill and other documents:
1. Insurance Documents –
Policy/Certificate of Insurance.
2. Business documents - an invoice list
·
Shipping Documents – Generally, CMC, Bill of
Lading, Lorry or Truck Receipt, Railway Receipt. Includes CMCAR Way Bill,
Forwarder Bill of Lading etc
·
Official documents – usually include
certificates of origin, consular legalization inspection certificates and
others.
·
Financial documents – usually include the Bill
of Exchange and the Jointly Accepted Draft
·
How does a letter of credit work?
·
Letter of credit is very easy to understand and
here is how it works
Importer
How Do I Qualify for a
Letter of Credit"
·
If you are a
customer of a bank and have a good background as an importer, you may be
eligible. You will work with the bank to issue a letter of credit to the
seller/beneficiary and this will help you save money.
How to apply for a letter
of credit?
·
You can apply
for a letter of credit through your bank. You can request to open a letter of
credit directly from your bank by filling out an application form. After
approval you can decide to charge a fee or percentage from the total amount.
·
Documents
required for opening and closing Copy purchase order specialist agreement or
any other important documents.
What is Discount Rate in Letter of Credit?
·
Although not all
banks offer a discount rate, a good percentage of banks offer a discount rate
for letters of credit.
Types of letters of credit
·
Here are some types
of letters of credit available
Revocable/Irrevocable Letter of Credit:
·
A letter of credit
may be revocable or irrevocable. Are any cancellation or amendment of letter of
credit done by you through proper channel?
·
In this case the
buyer must be approved by the seller before making any amendments.
Import Export (Commercial)
Letter of Credit:
·
This type of letter of
credit may be referred to as export/import letter of credit. It may be called
import letter of credit or export letter of credit.
Confirmed Unconfirmed
Letter of Credit:
·
For the letter of credit
to be genuine it must be confirmed by another bank to agree to a compliant presentation.
Revolving Letter of Credit
·
A
revolving letter of credit enables the seller to make multiple draws within a
limit.
·
A
single letter of credit is a single letter of credit that secures various
transactions over a long or short term.
Restricted unrestricted letter of
credit:
·
A
bill of exchange may be obtained from the advising bank explorer if there is a
restricted letter of credit or if the confirming bank is not available.That
means the seller can issue a bill of exchange on other banks and receive
payment on an unencumbered letter of credit.
Deferred / Application:
·
This type of letter
of credit may occur when the debt is not paid after its presentation and
extends the payment date but is accepted by both the exporter (seller) and the
importer (buyer).
Convertible Letter of Credit
·
This type of letter
of credit entitles the exporter (seller) to access funds to more beneficiaries.
Traveler’s Letter of Credit
·
A person or a group of people going abroad use
this type of letter of credit.
·
And this letter will guarantee that using the
bank will approve the payment of the loan with the currency available to the
seller.
In view:/
·
It is a type of letter of credit that allows
the bank to pay for goods after verifying the authenticity of the documents
provided by the seller.
Waiting Letter (SBLC)
·
This type of letter of credit is similar to a
business letter of credit. And it is used to provide proof of payment.
·
SBLC is a legal document
confirming a bank's commitment to pay a seller.
Recurring Letter of
Credit:
·
An exporter may purchase a
subcontract or bulk of a product. But they can use this type of letter of
credit if they are not financially strapped. Then the importer can procure a
beneficiary letter for the exporter to guarantee payment of the goods.
·
Letters of credit are often used to guarantee
commission payments to a third party acting as the seller's agent.
Advantages of Letter of Credit
·
Letter of credit has many advantages and here
is a list of letter of credit advantages.
·
One of the advantages of a letter of credit is
that it reduces the risk of both paying and non-paying buyers
·
A letter of credit protects the seller even if
the buyer refuses to pay for the goods.
·
One of the advantages of a letter of credit is
that the exporter and importer can work out acceptable payment terms for a
transaction i.e. both can agree to customize the letter of credit
·
A letter of credit
provides a secure method of payment
·
Letter of credit acts as a
safeguard in activities like quality control distribution and so on.
·
With a letter of credit
there is a guaranteed payment to the seller
·
It is very easy to apply
for a letter of credit whether you are a big time or a small time seller. They
can easily apply online or directly from the bank.
Disadvantages of Letter of Credit
·
Just as the advantages of letter of credit are
good, letter of credit also has a drawback. They also include:
·
A disadvantage of letter of credit is that it
may expose the issuing bank to the risks of various fraudulent transactions by
the seller. Fraudsters use letters of credit to defraud banks by submitting
false documents. It is also used as a fraudulent investment scheme where many
banks fall prey to these schemes. It also exposes the beneficiary to the risk
of non-agreement to loan terms and slow payment from the issuing bank.
·
The risk exposure of
letters of credit usually occurs in international transactions. It is important
to understand before dealing with the legal part of the contract that
government actions outside the control of the buyer or seller may limit or
prevent the performance of the letter of credit.
·
When the buyer fails to
pay on time or refuses to pay the applicant is exposed to many charges from the
bank and if not handled carefully it can lead to bankruptcy.
·
Letters of credit usually
cost the applicant more to pay. Because the negotiated offer charges include
repayment and other charges and the validity date of the letter of credit they
are not time sensitive.
Frequently Asked Questions
Resolution
·
A letter of credit (LOC)
may also be referred to as a letter of credit or documentary credit. And it is
often used to finance international trade between importer and exporter. It
also serves as a guarantee that a seller will receive his/her payment after
shipping the goods.
https://www.srilankabusiness.com
AI (Artificial Intelligence)
Important applications
Artificial Intelligence (AI) is widely used in export and import
sectors.
Here are some important applications with AI in the sector:(Customs and Compliance):
·
Automated
Customs Check: Used to accurately check imported and exported goods. This makes
customs checks faster and more accurate.
·
Regulations
and Compliance: Calculates the potential for proper compliance with
international trade regulations. Ways
Better Supply Chain Management:
·
Just-in-time
supplies: AI is used to make essential supplies available at the right time, at
the right place, thereby avoiding delays in production, distribution, freight,
etc.
·
Predictive
Analytics: Using past data to predict future needs.
Inventory management (Inventory Management)
·
Maintain
accurate inventory: UI helps maintain inventory using previous sales and trade
data. This helps to avoid excess or understocking.
·
Most
Demand Items: In the greater aggregate
·
It helps
to plan exports and imports based on the demand of goods.
Optimized Logistics
·
Shortcuts: AI Machine Learning
·
Using algorithms, it finds the best shipping routes. the
ship
·
Overcoming temporary crises: AI helps to move goods
quickly and overcome crises in retail business.
Trade Strategies (Trade Strategy and
Decision-Making):
·
Predict Price Conditions: Calculates the correct price
conditions based on previous trading levels and market conditions. AI
·
Correct Decision Making: AI provides recommendations to
make better decisions. It helps in improving trading methods.
·
Customer Choices: AI helps predict customer habits
step-by-step. Sales
·
Personalized Marketing: AI plays a major role in
providing personalized services to customers.
1.
Enhanced Security:
2.
Fraud detection: AI helps detect frauds directly and
quickly. This improves security in export and import operations.
·
Al has spread rapidly in the export and import sector.
Its applications are made possible to be fast, accurate, safe and effective.
The sector is facing a complete transformation with Al.
(Exports and Imports) The use of Al (Artificial Intelligence)
technologies has greatly improved the management of smooth authentication and
verification. Here are some important applications:
1. Inventory tracking and logistics
·
Track
where goods and materials are going through UJ
·
With
real-time tracking and plate addictions (Predictive Analytics), helps plan
sending and receiving markets.
2. Quality Control
·
AI devices
can be used to test the quality and monitor calmly.
·
Clarifies
defects using Image Recognition methods.
3. Measure and manage traffic using AI monitoring and simulations
(AI) to manage traffic congestion,
disruptions and timetables.
·
Predicts threatening
or preventive events in advance.
4. Business Expertise:
·
Provides
business expertise by summarizing and forecasting market data through
statistics and analytics.
·
New
markets predict product demand or price changes.
5. Inventory Audit and Tax:
·
The UI
helps you to correctly follow the inventory and tax rules and correct the
defects.
·
Helps
manage well-run inventory and tax accounts.
6. Market testing
·
Al Advisors helps you do stock and market tests very
quickly.
·
It also helps in understanding market changes using
readily available data.
7. Customer Service
·
AI helps in chatbots and systems that improve customer
service.
·
Assists customer requirements and process selection. details.
·
AI technologies improve business efficiency by
simplifying export and import operations and delivering results to users.
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