INTERNATIONAL LOGISTICS Essay Example
The first step is to ensure that purchase order is received then negotiations of terms and conditions are made. Ensuring that that buyer signs contract or acknowledge order if standard terms apply. The booking of space aircraft is done to ensure that transportation is ready when the time comes. Transportation payment is made at the end. After this preparation and delivery of proforma invoice to the buyer is made. Apply for export declaration number EDN after being certified by the Australian customs service.
Before exports document are issued, ensure that goods are inspected and registered, transport unit for export is available such as the container, inspect product to ensure export compliance payment for inspection is then made. Ensure that goods are prescribed for inspection (Daff.gov.au, 2014). Document preparation is necessary in finalising arrangements for transport of goods. This will also assist the buyer to clear goods at the port after arrival. The document prepared are commercial invoice, packaging list, certificate of insurance, certificate of origin and a bank draft .Commercial invoice is the document showing total price the buyer is to pay, which include freight and insurance. It also includes a description of goods, information about shipping of goods, and EDN. Container list preparation, which will state the number of container and certificate of origin, which declares the origin of goods authenticated by the official chamber of commerce in relation to transportation of goods, preparation of pre-receival advice, interim receipt and shipper’s letter of instruction, is made. The purpose of the pre-receival advice is to provide details concerning vessel number, shipment date, number of seals to the port authority. Interim receipt helps in preparation of the airway bill since the goods will be transported by air (Malbon & Bishop, 2006).
The next step will involve collection of documentation by bank and transport companies. Airway bill is prepared according to the SLI and collection of the documentary letter of credit from the buyer needs through the bank. This document contains the necessary requirement that must be satisfied for the payment to be made (Malbon & Bishop, 2006). Since the mode of payment is through letter of credit preparation of bill of exchange or a draft will be done. It is a formal document which tells the buyer to make payment pay.). Perform inspection and preparation of inspection certificate which assures the buyer that the goods were certified before the containers were sealed is then made. Goods are then taken to the airport and custom duty and takes are paid. Buyer is the notified by fax if airfreight and the documents forward to the buyer via bank. Because the goods will be delivered to the buyer, preparation of request for an import licence as well as other necessary documents required by the buyer’s country is prepared. Exporter is paid and buyer collects goods (Malbon & Bishop, 2006).
The step-by-step procedure for importing starts by ensuring the customer that the business number is working and is registered. The next step is to request the catalogue together with price lists from the supplier, upon receiving the catalogue. After which request for a quotation is made. Once this is certified , a request is sent request the supplier to send the FOB price which will help determine the import duties and GST tax that will be payable. Comparison will be made on CIF of the supplier and freight / insurance rates that apply locally. In this case, the supplier will be responsible for transport. This will be included in the CIF.
The next step is to obtain a rate of freight from shipping company and an insurance rate from marine cargo insurance company. Concerning the bank and finances decision will be made on which bank to use in making payments. Inquiry will be made about bank charges and the exchange rate. In addition, payment will be made to the supplier. After this shipping arrangement will be done. For this case the shipping method will be by ship.
The documents that should be received through the banks are shipping advice, commercial invoice, customs invoice, insurance policy contract and legal consideration from the supplier through the bank. The bank will then notify when the shipping arrives. When goods arrive, clearing of goods at the port will be done. Clearing requires the bill of lading together will commercial invoice and any other relevant documents. Examination of consignment will then be done and clean receipt is issued only when goods are satisfying in terms of quality, quantity and condition (Wwcf.com.au, 2014). . Determine which duties and taxes are supposed to be paid. Make payment for the custom or import duty is calculated at 5% of the custom value of the product (Ebay.com.au, 2014). And the Value of taxable importation VoTi, which is the sum of custom value plus the duty paid and the cost of freight and insurance (Service, 2014). Transport to the customer. After being satisfied that everything is as expected transportation to the customer by land is arranged. The cost incurred here are the transportation cost and the wage, for loading and offloading the product.
Daff.gov.au,. (2014). Exporting plants and plant products: A step-by-step guide for Australian exporters — Department of Agriculture. Daff.gov.au. Retrieved 16 May 2014, from http://www.daff.gov.au/biosecurity/export/plants-plant-products/exportersguide
Ebay.com.au, (2014). The A-Z of Importing into Australia. Duty/GST/Customs | eBay. [online] Ebay.com.au. Available at: http://www.ebay.com.au/gds/The-A-Z-of-Importing-into-Australia-Duty-GST-Customs-/10000000015634691/g.html [Accessed 16 May. 2014].
Malbon, J., & Bishop, B. (2006). Australian export (1st ed.). Cambridge University Press.
Service, A. (2014). Importing Goods Through Customs. [online] Customs.gov.au. Available at: http://www.customs.gov.au/faq/ClearingCustoms.asp [Accessed 16 May. 2014].
Wwcf.com.au, (2014). Importing Goods into Australia — Worldwide Customs & Forwarding Agents. [online] Wwcf.com.au. Available at: http://www.wwcf.com.au/How-to-Import-Insurance [Accessed 16 May. 2014].
Bill of lading
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