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Shipping: It is important to choose the right international shipping strategy for your business. The shipping strategy should...
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Enquiry/Contact Points
What are enquiry points? Enquiry/contact points are officials in government agencies tasked with answering questions that anyone involved in international businesses may have about trade requirements, such as sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT). (See Trade4MSMEs guides on SPS and TBT) Where can I find enquiry points for TBT and SPS matters? TBT and SPS enquiry points must be notified to the World Trade Organization (WTO). The ePing Alert also provides a list with enquiry points for TBT and SPS measures notified by over 180 countries or territories. To contact the relevant enquiry points for your trade transactions, you can begin by checking the resource materials made available by ePing Alert. Also on that website, you can subscribe to receive notifications on TBT and SPS regulations that may affect your products and identify who to contact for any enquiries you may have. How can I contact enquiry points for other goods trade procedures? The Global Trade Helpdesk (GTH) provides information on enquiry points that you can contact to ask about matters related to exports, imports, and transit procedures. It also describes single window platforms (see the Trade4MSMEs guide on single windows) that you can use to submit all documents required by customs and other agencies to comply with local requirements and border procedures. When using the GTH website, you can check the section on navigating trade procedures by typing in the information required for your desired export or import transactions. Where can I learn more? The Trade Facilitation Agreement Facility (TFAF): The World Trade Organization has an online Trade Facilitation Agreement Facility that lists contact points for trade facilitation matters reported by about ninety countries or territories. If you need assistance with other trade-related matters, you can reach out to the contact points listed, they may be able to answer questions or direct you to the relevant enquiry officials. Links to Supporting Information Trade4MSMEs guide Sanitary and Phytosanitary Measures Trade4MSMEs guide Technical Barriers to Trade The ePing alert Enquiry point – ePing SPS&TBT platform ePing SPS&TBT Platform Home – ePing SPS&TBT platform The Global Trade Helpdesk Global Trade Helpdesk TRADE4MSMEs Guide Single Windows WTO Trade Facilitation Agreement Facility Contact Points | TFAF
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Trade Documents for Exports
What documents do I need to export? The documents required for export vary based on the destination market and mode of transportation. Before trading, it is very important to review what documents are required by the transporter and customs authority to ensure your shipment is released upon delivery. Trade documents, sometimes also referred to as customs documents, generally include the following: Commercial invoice: This is a document issued by the seller to the buyer requesting payment for the goods. It serves both as a formal request for payment and may also be used by customs officials to clear the goods in certain countries. It can be used as a supporting document for insurance claims and may be required for the release of funds from the buyer to the seller or for reimbursement of a letter of credit by banks. UN/CEFACT has developed a cross-industry invoice (CII) to support electronic invoicing and standardize the information shared between buyers and sellers, especially when used with Incoterms. For more information on UN/CEFACT’s initiative and whether it could be helpful to your business, see the Trade4MSMEs guide on Incoterms. Commercial invoices are prepared after purchase orders are submitted by a buyer to a seller detailing the requested item, amount, and purchase price to be paid. A purchase order generally contains more detail than a commercial invoice, listing each item purchased, the unit information, and both buyer and seller information. Bill of exchange: This document details the goods in a transaction, the amount due for payment, when the payment is due, and all necessary banking information. Bills of exchange can be issued directly from a bank (referred to as a bank draft) or from an individual (called a trade draft) and are negotiable, meaning the bearer can sell this document on the market for cash. Packing list: This document, sometimes referred to as a weight list, is used to record the precise contents of a shipment, sometimes including details like the product’s weight. Although the price may be listed in the packing list, it is different from a commercial invoice because it is not a request for payment. Rather, its purpose is for record keeping. Insurance documents: These are included if you have trade insurance. (See Trade4MSMEs guide on Trade Insurance.) Letter of credit: These documents can be used by the importer to finance its purchase from the exporter, essentially certifying payment by the importer’s bank to the exporter’s bank once the goods are received. (See Trade4MSMEs guide on Trade Finance). Transportation documents: These can include bills of lading or waybills. (See Trade4MSMEs guide on Bills of Lading.) Export compliance documents: These documents can involve export declarations, licenses, permits, or certificates. (See Trade4MSMEs guide on Basics of Exporting.) Certificate of origin: These documents certify where the goods come from. This information is required to apply appropriate tariffs, as well as to determine if the goods are allowed to enter the destination country. (See Trade4MSMEs guide on Rules of Origin.) Sustainability certifications: Many new standards and certifications are being created to provide consumers with information about a product’s sustainability, environmental or social impact. Some of these are provided by governments, such as “organic” labels for consumables, while others are through non-profits like the Forest Stewardship Council. (See Trade4MSMEs guides on Standards and Voluntary Sustainability Standards). Links to Supporting Information Trade4MSMEs guide Incoterms UNCFACT e-Invoice | UNECE Trade4MSME Guide Trade Insurance Trade4MSMEs guide for Trade Finance Trade4MSMEs guide on Bills of Lading Bills of Lading Trade4MSMEs guide Basics of Exporting Trade4MSMEs guide Rules of Origin Trade4MSMEs guide Standards Trade4MSMEs guide Voluntary Sustainability Standards
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Standards for cross-border paperless trade
What are standards for cross-border paperless trade? Running a business can often involve filling in lots of forms, and printing lots of documents.
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Voluntary sustainability standards
What are voluntary sustainability standards (VSS)? Voluntary Sustainability Standards (VSS) are a set of standards which aim to encourage...
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Standards
What are Standards? The formal definition of “standards” from the International Organization for Standardization (ISO) and its sister organization, the International Electrotechnical Commission (IEC) is...
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Exchange rates
What are Exchange Rates? Has your business ever managed a financial transaction to buy foreign supplies or sell products overseas?
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Reverse logistics
What is reverse logistics? Once trading for a while you will find that customers may need or want to return products to you either because they are damaged, faulty, or are no longer required. Companies must manage costs, inventory and customer relationships during this returned product process. One solution is reverse logistics which is a supply management practice for moving products from customers back to the sellers or suppliers. Using reverse logistics enables businesses to regain value from returned goods by recycling, refurbishing or reselling them. Unlike traditional logistics that transports products from suppliers to distributors to consumers, reverse logistics starts with the consumer and moves in the opposite direction along the supply chain. Examples and types of reverse logistics Retailers like Home Depot, Levi Strauss and Kohl use reverse logistics to repurpose returned goods into new items or product lines while enhancing customer relationships in the process. Manufacturing and healthcare companies also adopt reverse logistics practices to refurbish, repair and remanufacture goods consumers find defective or outdated. There are different types of reverse logistics that businesses can explore. These are also known as reverse logistics components which focus on policies, procedures and management strategies for reusing products that are returned, unsold, damaged or reached end of life or contractual terms. Why do reverse logistics matter for my business? Managing returned items by customers can often lead to additional unplanned costs, hiring extra staff, return shipping costs, possible additional duties and increased overhead. To offset costs involved in returns, reverse logistics can help generate value companies can use to recoup losses. Reverse logistics can offer a way for your business to maintain an efficient flow of goods while reducing supply chain management costs and building consumer trust. By adopting reverse logistics, you can generate additional benefits to your business such as improved customer satisfaction and retention, enhanced brand sentiment, waste reduction and greater sustainability. How can I get started with reverse logistics? Business support organizations such as chambers of commerce and industry associations may have relevant resources to help you get started with using reverse logistics as part of your business practices. By searching on the internet, you can also find guides, training manuals and materials on reverse logistics. Links to Supporting Information Oracle NetSuite A Guide to Reverse Logistics: How It Works, Types and Strategies | NetSuite information on how reverse logistics works The International Trade Centre (ITC) ITC SME Trade Academy – Summary of Introduction to Supply Chain Management (intracen.org) Online Training Course on Introduction to Supply Chain Management
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How Do I Determine My Product’s HS Code?
What is an HS code? The Harmonized System (HS) is an international classification system of 6-digit codes, used to categorize physical goods for Customs purposes.
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Bills of Lading
What are bills of lading? A bill of lading (BL, B/L or BOL) is a legal document showing the ownership of the goods in a trade transaction (document of title). A bill of lading is also a receipt issued by the shipper that the specified goods have been received by the transporter and are on the transportation vehicle. Finally, it also serves as a contract for how the goods will be shipped. When shipping your cargo, one of the most important things to ensure is that the cargo arrives safely and without mix-ups. This is why the bill of lading is so relevant. Not only are the items being shipped listed, the BOL also includes specific shipping instructions so that your cargo arrives complete and at the correct destination. What information is included in a BOL? The BOL describes the essential details of a goods shipment. Depending on the type of BOL that is being filled, it is important to have information including: shipper (seller), consignee (buyer), point of origin, place of delivery, contents of shipment, and payment terms. What are the different types of BOLs? Bills of lading are issued by a carrier, or transporter, for a consignor (seller) to detail the transportation of the goods to the consignee (buyers). There are two main types of BOLs: Straight bill of lading: This type of BOL is used when the buyer has already paid for the shipment and the transporter is delivering the item directly to the consignee or other appropriate party. This is very similar to a waybill. Straight bills of lading and waybills are generally used for intra-firm transactions or between two trusted parties using an open account payment rather than trade finance(see the Trade4MSMEs guide Trade Finance). Order bill of lading: This type of BOL is used when the shipment will be paid for at a later time. Importantly, an order bill of lading is also a transferable document of title and can be used to access credit by the holder. BOLs that are “to order” mean that the goods can be delivered to any added consignee following transfer of the document if all endorsements are in place. The document can therefore be used to access finance given its inherent value, represented by the goods. Links to Supporting Information International Trade Centre (ITC) Cotton Exporter’s Guide This guide has detailed definitions and descriptions of different types of BOLs, and how they are used. Trade Finance Global What Is Bill of Lading? BoL Example 2023 | Trade Finance Global Trade4MSME guide Trade Finance Introduction Trade Finance Global Trade Finance Global | Trade Finance Without Barriers
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Logistics
What are logistics? Logistics are the processes needed to get your goods or services from their origin to their destination. Logistics goes beyond the mode of transportation. It also includes the legal arrangements, insurance, border requirements, and delivery. What are the main steps and considerations for goods logistics? Arrange the sale: The first step for international trade is to agree the terms of the sale. Contracts need to be drawn up. Various trade documents will apply including commercial invoices, getting Incoterms agreed, trade finance may be needed, and the mode of transport or shipping needs to be decided on too. Prepare for export: After the terms of the sale are agreed the shipment needs to be packed, labelled, and documented appropriately. There may be additional requirements to be considered. Other requirements need to also be considered, Bills of Lading, Rules of Origin, selecting the right HS (Harmonized System) Codes, Tariff & Non-Tariff measures, Sanitary & Phytosanitary Measures, Technical Barriers to Trade. Warehousing costs at the port before and after shipping, container types, and potential restrictions for the shipment should be considered. Prepare for import: Once a shipment has reached its destination, it will need to clear customs before it can be released either to the recipient or for further transportation. Customs clearance can depend significantly on where the goods are being shipped and the type of transportation chosen. Deliver to buyer: Finally, once the item has cleared customs and been released from storage, the last step requires delivery to the buyer. What are freight forwarders and other intermediaries and how can they help my business? Freight forwarders and other intermediaries can significantly reduce the required work for an international transaction. Types of intermediaries include: Customs brokers and clearing agents: These are specialists in customs rules and procedures. They can help ensure import documents are correct and may assist with forwarding arrangements. To find a licensed customs broker, the first step is to search the national customs agency where the import will take place, as they frequently list registered brokers that can be contacted. Freight brokers: They match shipments with land transportation, helping you find a way to get a delivery to its destination on schedule, usually by truck or rail. Ship brokers: They match ship owners with importers or exporters that want to charter a vessel to transport their product. Freight forwarders: They help with all the above, assuming the entire logistical, legal, and financial responsibility of a shipment. Freight forwarders generally arrange everything from transportation and shipment consolidation to tracking or monitoring and delivery to the final destination. Most countries will have a trade association for Freight Forwarders to help you select the right provider. Links to Supporting Information Trade4MSME Guide Shipping Trade4MSME Guide Trade Finance Introduction Trade4MSME Guide Incoterms Trade4MSME Guide Bills of Lading Trade4MSME Guide Rules of Origin Trade4MSME Guide How Do I Determine My Product’s HS Code? Trade4MSME Guide Sanitary and Phytosanitary Measures Trade4MSME Guide Customs and Border Procedures The International Trade Centre’s (ITC) SME Academy Introduction to International Transport and Logistics. An online training course. ITC ITC SME Trade Academy – Summary of Introduction to International Transport and Logistics (intracen.org)
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Rules of Origin – for Businesses
What are rules of origin? Rules of origin (ROOs) are a set of laws, regulations, and administrative procedures that countries impose to determine where an imported product comes from.
