Import & Export Methodology

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How to Import & Export Both parties of Importing & Exporting should have Import/Export License or Import Export Code Number (IEC Number). For Exporter should have establish an Export Company. After finalizing a deal with Importer & Exporter, samples of selling material should sent to the importer to check and confirm the material and move for next process. Then Importer will communicate with Exporter to send his proforma invoice, which includes the Terms of Payment (TOC) & Terms of Delivery (TOD). After accepting the both terms & condition of Payment & Delivery, Importer will issue purchase order or Letter of credit. As per agreed date of goods shipment the exporter arrange to ship the goods. Exporter issues commercial Invoice against shipping material. Invoice is a prime document of sale in any business also called as commercial invoice. commercial invoice is used to record ‘accounts receivable’ for the seller and accounts payable for the buyer. The content of commercial invoice is almost same as pro-forma invoice. However, the final sale price may vary with the pro-forma invoice, as pro-forma invoice is issued prior to actual sale takes place. Note: ** Proforma Invoice can be treated as document of commitment to sell the goods to the buyer as per the terms and conditions agreed between both in person, over telephone, by fax, email or any other mode of communication. The terms of payment for your export contract could be advance payment, Documents against Acceptance DA, Documents against Payments DAP, or under Letter of Credit LC The terms of delivery could be EX-Works, FOB, CFR, CIF, DAP, DDP or any other Inco terms.