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Many specialists may be involved, including:
1. A shipping agent and/or a freight forwarder (forwarding agent) who takes responsibility for the docu-
mentation and arranges for the goods to be shipped by air, sea, rail or road. These services may also be carried
out by the supplier's own export department, if they have the expertise.
2. Airlines, shipping lines, railways or road haulage firms to transport the goods.
3. Both the importer's and exporter's banks will be involved in arranging payments if a letter of credit or
bill of exchange is used.
4. Customs officers who may examine the goods, check import or export licenses and charge duty and/or
VAT.
5. The manufacturer or a Chamber of Commerce to issue a Certificate of Origin, if this is required by the
importer's country.
6. An insurance company or insurance broker to insure goods in transit.
7. An export credit insurance company (such as Hermes in Germany).
8. A lawyer if a special contract has to be drawn up.
Different documents may be needed, for example:
− Bill of Lading
− Sea Waybill
− Shipping Note
− Dangerous Goods Note '
− Air Waybill
− Certificate of Insurance
Many of these documents can be replaced with computerized procedures. Standard 'aligned' export docu-
mentation is also used: the required information is entered on a single master document and then photocopied to
produce all the required documents.
Many import or export deals are arranged through an exporter's agent or distributor abroad – in this case
the importer buys from a company in his own country and this company imports the goods. Alternatively, the
deal may be arranged through an importer's buying agent in a buying house acting for the importer, or through
an export house based in the exporter's country. In this situation, the exporter sells directly to a company in his
own country, who will then export the goods.
Prices for exports may be quoted in the buyer's currency, the seller's currency or in a third 'hard' currency
(e.g. US dollars, Deutschmarks or Swiss Francs). The price quoted always indicates the terms of delivery,
which conform to the international standard Incoterms. The terms of delivery that are most common depend on
the kinds of goods being traded and the countries between which the trade is taking place.
Incoterms
(The most common ones are shown with *.)
CFR This price includes Cost and Freight, but not insurance, to a named port of destination in the buyer's
country.
CIF* This price covers Cost, Insurance and Freight a named port of destination in the buyer's country.
CPT The cost and transportation of the goods, Carriage Paid to a named destination in the buyer's country.
CIP The cost and transportation of the goods, Carriage and Insurance Paid, to a named destination in the
buyer's country.
DAF The cost, insurance and transportation of the goods Delivered At Frontier. DES The cost, insurance
and transportation of the goods Delivered Ex-Ship. DEQ The cost, insurance and transportation of the goods,
unloaded from the ship and Delivered Ex-Quay.
DDU The cost, insurance and transportation of the goods Delivered Duty Unpaid to the buyer.
DDP The cost, insurance and transportation of the goods Delivered Duty Paid to the buyer.
EXW* This price is the Ex-Works cost of the goods. The buyer arranges collection from the
supplier and pays for freight carriage and insurance.
FCA The Free Carrier price includes all costs to a named point of loading onto a container. The
buyer pays for onward shipment and insurance.
FAS This price includes all costs to a named port of shipment Free Alongside Ship. The buyer
pays for loading, onward shipment and insurance.
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