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− 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 documentation
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 im-
porter 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.
FOB* This price includes all costs of the goods Free On Board a ship (or aircraft) whose destination is stated in
the contract. The buyer pays for onward shipment and insurance.
Methods of payment may be on a cash with order basis (or cash deposit with order), on open account (as in most
domestic trade, where the buyer pays the supplier soon after receiving the goods), by irrevocable letter of credit or by
bill of exchange. Exporters and importers often prefer the security of payment by confirmed irrevocable letter of credit
when dealing with unknown firms in distant countries.
Trade between countries within a free trade area and within the European Union is simpler, and many firms pay
for goods by cheque and use their own transport to deliver goods across frontiers. No special customs documentation is
required for trade between firms in different parts of the EU, but VAT rates vary from country to country.
Documentation
T a s k 34. Add the missing words.
1. After receiving their enquiry, we sent them a ... .
2. We have just received an ... for the goods we wanted.
3. Another word for 'buy' is ... .
4. A bill of lading and a letter of credit are both ... used in foreign trade.
5. Please inform us when the cargo arrives at its ... .
6. We send a ... before making up an order.
7. Our agents will ... the goods to you when they arrive.
8. It's important to state the ... of each package on all the forms.
9. I've just heard that charges are going up.
10. That firm is our sole ... of these components.
11. They have added $50 for ... and handling.
12. When will you be able to .... the goods to us?
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