Slide 1

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 2

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 3

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 4

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 5

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 6

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 7

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 8

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 9

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 10

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 11

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 12

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 13

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 14

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 15

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 16

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 17

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 18

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 19

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 20

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 21

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 22

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 23

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 24

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 25

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 26

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 27

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 28

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 29

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 30

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 31

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 32

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

International Trade Center

Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
International Trade Center

Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
International Trade Center

2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

International Trade Center

2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

International Trade Center

2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

International Trade Center

2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

International Trade Center

Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

International Trade Center

Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

International Trade Center

Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

International Trade Center

Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

International Trade Center

Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

International Trade Center

Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

International Trade Center

Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

International Trade Center

Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

International Trade Center

Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

International Trade Center

Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

International Trade Center

Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

International Trade Center

Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

International Trade Center

Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

International Trade Center

Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

International Trade Center

Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

International Trade Center

Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

International Trade Center

Questions?

International Trade Center


Slide 33

How to Export

Patrick Spence
International Trade Center - TSBDC
September 6, 2006

International Trade Center

Before You Export
• Designate someone to oversee the export program
• Get training or counseling in export procedures
• Convert product information from standard to

metric
• Know cubic dimensions of your products container
• Be aware of any legal issues with the exporting
your product

International Trade Center

Communicating Overseas
Mail

Website

Phone

Ads in export publications

FAX

Government Marketing Programs

E-mail

Trade Shows

Advertising

International Trade Center

Answering Trade Leads
• Respond back within 24 hours
• If you are not ready to quote, then buy

some time
• Call for help, if necessary

• Set up a “file” to keep track of prospects

International Trade Center

Answering Trade Leads
Cultural Differences:
• Language

• History of Country
• Perception of Value

Negotiation:
• Flexible
• Compromise
• Legal Limits

International Trade Center

Preparing Quotes
• Pricing
• Shipping terms
• Payment terms
• Complete and accurate format

International Trade Center

Export Pricing
• Domestic price plus cost (Cost Plus Method)
• Global market price

• Local market price (Specific Country)
• Fixed vs. Variable Pricing

International Trade Center

Cost-Plus Method
Factory Price

Domestic Sale

Export Sale

$100.00

$100.00

5.00

5.00

$105.00

$105.00

Domestic Freight

Export Docs

-0-

$

1.00

Int’l Bank Fees

-0-

$

.50

Int’l Freight & Ins

-0-

$ 2.00
$108.50

Import Duty (.10 Landed cost)

$ 10.85

Cost to Wholesaler

$119.35

$105.00

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Export Pricing Summary
• Determine the objective in the foreign market
• Compute the total cost of the export product
• Compute final consumer price.
• Evaluate market demand and competition
• Exclude costs elements that provide no
benefit to the export function (Domestic
Advertising)
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Schedule B
Schedule B Harmonized Commodity Description and
Coding System
The United States has adopted the Harmonized
Commodity Description and Coding System (HS) for
classifying merchandise in international trade.
Exporters, freight forwarders, and carriers must
report export shipments in terms of the HS. The HS
code for any given agricultural product can be
obtained from the Department of Commerce
publication: Schedule B--Statistical Classification of
Domestic and Foreign Commodities Exported from
the United States.
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2000 Incoterms
Group E
Departure
EXW ExWorks
Group F
Main Carriage Unpaid
FCA

FAS

Free Carrier

Free Alongside Ship

FOB Free On Board

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2000 Incoterms
Group C
Main Carriage Paid
CFR Cost & Freight

CIF

Cost, Insurance & Freight

CPT

Carriage Paid To

CIP

Carriage & Insurance Paid

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2000 Incoterms
Group D
Arrival
DAF

Delivered At Frontier

DES Delivered Ex Ship
DEQ Delivered Ex Quay
DDU Delivered Duty Unpaid

DDP Delivered Duty Paid

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2000 Incoterms

Incoterm must have a location/destination with it.
An example is FOB Port of New Orleans (Incoterms 2000).

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Payment Terms
• Cash in Advance
• Letter of Credit (L/C)
• Documentary collection or draft

• Open Account

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Pro-forma Invoice
• Best advance estimate of form and content of the
actual invoice.
• For exporter, general is better than specific.
• Basic requirements:
Seller’s & Buyer’s name and address
Product description
Price
Currency
Shipment method (Ocean or Air)
Terms of Shipping (Incoterms 2000)
Payment Terms
Validity period for quotation
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Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Final shipping date
• Expiration date of the Letter of Credit
• Other deadlines that are important to you and the buyer

• Special Instructions or certificates involved
• Specific packing or labeling requirements

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Pro-forma Invoice
CLARIFY THE DETAILS – Before issuing the Pro-forma
Invoice, make sure you clarify the following points with
your buyer:
• Check with your international banker
• Check with your international freight forwarder

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Transportation Documents
Pro Forma Invoice
Commercial Invoice
Phytosanitary Certificate
Export Certificate--Processed Plant Products
Packing List
Shipper's Letter of Instruction
Certificate of Origin
Insurance Certificate
Shipper's Export Declaration
Bill of Lading

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Commercial Invoice
The commercial invoice is a bill for the goods. The buyer
needs the invoice to prove ownership and to arrange
payment. Some governments use the commercial invoice
to assess customs duties. Although there is no standard
form for a commercial invoice, the following information
should be included:
Seller's name and address
Buyer's name and address
Exact description of goods (kind, grade, quality, weight)
Agreed-upon price Type of container
Description of packages (number, kind, markings)
Delivery point
Terms of payment
Date and place of shipment
Method of shipment
Signature of shipper/seller

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Phytosanitary Certificate
The purpose of the phytosanitary certificate, Plant
Protection and Quarantine (PPQ) form 577, is to expedite
the entry of plants or plant products into a foreign country.
This certificate certifies to a foreign country that the plants
or plant products described were inspected by the U.S.
Government and are free from quarantine pests and other
injurious pests of specific concern to the importing country.
This certificate is completed by USDA's Animal and Plant
Health Inspection Service (APHIS).

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Export CertificateProcessed Plant Products
The export certificate for processed plant products, PPQ
form 578, was created for processed plant products that
cannot be given a phytosanitary certificate but have
been denied entry to one or more countries because no
certification process existed. This certificate certifies to a
foreign country that the processed plant product has
been inspected by the U.S. Government and that the
shipment was processed or manufactured to the extent
that there is negligible risk of harboring injurious plant
pest of specific concern to the importing country.

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Export CertificateProcessed Plant Products
Examples of products that fall under this category are:
Bulk newsprint derived from wood pulp
Wood products, molding, pressure-treated lumber, particle
board, plywood, timber impregnated with creosote, tongue
in-groove flooring, paneling, ceiling, veneer, and furniture
parts, either sanded or un-sanded

The processed product certificate is also completed by
APHIS.

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Weight Certification
All cargoes that are either loaded into trailers or ocean
shipping containers that are part of an intermodal
movement, that will travel by motor carrier on a U.S.
public highway, and weigh more than 29,000 pounds will
require certification.

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Packing List
The export packing list is considerably more detailed and
informative than a standard domestic packing list. An
export packing list itemizes the material in each
individual package and indicates the type of package-box, crate, drum, carton, etc. It shows the individual net,
legal, tare and gross weights, and measurements for
each package (in both imperial and metric units).

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Shipper Letter of Instruction
This document is completed by the shipper and includes
all of the information necessary for the freight forwarder or
carrier to make transportation arrangements and complete
the bill of lading and other related documents.
•
•
•
•
•
•
•
•
•
•

Shipper's company name, address, phone, fax, and contact name
Shipper employee identification number
Shipper reference numbers (bill of lading, invoice, purchase order, etc.)
Product information (description of goods, product quantity, number of
packages, weight in pounds, cubic feet, marks)
Consignee information
Notify party
Product invoice value
Harmonized commodity code
Freight and documentation billing information
Special instructions

•

Signature and date

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Certificate of Origin
Certain nations require a signed statement as to the
origin of the export item. The certificate is usually
obtained through a semi-official organization, such as a
local Chamber of Commerce. It may be required even
though the commercial invoice contains the information.

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Consular Invoice
A consular invoice for imported goods may be required
by certain nations. It is used as a means to control and
identify imported goods. The invoice must be purchased
from the consulate of the country where the goods are
being shipped and usually must be prepared in the
language of that country.

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Insurance Certificate
If the seller is responsible for providing insurance, the
insurance certificate should state the type and amount of
coverage. This is a negotiable instrument.

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Shipper’s Export
Declaration
The U.S. Government requires that exporters complete a
Shipper's Export Declaration (SED) for international
shipments. The SEDs, forms 7525-V, 7525-V-Alternate
(Intermodal), and 7513 (In-Transit Goods), are joint
Bureau of the Census/International Trade Administration
documents. They include pertinent information on the
export transaction such as parties to the transaction,
transportation details, Schedule B classification, value of
the goods, and export licensing information. The
information collected is used for compiling official U.S.
export statistics and administering the requirements of
the Export Administration Act.

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Bill of Lading (b/l)
They act as a contract between the owner of the goods
and the carrier to deliver the goods, spelling out all legal
responsibilities and liability limits for all parties to the
shipment.
They act as receipt from the ocean carrier, confirming that
they have received the goods for shipment.
They act as title to the shipment and can be used to
transfer title to the goods to a party named in the
document.
The b/l is issued by the carrier.

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Questions?

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