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Import and Export Principles, Jorge Romero - Cédula 3-724-749 - Coggle…
Import and Export Principles
International Logistics
Criteria for the analysis of international physical distribution
In foreign trade, more complex transport needs arise as a result of geographical distance, the regulatory requirements of different countries,
Criteria for choosing the right DFI string
A DFI (International Physical Distribution) operation involves the use of a certain number of services, the value of which is a component of "cost".
Concept. Structural and functional analysis
Structural analysis is a tool used prospectively to structure collective reflection on a given system.
SENA defines it as "a method of questioning and approach that allows the identification of the Key Purpose of the performance subarea
KNOW: To detect the elements of competition that occur in a complex productive activity
Analysis of chain items
For proper analysis of the D.F.I. we should not limit ourselves to the International Freight Transport
Means of transport such as: maritime, river, air, land: truck or railway.
Infrastructure, which refers to roads: roads, railways, access to ports, terminals (stations, airports and ports).
Imports and functions of auxiliary agents
Customs agent intervention
The Customs Agent shall carry out the procedures for the customs clearance of the goods with the commercial or shipping documents.
Ejecution
A company must put an initial price when developing a new product, when it introduces its normal product into a new distribution channel or area
There are two basic forms of logistics
One optimizes a steady flow of material through a network of transport links and storage centers
International Contracts
Actions for non-compliance
Common actions and rights are:
(a) specific compliance, also called enforcement.
(b) granting an additional deadline to meet
c) termination of the contract.
d) compensation for damages
e) exoneración
f) intereses
(g) preservation of goods
Conflict Resolution. Mechanism and alternatives
There are four formulas that regulate the resolution of a conflict arising in the interpretation of an international contract, once the amicable route has been exhausted:
El arbitraje
La conciliación
The courts of justice
La mediación
Obligations of the parties to a contract
Seller Obligations
Delivery of goods and documents related to goods: time and place.
Transmit ownership of the goods.
Obligation of the seller to deliver the goods free of rights or claims of a third party unless the buyer agrees to accept them.
Buyer's Obligations
Examine the goods and communicate, where appropriate, their lack of conformity.
Pay the price and receive the goods
Types of contracts. Essentials of different types of contracts.
Distribución
According to the objectives proposed in each market, the company must select the most appropriate distribution channels and manage the physical distribution of the product
Franquicia
A contract, whether oral or written, submitted for consideration, by which a person allows the distribution of goods or services under his trademark
Technology transfer
Process of transmission or transfer of technology, which helps a person or organization access and use new inputs, equipment or processes
Joint Venture
They are joint ventures constituted by a commitment between two or more economically independent companies that come together to carry out a commercial economic operation.
Commercial Agency
The international commercial agency contract is the most frequent collaboration agreement between entrepreneurs from different countries.
Commercial agency and distribution contract
Small and medium-sized enterprises (SMEs) seeking to enter a new market generally resort to some form of commercial intermediation
Compraventa
This is printed text with the general conditions of sale and is especially useful for medium- or small-sized enterprises that are dedicated to export.
Aspects conceptúale you. Contract Items
Formation of the contract by exchanging an offer for acceptance
The offer: essentials
Contract for the International Sale of Goods (Vienna Convention 1980)
Open price contracts
Invitations to make offers
Stages in contract negotiation
The contract begins to be formed from an offer. The offer must be a specific proposal indicating the merchandise, quantity and price.
Applicable Law and Jurisdiction
The United Nations Convention on Contracts for the International Sales of Goods (CISG) regulates the rights and obligations of buyers and sellers in accordance with international practices and practices.
International Documentation
Difficulties caused by incorrect processing
Export costs with poorly prepared documentation are of three main types:
The cost of interest to be paid by exporters as a result of delays in receiving payments.
The costs of eliminating the problem: phone accounts, courier charges to send substitute documents, bank charges for document modification.
Documents processed by importer and exporter
Transportation Document
This document details:
Point of origin and destination
Means of transport used
Departure date and expected arrival date
Name of sender and recipient
Goods transported (description, weight, number of packages, etc.)
Insurance Document
It describes the risks covered by the policy, determined who the beneficiary is in case of compensation.
Invoice
It is a document issued by the exporter containing the fundamental data of the transaction, noting the amount of the debt to be paid by the importer.
At least the following data appears on the invoice:
Identification of exporter and importer
Description of the goods (characteristics, units, add-ons, etc.)
Amount of sale, with breakdown between the different components of the same
Payment method required
Date of shipment of the goods, means of transport and place of destination
Concepts. Scopes
Health Certificate
Document certifying that a product is prepared under standards established by the official authorities of importing countries.
Bill of Lading
It is the document issued by the shipping company or the captain of a ship in which they declare that they have received the goods described in it
Phytosanitary Certificate
Official certificate issued by a competent health authority in the country of origin, stating that plant products and related objects are considered pest-free.
Export Duty
Tariff levy (customs duties and levies of equivalent effect), established when the export of goods is consummated.
Certificate of Origin
Document required by the customs authorities for the importation of products, accreditation that the goods indicated there are originating in a particular country.
Import Duty
Gravamen arancelario, derechos de aduana y exacciones
de efecto equivalente, establecido al consumarse la importación de mercancías en el territorio nacional.
Certificate of Inspection
Certificate issued by specialized companies and enforceable by the importer
Invoice
Tariff levy (customs duties and levies of equivalent effect), established when the export of goods is consummated.
Quality Certificate
Document issued by certification companies or by competent authorities specializing in quality control
Commercial Invoice
Central document of the administrative export procedure.
Letter of Credit
Written trading instrument through which one person orders another, usually a bank
Load Manifest
Document detailing the relationship of the goods that constitute the load of a medium or a unit of transport
Administrative Authorization
Administrative control document required by companies marketing certain products subject to national or Community restrictions.
Boarding Note
It is the document by which it is established that an exporter acts on assistance with the owner of the goods and is also instructed to board in relation to the goods.
Arancel
Official rate that determines the duties to be paid in several branches, such as that of court, customs, railways, etc.
Credit Note
They are documents that serve to support the granting of a discount or bonus, total or partial cancellation of the return of goods sold.
Albaran
Delivery note signed by the person receiving a good.
Fletamento Policy
Document accreditation of the charter contract in which the terms of the contract are negotiated on a case-by-case basis.
Other documents required
Health certificate: This is a document issued by the health authorities of the country of origin in which it is certified that the exported goods are in perfect health condition, in compliance with the regulations in force.
Quality Certificate: is a document issued by an independent firm of recognized prestige that declares that the goods meet international quality standards.
Certificate of origin: is a document issued by the commercial authorities of the country of origin in which it is established that the product has been produced in that country.
Dumping and Subsidies
Oblique Dumping
Where the country of origin is not the country of origin of the goods, there is a certain oblique dumping to be tested by comparing with the price of normal sales of identical or similar goods intended for consumption in the country of origin.
Start of investigation. Administrative procedure
Investigations should generally be initiated upon written request made "by or on behalf of the domestic industry".
Damage Determination
The determination of injury is based on positive evidence and includes an objective examination.
Provisional measures.
The authorities must make a preliminary positive determination of the existence of dumping, injury and causal relationship before applying provisional measures and such measures may not be applied within 60 days of the date of initiation of the investigation.
Requirements for the application of the anti-dumping duty
WTO Members may establish anti-dumping measures if, after conducting the relevant conformity investigation, a determination is made that:
the domestic industry that produces the like product and the importing country is suffering significant injury and
there is a causal relationship between the two facts.
dumping is being practiced
Liquidation of anti-dumping duty. Retroactivity.
Whether the imposition of anti-dumping duties is based on a determination of the existence of significant damage, not of threat of significant damage or of significant delay in the creation of a domestic industry
Dumping. Conceptos
A producer in a particular country dumps when it sells good to external buyers at a lower price.
Subsidies. Concept.
It is the state's way of financially supporting a particular sector, in order to make good less expensive.
Government benefits or payments to exporters for producers of exportable products.
National and international regulations.
Law No. 29 of 1 February 1996.
Articles 283, 284 and 285 of Law No. 23 of 15 June 1997 amend Articles 149, 153 and 240 of Law No. 29 of 1 February 1996.
Types of subsidies. Direct and indirect taxes.
Direct Taxes: The effect and impact of which are verified on the taxpayer himself, there is no possibility of being transferred.
Indirect Taxes: These are taxes that fall on the production, transfers and consumption of goods or services and are characterized by being transferable.
Requirements for the applicability of the countervailing duty.
Compensation: Form of termination of the tax liability, liquidating against it liquid and legally enforceable credits of the taxpayer
Damage Determination
The existence of dumping or subsidy is not sufficient to be able to implement measures.
Cost and sequence of an import and export
Cost calculation –internal market price.
Normal value: is the selling price on the domestic market (export market), in other words, it is the price of the product in the country of origin
Financial budget. Exercise
Sources of funding
Financial resources are the least in business activity, which is why the right decisions must be made in order to identify the possible sources of financing for the activity.
Gain Margin
A Profit Margin is the profit that is obtained in a trade-type trade.
Methodology for import cost determination.
FOB Base Price, CIF (Cost, Insurance and Freight), VAT Tax Base, Total After Tax, FINAL COST
Export. Sequence
Export requires:
Design a Medium/Long Term Export Business Plan
Contemplar posibles modificaciones en la infraestructura gerencial y productiva
Identify optimal production processes and volumes. Have investment capacity.
Be registered as an importer/exporter.
Sequence of an Export
Contact the foreign supplier and agree to the purchase Usually
With regard to prices in international trade
Contact a customs dispatcher
Customs registration
Effecting payment to the supplier
Dispatch to Plaza
Freight contracting
Import Cost
Import costs are not only composed of import duties, but rather freight, insurance, storage, port charges
Cost-price of an export
The export price is understood as the selling price that allows the manufacturer/exporter to recover costs
Expense: This is any payment that is made in return for a service that is provided.
Price: This is the monetary value that is requested in exchange for the product offered.
Cost: involves any money erogation that must be made in order to produce a product
Import. Sequence
Supplier Selection
Once you have analyzed the market and made the decision to import the product, you will need to go out and find suppliers who deliver it to you in a timely way.
Buy-sell contract
Negotiating the terms of purchase and sale is the most important part of the process.
Market Analysis
The second step is to analyze the market for the product you want to import, whether it's a new technology to improve your production line
Sequence of payments and transportation of goods
The sequence of payments and transport of the goods is simple and begins in the importer's square.
Company Analysis
Before making the decision to engage your company in making an international purchase, you need to analyze the internal reality of your company.
Office to square
The dispatch to the square of the cargo is the outcome of the sequence and where all the mistakes made in the previous stages are paid.
Methodology for export cost determination
C X: Export cost (Cost of production plus export costs)
G I: Indirect export costs (expressed in percentage for both one)
U : Utility (expressed in percentage by both one)
Analysis of price components
The value of the currency or monetary assigned to a good or service is called a price.
Financing and International Operations
Financing Mechanisms
Exporter Financing
Two phases can be distinguished in any export:
From the time the order is received until the goods are delivered, and that basically includes the manufacturing period.
From the time the goods are delivered until it is charged, as normally these transactions are not charged in cash
Import financing
The importer may ask your bank for financing the purchase made when:
You have to pay cash and you do not have the funds: the importer has to pay for the purchase at the time of receipt
Early payment discount
The exporter may grant the importer a deferment in payment, but alternatively he can also offer a discount if he pays cash
Guarantees required by financial advisors
The main guarantees required by financial advisories are as follows:
Have approved a risk line.
Have signed and intervened the policy for foreign trade operations coverage.
International Organizations
International Monetary Fund
It is a cooperation institution in which a large number of countries have voluntarily entered because they recognize the advantages of being able to consult with the other countries in the forum of the fund in order to maintain a system stable
Monetary Fund Financial Assistance:
The Fund only provides loans to member countries with payment problems, i.e. they do not receive enough foreign exchange to pay for what they acquire abroad.
World Bank
Founded in 1944, the World Bank Group consists of five affiliated institutions.
International economic and financial system
The most important objective of any country is to promote economic and social well-being by appropriately channeling capital to investments that yield maximum return.
Jorge Romero - Cédula 3-724-749