The Challenge of Exporting What shall I export? Where and whom shall I export to? The Export Chain How do I Charge? How do I Export?

The Export Chain is composed of a set of contracts among different parties. Those contracts are:

International Contract on Sale and Purchase of Goods (CCVIM: Contrato de Compra Venta Internacional de Mercancías) signed by the exporter and the importer, and emission of Pro-Forma and Commercial (Definitive) Invoices.

Basically, two subjects take part in the export operative process, both signing the International Contract on Sale and Purchase of Goods: the exporter or vendor and the importer or buyer, located in different countries. Therefore, due to distance, making the International Contract on Sale and Purchase of Goods is a consensual contract that does not need to be written or any formalities. The exporting conditions are established by direct contact between importer and exporter, and refers basically to:"

  • Goods description
  • Quantity
  • Price
  • Payment period
  • Form of payment
  • Sales conditions or terms (INCOTERMS)
  • Transport
  • Insurance
  • Loading and unloading place
  • Delivery deadline
  • Loading date
  • Banks taking part in the operation
  • Documents required by the importer

The contract's main conditions are set out on the Pro- Forma Invoice issued by the exporter, with the offer to the importer, whose acceptance can be tacit or given.
After the acceptance of the offer, the exporter issues the Commercial or Definitive Invoice, which is main document where the contract (CCVIM) is set out.

Contract of Carriage: carrier's intervention and issue of the Bill of Lading, Air Way Bill or Consignment Note and Certificate of Payment of Transportation.

The export goods must be sent by the exporter to the importer through a carrier, who is in charge of taking them to destination. This constitutes the second contract, i.e., the Contract of Carriage, issued as a Bill of Lading, an Air Way Bill or a Consignment Note, depending if the carriage is by sea, air or land, respectively. The amount paid for the carriage is called "freight charges" and is registered in the Invoice or Certificate of Payment of Transportation.
The selling mode of these international sales is "sale at loading" and the exporter's main obligation is to load in opposition to "sales at destination" or "domestic sales", in which the vendor's main obligation is to deliver the goods.

Insurance Contract: intervention of the insurance company, Insurance Policy and Insurance Certification.

As the goods undergo several risks during transportation, they are usually insured. This leads to the intervention of an insurance company, and to the issuing of an Insurance Contract, named Insurance Policy. The amount paid to the insurance company is called "premium" and it is issued in the Insurance Certification.

Bank's Intermediation in international payments.

International trade involves payments and collections between importer and exporter, located in different countries. In order to prevent risks either to the exporter or the importer, regarding payments or deliveries, respectively, banks intervene to manage either the international payments or the payment of documents.


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