Trade is based on the exchange of a group of things through a group of operations that are based on buying, selling, and transferring goods or Import and Export services from one person or entity to another, and the most important commercial operations are import and export. Import and export: It is the Nam Global process of buying and selling between companies outside the borders of the country, and it is one of the most interesting areas in trade, as it is not a difficult field as most people think, and that the importer must travel to carry out the import process, and this is a wrong belief; Travel is preferred if someone wants to supervise the manufacture of a product with specific specifications and not just for purchase.

Methods of Import and Export

There are 2 ways to import & export:

  •   Direct Import and Export: is the way the company deals with importers or foreign suppliers directly and completes all legal procedures related to shipping and financing.
  •  Indirect Import and Export: It is the way in which middlemen carry out all the tasks and the company does not have any direct interaction with customers abroad.

Import

It is a type of foreign trade in which goods are transported from a foreign country to the country of origin for the purpose of reselling them in the domestic market.

Importing a set of procedures that are followed to complete the process are as follows:

  1.   Inquiry about Trade: the import and export procedure begins with an inquiry about trade in a number of countries and companies that export the required product, so the importing company needs to obtain all the details about the goods. After obtaining the required information, the importing company contacts the exporting companies to know their prices and terms of delivery.
  2.   Obtaining an Import License: Some goods are subject to an import license while some goods are not. Therefore, the importer must have knowledge of the import and export policy to know whether the goods required by the importer need an import license or not.
  3.   Buying Foreign Currency: The importer is required to obtain foreign exchange when the exporter is residing in a foreign country, and he will require payment for the goods in the currency of the country in which he resides.
  4.   Placement of Order: The importer submits an order to the exporter for the supply of products, containing details regarding price, quality, quantity, color, and other characteristics of the goods to be imported.
  5.   Obtaining a Letter of Credit: When agreeing on the terms of payment between the importer and exporter in the import and export process, the importing company must obtain a letter of credit from its bank that demonstrates the credibility of achieving the commitment.
  6.   Notice of Receipt of the Shipment: When the goods are loaded onto the ship, the exporter sends a shipment notification that contains information about the shipment of goods such as the invoice number, the name of the ship, the bill of lading number, the port of export.
  7.   Withdrawing Import Documents: After shipping the goods, the exporter takes some important steps in accordance with the contractual terms and gives them to the bank to transfer them in the manner specified in the letter of credit.
  8.   The Arrival of the Goods: The exporter ships the goods according to the contractual terms, and the responsible ship informs the officer in charge at the dock that the products have arrived in the country and submits a document so.
  9.   Customs Clearance: Once the goods reach the importer, they are subject to customs clearance, where a number of legal procedures are completed.

Export

It is a form of trade in which domestically manufactured goods are sent to a foreign country at the buyer’s request abroad.

Also, import and export has a set of procedures followed, as follows:

  1.   Receipt of Inquiry and Sending of Quotations

The importer sends an inquiry to the various exporting companies and requests for quotations that include the price, quantity, quality, and conditions of the goods. The exporters, in return, send a preliminary invoice that includes the required details.

  1.   Receipt of the Request

Once the buyer has approved the details he sends a request to send the goods.

  1.   Determine the Creditworthiness of the Importer

After receiving the request, the exporter inquires about the credibility of the importer to ensure payment. Therefore, the exporter requests a letter of credit from the importer.

  1.   Obtaining the License

The exporter performs some legal procedures as the goods are subject to customs laws that require the exporting company to have an export license.

  1.   Pre-shipment financing

After obtaining the import and export license, the exporter goes to the bank to obtain pre-shipment financing to start production.

  1.   Commodity Production

Once the exporter receives the financing from the bank, the exporter starts producing the goods according to the importer’s requirements.

  1.   Inspection before Shipment

Inspection is one of the most priority thing if you want to ship or want to buy goods from other countries through shippment.

  1.   Reserve Cargo Space

The exporter goes to the shipping company to reserve a shipping space for the goods to be sent, and it requires the exporting company to specify the nature and type of goods to be exported, the date of shipment, and the port’s destination.

  1.   Packing and Shipping

After completing all the previous procedures, the goods are carefully packed, and all necessary steps are taken by the exporting company to transport the goods to the port.

  1. Cargo Insurance

The zaroon trading exporter insures the goods with an insurance company to obtain protection from the risk of loss or damage in transit.

  1. Customs Clearance

Then the goods must be customs cleared before being loaded onto the vessel.

  1. Receive a Receipt

The ship’s captain issues a receipt to the port manager when the goods are loaded onto the ship.

  1. Pay the Freight

A receipt is received by the freight forwarder of the shipping company identifying the shipment, after receiving it the company issues a bill of lading that acts as evidence that the cargo ship has acquired the goods for transportation.

  1. Invoice Preparation

Once the goods are dispatched to the destination, an invoice is prepared for the goods, which specifies the quantity of the goods and the amount owed to the importer.

  1. Payment Insurance

The last import and export rings in which the exporter communicates with the importer regarding the shipment of goods to claim ownership of the goods, and the importer requests certain documents, letter of credit, certificate of origin, and others, and the exporting company sends these documents to the importing company through the bank , And requests to be delivered only upon acceptance of the exchange invoice.