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that point, or you may need to make arrang
ements from the factory.
You add on the commission you want to the price of the goods. Then
you add on all the extra costs of getting the merchandise from the
factory to the warehouse of the distributor.
If you've made an agreement with a foreign import/ export company,
their representatives may take over the shipping, paying you the
price of the goods and your commission. That's the easiest, but your
commission will have to be reasonably lower.
If your sale is to a company that will distribute the goods
wholesale or retail from its premises, you have to arrange all the
transportation.
TERMS OF SHIPPING
You will become more familiar with the terms of shipping used in
quoting prices and delivering goods as you gain experience. Your
responsibilities vary with the terms of the agreements and orders.
Check with your freight forwarder to be clear about your
responsibilities.
A bill of lading is a receipt for goods shipped. It is signed by
the agent of a ship or common carrier and assures the buyer that the
goods were unloaded in the same condition as they were accepted.
These are the documents you'll need to produce for your banker to
release the letter of credit.
FOB means free on board. The seller delivers the goods to a certain
destination with no additional charges. The seller insures and takes
the responsibility until that point. The buyer takes the
responsibility and pays the charges after that. For example, FOB New
York means the seller's price quotation includes full responsibility
and shipping to New York.
FAS means free alongside. The seller delivers the goods to the ship
that will carry the merchandise. The buyer pays to load onto the
ship and takes responsibility from there. FAS New York, for example,
means that the seller will deliver and store the goo ds until they
are ready for loading onto the ship.
C & F means cost and freight. The seller pays the freight charges.
The buyer insures the merchandise and takes full responsibility
after the destination.
CIF means cost, insurance and freight. The seller is responsible
for the value and condition of the goods, and pays both insurance
and freight charges to a certain point. The buyer is responsible
from there.
THE FREIGHT FORWARDER
A freight forwarder is a person who takes care of the important
steps of shipping the merchandise. This person quotes shipping
rates, provides routing information, and books cargo space.
Freight forwarders prepare documentation, contract shipping
insurance, route cargo with the lowest customs charges, and arrange
storage. They are valuable to you as an import/export agent, and
they are important in handling the steps from factory to fina l
destination.
They can be found by looking in the yellow pages or by personal
referrals. Find someone who can do a good job for you. You'll need
someone who you can work with, since this may become a long-term
business relationship
You'll need the help of a freight forwarder when you make up the
total price quotation to the distributor. Not only do you include
the manufacturer's price and your commission - usually added
together, but you need to include dock and cartage fees, the f
orwarder's fees, ocean freight costs, marine insurance, duty
charges, and any consular invoice fees, packing charges, or other
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