Terms of Export

Terms of Export to Egypt

  • Invoice (made by the exporter)
  • Packing list (made by the exporter)
  • Bill of lading (made by shipping company if it is sea/airway bill if it is air)
  • Certificate of Origin (Regency / City Trade and Industry Service)
  • Certificate of analysis (Laboratory)
  • Certificate of Phytosanitary (Quarantine Agency for plant products)
  • Other additional documents as requested by the buyer
  • Documents required prior to export Shipping Instruction

MethodDescriptionRisk / Benefit
ExporterImporter
Advance PaymentCash with order , direct payment to the exporter before the goods ordered are sentAttractive for exporters because they receive payment in advanceRisk of failure or delay in delivery of goodsThe risk of unsuitable quality and quantity of goods
Open AccountThe goods are sent first by the exporter and payment is made after the importer receives the goodsRisk of late payment or not being paidInteresting for importers because they receive the goods first
ConsignmentDelivery of goods to intermediaries (importers) who will sell the goods to the final buyer , ownership of the goods remains with the exporter until the goods are soldThe possibility of failed payments or late payments, because the goods are not necessarily soldProfitable for Importers because they can sell goods without paying first
CollectionDocument againts payment (D/P)The exporter sends the goods to the destination port, while the document for sending the goods is sent to the bank as an intermediary. Importers can take these documents if they have made payments through the bank, this document is required by the importer to pick up goods at the portThere is no guarantee of payment from the Bank to the Exporter, because the Bank only acts as a service providerThere is a risk that the goods sent are not in accordance with the request
Document againts acceptance (D/A)Almost the same as Document againts payment, the difference is that this method requires prior payment acceptance by the importer so that the importer can receive payment documents from the bank. Acceptance of payment is a promise of payment on a specific date, usually 30, 60 or 90 days after acceptanceThere is no guarantee of payment from the Bank to the Exporter, because the Bank only acts as a service providerThere is a risk that the goods sent are not in accordance with the request
Letter of Credit (L/C)A guarantee issued by the issuing bank at the request of the applicant ( Buyer ) to the exporter for the importer to pay a certain amountPayment guarantee from the Bank as long as the documents sent are in accordance with the L / CGuarantee of obtaining goods in accordance with the agreed

Free on Board (FOB)
Terms of trade using FOB are very common for Indonesian exporters. The purpose of this FOB, the exporter has the obligation to pay shipping costs only until the product reaches the nearest port from the warehouse. When the goods are already on the ship, other costs are borne by the importer.

By using these trade terms, it means that the exporter has obligations, including:
a. Prepare goods before or right on the shipment date stated in the export trade contract.
b. Delivering goods on the ship designated by the buyer (importer).

Cost and Freight (CNF)
If the exporter wants to increase competitiveness, the CNF pattern can be offered to the importer. By offering CNF or CFR, it means that the cost of traveling the goods on board to the port closest to the importer is borne by the exporter.

If you choose CNF, the exporter needs to fulfill the following obligations:
a. Prepare goods before or right at the time of shipment as stated in the export trade contract.
b. Contracting a shipping company to provide space for the ship at the promised time of shipment as well as for the port of destination referred to in the export trade contract, and to pay freight from the port of loading to the port of destination desired by the buyer.
c. Delivery of goods on a ship that is contacted by you as an exporter.
d. Exporters can offer CNF trading terms to buyers if our national shipping company is competitive enough.

Cost Insurance and Freigt (CIF)
This CIF is exactly the same as CNF, but it is added with insurance costs that have been borne by us as exporters.

If you wish to use CIF, the exporter is obliged to:
a. Prepare goods before or right at the time of shipment as stated in the export trade contract.
b. Contracting shipping companies to provide space for ships on the promised shipping time and for the port of destination listed in the export trade contract, as well as paying the freight from the port of loading to the port of destination as desired by the buyer.
c. Delivery of goods on board a ship that is contracted by the exporter himself at the port of loading determined by the shipping company.
d. Cover marine insurance for the goods to be sent and pay the insurance premium agreed with the insurance company.

For more information