BEMAR, international logistics operator
Tools for international trade
Export plan
To obtain optimum results in international trade, it is essential to have researched the target market, meet potential customers and prepare an export plan.
This plan must include everything from the value proposition it represents right down to fine details of the competitive advantages and sales management, financial schedule, pricing policy, payment systems, protection against exchange rate fluctuations and types of insurance that will be used.
It must contain the regulations on the product to be exported, if there are barriers to its importation in the country of destination, if it has tariffs, quotas or restrictions, if it has to be accompanied by special documentation and what the labeling regulations are.
The export plan must also provide for the logistics to deliver the goods to the buyer which may require the valuation of possible costs in the country of destination according to the Incoterms rule that is agreed or careful planning and confidentiality guarantees when cross trade or triangular operations are concerned.
BEMAR is the international logistics operator that will advise you throughout this process, select the appropriate mode of transport and coordinate the operations so that your goods arrive at their destination as safely as possible, on time and at the lowest possible cost.
International contract of sale
This element is essential for the quality of commercial relationships, to avoid possible disputes and for its economic and legal functions. There are model contracts from the International Chamber of Commerce for the different types of merchandise and possible scenarios.
This contract must state the circumstances and conditions of the operation:
- Identification of the parties involved in the sale.
- Purpose of the contract and description of the goods.
- Price, means and term of payment, taxes, fees and tariffs, etc.
- Date and place of delivery, type of transport, insurance and guarantees.
- Shipment and delivery conditions, indicating the agreed Incoterms rule.
- Commercial and financial documents required by the buyer.
All international contracts of sale must be backed up by a preliminary commercial offer from the selling party and its acceptance by the buyer.
Means of payment
Depending on the trust between the parties, the commercial risk and that of the country from which the payment will be issued, a means of payment with greater or lesser guarantees can be agreed upon.
The risk of default limitation can be avoided by advance payment, contracting an insurance policy or using a means of payment with bank guarantees.
Simple means of payment
- Personal check.
- Banker’s check.
- Clean and documentary payment orders.
- Clean remittance.
Means of documentary payment
Documentary remittance. This is payment made upon presentation of a set of documents and can be at sight or deferred.
Documentary credit. This is the safest payment method because, if at the agreed time the buyer does not have the agreed amount, the importer’s bank will make the payment, provided the obligations imposed by the documentary credit conditions have been met.
Customs processing
In exportation, the customs dispatches the goods according to the documentation presented by the customs representative together with the SAD or single administrative document and collects the corresponding taxes and fees.
Bear in mind that among the countries of the European Union there is free movement of people and goods under a common customs regime.
The possible customs destinations of merchandise are:
- Inclusion in a customs regime.
- Introduction in a free zone or bonded warehouse.
- Re-export outside the customs territory.
- Destruction.
- Abandonment.
In turn, the following customs regimes can be differentiated:
- Free circulation or definitive dispatch.
- Transit.
- Warehouse: customs or other than customs, temporary storage warehouse and authorized premises for goods declared for export.
- Inward or outward processing.
- Temporary or definitive export.
- Temporary import.
- Processing under customs control.
BEMAR will advise you on your exports regarding:
- Destinations and customs regimes corresponding to the operation.
- Documents that must be presented at the departure customs or in the country of destination.
- Provide for possible delays due to documentary or physical inspections of the merchandise.
- Advisability of customs clearance in the country of destination being done at the importing company’s expense.
Export documentation
Together with the SAD, depending on the operation and the nature of the exported goods, the most common documents that must be presented for customs clearance are:
- Commercial invoice.
- Exports to countries with a preferential agreement:
- Depending on the origin and country of destination: EUR-1, ATR and, exceptionally, FORM A.
- The invoice must indicate the authorized exporter number (in which case the EUR-1 is not necessary).
- In the case of values lower than € 6,000 EUR-1 is not required either, provided that the following clause is specified: “The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of European Preferential Origin”.
- Exports to other countries: certificate of origin issued by a chamber of commerce, if so required by the buyer.
- Restricted goods: export license or authorization or quota authorization.
- Dangerous goods/IMO: a dangerous goods declaration (DGD) and material safety data sheet (MSDS) are required.
- Conflict-affected destinations: export license or authorization.
- Exports originating in the EU eligible for “restitution”: export certificate for agri-food products (Agrex).
- Sensitive products: inspection or control certificates (sanitary, phytosanitary, dual use technology, veterinary, heritage, etc.).
- Loading list, if there are several packages.
Export insurance
One should assess taking out an insurance policy that covers exportation risks or, at least, the transport of the merchandise to the buying company’s premises. For the former, one can consult Cesce’s export insurance offer.
To insure the merchandise during its transportation, the responsibility or benefit will fall to either the seller or the buyer to take out a contract, depending on the Incoterms rule agreed upon.
This insurance will cover risks of stowage, handling, storage, loading and transport of merchandise and even others such as riots, strikes and acts of piracy.
Transport insurance is different from the carrier’s liability insurance where compensation is limited by the weight and value of the merchandise. In the transport insurance contract the holder decides the risks covered, compensation and damages.
In general, the risks are covered by policies that include the Institute Cargo Clauses (ICC) of the Insurance Institute of London. They take on three types: A, B and C, with A being the one that offers the greatest coverage.
