Tools for international trade
BEMAR, international logistics operator
Import plan
An import of products can be motivated by several factors – innovation, quality, cost reduction, opening new markets and business opportunities, among others. But in each case it is necessary to draw up an import plan.
This plan will be the guide for the import process. It must include everything from the value proposition it represents right down to fine details of the competitive advantages and distribution management, financial schedule, pricing policy, payment systems, protection against exchange rate fluctuations.
It must also contain the regulations on the product to be imported, if there are barriers to its importation, if it has tariffs, quotas or restrictions, if it has to be accompanied by special documentation or if it is certified, among other relevant issues.
Likewise, the import plan must also provide for import logistics.
BEMAR is the international logistics operator that will advise you on the terms of delivery of the merchandise that are most beneficial for you, valuing the possible costs at origin, selecting the most appropriate Incoterms rule and mode of transport and will coordinate all the necessary customs procedures and operations so that you can gain access to the goods 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, one or another means of payment can be agreed upon.
The risk limitation in case the goods do not comply with the agreed conditions or do not arrive at their destination at the agreed time can be avoided by documentary payment.
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 the buyer’s bank will only make the payment once the obligations imposed by the documentary credit conditions have been met.
Customs processing
In importation, the customs receives and dispatches the goods according to the documentation presented by the customs representative together with the single administrative document (SAD) and collects the corresponding duties, taxes and fees.
Depending on the type of merchandise, a specific quasi-customs service may be required prior to the import clearance.
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 distinguished:
- 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 imports regarding:
- Destinations and customs regimes corresponding to the operation.
- Documents that must be presented at the customs office of import and, where appropriate, in the departure customs in the country of origin.
- Provide for possible delays due to documentary or physical inspections of the merchandise.
- Advisability of customs clearance being done at the selling or buying company’s expense or in the country of origin or destination.
Import documentation
Together with the single administrative document (SAD), depending on the operation and the nature of the imported goods, the most common documents that must be presented for customs clearance are:
- Commercial invoice (it is advisable to specify origin).
- Loading list, if there are several packages.
- Certificate of origin, if there is tariff reduction, or documentation proving origin in case of bilateral agreements: FORM-A, EUR-1 or ATR models.
- Transport and insurance details depending on the terms of delivery agreed upon.
- Transport documents, depending on the means of transport used:
- Bill of lading.
- Airway bill.
- Railway consignment note (CIM).
- Road consignment note (CMR).
- TIR
- Transit T certificate and accompanying document.
- Product certifications that may be required: health, veterinary, Soivre, pharmacy, phytosanitary, low voltage, official approval, etc.
- Certifications according to the commercial policy of the country of destination:
- Import license or authorization.
- Quota authorization.
- Certificate of import of agri-food products (Agrex).
- If the value exceeds € 10,000, a DV-1 is issued.
Exceptionally, photographs, physical inspection, catalogues, sector-specific certifications, etc. may be required.
Import transportation insurance
According to the Incoterms rule agreed in the international contract of sales, the importing party should evaluate taking out an insurance policy that covers the risks concerning the transportation of the merchandise from the premises of the selling company to the point of final destination.
This insurance will cover the risks of stowage, handling, storage, loading or transporting the goods and even others such as riots, strikes or acts of piracy.
Transportation insurance is different from the carrier’s liability insurance where compensation is limited by the weight and value of the merchandise. In the transportation 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 offering the greatest coverage.
