
TABLE OF CONTENTS
Chapter 1 The Export Sale ................................................................................................ Getting Started ................................................................................................ Benefits of Exporting ........................................................................................ Processing an Export Order .............................................................................. Communication and Legal Requirements ............................................................ Transportation Requirements ............................................................................. Payment Requirements .................................................................................... Responsibilities of the Export Administrator ........................................................ Incoterms ........................................................................................................ Exporter of Record ...........................................................................................	1-1 1-1 1-2 1-3 1-3 1-4 1-4 1-5 1-7 1-9
Chapter 2 Export Communications .................................................................................. Courtesy and Clear Language ........................................................................... Methods of International Communication ............................................................ Preparing An Export Quotation .......................................................................... Worksheet Preparation ..................................................................................... Proforma Invoice .............................................................................................. Agents and Distributors .................................................................................... U.S. Department of Commerce Services ............................................................ Advance Fee Fraud ..........................................................................................	2-1 2-1 2-2 2-3 2-4 2-5 2-6 2-7 2-8

Chapter 3 Shipping and Packaging Methods ................................................................. Packaging Issues ............................................................................................. Export Wood Packaging Program ...................................................................... Transportation Considerations ........................................................................... Sensitive Shipments ......................................................................................... Selection of Air Freight or Ocean Freight ............................................................ Intermodal ....................................................................................................... Containerized Ocean Shipments ........................................................................ Consolidator (NVOCC) ...................................................................................... Breakbulk ........................................................................................................ Customer-Specified Carrier ................................................................................ Cost Calculation ............................................................................................... Preshipment Inspection .................................................................................... Export Marks ................................................................................................... "Micro-land Bridge" ...........................................................................................	3-1 3-1 3-2 3-2 3-3 3-5 3-6 3-7 3-8 3-9 3-9 3-10 3-11 3-11 3-15

Chapter 4 Making the Export Shipment ........................................................................... Freight Forwarder Functions .............................................................................. Power of Attorney ............................................................................................. Making the Export Shipment ............................................................................. The Commercial Invoice .................................................................................... The Packing List .............................................................................................. Shipper's Letter of Instruction (SLI) ..................................................................... Dock Receipt ................................................................................................... Ocean Bill of Lading .......................................................................................... Air Waybill ....................................................................................................... Certificates of Origin ......................................................................................... Electronic Export Information (EEI) .................................................................... Automated Export System (AES) ...................................................................... Mandatory AES ............................................................................................... Responsibility for preparing and signing the EEI................................................... Insurance Certificates ....................................................................................... Freight Forwarder's Receipt ............................................................................... Choosing a Freight Forwarder ............................................................................	4-1 4-1 4-2 4-3 4-4 4-6 4-7 4-8 4-9 4-11 4-11 4-13 4-13 4-14 4-15 4-15 4-16 4-17
Chapter 5 Basic Foreign Exchange and International Payment Procedures .............. Exchange Rate Basics ..................................................................................... Calculating Foreign Exchange ........................................................................... Doing Business in Foreign Currencies ................................................................ Payment Techniques ........................................................................................ Cash-In-Advance .............................................................................................. Open Account ..................................................................................................	5-1 5-1 5-3 5-4 5-6 5-7 5-8
Chapter 6 Basic Letters of Credit ..................................................................................... Payment Methods ............................................................................................ Using the UCP ................................................................................................. Terminology ..................................................................................................... Letter of Credit Types ....................................................................................... Step-by-Step Letter of Credit Procedure ............................................................. Step One: Export Quote & Letter of Credit Opening ............................................. Banking Fees .................................................................................................. Step Two: Letter of Credit Receipt ..................................................................... Step Three: Order Fulfillment ............................................................................ Step Four: Preparation & Presentation of the Letter of Credit Documents .............. Step Five: Payment & Goods Receipt ................................................................	6-1 6-2 6-4 6-5 6-6 6-7 6-8 6-10 6-11 6-13 6-13 6-15
Chapter 7 The Collection Payment Method ..................................................... Using International Collections .......................................................................... The Collection Payment Method ........................................................................ Direct or Indirect Collection? .............................................................................	7-1 7-3 7-5 7-6
Chapter 8 Export-Import Bank ........................................................................................... Ex-Im Bank ..................................................................................................... Ex-Im Bank Guarantee ..................................................................................... Ex-Im Bank Intermediary Loan .......................................................................... Step One: Quotation and Preliminary Commitment ............................................. Step Two: Final Commitment ............................................................................ Step Three: Receipt of Down Payment and Promissory Note ............................... Step Four: Shipment and Document Presentation ............................................... Step Five: Payment ..........................................................................................	8-1 8-1 8-2 8-3 8-3 8-6 8-6 8-6 8-6
Chapter 9 Export Insurance ............................................................................................... Types of Insurance ........................................................................................... Credit Insurance ............................................................................................... Reasonable Spread of Risk ............................................................................... U.S. Content Requirements ............................................................................... Commercial Risk Coverage ............................................................................... Default ............................................................................................................ Making the Claim ............................................................................................. Political Risk Insurance .................................................................................... Product Liability Insurance ................................................................................ Workmen's Compensation ................................................................................ Cargo Insurance ............................................................................................... Air Cargo Insurance .......................................................................................... Ocean Cargo Insurance .................................................................................... Obtaining the Insurance Coverage ...................................................................... Insurance Certificate Required By Letter of Credit ................................................ Making the Claim .............................................................................................	9-1 9-1 9-3 9-3 9-3 9-3 9-4 9-5 9-5 9-7 9-7 9-7 9-9 9-9 9-10 9-11 9-11
Chapter 10 Export Administration Regulations ............................................................... Commerce Control List ..................................................................................... Obtaining the Export Administration Regulations ................................................. Background to Export Control Regulations ......................................................... Procedure for Complying with the Export Administration Regulations .................... Step One: Determine the Agency that Controls the Export ................................... Step Two: Determine the Type of Export Authorization under which shipment will be made ..... How to Determine NLR, License Exception, or Export License ............................. Export Classification Control Number (ECCN) ..................................................... Step Three: Obtain Supporting Documentation .................................................... Step Four: Submit the Export License Application via SNAP ................................ Tracking the Application (STELA) ...................................................................... Step Five: Obtain the Approved Export License ................................................... Step Six: Make Shipment under the Correct Export Authorization, Destination Control Statement (DCS) ................................................................. Step Seven: Maintain Export Records ................................................................ Implementing the Export Administration Regulations ........................................... Commodity Classification Request .................................................................... "Deemed" Exports ...........................................................................................	10-1 10-2 10-3 10-3 10-4 10-4 10-5 10-6 10-6 10-10 10-12 10-13 10-13 10-13 10-14 10-14 10-15 10-17
Chapter 11 Other Regulations ........................................................................................... International Traffic in Arms Regulations (ITAR) ................................................... Procedure for Complying with the ITAR .............................................................. Assets Control Regulations ............................................................................... Antiboycott Compliance Regulations .................................................................. Foreign Corrupt Practices Act (FCPA) ................................................................ Movement of Hazardous Cargo .......................................................................... Background Information .................................................................................... Step One: Classify the Product ......................................................................... Step Two: Determine the Proper Shipping Name and UN Number ......................... Step Three: Package Goods According to Packing Requirements ........................ Step Four: Prepare Shipper's Declaration for Dangerous Goods ............................ Step Five: Apply Secure Handling Labels ........................................................... Step Six: Prepare the Air Waybill ...................................................................... Temporary Exports .......................................................................................... The ATA Carnet Document ............................................................................... U.S. Council for International Business .............................................................. Handcarry ....................................................................................................... The TMP License Exception ............................................................................. Sales to U.S. Companies that Export ................................................................ Foreign Sales Corporations ...............................................................................	11-1 11-1 11-2 11-6 11-7 11-8 11-10 11-10 11-12 11-12 11-12 11-13 11-13 11-14 11-14 11-16 11-18 11-18 11-19 11-19 11-21
Chapter 12 Exporting To Canada And Mexico ............................................................... Harmonized Numbering System ........................................................................ Schedule B Number ......................................................................................... Standard Industrial Classification ....................................................................... North American Industry Classification System (NAICS) ...................................... Required Documents ........................................................................................ North American Free Trade Agreement (NAFTA) ................................................. Territorial Origin ............................................................................................... Goods and Services Tax (GST) ......................................................................... U.S. Company As Importer of Record ................................................................	12-1 12-1 12-3 12-3 12-4 12-4 12-5 12-8 12-9 12-9
Chapter 13 The Export Order Sequence ......................................................................... Putting It All Together ....................................................................................... The Export Order Sequence .............................................................................. Stage 1: Marketing and Sales Effort .................................................................. Stage 2: Request for Quotation ......................................................................... Stage 3: Formal Quotation ................................................................................ Stage 4: Purchase Order and Order Entry .......................................................... Stage 5: Order Coordination and Fulfillment ........................................................ Stage 6: Shipment and Invoicing ........................................................................ Stage 7: Payment and Order Follow-up .............................................................. EXPORT GLOSSARY and ACRONYMS	13-1 13-1 13-2 13-3 13-4 13-5 13-5 13-8 13-9 13-10

LIST OF EXHIBITS
Chapter 1 The Export Sale Exhibit 1-A Incoterms 2000 Summary ................................................................ Exhibit 1-B Incoterms ....................................................................................... Exhibit 1-C Seller & Buyer Responsibilities Under Incoterms ............................... Exhibit 1-D Risk & Cost Transfer Under Incoterms .............................................. Exhibit 1-E Parties to the Export Transaction ..................................................... Exhibit 1-F Exercise: Chapter 1 Exercise ........................................................... Exhibit 1-G Incoterms 2000 Introduction .............................................................	1-10 1-11 1-15 1-16 1-17 1-18 1-19
Chapter 2 Export Communications Exhibit 2-A Export Quotation Worksheet (Air Shipment) ...................................... Exhibit 2-B Export Quotation Worksheet (Ocean Shipment) ................................ Exhibit 2-C Items to be Included in the Export Quotation ..................................... Exhibit 2-D Proforma Invoice ............................................................................. Exhibit 2-E U.S. Department of Commerce Services ........................................... Exhibit 2-F US & FCS District Offices ................................................................ Exhibit 2-G Country Desk Officers ..................................................................... Exhibit 2-H Useful Web Sites ........................................................................... Exhibit 2-I Advance Fee Fraud Letters (Nigeria) .................................................. Exhibit 2-J Exercise: Chapter 2 Exercise ...........................................................	2-9 2-10 2-11 2-12 2-13 2-15 2-17 2-20 2-21 2-22
Chapter 3 Shipping and Packaging Materials Exhibit 3-A Export Boxing Sketches ................................................................. Exhibit 3-B Specifications of Standard Ocean Containers .................................... Exhibit 3-C Air Container Specifications ............................................................. Exhibit 3-D Inspection Certificate ...................................................................... Exhibit 3-E Countries Requiring Preshipment Inspection ...................................... Exhibit 3-F Export Shipping Terms and Metric Conversion Chart .......................... Exhibit 3-G Packaging, Shipping, and Contractual Arrangements ......................... Exhibit 3-H Exercise: Chapter 3 Exercise ..........................................................	3-16 3-17 3-18 3-20 3-21 3-22 3-23 3-26
Chapter 4 Making the Export Shipment Exhibit 4-A Power of Attorney Forms ................................................................ Exhibit 4-B Commercial Invoice ........................................................................ Exhibit 4-C Packing List .................................................................................. Exhibit 4-D Shipper's Letter of Instruction .......................................................... Exhibit 4-E Dock Receipt ................................................................................. Exhibit 4-F Ocean Bill of Lading ....................................................................... Exhibit 4-G Air Waybill .................................................................................... Exhibit 4-H Sample International Air Waybills .................................................... Exhibit 4-I Sample Truck Bill of Lading .............................................................. Exhibit 4-J Certificate of Origin ......................................................................... Exhibit 4-K Israel Certificate of Origin ................................................................ Exhibit 4-L Consular Invoice ............................................................................. Exhibit 4-M Shipper's Export Declaration (expired 9-30-08) ................................. Exhibit 4-N Information to be reported on the SED ............................................. Exhibit 4-O Electronic Export Information (EEI) Electronic Form .......................... Exhibit 4-P EEI Requirements Chart ................................................................. Exhibit 4-Q HTSUS Numbers Invalid for AES ..................................................... Exhibit 4-R Quick Guide to Foreign Trade Regulations (FTR) ............................... Exhibit 4-S Excerpts from the FTR .................................................................... Exhibit 4-T Census Bureau Export Training Videos ............................................. Exhibit 4-U AES Direct Website ....................................................................... Exhibit 4-V AES Export License Codes ............................................................. Exhibit 4-W Insurance Certificate ...................................................................... Exhibit 4-X Forwarder's Receipt ........................................................................ Exhibit 4-Y Checklist for Selecting a Freight Forwarder ....................................... Exhibit 4-Z Export Wood Packaging Program .................................................... Exhibit 4-AA Exercise: Completing the Commercial Invoice ................................ Exhibit 4-CC Exercise: Completing the Electronic Export Information ................... Exhibit 4-DD Exercise: Commercial Invoice with Mistakes .................................. Exhibit 4-EE Exercise: Packing List with Mistakes ............................................ Exhibit 4-FF Exercise: Dock Receipt with Mistakes ........................................... Exhibit 4-GG Exercise: Bill of Lading with Mistakes ........................................... Exhibit 4-HH Exercise: EEI with Mistakes ......................................................... Exhibit 4-II Exercise: Chapter 4 Exercise ........................................................... Exhibit 4-JJ HTSUS and Schedule B Numbers ................................................... Exhibit 4-KK HTSUS Sample page ................................................................... Exhibit 4-LL Schedule B Sample page .............................................................. Exhibit 4-MM USITC Website ........................................................................... Exhibit 4-NN Census Bureau Foreign Trade Division Website ..............................	4-18 4-20 4-21 4-22 4-23 4-24 4-25 4-26 4-28 4-29 4-30 4-32 4-33 4-34 4-37 4-38 4-39 4-40 4-48 4-56 4-57 4-58 4-59 4-60 4-61 4-62 4-64 4-66 4-68 4-69 4-70 4-71 4-72 4-73 4-74 4-75 4-76 4-77 4-78
Chapter 5 Basic Foreign Exchange and International Payment Procedures Exhibit 5-A Exchange Rate Tables .................................................................... Exhibit 5-B Types of Drafts ............................................................................... Exhibit 5-C Exercise: Foreign Exchange Exercise .............................................. Exhibit 5-D Countries Using the Euro ................................................................	5-9 5-10 5-11 5-12
Chapter 6 Basic Letters of Credit Exhibit 6-A Parties to the Letter of Credit Transaction ......................................... Exhibit 6-B Letter of Credit Flow Diagram ........................................................... Exhibit 6-C Uniform Customs and Practice for Documentary Credits ..................... Exhibit 6-D Types of Letters of Credit ................................................................. Exhibit 6-E Typical Letter of Credit Banking Charges ........................................... Exhibit 6-F Sample of Letter of Credit Payment Instructions ................................. Exhibit 6-G Sample Letter of Credit ................................................................... Exhibit 6-H Letter of Credit Checklist ................................................................. Exhibit 6-I Sample Letter of Credit Confirmation Cover Letter ................................ Exhibit 6-J Letter of Credit Documents Checklist ................................................ Exhibit 6-K Commonly Occurring Discrepancies ................................................. Exhibit 6-L Exercise: UCP 600 Exercise ............................................................ Exhibit 6-M Exercise: Commercial Invoice and Draft Preparation .......................... Exhibit 6-N Exercise: Commercial Invoice with Discrepancies .............................. Exhibit 6-O Exercise: Chapter 6 Exercise ..........................................................	6-18 6-19 6-21 6-30 6-33 6-34 6-35 6-36 6-37 6-38 6-39 6-40 6-42 6-43 6-45
Chapter 7 Collection Payment Method Exhibit 7-A Indirect Collection Transaction Flow Diagram .................................... Exhibit 7-B Direct Collection Transaction Flow Diagram ...................................... Exhibit 7-C Uniform Rules for Collections .......................................................... Exhibit 7-D Direct Collection Form .................................................................... Exhibit 7-E Indirect Collection Form .................................................................. Exhibit 7-F Exercise: Completion of the Indirect Collection Form ......................... Exhibit 7-G International Company Profiles ........................................................ Exhibit 7-H Exercise: URC 522 Exercise ........................................................... Exhibit 7-I Exercise: Chapter 7 Exercise ...........................................................	7-10 7-11 7-12 7-19 7-21 7-22 7-23 7-24 7-25
Chapter 8 Export-Import Bank Exhibit 8-A Eximbank Programs ....................................................................... Exhibit 8-B Eximbank Transaction Flow Diagram ............................................... Exhibit 8-C Promissory Note ............................................................................ Exhibit 8-D Supplier's Certificate ....................................................................... Exhibit 8-E Exercise: Chapter 8 Exercise ..........................................................	8-8 8-10 8-11 8-13 8-16
Chapter 9 Export Insurance Exhibit 9-A Application For Short-Term Single-Buyer Policy ................................. Exhibit 9-B Application For Single-Buyer Coverage .............................................. Exhibit 9-C Application For Multi-Buyer Credit Insurance ..................................... Exhibit 9-D Credit and Collection Procedures Questionnaire ................................ Exhibit 9-E Insurance Certificate ....................................................................... Exhibit 9-F Open Ocean Cargo Policy ............................................................... Exhibit 9-G Ocean Cargo Insuring Terms and Conditions ..................................... Exhibit 9-H Comparison of Partial Losses Recoverable ........................................ Exhibit 9-I Claims Process ............................................................................... Exhibit 9-J Exercise: Chapter 9 Exercise ...........................................................	9-13 9-16 9-19 9-25 9-28 9-29 9-30 9-31 9-32 9-33
Chapter 10 Export Administration Regulations Exhibit 10-A Agencies That Control Exports & Summary of Export Control Lists ... Exhibit 10-B Types of Commerce Department Export Licenses ............................ Exhibit 10-C List of General Prohibitions ............................................................ Exhibit 10-D Commerce Control List Sample Page ............................................. Exhibit 10-E Sample Commerce Country Chart .................................................. Exhibit 10-F License Exceptions ....................................................................... Exhibit 10-G Decision Tree for Export Authorization ............................................ Exhibit 10-H The Entity List .............................................................................. Exhibit 10-I Support Documents for License Application ...................................... Exhibit 10-J International Import Certificate ......................................................... Exhibit 10-K Statement by Ultimate Consignee and Purchaser ............................ Exhibit 10-L Multipurpose Application ................................................................ Exhibit 10-M Instructions for Multipurpose Application ........................................ Exhibit 10-N Commodity Classification Ruling .................................................... Exhibit 10-O BIS's "Know Your Customer Guidance and Red Flags" .................... Exhibit 10-P Watch Out For Illegal Export Schemes ........................................... Exhibit 10-Q Country Groups ............................................................................ Exhibit 10-R Export Management and Control Progra m (EMCP) Guidelines ......... Exhibit 10-S Summary of Restricted Parties Lists .............................................. Exhibit 10-T Exercise: Completion of Export License Application and Statement by Ultimate Consignee and Purchaser ............................................... Exhibit 10-U Exercise: Chapter 10 Exercise ....................................................... Exhibit 10-V Five Steps To NLR ........................................................................ Exhibit 10-W "Deemed Exports" ....................................................................... Exhibit 10-X BIS Website .................................................................................	10-18 10-21 10-22 10-23 10-24 10-25 10-26 10-28 10-29 10-30 10-31 10-32 10-33 10-35 10-36 10-37 10-38 10-44 10-46 10-47 10-48 10-49 10-52 10-53
Chapter 11 Other Regulations Exhibit 11-A Policy on Designating Defense Articles and Defense Services ........... Exhibit 11-B ITAR Categories ............................................................................ Exhibit 11-C U.S. Munitions List, Category VIII ................................................... Exhibit 11-D Department of State Registration Form ........................................... Exhibit 11-E Form DSP-83, Non Transfer and Use Certificate .............................. Exhibit 11-F Form DSP-5, State Department Export License Application.............. Exhibit 11-G Approved State Department Export License .................................... Exhibit 11-H OFAC Sanctions .......................................................................... Exhibit 11-I U.S. Antiboycott Laws and Example Language ................................. Exhibit 11-J Form 621-P, Report of Request for Restrictive Trade Practice ............ Exhibit 11-K Shipper's Declaration for Dangerous Goods ..................................... Exhibit 11-L IATA Regulations for Acetone ......................................................... Exhibit 11-M ATA Carnet Countries ................................................................... Exhibit 11-N How to Use a Carnet ..................................................................... Exhibit 11-O Handcarry of a Laptop Computer .................................................... Exhibit 11-P Certificate of Registration (U.S. Customs) ....................................... Exhibit 11-Q Overview of Duty Drawback ............................................................ Exhibit 11-R Exercise: Chapter 11 Exercise ....................................................... Exhibit 11-S Exports to Canada under the ITAR ................................................. Exhibit 11-T DDTC Website .............................................................................. Exhibit 11-U OFAC Website .............................................................................	11-18 11-21 11-22 11-23 11-29 11-31 11-32 11-33 11-36 11-38 11-39 11-40 11-41 11-42 11-43 11-46 11-47 11-50 11-51 11-53 11-54
Chapter 12 Exporting to Canada and Mexico Exhibit 12-A Sample HTSUS ............................................................................ Exhibit 12-B Sample Schedule B ...................................................................... Exhibit 12-C Commercial Invoice ....................................................................... Exhibit 12-D Canada Customs Invoice ............................................................... Exhibit 12-E Summary of Documents Required Under NAFTA ............................. Exhibit 12-F NAFTA Certificate of Origin ............................................................ Exhibit 12-G Sample Supplier's Certificate ......................................................... Exhibit 12-H NAFTA Rule 191 of Annex I ........................................................... Exhibit 12-I Quick Steps to NAFTA Origin .......................................................... Exhibit 12-J Revenue Canada Excise Offices ...................................................... Exhibit 12-K GST Registration Form .................................................................. Exhibit 12-L Exemption Certificate ..................................................................... Exhibit 12-M Exercise: Completion of the NAFTA Certificate of Origin ................... Exhibit 12-N Exercise: NAFTA Preference Criterion Exercise ............................... Exhibit 12-O Exercise: Chapter 12 Exercise ....................................................... Exhibit 12-P Canada Directive N-410, Mandatory HS Requirement ........................	12-13 12-14 12-15 12-16 12-17 12-18 12-20 12-21 12-22 12-23 12-24 12-25 12-26 12-27 12-28 12-29
Chapter 13 The Export Order Sequence Exhibit 13-A Export Order Sequence ................................................................. Exhibit 13-B Export Order Sequence Details ...................................................... Exhibit 13-C Exercise: Chapter 13 Exercise .......................................................	13-14 13-15 13-16

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