Export-Import Documentation

PART 1

Dialogue 1

Mr Driscoll, who works for the Freight Forwarding Agency, calls the General Manager of an explosives company. The company specialises in making dynamite for the mining industry.

brockett Hello, Brockett here.

driscoll Hello, Mr Brockett, Driscoll here again.

BROCKETT What's the problem?

DRISCOLL It’s about that consignment of NG explosives for Australia. There's a lot of paperwork involved with the shipment. I want to make sure I’m putting down the cor­rect information on the forms.

BROCKETT Only too glad to help. We've got to comply with all the regulations, else we'll all get in a muddle. What do you want to ask me?

driscoll It's this form I’m filling in for you, the one for dangerous

cargoes ...

BROCKETT Oh, you mean, the application for Special Stowage Order.

driscoll That's the one. I want to check one or two details with you — I've got the form in front of me here.

brockett Fire away!

driscoll I'm looking at the section headed: Number and descrip­tion of packages. Am I right in saying it's two hundred (200) crates of NG explosives? Gross weight... erm...

brockett Gross weight: a hundred and fifteen (115) tons. Net weight: a hundred (100) tons. F.o.b. value: one hundred thousand pounds (£100.000)

DRISCOLL Thanks. I'll note that down. You'll be using fibre-board cases, won't you? And they'll have strong wires round them for safety.

BROCKETT That's right. There'll be twenty cases per crate. Each case weighs twenty-five kilos.

DRISCOLL Uh-huh, I presume you'll be sending the goods by road to Tilbury Docks. They'll go to the container freight station. Right?

brockett Yes. The Transworld Shipping Line can take over from there.

DRISCOLL Let me make a note of that. Place of acceptance of cargo by Transworld... erm ... container freight station, Tilbury. Transworld will pack the goods into the container and unpack at destination.

BROCKETTI also want Transworld to handle the documentation. They can prepare the Bills of Lading and Customs Entry Forms on our behalf.

DRISCOLL How about insurance?

BROCKETT They can arrange our insurance cover. But try to get a low premium for us, Mr Driscoll. Twist their arm a little, if you have to.

driscoll Don't worry. I'll beat them down if possible.

BRОСКEТT That's covered about everything, I think. Oh, by the way, remember that we want extra copies of the Bill of Lading.

DRISCOLL I've already noted that. Maybe I should remind you — when you receive the Shipping Application, make sure you sign the Declaration on the back.

BROCKETT I'll do that. I've got to state the consignment's safely packed, haven't I?

driscoll Yes. That's the main purpose of the Declaration. Now, I'll let you get back to your work.

BROCKETT Thanks. I'm really up to my eyes at the moment. Still call me if you need me.

Answer the questions:

1. Where does Mr. Driscoll work?

2. What does an explosives company specialise in?

3. Why is Mr. Driscoll calling Mr. Brockett?

4. Why should they comply with all the regulations?

5. What form is Mr. Driscoll filling in?

6. What section is he interested in?

7. What kind of cases will be used?

8. Where are they going to send the goods?

9. What is the task of Transworld?

10. Who will arrange the insurance?

11. What should Mr. Driscoll try to do?

12. Who should sign the Declaration? Where? Why?

PART 2

DIALOGUE 2

This conversation takes place in an Asian country. Winston Mohabir is an import merchant. He talks to the Office Manager of his firm Grace Patel.

winston I don't believe it! I just don't believe it! Oh sorry Grace, come in and sit down. GRACE Trouble? WINSTON You can say that again.

GRACE Hope it's not about those air-conditioning units.

winston That's just what it is about, I'm afraid. What on earth are we going to do now?

grace They're not still being held up at Customs, surely?

winston Yes. I've just had a call from our shipping agent. Customs have refused to release the goods yet again.

GRACE What are they playing at, these people? I thought we'd given them every document under the sun. Don't tell me…

WINSTON We've got to start from scratch again, Grace. The Import Licence for the air conditioners has expired.

GRACE Out of date? You must be joking!

WINSTON I wish I were. The agent says there's a new government regulation — it's just come into effect. Licences for that category of goods have to be renewed.

GRACE Huh, first I’ve heard of it.

WINSTON The agent didn't know about it either until this morning. He got a shock when he presented the documents to customs.

GRACE I'm not surprised. So now we've got to apply for a new licence. It could take weeks to come through unless . . .

WINSTON Could you speed things up for us, Grace?

GRACE I might be able to. I have a contact in the Department of Commerce. Maybe I could pull a few strings for you.

WINSTON Please do so. If you get that licence through fast, we shall have a chance of keeping that airport contract.

GRACE OK. I'll get on to it right away. (Moves towards door.)

WINSTON Hold on, Grace! There's another problem with those documents.

GRACE Oh, no!

WINSTON I'm afraid so. It’s about the Certificate of Value and Origin.

GRACE Oh, yes?

WINSTON It’s signed by our supplier in Chicago. But now it's got to be countersigned and stamped by a Chamber of Commerce or the Consulate. The supplier must have forgotten to arrange that.

GRACE That's annoying. I’ll have to telex Chicago and get them to send another certificate.

WINSTON All these documents! This must be the worst country in Asia for red tape. Sometimes I wonder why I bother to run a business here.

GRACE Ha! There must be easier ways of making money.

WINSTON True. Listen, Grace, while you're at it, you'd better check all the documents again.

GRACE The whole lot?

WINSTON Yes. The Customs Declaration Form, the Commercial Invoice — make sure there are six copies - the Consular Invoice and the Bill of Lading. Check the Insurance Certi­ficate as well.

grace Phew! That'll keep me busy. Still, we don't want any more snags with the shipment, I suppose.

WINSTON No. We must have customs clearance as soon as possible.

Answer the questions:

1. Where does the conversation take place?

2. Who takes part in it?

3. What is the problem with the air-conditioning units?

4. Why have the Customs refused to release the goods?

5. What did the agent tell them?

6. How can Grace help them?

7. What is another problem with the documents?

8. Who should sign the Certificate of Value and Origin?

9. What documents do they need?

10. Why are all these documents necessary in foreign trade?

ex.1.Insert the necessary prepositions.

1. The companies which refuse to comply__trade regulations get __ a muddle.

2. The government keeps changing the regulations and a new one will come __ effect on Monday.

3. I haven’t filled __ the application __ Special Stowage Order yet.

4. The Seller wanted $ 500 for a stitching machine, but we beat them ___ to $ 400.

5. Hello Tom – you look busy! Yes, I’m __ __ eyes __ work..

6. If you don’t give all the relevant information __ the Import Licence your goods will be held __ __ Customs.

7. What are the Customs playing __? I suppose the agent gave them the correct documents.

8. The Import Licence has expired and we’ve got to apply__ a new one.

9. We’d better start __ scratch again and check all the documents once more.

ex.2.Paraphrase the following sentences using your active vocabulary.

1. There are many forms to fill in, a lot of writing to do.

2. Put pressure on them.

3. I’ll make them reduce the price.

4. I’ve got more work to do than I can manage.

5. We should start from the beginning.

6. I’ll try to influence some people who can help you.

7. I hope there’ll be no difficulties with shipment.

8. I’ll deal with the matter immediately.

9. We have given you all the documents.

10. The Customs didn’t allow the importer to take away the goods.

ex.3.Translate the following sentences into English.

1. Вы должны заверить этот документ и поставить печать.

2. Желательно, чтобы страховой взнос был как можно меньше.

3. Лицензию на импорт нужно продлить, так как срок ее действия истекает через 2 дня.

4. Товар задержан на таможне.

5. Надо постараться заставить их сбить цену.

6. Сейчас я заполняю заявку на спец. погрузку.

7. Новый правительственный закон вступил в действие недавно.

8. Нам придется отправить свидетельство о ценности и стране-производителе в торговую палату.

9. Международная транспортная компания может подготовить коносаменты и организовать страховку.

10. Когда Вы получите заявку на отгрузку, не забудьте расписаться на обратной стороне декларации.

ex.4. Read the following statements. Say whether they are true, if not correct them.

1. If you export explosives, you should have Customs Entry Forms.

2. When you send freight by air you have to obtain a Way Bill.

3. When you export dangerous cargo you must declare that it is safely packed.

4. Fibre-board cases are used for safety.

5. When you receive the Shipping Application you should sign the Customs Entry Form on the back.

6. If your licence has expired you should apply for a new one.

7. The Certificate of Value and Origin should be signed only by the supplier.

8. There should be three copies of the Commercial Invoice and two copies of the Consular Invoice to release the goods from Customs.

9. If the government didn’t keep changing the regulations, overseas trade would be easier.

Read and translate the following texts:

Each country has to import the articles and commodities it does not itself produce, and it has to earn foreign exchange to pay for them. It does this by exporting its own manufactured articles and surplus raw materials. Thus the import and export trades are two sides of the same coin, and both can have beneficial effects on the home market. Imports create competition for home-produced goods; exporting gives a manufacturer a larger market for his products, so helping to reduce the unit cost. In each case the effect is to keep prices in the home market down.

But there may be factors that compel governments to place restrictions on foreign trade. Imports may be controlled or subjected to a customs duty to protect a home industry, or because the available foreign exchange has to be channelled into buying more essential goods. And exports, too, may be restricted to conserve a particular raw material required by a developing home industry.

These factors mean that importing and exporting are subject to a lot of formalities, such as customs entry and exchange control approval, from which the home retail and wholesale trades are free. They also mean that foreign trade involves specialized knowledge and highly-trained personnel.

Answer the questions:

1. Why does a country import goods?

2. What can be exported?

3. What effect do import and export have on the home market?

4. Why do governments place restrictions on foreign trade?

5. What formalities are import and export subject to?

The most important shipping document is the bill of lading. It is: firstly, a contract between the shipper and the shipping company; secondly, a receipt for the consignment; and thirdly, a document of title. A document of title is proof of ownership, so the person who owns the B/L may claim the goods. A B/L is negotiable — it can be sold. If you sell the goods you give the buyer the B/L so it can be used to claim the goods. The advantage of this is that the importer can sell the goods while the ship is still at sea. The buyer then presents the B/L and collects the goods when the ship arrives at the port of destination. The first importer has the money to start another transaction. This was very important when voyages took many months.

A bill of lading doesn't only contain a full description of the consignment—numbers and weights and marks of packages—but a lot of other information as well. It quotes the name of the shipper and the carrying vessel, the ports of shipment and destination, the freight rate, the name of the consignee and the date of shipment, which is very important from a contractual point of view.

It may also contain a number of other clauses. Some bills of lading are marked "freight paid", when a shipper is selling C.I.F. or C. and F., others may allow transhipment, which means that the cargo may be transferred from one ship to another at some intermediate port. Normally four copies of a bill of lading are issued. Two copies will be signed by the ship's master or his agent, two remaining unsigned. The shipper then sends one signed and one unsigned copy to his consignee by airmail, and the other by sea-mail. He can ask for extra copies for his files.

Answer the questions:

1. Why is a Bill of Lading the most important shipping document?

2. What are the main functions of a Bill of Lading?

3. What does this document contain?

4. Is a Bill of Lading negotiable? What does it mean?

5. How many copies of a Bill of Lading are issued?

ROLE PLAYS

1. Your task is to transport some dangerous cargo from Lipetsk (the RF) to East London (South Africa). Speak on the phone with a representative of the Freight Forwarding Agency and discuss any problems you have with filling in the forms and other formalities.

2. You sell your product abroad, but you have some problems with the Customs. Discuss them with your colleague and find the way(s) out.