d. Export bill of lading-service three purposes: 1) contract for carriage between shipper
and carrier, (2) receipt from the carrier for the goods shipped, (3) certificate of
ownership. Bills of lading for foreign shipments are called air waybills (air
shipments) and ocean bills of lading (steamships) A straight bill of lading is
non-negotiable whereas an order bill may be endorsed like a check.
e. Insurance certificate–evidence that insurance coverage has been obtained to protect
shipment from loss or damage while in transit. There are three kinds of marine
insurance: (1) basis perils, (2) broad named perils, and (3) all risks.
2. Automated Export System (AES) –Customs has introduced a single information
collection and processing center for electronic filing of the export documentation
required by the government.
C. Collection Documents
Documents that seller must provide the buyer in order to receive payment: (1) commercial
invoices, (2) consular invoices, (3) certificates of origin, and (4) inspection certificates.
VI. Export Shipments
The tremendous advance in materials handling techniques over the past two decades such as
containerization, RO-RO and LASH, provide cost savings and enables exporters to reach new
Containers are large boxes 8' x 8' in cross section by 10, 20 or 40 feet in length which seller
fills in its own warehouse. They are sealed and not opened until goods arrive at final
destination. Materials handling time is reduced and the risks of damage and theft are
B. RO-RO (Roll On-Roll Off) ships permit anything on wheels to be driven on and off. Loaded
trailers can be driven off in ports which do not have lifting equipment to unload containers.
C. LASH (Lighter Aboard Ship) vessels carry 60-foot long barges that are unloaded in deep
water and towed to shallow river ports where they are filled with cargo. The barges are then
brought back to the anchored LASH ship and loaded aboard.
D. Air Freight
Air freight has had a profound effect on international business because shipments which
required 30 days for delivery by ocean freight are now delivered in 24 hours. Huge freight
planes can carry 200,000 pounds of cargo. Although airfreight rates are higher than ocean
rates, the total cost of shipping by air is frequently less expensive. Even when total costs for
airfreight are higher, it may still be advantageous to ship by air when production and
opportunity costs are considered. Also the firm may be air-dependent, the products may be
air-dependent and airfreight may enable the exporter to compete with overseas manufactures.
Many of the concerns of exporters and importers are similar. The prospective importer
identifies import sources in a number of ways:
A. If similar products are already in the market, inspect them at a retailer who sells them to see
where they are made. Imported products are required by law to have country of origin clearly
marked. Then call the country’s embassy and ask for names of manufacturers. Also call
foreign chambers of commerce that are in major American cities. Once you have names and
addresses, write for quotations.