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What is a Cty giao nhận? Part 1
Hi, my name is Jeff Coppersmith, and I want to talk to you about the importance of using a licensed Cty giao nhận to help you you wait it all your export transactions. Sometimes your buyer will make all the arrangements, but often it will be up to you. And that’s when a local Cty giao nhận comes in handy. A Cty giao nhận is a company licensed by the Federal Maritime Commission and/or the International Air Cargo Association to assit you with your export transactions. Think about your Cty giao nhận as your international transportation department. From the vary start of any export sale, you may want to consider hiring a Cty giao nhận. A Cty giao nhận will help you stay in compliance with United Stateds export laws and help you determine whether or not you can ship your goods to your customer. Most goods are bought and sold freely around the world, but there are certain restrictions on goods and to whom those goods can be sold. Some goods require a U.S government license. So the first qustion to ask is: Can I sell my product to that person or company in that particular country? Once that has been determined the process begins. Your customer will ask for a quotation or proforma invoice. Your customer will ask for a quotation or proforma invoice. This document tells the Buyer what it will cost to get the item and have it delivered to him or her. From the cost of the goods at your warehouse to the final cost of the goods when they arrive in the foreign country, a licensed Cty giao nhận will ask the questions that will enable you to provide the cost to your customer. For example: What is the commodity? Goods exported from the United States require a commodity classification number, and the transportation pricing is based on that commodity. This cell phone, for example, has a unique 10-digit number or code. Is your product breakable? If it is, then it must be carefully packed. Packing is a cost to consider when pricing your buyer’s order. Is your product temperature sensitive? If it is, then it must be shipped in a special refrigerated container, and that will add to the transportation cost. Does your product need to get there in a hurry? Air freight is the fastest way, but it’s also the most expensive. If your product isn’t time sensitive, then shipping via ocean is the way to go. There are differences in ocean freight costs as well. A ship that goes directly to your buyer’s country in three weeks costs more than a vessel that makes several stops and can take up to 6 weeks. Your cty giao nhận will help you make the sale by figuring out the best way to meet your customer’s delivery requirements. Are you planning on shipping enough for a full container or just a few boxes or pallets? The cty giao nhận will help you determine whether or not it’s a full container and consolidate your goods with other shippers to make a better transportation price. Is your product hazardous? Hazardous goods can be shipped, but there are very special requirements, and your choice of transportation may be limited, and the cost is much greater. Is your product super heavy or super sized? The cty giao nhận may need to make special arrangements for permits and specialized equiment. Based on these questions, the cty giao nhận is able to give you all the costs to get your product to the buyer. The cty giao nhận gives you information needed to prepare a pro forma invoice to send to the buyer. The buyer now knows what it’s going to cost to buy your product and have it shipped to their country. Easy and reliable. That’s what exporting can be. You know your product and how to sell it. Your cty giao nhận knows how to export it economically, safely, and most importantly, in compliance with U.S. export laws. You aren’t required to use a Cty giao nhận to make international sales, but it sure helps. In our next segment, we learn how to make the cty giao nhận help you deliver on the promises made in a popular form of export financing called the Letter of credit. Thanks for watching.
What is a Cty giao nhận? Part 2
Hello again. I’m Jeff Coppersmith. Last time we talked about the Pro forma invoice the document that summarizes all the costs of getting your product from your back door to your Buyer. If your Buyer places a formal order based on this Pro forma invoice, while you celebrate, your buyer in Finland goes to their bank and opens a Letter of credit promising to deposit payment into your bank. If you are a new exporter or if this is a new customer, we highly recommend that you use a Letter of credit rather than shipping your goods and hoping to get paid. An irrevocable Letter of credit helps ensure that if you comply with the terms of sales, you will be paid. Once you receive the Letter of credit, send a copy of it to your Cty giao nhận. There are very specific requirements in a letter of credit that must be met in order for you to get