September 2002

Up Close and Personal

Get a first-hand look at America's #1 selling export documentation software

Shipping Solutions 2000 is the easy way to prepare your export forms. Simply enter your information on the EZ Start Screen and Shipping Solutions 2000 automatically completes more than two dozen standard export documents. Select the forms you need for your shipment and print them out on plain paper from your inkjet or laser printer.

Now you have a number of opportunities to see how easy it is to save time and money with Shipping Solutions 2000. Shipping Solutions will be featured at a number of export-related trade shows and seminars over the next several weeks.

ABC's of Exporting, October 3, 2002, Germanna Community College, Fredricksburg, VA—The Virginia Economic Development Partnership is sponsoring this free day-long seminar on export marketing, finance, documents, procedures and compliance. All attendees will see a demonstration of the Shipping Solutions 2000 software and will receive a free demo version on CD-ROM. Virginia companies can contact Joe Robinson at 540-857-6029 or jrobinson@ yesvirginia.org for more information.

Bureau of Industry and Security (BIS) Update 2002, Hilton Washington Hotel, October 10-11, 2002, Washington, D.C.—This conference includes a wide variety of plenary sessions and workshops that will provide essential information to exporters on new U.S. export control policies, regulations, and procedures including screening for proliferation concerns, developments in encryption controls, technology transfers and deemed exports, and regulations affecting U.S. persons and items abroad. Visit the Shipping Solutions booth and get a personal demonstration of the software. Call 202-482-6031 for more information.

Vermont World Trade Day 2002, October 16, 2002, Sheraton Hotel Burlington, Burlington, VT— Featuring presentations on export finance, export documentation and international trade law, this day-long trade show and conference will include Vermont's first ever report on small and medium-sized exporters, 20 of Vermont's latest international exporting success stories, and one-on-one meetings with  international service providers including Shipping Solutions. Call 802-828-1177 for more information.

Exporting USA, October 29, 2002, University of Michigan, Dearborn, MI—The World Trade Center Detroit Windsor Association and Performance Source Logistics are offering this in-depth seminar covering all aspects of exporting from the U.S. This day-long seminar combines classroom training in a state-of-the-art computer learning facility with hands-on transaction processing using Shipping Solutions 2000 export documentation software. For more details, call Performance Source Logistics at 716-631-9180 or email PSL295@cs.com.

Shipping Solutions 2000 Online Demo, Tuesdays, 1:00 Central TimeExporters can register to watch a FREE one-hour demonstration of the software online. The live demos will take you on a guided tour of Shipping Solutions software, answering any questions you may have about the program. In addition, companies can arrange a private demo by sending an email to info@intermart-inc.com.

 

Why is it taking so long to get paid? Part 2

By Chris Lidberg

Back when I was working at the bank, it was not uncommon for someone late in the day to walk into the
Letter of Credit area with their documents and think they
were going to walk out with a check within the hour.
Unfortunately, it just doesn’t happen that fast.

It’s pretty common knowledge that the vast majority of exporters dread the letter of credit process. However, other than cash in advance, it’s the only payment method where you are able to estimate when payment might be received.

So, just how long is it going to take to get paid?

Let’s say your goods are ready for shipment, and your freight forwarder picks them up on the first of the month. You’ve arranged inland transportation from your warehouse in the Midwest to the port of loading, which will probably take three or four days. Once the goods arrive at the port, it may take up to a week to get the goods on board the vessel and get the original bill of lading. We’re now at the 10th or 11th day of the month.

It will take you a few days to gather the remaining documents required by the letter of credit. (If the letter of credit requires any of the documents be legalized or consularized by a Consulate office, which is usually located in New York, you can add at least seven days to the process.) Once you’ve collected these documents, you would typically courier them to the bank, which adds another day to the process. We’re now at the 12th or 13th day of the month.

Once the bank has received your documents, according to UCP 500, article 13b, it has seven days to examine them and determine if they comply with the terms of the letter of credit. These are banking days, not calendar days. However, most banks today will try to examine the documents within two to three banking days. We’re now at about the 15th day of the month.

If your documents comply and if the letter of credit contains reimbursement instructions, plan on an average of another five banking days before payment is made. So now we’re at least up to the 20th or 21st day of the month.

If there are discrepancies in your documents, which is not an unusual occurrence, add another week to the payment process, during which time your bank is getting payment approval from the issuing bank. We are now up to the 27th or 28th day of the month.

If the letter of credit doesn’t contain reimbursement instructions, add at least another week to the payment process. Your bank will have to courier the documents to the issuing bank for their review before payment is effected.

I tell people in my seminars that they should expect to wait about a month from the time their products leaves their facility until they receive payment. Please keep in mind that the time frames I’ve given here are rough estimates, but it does give you a pretty good idea how long the letter of credit process can take.

Ms. Lidberg's bio


Other Resources:

Important International Trade Links

 Bureau of Industry and Security (formally the Bureau of Export Administration)
 CIA World Factbook
 Federal Maritime Commission
 Import Administration
 International Trade Administration
 International Trade Data System
 NAFTA Customs Website
 Small Business Administration
 Trade Information Center
 U.S.A. Trade Center
 U.S. Census Bureau
 U.S. Customs Service
 U.S. Department of Agriculture
 U.S. Department of State
 U.S. Department of Treasury
 U.S. International Trade Commission
 U.S. Trade Representative

 

General Information


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International Trade Seminars Offer In-Depth Study

Knowledge is power. In the international marketplace, knowledge can also mean survival.

If you and your company are going to succeed internationally, you need to know what you are doing every step of the way. A single misstep may not only cost your company money, it can lead to stiff fines and even a ban on exporting.

International Business Training offers a variety of day-long seminars that will help you walk confidently through the maze of import-export procedures and regulations.

Produced by Global Training Center—a leading provider of international trade seminars—these classes have helped thousands of individuals become more proficient at their jobs and more valuable to their companies.

Audit Compliance
Export Documentation and
  Procedures
Import Documentation
International Logistics: Ocean and
  Air Transportation
Letters of Credit - Export & Import
NAFTA Rules of Origin
Shipping Solutions 2000/Export
  Documentation Seminar
Tariff Classification: Using the
  Harmonized Tariff Schedule

These one-day seminars not only provide a complete overview of the scheduled topic, they include the corresponding reference book that will provide continued assistance long after the seminar has ended.

For more information about any of our seminars, just click on the topic above, visit our web page, or call International Business Training at 1-800-641-0920.

International Business Training Books & Self-Study Courses
Whether you're thinking about expanding your business internationally, you've just made your first international transaction, or you're a seasoned international trader, International Business Training (IBT) can help you gain the knowledge you need to thrive in the growing global economy.

Check out our expanded list of titles that will help your company increase profits, limit your liabilities and cut unwanted expense.

 Alternate Financing 
 Audit & Compliance: Customs
   Modernization Act  
 Drawback Made Easy  
 Exploring International Trade Options
 Export Documentation & Shipping
 Export Letters of Credit & Drafts
 Export Marketing and Sales

 Export Sales Agents & Distributors
 Export Sales and Marketing Manual
 Exporting: Regulations,
   Documentation, Procedures

 Exporting to Canada: Documentation
   and Procedures
 The IBT Guide to INCOTERMS 2000
 Import Procedures & Documentation
 Int'l Small Business Logistics  
 Mexico Procedures and
   Documentation  
 NAFTA Documentation & Procedures
 Textiles & Wearing Apparel:
   Documentation & Procedures
 Uniform Commercial Codes vs.
   INCOTERMS 2000

For more information about any of our export books or self-study courses, just click on any of the titles above, visit our web page, or call International Business Training at 1-800-641-0920.

 

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