Become a Market Leader by Knowing the Export-Import Business Process

No country is complete by itself. Every country is required to interact with others in the globe in many ways, such as sharing of natural resources, trade and economics, etc. The imports (buying goods from a foreign nation) and exports (selling goods to another country) ensure the flow of foreign exchange on both sides, which is conducive for a positive global economic growth. With a little knowledge about cross-border business management, you can start your own export import trade. You need to know the terminologies used in EXIM trade before plunging in deep. Read further to know more.

Customs duty: This is nothing but the tax being levied when certain materials are imported. This is a way for the government to have a check on over-importing in the interest to protect the domestic producers, as well as increasing their income.
Discounts and subsidies: Some governments offer subsidies and tax vacations for exporters of certain commodities. They also provide specialized free-trade zones with no tariffs and quotas to encourage the organizations to do their trading there. The global suppliers offer discounts their international clients, which reduces the expenses for your organization.
Bill of lading: This is the contract between the shipper (seller/exporter) and the customer (buyer/importer in another country), which is a physical confirmation of the receipt of goods. It comprises of the description of goods, quality and quantity and the proof for entitlement.
CIF: This is the acronym for all the prices involved in cost, insurance and freight. Normally the buyer has to bear these charges.
FOB: Another acronym often used in the global business lingo, where the shipper take care of the costs involved in delivering the goods to the ship/plane as agreed upon by the purchaser, further to which all the expenses are to be borne by the buyer.