Course 5: Export Administration
Module 2: Processing the Buyer’s Order
Module 2 of 2
In this module, we track a typical export sequence from the time the formal order is received to the receipt of payment. This module starts with a breakdown of an export order processing system, how to optimise it, and the various accompanying documentation to be produced. This is followed by the process of taking out cargo insurance, how to avoid payment risk and complying with exchange control regulations. The module finishes with clearing goods through customs, dealing with payment-related matters, internal communication, and associated record keeping. Click the icon below to begin your free export administration training.
If you have not, check out Module 1, Module 2, Module 3, Module 4, Module 5, Module 6 and Module 7 which form part of Course 1: Export Foundation Training alternatively if you are up to date, click on the button below to start the module on Producing Well-Constructed Quotations and Proforma Invoices.
Businesses & Organisations
who have identified an opportunity to expand their product range into foreign trade markets
looking to stay current on export readiness or require potential export assistance
Entrepreneurs & Individuals
with a basic understanding of the global trading environment looking to grow their knowledge of export readiness
looking to expand their knowledge of export readiness and the stages involved
Businesses & Organisations
running into business or product issues trying to expand to foreign trade markets
This module looks to build on the foundational export training in course 1 module 4, which covered the basics of export administration. In this module, we focus specifically on processing a buyer’s order, with a step-by-step process of an order and all the accompanying documentation and systems. We highlight vital considerations for setting up an export order processing system, including potential risks and challenges involved. Export administration has many vital ‘moving parts’, all of which require a strong understanding of the entire export administration process.
In the first topic, we process a contract of sale, which is the first step in accepting the buyer’s order. This includes the various payment terms and their associated documents like a letter of credit. Next, we highlight the essentials of an export processing system, delving into the essential considerations for managing your export orders. This includes document types, vital information and potential additional documentation like forwarding exchange contracts with a bank. With each step, we highlight potentially specialised processes based on the terms of the agreement. This topic also covers potential packing and marking considerations based on the chosen terms of delivery.
The following topic starts with a deep dive into the intricacies of taking out cargo insurance, where Incoterms® may influence your processes. This includes options for ‘open’ cargo insurance and once-off cargo insurance and associated considerations. This topic also covers how to avoid potential payment risk, which has a direct impact on your insurance premium. Including the purpose of UCR numbers, UNLOCODE of the various countries and how they relate to receiving payment. To round off the topic we also cover managing exchange control regulations and how to ensure your potential exchange risks are covered.
In the final topic, we deal with clearing goods through customs, which includes essential declarations and an associated customs registration number. Once customs clearance has been processed, the next step deals with payment-related concerns such as bank collection orders and documents like a bill of exchange. This topic concludes the module with a look into internal communication and record keeping associated with each step. This includes creating a checklist of vital considerations, and how to store and maintain proper records for the future.
Export administration can be an incredibly complex challenge with severe consequences. For example: if a seller misinterprets an export enquiry and falls into a contract that is not financially viable, it could have crippling consequences to their business. To ensure you understand the entire process, we highlight every step and all the associated documentation involved in processing a buyer’s order for a successful export transaction. Take charge of your export administration by completing this essential module, and make sure you do not make the same potential mistakes that so many have made before.
This free module is part of a comprehensive course and is a vital source of information you need to understand export administration. An understanding that is essential to any growing business or industry where the potential for international trade is high. Assuming you have completed the export foundational training, this module serves to improve your knowledge and understanding of the details involved in a typical export transaction. Which covers the entire process of confirming a buyer’s order. With this understanding of a typical export transaction from the point of acceptance covered, you should have a thorough understanding of the entire export administration process.
Topic 1: Setting up an export order processing system and expediting international cargo movement
Topic 2: Taking out cargo insurance, avoiding payment risk and complying with exchange control regulations
Topic 3: Clearing goods through customs, dealing with payment-related matters and internal communications and record keeping
This module is one in a series of modules to form a comprehensive course covering export administration. Every course and the subsequent module has been developed and curated by the International Trade Institute of Southern Africa and Trade Forward Southern Africa. The entire training course is free of charge and can be completed by individuals and organisations alike. This module and subsequent course lay an essential foundation for trade internationally. If you know anyone that would be interested, share this module with them using the link below. We would also love your feedback, so drop us a review once you have completed the module.