Course 5: Export Administration

Module 2: Processing the Buyer’s Order

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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.