Ehsan Amiri

Under D/P terms, the exporter ships the goods and presents the Bill of Exchange to his negotiating bank together with B/L and other shipping documents. Then, the bank may pay the exporter against the documents, provided that there is a previous arrangement between the bank and the exporter to do so.

However, in most cases, the bank does not pay the exporter immediately, but mails the documents to its correspondent bank (reimbursing bank/collecting bank) in the importer’s country. The reimbursing bank then notifies the importer on the arrival of the documents. When the importer pays the Bill of Exchange at the reimbursing bank, the bank notifies the negotiating bank in the exporter’s country to confirm payment from the importer.

On the receipt of this notice, the negotiating bank pays the exporter and the settlement is complete. This method of settlement is called “Collection of Documentary Bill of Exchange”.

The International Air Transport Association (IATA), which makes up the majority of the world’s airlines, uses the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air as the basis for their dangerous goods regulations (IATA-DGR.) Some airlines have specific operational variations and shippers should be aware of these variations. The Shipper’s DG Declaration has very specific requirements and can be quite complex.

The Export Administration Regulations (EAR) are enforced by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). Among the content found in the EAR is the Commerce Control List (CCL), a list of dual-use items; that is, items that have both a commercial use as well as a potential military application. Each dual-use item has a corresponding Export Control Classification Number (ECCN), which is used to determine if an export license is required.

A carrier is a company or party that moves the goods in an international transaction. An inland carrier will move the goods from your warehouse to the port of export. From there, an air carrier would transport goods on an airplane, an ocean carrier would transport goods on a ship, a rail carrier would transport goods on a railroad or a truck carrier would transport goods on a truck.