TERMS OF PAYMENT

To know the Commercial and Terms of Payment is very important to run any business. Specially which business mainly done Internationally.

Today I am going to published some Terms of Payment which is very essential for apparel business.

TERMS OF PAYMENT

Documents Against Acceptance (D/A)

The buyer is allowed to make payment for the goods on credit, as agreed between him and the seller. Payment for the merchandise is commonly 60 or 90 days after acceptance of documents. The buyer gains the advantage of not having to pay for the goods for a period of time after accepting the documents. The supplier bears some risk because he will not receive payment until a specified period after the documents and titles to the merchandise have been accepted.

Documents Against Payment (D/P)

The supplier agrees to release any documents referring to the transfer of title for the merchandise upon payment. Since the goods are produced and shipped before the supplier tenders the required documents for payment, there is some risk to the supplier for demurrage charges if the buyer does not accept the documents and title to the goods.

Open Account

This method of payment does not involve the services of a bank, but is based upon an agreement between the supplier and the buyer. The buyer has no legal obligation to pay the supplier and payment is normally made directly to the supplier. The supplier bears some risks as the goods and documents are usually delivered to the buyer before payment is made.

Letter of Credit (L/C)

A letter of credit (also known as documentary credit) is a document issued by a bank on behalf of an applicant (the buyer) undertaking to make payment to a beneficiary (the seller) up to a stated amount of money, within a prescribed time limit and against stipulated documents.

There are usually two banks involved in a letter of credit operation. The issuing bank is the bank of the buyer and issues the credit; the advising bank, usually located in the seller's country, is the bank through which the advising bank sends the credit to the beneficiary.

Types of credit:

There are three common types of credit: revocable, irrevocable, and irrevocable and confirmed

Revocable credit: this type of credit can be amended or cancelled by the applicant without any prior warning or notice to the beneficiary. More risks are involved for the seller (the beneficiary) as he will then have to deal directly with the buyer to obtain payment. However the buyer has more flexibility.

Irrevocable credit: this type of credit can be amended or cancelled only with the agreement of all parties concerned. It also represents a definite undertaking by the issuing bank to pay provided that the stipulated documents are presented and that the terms and conditions of the credit are complied with.

Irrevocable and confirmed credit: this type of credit involves the undertaking of the advising bank in addition to that of the issuing bank; it means that the issuing bank requests a second bank to add its own confirmation to the credit so that the confirming bank is responsible to make payment if the issuing bank fails to pay the beneficiary.

A letter of credit should usually stipulate a requirement for the following documents:

Bill of lading

Copy of the certificate of

Origin commercial invoice

Export licence

Packing list

Commercial Invoice

A commercial invoice is a business document which records the sale of goods or services between two parties, and by which the seller informs the buyer of the amount to be paid for the goods. Usually, the original and four copies are stipulated in the LIC.

A commercial invoice normally includes the following information:

Date and authorized signature

The correct name and address of both buyer and seller (or the name of the consignee if the goods are not consigned to buyer)

A detailed description of the merchandise purchased strictly corresponding with the description given in the letter of credit, along with quantity, unit price, and total price, all deductions and additional charges included in the price

Weight of the goods, number of packages, any identifying shipping marks, any import license number, contract number or any other details requested and stipulated in the LIC

Terms of delivery and payment (FOB, CIF, C&F)

The name of the issuing bank and the letter of credit number

The port of entry for which the merchandise is destined

The type of currency and rate of exchange

(Collected and Edited)

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Thanks & Best Regards

Enamul Haque Bipul

E-mail: ehbipul@gmail.com

Skype: bipul1984

Mob: +8801717264756

http://www.apparelmerchandise.blogspot.com



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TERMS OF TRADE

To know the Commercial and Terms of Trade is very important to run any business. Specially which business mainly done Internationally.

Today I am going to published some Terms of Trade which is very essential for apparel business.

TERMS OF TRADE

C&F (cost and freight)

The seller/supplier agrees to contract the freight and pay "cost and freight" for loading the goods, cleared for export, on board a vessel and the charges to ship the goods to destination. The buyer bears the risk of the goods from the time they pass the ship's rail at the port of shipment and pay for the insurance coverage, and for the unloading costs at the port of destination.

CIF (cost, insurance, freight)

The seller's price includes all charges, freight and insurance up to the point where the ship carrying the goods arrives at the port of destination; the goods must be cleared for export by the seller. From that point the buyer has to bear all charges and risks, including unloading costs.

CM

This refers to the manufacturing cost and this term means "cut and make". The buyer supplies all the materials to the manufacturer.

CMQ

This term means "cut, make and quota" and is similar to 'CM' except that the manufacturer has to supply the quota as well.

CMT

The term means "cut, make and trim". The buyer provides the fabric, and the supplier makes the garments.

CMTQ

The term means "cut, make, trim and quota". The buyer has to provide the fabric and the manufacturer makes the garments as well as provides the quota.

Ex-Ship

The supplier is responsible for all costs incurred until the ship reaches the port of destination where the supplier delivers the documents and the buyer can clear the goods on board the ship. The buyer bears all risks and costs from that point including unloading charges.

EXW (ex- works) /&-Factory

The supplier delivers the goods to the buyer at his premises, i.e., factory, warehouse, etc. He has the minimum responsibility and does not have to provide minimum documentation unless upon specific request. The buyer bears all costs and risks involved upon delivery of the goods until the desired destination.

FOB

This term means "Free On Board". The supplier is responsible for all charges (including export licences, export taxes, etc.) and risks until the goods have passed over the ship's rail at the port of shipment; the merchandise must be cleared for export. The buyer contracts and pays for the freight and bears all risks for loss or damage to the goods as soon as the merchandise passes the ship's rail. The buyer also pays for all import duties and clears the goods through customs at the point of destination.

FOB Airport (FOA)

This is similar to the term FOB except that the mode of transportation is an air carrier. The supplier fulfils his obligations after he has delivered the goods to the air carrier. The goods must be cleared for export by the supplier.

Landed Duty Paid (LDP)/ Delivered Duty Paid (DDP)

The seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller bears the risks and costs, including duties, taxes and other charges of delivering the goods thereto, cleared for importation. Under these terms, the seller bears the maximum responsibility, and in this case, the seller has to clear the goods both for export and import.

Certificate of Origin

A certificate of (CO), is issued when it has been established that the goods are the natural produce of The Following Country or the product of a manufacturing process in The Following Country which has changed permanently and substantially the shape, nature, form or utility of the basic materials used in manufacture. There are specific origin criteria applicable to individual types of products manufactured in The Following Country.

Packing List

This is a document that indicates the contents of each individual carton/ package in the container. The packing list includes the cubic measurement of the cartons/package, the weight, the number of cartons /packages, the breakdown of the goods by size/colour/quantity. This document is prepared by the seller or the ship owner, and the buyer can specify which information should be included.

(Collected and Edited)

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Thanks & Best Regards

Enamul Haque Bipul

E-mail: ehbipul@gmail.com

Skype: bipul1984

Mob: +8801717264756

http://www.apparelmerchandise.blogspot.com

SHIPPING TERMS

To know the Commercial and Transportation terms is very important to run any business. Specially which business mainly done Internationally.

Today I am going to published some terms of Shipping which is very essential for apparel business.

SHIPPING TERMS

Consignee

The person whose name appears on the bill of lading or airway bill as the party to whom the goods are to be delivered by the carrier.

FCL (full container load}

A fully loaded container which may be in weight or cubic measurement terms, contracted by one shipper, and conveyed to one consignee and to one destination.

LCL (less container load)

A consignment of cargo which does not fill a full container, grouped with other consignments for the same destination.

Shipper

This is the person whose name appears on the bill of lading or airway bill as the party who has contracted the carrier to dispatch the goods.

Shipping Marks

These are marks essential to identifying cargo and linking that cargo with specific documents. Because these marks are important as identifiers, the marks and numbers should be as simple as possible. Shipping marks include the abbreviated name of buyer, reference number, destination, package number, and container number (if applicable).

Garment on Hangers (GOH)

The garments are packed into the container on hangers

Flat Packed Container (FPC)

The goods are packed into cartons and loaded into the container.

(Collected and Edited)

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Thanks & Best Regards

Enamul Haque Bipul

E-mail: ehbipul@gmail.com

Skype: bipul1984

Mob: +8801717264756

http://www.apparelmerchandise.blogspot.com

TRANSPORT TERMS

To know the Commercial and Transportation terms is very important to run any business. Specially which business mainly done by Internationally.

Today I am going to published some terms of Transportation which is very essential for apparel business.

TRANSPORT TERMS

Bill Of Lading (B/L) - It is a major document if the goods are dispatched by sea.

The document represents:

1. A formal receipt for the goods

2. The evidence of the contract of carriage of the goods between the shipper of the goods and the shipping company

3. The title to the goods

A bill of lading should include the following details:

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      A description of the goods in general terms not inconsistent with that in the credit

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      Identifying marks and numbers, if any

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      The name of the carrying vessel

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      Evidence that the goods have been loaded on board

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      The ports of shipment and discharge

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      The names of shipper, consignee (if not made out "to order"), and name and address of the "notify" party if any

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      Whether freight has been paid or is payable at destination

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      The number of original bills of lading issued

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      The date of issue

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      The departure date of carrying vessel

Combined Transport Bill of Lading

A bill of lading covering carriage by a combination of transport movements where the carrier issuing the bill undertakes responsibility for the goods from a point or place of receipt to a point or place named in the bill of lading. This document is also commonly called a "container bill of lading" as it is issued by container companies and their agents.

Groupage Bill of Lading /House Bill of Lading

When the order amount is insufficient to fill a container, the supplier might request that the forwarder combine several orders that are going to the same port of destination into one container to save freight charges for all the parties concerned. The forwarder does this and delivers the container to the shipping lines, which treats the container as one shipment and issues one set of bill of lading to the order of the forwarder, who in turn issues "groupage bill of lading" or "house bill of lading" to each of the suppliers. These documents merely serve as a delivery order notice or shipping certificate to direct forwarding agents at the port of destination to deliver the goods to the holders of the house bills of lading.

Negotiable Bill of Lading

The bill of lading is consigned to "the order" of the shipper, and blank endorsed on the back to the order of the bank which issues the letter of credit for the buyer.

Non-Negotiable Bill of Lading

The document is consigned to a specific party and delivery by the carrier is to the consignee only. The consignee must produce an original bill of lading in order to take delivery of the goods.

On Board Bill of Lading

The document confirms that the goods have been loaded on board for shipment, validated by the shipper confirming the name of the vessel and the date of boarding. This document is always requested by the bank unless otherwise stipulated in the letter of credit.

Stale Bill of Lading

The bill of lading is tendered to the negotiating bank at so late a date after sailing that the negotiating bank could not negotiate the documentary letter of credit before arrival of the goods at the port of destination.

Third Party Bill of Lading

 This is a bill of lading that does not show the shipper as the beneficiary of the shipment but rather that the goods are consigned to a third party. Unless expressly prohibited in the terms of the letter of credit, this type of bill of lading is commonly accepted for negotiation by the banks.

Through Bill of Lading

This is an ordinary bill of lading with the exception that it indicates that the cargo will be unloaded at a port of discharge and then carried to a final destination by another sea carrier. The through bill of lading can also be used for transfers, trans shipments, relays, or more than one mode of transport, similar to a combined transport bill of lading.

Unclean Bill of Lading

A bill of lading that bears a superimposed clause or statement expressing reservations about the condition of the goods or packing. If such remarks are shown on a bill of lading, the document will be treated as "unclean" or "claused" and considered a discrepancy by the banks.

House Airwaybill

A master airwaybill covers the whole shipment; a house airwaybill is a receipt issued by a forwarder to each separate customer for his shipment in a single airwaybill.

Master Airwaybill

A receipt or air consignment note issued by an airline or their authorised agents evidencing the dispatch of merchandise by air freight. Usually three originals are made: one for the consignee, one for the shipper/supplier, and one retained by the issuing carrier.

(Collected and Edited)

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Thanks & Best Regards

Enamul Haque Bipul

E-mail: ehbipul@gmail.com

Skype: bipul1984

Mob: +8801717264756

http://www.apparelmerchandise.blogspot.com

Sewing Stitch Types

Dear All,

Though you will get more than 100 posts regarding sewing stitch on the web, however, I am again posting here the some sewing stitch photo with details. 

A.    3 Needle Bottom covering chain stitch, 6 mm (Flat Lock)

B.    3 Needle Top and Bottom covering chain stitch, 6 mm (Flat Lock)

C.     2 Needle Top and Bottom covering chain stitch, 6 mm (Flat Lock)

D.    2 Needle Bottom covering chain stitch, 6 mm (Flat Lock)

E.     2 Needle Top and Bottom covering chain stitch, 3 mm (Flat Lock)

F.     2 Needle Bottom covering chain stitch, 3 mm (Flat Lock)

G.    Multi thread single needle chain stitch (Front View)

H.    Multi thread single needle chain stitch (Back View)

I.     Over lock 4 threads stitch, 7 mm

J.     Over lock 3 threads stitch, 5 mm

K.    Over lock 3 threads stitch, 2 mm  

L.     Over lock 3 threads stitch, 3 mm

M.    Blind / Base Ball Stitch, 2 mm

N.    Blind / Base Ball Stitch, 3 mm 

O.    3  Thread over lock stitch (Latus)

P.     Plain Stitch / lock Stitch

Sorry for the poor image quality. 

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Thanks & Best Regards

Enamul Haque Bipul

E-mail: ehbipul@gmail.com

Skype: bipul1984

Mob: +8801717264756

http://www.apparelmerchandise.blogspot.com

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