Passages

The certificate of origin is a document issued by an exporter that confirms and certifies the country of origin of its products.

Alternatively, it might be a separate letter or form that incorporates a statement indicating the country of origin is as stated on the commercial invoice and certifies the document is true and correct; it is then signed by the exporter’s employee.

One of the most important export documents, the certificate of origin is issued by the exporter, it may be stamped by a chamber of commerce and supported by a commercial invoice declaring the same information.

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Exporting is something that should be taken seriously, no matter the size of your company. To do that, you may need to hire a professional to manage the process and ensure it’s being done correctly. In many situations, hiring an export coordinator for that role can be an important part of that process.

We spoke with Niall Lynchehaun, managing director at Midland Stone, and Richard Clews, founder of pantsandsocks.com and a former export coordinator, to learn more about the role of an export coordinator and how to identify when you need to hire one for your business.

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When it comes to export compliance, creating export documents, or, really, anything in the exporting realm, it’s definitely possible to do the work manually.

If you’re conscientious, thorough and pay attention to the universe surrounding what you’re trying to do—including changes in export regulations and general news—you certainly can do it all manually.

But...

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When exporting goods valued at more than $2,500 per Schedule B number to anywhere other than Canada, companies usually must file their export information electronically to the Automated Export System (AES) through the Automated Commercial Environment (ACE) prior to the goods leaving the country.

But what if AES or ACE is not working? That's when the AES Downtime Policy may be activated, and you can still ship if you meet certain conditions and if you follow the specific procedures.

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Unless you handle all parts of the export process by yourself, being an exporter means coordinating the efforts of a team of people within and outside your company to ensure your goods reach their final destination on time, on budget, undamaged and without surprise.

That’s hard enough when everyone is working in the same office. But when you are working with a remote team, you face new challenges.

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Many importers and exporters, especially beginners, assume that freight forwarders and customs brokers are two names for the same thing. I'm afraid that's not true.

Freight forwarders and customs brokers provide specific types of services, and each play an important role in international trade and international shipping. Many international transactions use the services of both forwarders and brokers, and sometimes a single company will do both.

Here's what you need to know about forwarders and brokers, how they fit in the international shipping process and specific examples of how they may be used.

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Incoterms 2020 rules are the latest revision of international terms of trade published by the International Chamber of Commerce (ICC). They are recognized as the authoritative text for determining how costs and risks are allocated to parties conducting international transactions.

Incoterms 2020 rules outline whether the seller or the buyer is responsible for, and must assume the cost of, specific standard tasks that are part of the international transport of goods. In addition, they identify when the risk or liability of the goods transfers from the seller to the buyer.

In this article, we’re discussing the Incoterm DDP, also known as Delivered Duty Paid.

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One of the most important considerations when it comes to international trade is how you are going to get paid for your exports. While relying on cash up front may eliminate the risk of non-payment, it limits your universe of potential customers as it can cause cash flow and other problems for buyers.

There are five primary methods of payment in international trade that range from most to least secure: cash in advance, letter of credit, documentary collection or draft, open account and consignment. Of course, the most secure method for the exporter is the least secure for the importer and vice versa. The key is to strike the right balance for both sides. This article focuses on letters of credit.

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Passages. We use them to move from one place to the next. We highlight them when we read to further our understanding of the world. We note them in our journals to remember where we've been and where we are headed.

Passages are an opportunity to move forward, improve our knowledge and prepare for what's next. That's why we've renamed our blog, Passages: The International Trade Blog. We want the name to reflect our goal to provide information that people involved in international trade can use to help solve a particular problem, get a better understanding of the import-export landscape, and move their careers forward.

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I recently got a call from someone trying to gain a better understanding of the differences between standard and routed export shipments (also called routed export transactions) and how responsibilities change when dealing with routed export shipments. 

Then, I got another call, and then an email or two, and so on—so perhaps you have these questions as well. Let me explain.

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