topic is coming soon to website

Harmonized Commodity Description and Coding System is commonly known as H.S code system.

The H.S codes identify the nature of products for various import and export regulations and procedures.

The H.S code consists of 21 sections divided into 99 chapters. H S code numbers are often used on the commercial invoice /proforma invoice.

For example:

Surgical Scissors H S code: 9018.9030

Surgical knives 9018.9040

Instrument Made from Carbon Steel: 9018.5010

In this H.S Code System 90 Chapters Define

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and Apparatus, Clocks and watches, musical instruments, parts and accessories everything is defined.

Usually, these are updated and the new HS code system is always available on the TDAP (Trade Development Authority of Pakistan) website.

Hope you have got knowledge about HS code system, if you need any help you can comment any time.

meanwhile, if you are visiting first time, you can study from Lesson 1 and ask us by comment if you have any questions.

Thanks,

In this lesson, we’ll learn all about binding business terms, these are necessary for correspondence with customers so both know the international laws.

The most used Business Terms are below

1 ETA = Estimated Time of Arrival

When the importer party wants to inquire about the shipment’s time of arrival or the date then it uses the term like “What is ETA?” ETA means the date of arrival of the shipment in the importer’s country.

2 ETD = Estimated time of Departure

Under this term, the exporter party informs the importer of the date when the goods are loaded on the ship or vessel or in the plane. The importer party only Writes this term as “What is ETD?”  to know when the shipment will depart from the exporter’s country and by air, by sea, by truck, or by train on which date and time.

3 AWB = (Air Way bill)

The Document acknowledges the receipt by an air transport company of goods dispatched by air. It usually is completed in triplicate with a copy of each for the consignor, consignee, and carrier.

An airway bill is not a document of title to goods in the same manner as a bill of lading. The freight charges would be collected by weight vise by the importer or exporter as mentioned in the in this bill with these words as “collect” or “prepaid” respectively. This is a non-negotiable instrument of air transport that serves as a receipt for the Shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to the specified conditions.

4 B/L = Bill of Lading

A document prepared by a carrier or freight forwarder that acts as received for the goods, as evidence of a contract between the carrier and the exporter, and as a document of title. A foreign buyer needs this document to take possession of the goods.

The freight charges would be collected by volume vise by the importer or exporter as mentioned in this bill with these words as “collect” or “prepaid” respectively. it is also called “Occasion B/L”. A bill of lading that covers both domestic and international flights transporting goods to a specified destination. Compare inland bill of lading, Occasion bill of lading, and through bill of lading.

5 TR = Truck Receipt

When the exporter exports consignment with the help of any truck Transport Company, the truck company issues the truck receipt for the collection of freight of the goods and for the importer to take the goods from the truck company by the presentation of this receipt and freight if the responsibility of the freight has to pay by the importer.

6 RR = Railway Receipt

When the consignment is export with the help of any train, the railway line issues the railway receipt for the collection of freight of the goods and for the importer to take the goods from the railway company by the presentation of this receipt and freight if the responsibility of the freight has to pay by the importer.

7 PR = Post Office Receipt

in this Business terms When the consignment is exported with the help of any post office, the post office issues the post office receipt for the collection of Freight of the goods and for the importer to take the goods from the post office, the presentation of this receipt and freight if the responsibility of the freight has to pay by the importer.

8 Shipments = (Exporting Goods)

Importing OR Exporting goods is called the “shipment” “consignment” or “cargo”

9 Shipper = ( Exporter Party)

The name of the exporter party can be written as “shipper” or “consignor” or “drawer” or  “beneficiary” and or “payee”

10 Shipper

It sends the shipment to the importer party so it is called the shipper.

11 consigner

It exports the consignment so it is called the consignor.

12 Drawer

It draws the bill of exchange so it is called the drawer.

13 Beneficiary

The person whose favor a letter of credit is issued or a draft is drawn. A payee or recipient, usually of the money. a party in whose favor a documentary credit is established, usually the exporter party. it gets the profit by exporting the goods so it is called the beneficiary.

14 Payee

One who received the payment from the payer is called the payee.

15 Bill Of Exchange

Its definition in the UK bills of exchange act 1882, it is an unconditional order in writing addressed by one person to another,  Signed by the person giving it requiring a person to whom it is addressed to pay on the demon, or at a fixed or determinable future time as a sum certain in money to order Or the order of a specified person Or bearer. The obligation to pay is unconditional and independent of the underlying contract, and can therefore be used as a negotiable instrument.

16 BR = Bill Receivable

Bills that are financed by the receiving branch, whether drawn under a DC or not are treated as BRs by both remitting branch and the receiving branches –see/bills receivable.

17 BC = Bill for Collection

Documents Or a Cheque is submitted through a bank for collection of payment from the drawee to the exporter party is called the BC.

18 Consignee (Importer Party)

The name of the importer party can be written as “applicant” or “consignee” are “drawee” and or “payer”

19 Applicant

When the importer applies to open the L/C called the applicant.

20 Consignee

It receives the consignment so it is called a consignee.

21 Drawee

When import applies to open the LC is called the applicant.

22 Payer

The importer pays the payment to export through his bank so it is called the payer.

23 LCL = Less Cargo Loading Loose Container Loading

When any shipment is to export in short quantity instead of full container loading is called the LCL. It can be exported by air, by sea, by truck, or by train. But when the exporter exports the shipment by air then he pays the freight of that shipment weight vise and when the exporter by the sea the freight charges would be pay by volume vise. The freight charges have to pay by the exporter Or importer according to the settled incoterm in the shape of US dollar only Or equally in Pakistani currency.

the formula for the volume is given below:

CMB/M3/= (Length x Width x Height x No. of Cartons) /

                       61023 or 61023.7

24 FCL = (Full Cargo Loading) Full Container Loading

When any shipment is to export in full container loading is called the FCL. it can be exported by air, by sea, by truck, or by train. But when exporter exports Shipment by air than he pays the Freight of that shipment Weight vise and when he export by sea the freight charge would be paid by volume vise. The freight charges have to pay by the exporter Or importer according to settled incoterm them in shape of Pakistani currency.

25 20 Feet Container

One 20 ft container has a measurement is as length of 20 feet, the width of 8.50 feet, and a height of 8.50 feet, the capacity of a container is 26 M3 to 28 M3.

26: 40 Feet Container

One 40 ft container has a measurement is as length of 40 feet with 8.50 feet and a height of 8.5 feet. the capacity of a container is 56 m3 to 58 M3.

27: 40 High Cube Container

One 40 ft container has a measurement is as length 40 feet with 8.5 feet and height 9.50 feet . the Capacity of a container is 62 M3 to 64 M3.

28 Open Top Container

This container’s measurement is also as length 40 feet with 8.5 feet and height 8.5 feet but the top of the container is open it is used for the exporter of heavy machinery.

29 Freight

The cost of transporting goods Or the charges for the transportation of the shipment are called the freight.

30 Freight Prepaid

An agreement between the seller and the Buyer that the seller will pay for the transportation charges before delivery to the transportation carrier.

31 Freight Collect

An agreement between the Seller and the Buyer That the Buyer will pay for the transportation charges before delivery to the transportation carrier.

32 Sea Freight

The transportation charges of that consignment OR the shipment which is to exporter or import by the sea in a ship Or in the vessel is called the sea freight. The Sea Freight is given to the shipping line by the volume vise according to the formula defined by the shipping lines. The payment is given in the shape of an international currency like the US dollar or equally US dollar in Pakistani currency,

33 Air Freight

The transportation charges of that consignment OR the shipment which is to export are imported by air in an airplane is called air freight. The air freight is given to the shipping lying by the weight vise but when the dimension of the cartoons is greater than according to the formula Defined by the airlines then the freight of the good is received by the volume vise. The payment is given in the shape of Pakistani currency.

34 Free Sample Invoice

According to this invoice an exporter party sends free sample to importer to check the quality of goods and the exporter party is the bill for the free item for the courier company or for the forwarder agent.

The cost of the free sample would not be charged by the importer as well as the freight charges of these samples are usually paid by the exporter party only. But in case of some costly samples, the sample charges would be collected from the Importer.

35 Proforma Invoice

It is an invoice provided by a supplier prior to the shipments of merchandise, informing the buyer of the kind and quantity of the goods to be sent, their value, and specification (weights, size, incoterms, payment terms, etc).

These invoices are sent at the beginning of a Sale transaction, usually to enable the Buyer to obtain and import permit Or a foreign exchange permit, or both. The Performa invoice gives a close approximation of the weights and values of a shipment that is to be made.

36 Custom Invoice

It is necessary to custom the goods before exporting to the consignment to the buyer. Custom means where the goods have to export the shipment and by which means of transportation are adopted as well as the quantity, detail of goods, and rates of the goods .

Goods are also tally with the invoice and packing list accordingly that may tally with the document or not. the concern of the custom invoice is also with the export party only not the buyer.

37  Bank Invoice or Commercial Invoice

The bank of the importer and the exporter works like an agent of both parties. it is a formal demand note for the payment issued by the exporter to Importer for the goods sold under a sales contract. it should give details of the goods sold, payment terms, and trade terms. it is also used for the custom clearance of goods for importers and sometimes for foreign exchange purposes by the importing party.

 In other words that it is the bill of the shipment is sent to the importer so it is called the bank invoice. Secondly, it is used to release a shipment from the customs authorities at the time of receiving the shipment by the presenting this invoice and some other documents like B/L, certificate of origin, GSP form, bill of exchange, and some others. There is no difference between the custom invoice and the commercial invoice; the custom invoice is used for the custom purpose and the commercial invoice is used for payment recovery and to release the shipment from the destination.

38 Packing List

it is a list with detailed packing information of the goods shipped. it is necessary to pack the goods in cartoons or boxes of wood or any other according to the goods Or the demand of the importer party. Usually, in it, the details are given as the weight, quantity, packing style, cartoon numbering, and the address of both parts like seller and buyer.

 At the time of packing the goods in cartoons, it will keep in mind that a single cartoon would be as that a single person can carry it easily. A packing list would be prepared before packing the goods in cartoons. each cartoon has been written in the following detail as given below:

1 The name and address of both parties,

 2 The name of the seaport is the airport are dry port of both parties,

3 Size and Colour of goods packed in the same cartoon number and also shipping marks.

so above these all are the important business terms which we should must know before starting a business. all these business terms are defined by the International chamber of commerce, they update these business terms regularly so you can always visit their website for latest updated business terms.

Read Lesson 11 here about H.S codes system.

In this lesson on the Import & export course, we will learn how to open a bank account for our firm.

It’s very easy to open the business bank account for our business so that we will visit our nearest bank, and please make sure its the main branch of the bank, because we will need many documents and pay visits the bank for export purpose, so our bank should be near, and it should be the main branch of the bank so that they can handle all the procedures easily,

So after visiting the bank, we will ask them the Types of accounts they offer, and we will select a bank that gives us all the necessary facilities, like check book, debit card, (credit card in future), bank statements easily on demand, and other bank export-related documents.

Mostly we open a current bank account because it’s having less operation cost and this type of bank account offers many facilities free of cost. and not demands for keeping some balance as well.

also, ask them for the required documents for opening a bank account.

Necessary Documents for opening a Current Bank Account

• Request letter on our business Letter Head
• National Tax Number Certificate (NTN)
• Identification Card of Nadra (CNIC)
• Official Stamp of Business
• Business Visiting Card
• Some Capital To Keep in Balance

How to Write a Request letter for opening Bank Account

we will write a simple request letter on our Business letterhead for opening a current bank account, and we will sign and stamp it,

here I have posted a Letter for all of you, so you can use it for your help, you can edit and put your own details so you can just print it on your own letterhead and use it,

so hope it cleared about bank account opening, you can open an account in any bank which suits you, I will recommend you to open an account in United Bank, Allied Bank or Askari Bank, as I’m using these banks and I’m satisfied with their services.

Ok so in the Next lecture we will study Important Business Terms, so keep visiting our Blog and learn about Import & export business with Saeed Saleem.

meanwhile, if you are visiting first time, you can study from Lesson 1 and ask us by comment if you have any questions.

Thanks,

so here we will discuss the filling process of the firm registration form quickly and some required documents we need.

Application Form for checking Names Available

First of all, we will visit the Sialkot Chamber of commerce and industry and ask at the reception counter that we need a Firm Name approval form, they will give you this form, (attached below). it’s free of cost.

you will quickly fill up your full name, CNIC number (id card number), and address, and then you will write the 5 business names which you have thought for your business name, so then you will submit that form at the counter, they will give you 1 day time for approval, the next day you will go to check and if your desired name is available, you will submit the 1500 Rs fee for male entrepreneurs, and 1000 Rs fee for female entrepreneurs, and now they will hold your required business name for 15 days until then you can complete the other documents and then move forward.

Now some tips from Saeed Saleem

I have seen many peoples in the chamber of commerce who even did not know what should be their business name, for that, I have already written an article on how to select a business registration name, please read it,

secondly, you can use any website like Business name generator or oberlo tool for business name generation, so you will write any word like Sports, leather, surgical, international, industry, enterprises, or whatever your work field is, these 2 tools will suggest you 1000+ names, so you can read them carefully and select accordingly.

I hope you guys have successfully approved the firm name, now we will do further work on other documents,

Request letter on your Business letterhead for firm registration

here below you can see a download-able link, its a PDF file containing a request letter that we will write to the Chamber of commerce for firm registration, so please click on the link below and download the file in pdf format, you can edit and print that letter on your own Business letterhead, and sign stamp this with your official firm stamp.

Chamber Official membership Registration form

after name approval, we will demand the Registration Form from office reception and they will give us a form like the below, it will contain 4 papers as below:

• Membership application registration form
• Identity card form
• Signature card
• Documents required for membership

Membership application registration form front

Membership application registration form back

Identity card form

Signature card

Documents required for membership

Now as you understand these documents, I will fill up these forms in my Youtube video and attach the video here, so you can easily understand this.

I hope after watching this video you guys are cleared about the firm registration process, now we will move further and see the procedure of opening a Current bank account with the bank.