Explain the pre-shipment stage of export procedure.

Monjur Alahi

Explain the pre-shipment stage of export procedure.


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Salim Ahmed Kawsar

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1. Receipt of Order : When the exporter receives an order he has to check the details of the order. He also check the restriction of import in the importer’s country. 

2. Letter of Credit : The exporter has to obtain a letter of credit from the importer, which is used to clear the foreign exchanges and other restrictions. 

3. Pre-shipment Finance : The exporter has to meet his working capital needs and for that he has to obtain the preshipment finance from his bankers.

4. Production of goods : If the exporter is a manufacturer, then he has to produce the goods according to the order placed by the importer, otherwise he has get the necessary goods arranged from his suppliers.

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