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Bike Maintenance Tips

2011-12-04T14:13:00.002+06:00

Bike Maintenance Tips

Regularly check tyre condition and air pressure. Optimum air pressure in the tyres of the bike is important for maximum road grip, stability, riding comfort and longevity of the tyres.
While under-inflated tyres wear unevenly, adversely affect handling, and more likely to fail from being overheated, over inflated tyres make the motorcycle ride more harshly, and more prone to damage from surface hazards, and wear unevenly.
Check your tyres for cuts and scrapes on your tires, which could cause a blowout. Also check the tyre treads once a week and have the wheels balanced and the alignment checked if the wear is uneven.
Engine oil plays an important role in ensuring smooth operation and maintenance of the bike and maintaining a correct engine oil level is important. Check engine oil level each day before operating the two–wheeler. Oil level should be between upper and lower marks. Top up engine oil if required. Check for oil leakage.
Clean the two-wheeler body surface regularly to maintain the surface finish. Before cleaning the motorcycle, ensure that the ignition switch unit, H.T. Coil and silencer are covered using plastic sheets.
Clean the motorcycle using low-pressure water. All painted surfaces should be washed only with water, as kerosene or detergent will damage the paint.
The motorcycle battery needs periodical maintenance to ensure a long and trouble free life. Check the electrolyte level against the top and bottom markings on the battery shell. Always top up with distilled water whenever required.
Check for any leakage from battery. It should be clean and free from any leakages. In case of non-use of motorcycle, battery should be kept fully charged and electrolyte level should be at Top mark.
Clean spark plug regularly. Every 750 km for two-stroke bike and every 1,500 km for four-stroke bike. Clean spark points (electrodes) with emery paper.
Keep carburettor clean. Every 1500 km, clean out the carburettor float chamber and other parts. Clean jets by forcing compressed air through them.
Keep both brakes properly spaced. Keeping them too tight (too urgent), or too loose (too late) is dangerous. Brakes should be tightened as per the rider’s personal style and requirement.
Check cables regularly for kinks, bends and frayed ends. Especially check ends. If one or more strands appear broken, replace immediately.
Always ensure that the tax is paid and Insurance cover (Insurance policy) is within validity period. Keep Tax Receipt and Insurance policy at home and keep xerox copy in bike.

Exporters want delay in launching container management software

2011-09-12T08:29:00.001+06:00

Garment exporters yesterday urged the Chittagong Port Authority (CPA) to further delay the launch of container terminal management software as the country's weak transport system will need some more time to be ready for such an upgrade.

They said, once the system is launched, they will have to ensure loading of goods 72 hours before departure of ships from the port.

But, now the garment exporters have to load goods even minutes before departure of the ships, due to delay in transporting goods for severe traffic jam, the exporters said.

Also, production is delayed often due to inadequate supply of gas and power, they said at a meeting on the introduction of Container Terminal Management System (CTMS) at Chittagong Port for efficient cargo handling.

“We want the CPA to delay the implementation of the CTMS by one year so that we can prepare ourselves for it with the improvement of roads and river transportation system,” said Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), at the meeting at BGMEA auditorium in Dhaka.

He also urged the government to upgrade the Dhaka-Chittagong highway to four lanes from the existing two.

The government should also introduce the Pangaon and Khanpur river ports in Narayanganj to help the exporters send goods through river routes, Mohiuddin said.

CPA Chairman Commodore M Anwarul Islam said the trial-run of the CTMS software was scheduled for last month to bring global standards in the operations of the port.

But, the launch was deferred on request of the garment exporters. “We have a plan to introduce the CTMS on October 9 on a trial basis for three months,” he said.

The implementation of the CTMS is an obligation for the CPA as per the rules of the United Nations Conference on Trade and Development, Islam said.

He said the implementation of the CTMS will ensure proper planning of berth application, vessel, yard and equipment, stripping, rail module, gate control and billing.

The CTMS also promises easy tracking of containers in real time and execution of plans, he said.

The port handled around 1.5 million TEUs (twenty-foot equivalent unit) containers in fiscal 2010-11, up from 1.21 million TEUs containers in 2009-10, he said.

AKM Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, and AK Azad, president of the Federation of Bangladesh Chambers of Commerce and Industry, also spoke.

The government installed the CTMS at $5.7 million financed by Asian Development Bank and the CPA itself.

HOW TO TIE ???

2011-08-01T11:28:00.000+06:00

Advising bank

2011-08-01T09:29:00.001+06:00

Advising bank

An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available. Advising Bank's responsibility is to authenticate the letter of credit issued by the issuer to avoid fraud. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of.
The advising bank is usually located in the beneficiary's country. It can be (1) a branch office of the issuing bank or a correspondent bank, or (2) a bank appointed by the beneficiary. Important point is the beneficiary has to be comfortable with the advising bank.
In case (1), the issuing bank most often sends the L/C through its branch office or correspondent bank to avoid fraud. The branch office or the correspondent bank maintains specimen signature(s) on file where it may counter-check the signature(s) on the L/C, and it has a coding system (a secret test key) to distinguish a genuine L/C from a fraudulent one (authentication) .
In case (2), the beneficiary can request the applicant to specify his/her bank (the beneficiary's bank) as the advising bank in an L/C application. In many countries, this is beneficial to the beneficiary, who may avail the reduced bank charges and fees because of special relationships with the bank. Under normal circumstances, advising charges is standard and minimal. In addition, it is more convenient to deal with the beneficiary's own bank over a bank with which the beneficiary does not maintain an account.

Trade Document Creation

2011-08-01T09:23:00.000+06:00

Trade Document Creation

Simply put, trade document creation is the creation of the necessary documentation to satisfy import, export, customs, security, safety, port, and carrier requirements. Numerous documents are required by government bodies, customs, ports, and carriers, just to name a few, to move your products internationally. One industry estimate has noted that a single global shipment can require approximately 35 documents consisting of over 200 data elements to be created for up to 15 different parties.
Trade documentation is not something that should be taken lightly. Considering that a Purdue University Study concluded that the average cost per day of shipping time is approximately 0.5 percent ad-valorem and that a single error in documentation can cause a multi-day delay, it's easy to see how critical trade documentation can be.
This section overviews over five dozen different types of documents and variants that might be required when trading globally. The specific documents will depend upon the country being exported from, the country being imported o, the goods being shipped, the carriers shipping the goods, the ports and free trade zones being used, and other parties that the goods will come in contact with on their journey. In order to determine which specific documents are required, consult the affected customs agencies, ports, carriers, third parties, and a good lawyer versed in international law.
For more information on some customs and security regulations that mandate strict documentary requirements, please see the wiki-paper on Customs and Security Regulations.

Airway Bill / Air Transport Documents
A document made out by, or on behalf of, the shipper which evidences the contract between the shipper and the carrier(s) for carriage of goods.
Application for Foreign-Trade Zone Admission and/or Status Designation
An application made to a government authority to allow goods to enter a foreign trade or special economic zone with appropriate status to take advantage of the special regulations and reduced taxes that the zone offers.
Application for Permit
An application made to a government agency for an import permit.
BCL: Bank Comfort Letter
A document from the buyer's bank to inform the seller that the buyer has the financial capacity to issue a Letter of Credit, subject to bank formalities, should the buyer contract with the seller.
Bill of exchange
An unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date.
Bill of lading
A contract between an exporter and an international carrier for transport of merchandise to a foreign market.
CCD: Cargo Control Document / Cargo Declaration
An itemized list of shipment contents, also known as a manifest.
Certified Invoice
A signed invoice, usually witnessed by a third party, issued by an exporter to certify a statement required by the importer.
Certificate of Analysis
A certificate that contains an analysis of the goods in question. Often required to demonstrate compliance with regulations.
Certificate of Authenticity
A certificate is a document from a seller verifying that the goods being sold are indeed authentic.
Certificate of Compliance
A certificate that states the goods have been inspected by an appropriate third party and found to be in compliance with the appropriate regulation(s).
Certificate of Damaged Goods
A certificate that indicates the goods are damaged. This is often required if a shipper wants to avoid certain import duties on goods that are not going to be sold (as-is).
Certificate of Importation
A certificate that states the goods in questions were imported.
Certificate of Origin
A certificate used to authenticate the country of origin of the indicated goods.
Certificate of Ownership
A certificate used to specify the owner of the indicated goods.
Certificate of Registration
Usually used to specify the designated entity is registered to act in a certain authority with one or more government agencies.
Charter Party
A contract between a merchant and a ship owner by which a ship is hired for the conveyance of goods on a specified voyage.
CI: Commercial Invoice
A common document used for clearing a shipment through customs that is used by customs officials to classify merchandise for proper assessment of duties and taxes.
Consular Invoice
A document certified by a consular official of a foreign country that describes a shipment of goods and is used by customs officials to verify the value, quantity, and nature of the shipment.
Courier receipt
A receipt by a courier used to indicate that goods have been received and shipped by the courier.
Custom Clearance Document(s)
Generally used for goods which are the property of, or destined to be used by, the US Armed Forces.
Customs (Pro Forma) Invoice
A basic entry document accepted by customs brokers and officers that is used to declare returned goods.
Customs Value Declaration
A document used to declare the value of the goods in the shipment.
Declaration of Consignee
A declaration made by an agent on behalf of a buyer or seller when goods enter or leave a country.
Declaration of Owner
A declaration made by an owner of goods when they enter or leave a country.
Deed of Assignment
Banking arrangement, under a letter of credit, whereby the Beneficiary of a letter of credit assigns part of the proceeds to a third party.
Delivery Certificate for Purposes of Drawback
A certificate indicating goods that are to be drawn-back have been delivered. Goods that are to be drawn-back are to be exported or destroyed without having been used in the country of importation.
Delivery Ticket
A document meant to signify delivery of a shipment.
Drawback Entry
The document containing a description of the exported or destroyed article on which a drawback is claimed.
Drawback Notice
An official notice that a drawback is about to be claimed.
Entry/Immediate Delivery or Summary
Used when the immediate release of imported goods to an importer or customs broker is required.
(EIS) Export Information Sheet
A document that specifies all of the relevant information about the items being exported.
Export Permit
A document that allows a corporation or individual to export goods.
FCR: Forwarder Cargo Receipt
Used to provide validation that a vendor has delivered the specified cargo and all related documents to the designated receiver.
FCO: Full Corporate Offer
A document prepared by the seller in response to an ICPO (Irrevocable Corporate Purchase Order) from a buyer indicating receipt and acceptance of the ICPO.
Facilitated Transit Document
An authorization for facilitated transport across land.
Foreign Assembler's Declaration
A declaration by the foreign party that manufactured the goods that accurately describes the goods, their unit value, and the contact information of the foreign party.
Health certificate
A certificate that indicates the goods are compliant with any relevant health codes.
ICPO: Irrevocable Corporate Purchase Order
A purchase order that states the full details of an order, including the details that will appear on the (pro-forma) invoice, that cannot be revoked.
Import Declaration
Used to declare goods being imported to a customs agency.
Import Permit
A document that allows a corporation or individual to import goods.
Insurance document
A document that specifies the type of, and conditions for, insurance on the corresponding goods.
Inward Cargo Manifest
A document that must be prepared by a carrier and presented to customs before the goods can be imported.
Letter of Instructions
Usually a document prepared by a seller or a buyer for a third party handling import and export of goods that contains instructions for the third party on the transport of such goods.
LC: DL/C Documentary Letter of Credit
SL/C Standby Letter of Credit
RL/C Revolving Letter of Credit
A (documentary) letter of credit is a legal document issued by a buyer's bank that indicates payment will be made upon presentation of required documents. A revolving letter of credit is used for regular shipments of the same commodity between the same exporter and importer in place of a documentary letter of credit. A standby letter of credit allows for the pledge of securities in an eligible account as collateral in lieu of traditional cash or bond down payment.
LOI: Letter of Intention
A document that acknowledges a willingness and ability of the parties to do business together.
Manifest of Goods / Merchandise
A list of goods being shipped.
Multimodal transport document
A document that contains instructions and information for two ore more different modes of transport.
Non-negotiable sea waybill
A waybill that allows goods to be delivered to the consignee without transfer of the waybill as soon as the bill of lading is processed.
Notice of Intent
An informational document generally filed to specify an upcoming import or export activity.
Post receipts
Documents generally used to confirm payments.
Packing list (Export)
Another term for a manifest.
Power of Attorney
A legal instrument used to designate legal authority to another person or entity.
Pro-forma Invoice
A document that states a commitment from the seller to sell goods to the buyer at specified prices and terms.
Quality Certificate
A certificate, usually issued by a third party, that indicates the goods meet a certain recognized quality rating.
Returned Goods
A document that indicates the goods are goods that are being returned.
Road / Rail transport documents
A document used to transport goods by road and rail, commonly used in the European Union.
SAD: Single Administrative Document
A standardized document that has replaced most of the customs declarations forms existing in the European Union member states.
SED: Shipper's Export Declaration
A declaration made by an exporter of the goods being exported and their associated value.
SLI: Shipper's Letter of Instruction
A document that provides shipping instructions to the shipper's freight forwarder.
SSE: Shipper's Security Endorsement
Generally speaking, a certification that the cargo does not contain any unauthorized explosives, incendiaries, or hazardous materials.
Temporary Import License
A license to temporarily import goods from a first country into a second country for the purpose of exporting them to a third country.
Third party inspection certificate
A certificate that confirms the goods have been inspected by a third party and found to be in compliance.
Weight certificate
A certificate that verifies the weight of a shipment.

The Global Trade Export Cycle

2011-08-01T09:22:00.000+06:00

The Global Trade Export Cycle

Customer Approval
Before an order can be approved, the buyer must be checked against restricted and denied party lists.
Sales Order Receipt
Entered into your CRM (Customer Relations Management) system.
Order Approval
Additional screening may be required if the product is a restricted export or is subject to regulatory compliance in the destination country.
Transport Insurance
Preferably from a 3^rd party.
Receipt of Financing
Either a letter of credit, open account, or other acceptable promisory note would be required before shipment.
Carrier Selection
Who is going to ship the product and how are they going to ship it?
Document Creation
Local Customs, affected Government Bodies, Ports of Exit, and Carriers, to name a few, are going to require the proper documents before the goods will be allowed to move.
Shipment Tracking
Probably using RFID and an on-line web-portal that lets the buyer know when their goods reach certain checkpoints.
Exportation
If all of the documents were properly created, the goods are allowed to leave the country.
Goods Delivery
After they are imported into the buyer's country, a goods receipt is created by the buyer and sent to the supplier's system.
Invoice Creation
An invoice is generated by the CRM system and sent to the buyer's system.
Payment Receipt
The buyer sends an electronic payment through an e-Payment system or gateway.
Reconciliation
The payment is reconciled with the invoice.
Tax Reclamation
If the exports included refundable value added tax, for example, the appropriate data is collected and documentation created for tax reclamation.

The Global Trade Import Cycle

2011-08-01T09:21:00.000+06:00

The Global Trade Import Cycle

Supplier Selection
This stage would utilize Strategic Sourcing
Purchase Order Generation
Via the buyer's e-Procurement system.
Transport Insurance
Preferably by way of a 3^rd party.
Financing
Either through a letter of credit, open account, or other form of an acceptable promisory note.
Carrier Selection
Who is going to ship the product and how are they going to ship it?
Document Creation
Foreign Customs, affected Government Bodies, Ports of Exit, and Carriers, to name a few, are going to require the proper documents before the goods will be allowed to move.
Goods Departure
Once the paperwork is in order, the goods are loaded and they leave the supplier's warehouse.
Shipment Tracking
Probably using RFID and an on-line web-portal that lets the buyer know when their goods reach certain checkpoints.
Importation
Assuming the buyer created the appropriate documents for Customs, affected Government Bodies, Ports of Entry, and local carriers, and, gave appropriate notice, the goods clear customs and begin the final stage of their journey to the warehouse.
Goods Receipt
The goods are received and a receipt is sent to the supplier's system.
Invoice Receipt
An invoice, generated by the supplier's system, arrives in the buyer's e-Procurement system.
Reconciliation
3-way matching is performed against the purchase order, goods receipt, and invoice and, if everything checks out, the purchase is approved for payment.
Payment
An electronic payment is sent to the supplier through an e-Payment system or gateway.
Tax Reclamation
If the purchases included refundable value added tax, for example, the appropriate data is collected and documentation created for tax reclamation.

FCR

2011-08-01T09:19:00.000+06:00

FCR (FORWARDER CARGO RECEIPT)

A negotiable document issued by a forwarder which will satisfy legal requirements for a letter-of-credit. Since a forwarder is not an NVOCC it cannot issue actual Bills of Lading. The FCR is a legally binding substitute for the B/L which was pioneered by Sea-Land and is now an industry standard.

Used to provide validation that a vendor has delivered the specified cargo and all related documents to the designated receiver.

When forwader company, acting as agents for the consignee, have received the
goods and all necessary documentation and payment of charges from the seller,
we issue a Forwarder’s Cargo Receipt (FCR). The seller will use the FCR to
confirm to the buyer and/or the bank that he has delivered the goods for shipment
and that the carriage is being arranged by Maersk Logistics.
forwader company will arrange the ocean transport and the ocean carrier will issue a
B/L (or SWB). The B/L (or SWB) is used to obtain release of the goods at
destination.
It is also possible to combine the use of the FCR with a House B/L or House SWB
if the customer is using a NVOCC to supply ocean carriage. If forwader company is
the NVOCC and has issued a HBL or HSWB, there is no need to also issue a FCR
unless there are specific reasons to do so (for example that the vendor’s L/C
requires a logistic company FCR).
In many ways the FCR document looks similar to the Bill of Lading and House Bill
of Lading. But it is distinctly different than a B/L, SWB, HBL or HSWB in that it does
NOT evidence a contract of carriage.
A FCR cannot replace the B/L, SWB, HBL or HSWB. It is always used together
with one of these documents.
FCR – Issuing Party
A Forwarder’s Cargo Receipt (FCR) is issued by a freight forwarder who is acting
as agent on behalf of the consignee.
FCR – Functions
The FCR functions as:
1. Receipt for the cargo
Following functions are NOT applicable to the FCR:
2. Evidence of contract of carriage
3. Document of title
1. Receipt for cargo
The FCR is a receipt by the agent / forwarder that the goods are in his custody.
The FCR does not confirm shipment and can therefore be issued before the carrier
B/L has been issued.
2. The FCR is NOT evidence of contract of carriage
The FCR does not evidence of a contract of carriage with the ocean carrier, freight
forwarder or NVOCC. The evidence of contract of carriage will be the document
issued by the ocean carrier (ie. the B/L or SWB) or the NVOCC (HBL or HSWB).
3. The FCR is NOT a document of title and it not used at destination
The FCR is NOT a document of title. It cannot be negotiated, and it cannot be
endorsed to other parties. The consignee cannot be “to order” and the consignee’s
name must be entered in full.
There is no requirement that a FCR is presented at destination to obtain release of
the goods. The release of the goods take place based on the B/L (or SWB). In fact,
the FCR is seldom used at destination. It is primarily a document for origin use.
Although the client’s SOP specifies that a FCR is to be issued together with a Sea
Waybill, there may be a few situations where a vendor insists to receive a
document of title / a negotiable document, a House Bill of Lading (DSL Star
Express B/L) can be issued instead of the FCR but it requires:
a. Confirmation from consignee (MLOG acts as agents for the consignee. We
should therefore seek confirmation from the consignee before we issue a
different document than the FCR. Preferably, we ask the consignee to ensure
that the shipper (and his bank and L/C) will accept the FCR instead of a HBL.
But, sometimes it can be difficult to change a L/C after is has been issued. The
consignee may therefore ask that a HBL is issued for this shipment. The
consignee should ensure that future L/Cs require a FCR instead of a document
of title)
b. If a HBL is issued, the carrier SWB or B/L must not be consigned to the same
person as the HBL. If Maersk Logistics issue a HBL, the carrier bill must be
consigned to logistic company , not the customer.
c. Clear notification and follow-up with logistic's company at destination (If a HBL is
issued instead of a FCR, MLOG at destination must receive a duly endorsed
original HBL at destination before the goods are released to the consignee.
MLOG at origin must ensure that MLOG at destination is made aware of this
requirement. For customers that usually operate under FCRs, it is an unusual
situation to have a HBL involved in the shipment. MLOG at destination will
therefore not be aware of the release requirements under the HBL unless they
receive clear notification from logistic company at origin).
FCR – Originals and Copies
The FCR is not a document of title and an original is not needed to effect release of
goods at destination. As such, there is no reason why the FCR should be issued as
an original document.
However, often the shipper (and the bank) will insist to receive an original FCR and
therefore the FCR is often issued in 3 originals and a reasonable number of copies.
It is actually more correct to issue 1 original FCR and a reasonable number of
copies (but 3 originals is market practice in some areas of the world today).
FCR – Forwarder’s Responsibility
The two main areas of responsibility of an agent / freight forwarder issuing FCRs
are:
1. Responsibility for correct description of the goods
2. Responsibility to care for the goods while in the agent’s custody
1. Responsibility for correct description of the goods
The consignee and the bank will rely on the description of the goods in the FCR
(quantity, condition, etc) to effect payment to the seller.
It is essential that logistic company clearly notes any damages or shortcomings on
the FCR or refuse to accept the cargo if the physical goods received do not match
the description.
logistic's company , acting as agents for the consignee, will arrange a carrier Bill of
Lading or Sea Waybill that covers the carriage performed by the ocean carrier.
logistic's company should ensure that the description in the carrier B/L (or SWB)
corresponds with the description in the FCR.
The consignee will expect to receive the goods as described in the B/L or SWB.
If a shipper requests a “clean FCR” in order to meet the requirements in his Letter
of Credit but the carrier will not issue a clean B/L (without any notation of
shortcomings or damages), Maersk Logistics cannot meet his request.
2. Responsibility to care for the goods while in the agent’s custody
This is closely related to what we have just discussed. Maersk Logistics is
responsible to take good care of the goods while they are in our custody. If we
damage the goods, we become liable towards the consignee.
However note that when goods are delivered to the carrier and covered by a
transport document (B/L or SWB), it becomes the carrier’s responsibility to care for
the goods.
Maersk Logistics is only responsible for the goods under the FCR as long as the
goods are in our custody. (This is distinctly different from a HBL/HSWB where we
take on responsibility as carrier).
FCR – Amendment
Should the shipper request an amendment to the FCR, the issuing agent should
ask to have the original FCRs returned.
Amendments should be made in writing and are subject to acceptance by the
forwarder. The forwarder must ensure that no changes to the description of the
goods are made that can affect his position towards the consignee.
FCR – Cargo Description
The procedures for FCRs follow the same rules as Bills of Lading and Waybills.
Cargo description
The transport provider cannot physically verify the contents of the cartons and
packages received from the shipper. For legal reasons, the description of the
goods must therefore always include the wording “Said To Contain” or “S.T.C.” to
signify that the transport provider is relying on the description of the goods supplied
by the shipper. Example: S.T.C. 1020 cartons of CD players.
If the forwarder knows that the description of the goods supplied by the shipper is
not correct (for example that cartons are damaged), the forwarder should note the
discrepancy on the FCR or refuse to accept the cargo and issue the FCR.
No. of packages
If cargo is lost while in the forwarder’s custody, it is the number of units as stated in
the “no. of pkgs” field that will be used for calculation of potential compensation to
the owner. For this reason, this field should always reflect the smallest number of
shipping units. Example: “5 pallets” instead of “50 cartons”.
Clauses
The transport provider should insert the clause “Shipper’s load, stow and count” if
the customer is loading the container at his premises.
FCR – Document Date
The receiving date on the FCR date must be the date on which the goods were
received by Maersk Logistics (or the CY-container was delivered to the carrier’s
terminal).
In some cases, the shipper may ask that the FCR is dated earlier or later than the
actual date in order to comply with conditions in his Letter of Credit. We should not
issue the FCR with an incorrect date - it would be seen as an attempt to defraud
the consignee.
FCR – Payment
The issuing agent / freight forwarder of a FCR, will usually not release the FCR to
the shipper until he has not only delivered the goods but also delivered all required
documents (export licence, commercial invoice, etc.) and paid all local charges that
are for the account of the shipper.
You should note that the FCR is not an invoice. It is a cargo receipt. Even though
the FCR is used in connection with the payment of charges at origin, it cannot
replace the issuance of an invoice. But origins may use the same number for the
FCR and the invoice.
FCR – Filing
There are no international requirements for filing of original FCRs. Please check
local procedures. There is no need to collect an original FCR at destination.
FCR – Why use this document?
The FCR document is used to facilitate payment.
When the shipper has delivered his goods to the agent / freight forwarder (and any
required documentation), he will receive the FCR as proof that the goods have
been delivered for shipment.
The L/C will stipulate which documentation must be in place before payment for the
goods will be effected. If the buyer and seller have agreed that the FCR is to act as
proof that the goods have been made available for shipment, the L/C must clearly
state that payment can be effected upon presentation of a Maersk Logistics FCR.
The advantage to the shipper of using the FCR to effect payment (instead of a B/L,
SWB or HBL) is that the FCR can be issued before the goods have been shipped
by the ocean carrier. Therefore, the seller can obtain payment for his goods faster
than if he had had to wait for the B/L to be issued.
To the consignee, there is an advantage when logistic company consolidates
goods from multiple shippers into one container. In such case, a separate FCR will
be issued to each of the shippers but only one carrier B/L (or SWB) will be issued
by the carrier. This will save the consignee documentation and customs clearance
fees at destination.
As you know, when a FCR is issued by Maersk Logistics, the carrier will issue a
B/L or a SWB. When a carrier B/L or SWB is issued, the shipper/seller under
normal circumstances has the right to amend the release instructions (e.g.
consignee name and destination).
By accepting a FCR, the shipper assigns the benefit of these forwarding
instructions to the consignee (buyer). In other words, the seller waives his right to
revoke any delivery instructions after he has delivered the goods to logistic's company , and logistic's company is not legally obliged to comply with the shipper’s
instructions after receipt of the cargo and issuance of the FCR.
logistic's company will comply with the buyer’s instructions.
You should note that although the FCR is used as a vehicle for payment, logistic's company is not involved in the monetary transaction and change of ownership
between the seller and the buyer. We issue the FCR as a receipt for the cargo.
FCR – Differences between FCR and carrier B/L
􀂃 The B/L is issued by the ocean carrier. The FCR is issued by a freight
forwarder, acting as agent on behalf of a consignee.
􀂃 The B/L is a document of title and can be endorsed. The FCR is not. The FCR
cannot be consigned “to order”.
􀂃 The B/L is evidence of contract of carriage with the carrier. The FCR is not.
􀂃 A duly endorsed B/L must be presented to the carrier at destination to obtain
release of the goods. The FCR does not have this function.
􀂃 Under a FCR, logistic's company is only responsible for the goods while they are
in our custody. If goods are lost or damaged during transit, the client must file
claim against the ocean carrier under the B/L (or SWB).
FCR – Differences between FCR and carrier SWB
􀂃 The SWB is issued by the ocean carrier. The FCR is issued by a freight
forwarder, acting as agent on behalf of a consignee.
􀂃 The SWB is evidence of contract of carriage with the carrier. The FCR is not.

􀂃 The carrier will release the goods at destination to a person who can identify
himself as a representative of the consignee stated in the SWB. The FCR does
not have this function. The FCR is only used at origin and is not a release
document.
􀂃 Under a FCR, Maersk Logistics is only responsible for the goods while they are
in our custody. If goods are lost or damaged during transit, the client must file
claim against the ocean carrier under the B/L (or SWB).
FCR – Differences between FCR and HBL
􀂃 The HBL is issued by Maersk Logistics when we act as NVOCC.
􀂃 As NVOCC we act as agents of DSL Star Express and take on the
responsibilities and liabilities as a principal carrier. Even when sub-contracting
the ocean carriage to an ocean carrier such as Maersk Sealand, we have the
responsibility and liability of a carrier under the HBL.
􀂃 When we issue FCRs, we act as agents for the consignee but do not take on
the responsibility and liability for the carriage of the goods. Maersk Logistics is
only responsible and liable for the goods while they are in our custody.
􀂃 The HBL is a document of title and can be endorsed. The FCR is not.
􀂃 The HBL evidences a contract of carriage between the NVOCC and the
customer. The FCR does not evidence a contract of carriage.
􀂃 A duly endorsed HBL must be presented to the NVOCC (Maersk Logistics) at
destination to obtain release of the goods. The FCR does not have this
function. The FCR is not a release document.
􀂃 When cargo is moving under a HBL, the shipper or the consignee will agree
freight rates with the NVOCC (Maersk Logistics). When a FCR is issued, the
customer will have agreed freight rates directly with the ocean carrier and the
goods will move under a B/L or SWB.
􀂃 Under a FCR, Maersk Logistics is only responsible for the goods while they are
in our custody. If goods are lost or damaged during transit, the client must file
claim against the ocean carrier under the B/L (or SWB).
FCR – Differences between FCR and HSWB
􀂃 The HSWB is issued by Maersk Logistics acting as NVOCC (agent for DSL Star
Express).
􀂃 Neither the HSWB nor the FCR are documents of title. None of them can be
endorsed or consigned “to order”.
Version 1.1. June 2004 Page 48 © A.P.Møller – Mærsk A/S
TMW Basic Transport Documentation
􀂃 The HSWB is evidence of contract of carriage with the NVOCC. The FCR is
not.
􀂃 The NVOCC will release the goods at destination to a person who can identify
himself as a representative of the consignee stated in the HSWB. The FCR
does not have this function. The FCR is only used at origin and is not a release
document.
􀂃 Under a FCR, Maersk Logistics is only responsible for the goods while they are
in our custody. If goods are lost or damaged during transit, the client must file
claim against the ocean carrier under the B/L (or SWB).

Mastering Management (Supply-chain In Rmg)

2011-08-01T08:35:00.000+06:00

Mastering Management

Supply-chain In Rmg

The hidden lever to success

The readymade garment (RMG) sector is a success story for Bangladesh. The industry started in the late 1970s, expanded heavily in the 1980s and boomed in the 1990s. The quick expansion of the industry was possible because of the use of less complicated technology, cheap and easy to operate sewing machines, and relatively cheap and abundant female workforce.

But, apparel firms in the county have moved into a challenging position in the new millennium. The challenge is now to offer high-quality, low-cost products within a short lead time; and to meet health, social and environmental compliance in the face of increasingly stiff competition.

COLOR AND FABRIC QUALITY MANAGEMENT

2010-08-18T15:38:00.001+06:00

COLOR

AND FABRIC

QUALITY MANAGEMENT

Table of Content

1. Color Approval Program –

A basic knowledge of color

Color & Colorimetry

Color Standard

Color Approval Process

2. Nath Color Approval Procedure

Visual & instrumental

3. Nath Color Evaluation Procedure

4. Nath Color Evaluation Form

5. Nath Shade Continuity Submit Form

6. Nath Fabric Approval Procedure

7. NATH Fabric Quality Performance Standard

8. Fabric Lab Test Report

9. Garment Lab Test Report

NATH Approval Process

In order to provide very clear guidelines for our suppliers regarding our expectations and to maintain a high level of quality by insuring that all standards are correctly communicated, our methods are documented, and our specifications are defined

NATH Color Approval Program

Color is the customer’s first impression of total quality. When a customer picks up a product, color

is one of the most important factors of the buying decision.

NATH is committed to provide the customer with product of better quality.

We have developed some new procedures for color development & color process. We will

continuously update this information to improve product quality.

COLOR AND COLORIMETRY

What is Color

Color is what we see –an intuitive matter, an aspect of vision. Color is, in fact , a psychophysical way of response in which the human brain recognizes the different wavelength characteristics of light above a certain brightness level falling on the sensors in the retina of eye, called rods & cones.

A persons recognition of an object’s color is the result of a complex process involving the response of the brain to the interaction of light with the object. Numerical description of this three components-the light source, the object,& the observer-are all that is required to calculate the description of any color with an objective set of numbers. Other factors certainly influence our perception of color, but without these three components there is no perception.

Light /illuminant

Illuminants are described numerically with spectral power distribution as defined by the CIE (The International Commission on Illumination.). There are different light sources. Average daylight contains wavelength of all colors while other contains significantly different amount of energy. This variation in color content results in noticeable color changes when an object is viewed under day light and other sources.

Object

Reflecting light back to an observer, some of the light striking an object is absorbed, and some light is reflected by the object. The reflected light is what we see as a color.

Observer

Sensing the reflected light. Every one sees color differently, depending on biological & psychological difference.

Terminology and Color description

Without standardized color communication, describing the visual differences between two fabric swatches can be very frustrating. Color may be described in terms of an internationally adopted system of color scales.

These are the CIE dimensions of:

# Lightness L*- represents the degree of lightness or darkness, Value

# Chroma C*- represents the degree of brightness, saturation, or fullness

# Hue H*- represent the shade or cast of a color

In addition, the opponent scales of Red-Green (a*), and Yellow-Blue (b*) are also used.

These dimensions in color space are shown in the diagram on the following page from the Munsell Color Order System:

COLOR STANDARD

In order to get good result it is very important to start with a good color standard, and keep the same standard throughout the production chain.

NATH COLOR STANDARD

NATH have 46 own basic color standard valid for all styles to use season after season. The colors & the color codes never changed.

NATH develop this color with a special care & stock is available at our production office.

Suppliers are requested to collect all the exact color standard from NATH.

COLOR APPROVAL PROCESS

LAB DIP SUBMIT PROCEDURE

# Collect NATH color std. swatch from production office

# Use NATH lab dip submission form to submit lab dip

# Vendors must submit to the NATH office within 7 working days of receipt of request.

# Vendors must fill out the submit form with all required information. Reference both color

Name & color code, appropriate style etc.

# Factory’s spectral readings of each lab dip should be forwarded with the submits.

Attach the spectral printout to the back of each submission form.

# Lab dips should be in the correct fabrication/fiber content.

# Factory should submit lab dips that can meet all color tolerance and color performance requirements.

# For repeat colors on carry-over programs being done by same factory, resubmission of lab dip is not necessary unless indicated.

BULK OR PRODUCTION FABRIC SUBMIT PROCEDURE

# For confirming the shade continuity, it is recommended to vendors to get the approval of shade for each batch of all the color for every style.

# Bulk fabric will be evaluated visually against the NATH color standard, as well as the approved lab dip.

# Use NATH shade continuity form for submit dye lot for bulk approval. fill out all the required information of the form.

# For on going carry-over programs, bulk must be resubmitted for each new delivery to be evaluated for consistency to the established shade band.

COLOR EVALUATION

Both the visual & instrumental evaluation of the fabrics is done. During visual evaluation samples should be viewed at a 45 degree angle.

All lab dip, bulk sample shade band should be viewed under D65 as primary light source.

This light source very resembles with sunlight. They also have to view under TL84 secondary light source. As the light of Europe ware house are using this type of light source. Sample should be match under both light source with lowest metamerism.

For instrumental evaluation following methods should be taken care:(with spectrophotometer)

For DataColor SF600 or other version

1. Double plies for opaque fabrics. Light weight and translucent fabrics should be folded with at least 4 layers for measurement. Fabric should be placed directly on sample port holder.

2. Large area view (LAV) for Lab dip, Standard & Bulk.

3. Measuring Color: UV-filter Excluded

UV-filter Calibrator

4. Specular included

5. Measuring color:

Under illuminants/observer D-65-10Deg as primary light source, and TL-84-10Deg as secondary light source.

Measuring white:

Under illuminants/observer D65-10 Deg

6. All fabrics will be measured with the face towards the instrument.

7. Tolerance of Instrumental measurement are DECMC 1.0 (L: C = 2:1)

The color should meet our tolerances both visually and instrumentally.

However, Nath reserve the right to reject any lab dips or bulk sample if they are not within tolerance visually.

NATH COLOR EVALUTION SUBMIT FORM
NATH COLOR EVALUTION SUBMIT FORM
Vendor name:	Nath Design Season:	Style:
Fabrication:	Fiber content:	Date:

Color Code: Color Name:

Submission Round: Round 1 Round 2 BCD

Min 3”x3” Lab Dip Size Lab Dip Option #	Min 3”x3” Lab Dip Size Lab Dip Option #
Min 3”x3” Lab Dip Size Lab Dip Option #	Min 3”x3” Lab Dip Size Lab Dip Option #

Lab Dip Approval Comments:

Signature of Color technologist:

NATH SHADE CONTINUITY SUBMIT FORM

Factory Name-

L/C no- Required Fabric-

Style- Lot No-

Color- Batch No-

Fabrication- Batch Qty-

Required G.S.M- Date -

Shade of the fabric

Signature (factory person) Authorize Signature

NATH Fabric Approval Process

NATH is very much conscious about the quality of fabric. Because the performance & longevity of garments is depend on the quality of fabric. Our reputation depends on the quality garments we provide.

Every dye lot run through a factory must undergo a minimal quality checks including weight, shrinkage & color fastness to washing, water, wet crock & dry crock. Fabrics should meet these minimal quality checks in addition to the requirements outlined by NATH. This testing will be completed by internal testing laboratory at NATH. But if required we can nominate for third party testing. But the financial responsibility of those tests is of vendor.

Factory Should Supply Fabric Following Way:

# Send 30x30 cm dyed fabrics from bulk production of each lot for measurement of GSM, color fastness test.

# Send 60x60 cm fabric with over locked all sides for shrinkage & twisting test

# provided fabric should be of all single batches dyed for color & style wise requirement.

# Factory should provide all the required data such as batch no., batch qty, and total fabric requirement.

FOLLOWING ARE THE NATH QUALITY CRITERIA REQUIRED FOR FABRIC APPROVAL:

#Fabrication -

NATH have the following fabrics -

single jersey-100% cotton
single jersey-95/5% cotton/spandex
1x1 Rib-100% cotton
polo pique-100% cotton

# Dimensional Stability-

The dimensional stability test is designed to show how well a fabric keeps its shape after washing, washing usually results in shrinkage, although some fabrics can expand or gain after washing. For this test washing time, temperature, drying procedure are all specified.

# Color Fastness –

There are different types of color fastness which need to be tested as the color of a fabric can be affected by a variety of factors. for example-color fastness to wash , color fastness to dry & wet crocking, color fastness to bleaching, color fastness to perspiration, color fastness to light.

# PH-

PH value confirms the state of acidity or alkalinity of fabrics.

For NATH Fabric Quality Approval Following is the Performance Standard for Vendor:

TEST NAME	STANDARD TEST METHOD	NATH STANDARD
PHYSICAL PROPERTIES
Fabric weight(GSM)	As requirement	± 5% max
Defect/Evenness of color	Visual	None/Even

WASHABILITY
Dimensional stability(wash)	EN ISO 6330/ISO 5077	length± 5%
Dimensional stability(wash)	EN ISO 6330/ISO 5077	width± 5%
Twisting/Spirality	in house test method	3% max
Twisting/Spirality	based on EN ISO 6330	3% max
Appearance	Three times m/c wash	No major change

COLOR FASTNESS PROPERTY
Color fastness to wash	ISO 105-C01 modified	Color Staining: 3-4
		Color changing: 4
Color fastness to crocking	EN ISO 105-X12	Dry:4
		Wet:3
Color fastness to perspiration	EN ISO 105-E04	Color Staining: 3-4
		Color changing: 4
Color fastness to light	EN ISO 105-B02	Color changing: 5

STRENGTH/DURABILITY
Pilling resistance	EN ISO 12945-1	Class:3(14400rev)

Bursting strength	ASTM 3786	min 50 lbs/sq.inch

OTHER PROPERTIES
PH Range	EN 1413:1998	Range 6-8
Flammability	16 CFR 1610	Class 1

Pintex customized apparel ltd.

Fabric/Garment Lab Test report

Season:

Style#:

Sample: Fabric( )/Garment( )

Fabrication/fiber content:

Required Fabric Weight(GSM):

Color code & Name:

Batch No:

Batch Qty:

Total Fabric requirement:

Submission Date:

Submission Round No:

Care instruction:

TEST NAME

STANDARD TEST METHOD

NATH STANDARD

TEST RESULT

COMMENTS

PHYSICAL PROPERTIES

Fabric weight(GSM)

As requirement

± 5% max

Defect/Evenness of color

Visual

None/Even

WASHABILITY

Dimensional stability(wash)

EN ISO 6330/ISO 5077

length± 5%

width± 5%

Twisting/Spirality

in house test method

3% max

based on EN ISO 6330

Appearance

Three times m/c wash

No major change

COLOR FASTNESS PROPERTY

Color fastness To actual laundering

ISO 105-C01 modified

Color Staining: 3-4

Color changing: 4

Color fastness to crocking

EN ISO 105-X12

Dry:4

Wet:3

Color fastness to perspiration

EN ISO 105-E04

Color Staining: 3-4

Color changing: 4

Color fastness to light

EN ISO 105-B02

Color changing: 5

STRENGTH/DURABILITY

Pilling resistance

EN ISO 12945-1

Class:3(14400rev)

Bursting strength

ASTM 3786

min 50 lbs/sq.inch

OTHER PROPERTIES

PH Range

EN 1413:1998

Range 6-8

Flammability

16 CFR 1610

Class 1

Comment on Test Result:

Pintex customized apparel ltd.

Garment Lab Test report

Vendor:

Order:

Season:

Style:

Sample: Fabric( )/Garment( )

Fabrication/fibre content:

Required Fabric Weight:

Color code & Name:

Batch No:

Batch Qty:

Total Fabric requirement:

Submission Date:

Submission Round No:

Care lnstruction:

Care Label:

TEST NAME

STANDARD TEST METHOD

NATH STANDARD

TEST RESULT

COMMENTS

Color fastness to laundering

ISO 105-C01 modified

Color Staining: 3-4

Color changing: 4

Color fastness to crocking

EN ISO 105-X12

Dry:4

Wet:3

Skewing/spirality

in house test method

3% max

Spirality %

based on EN ISO 6330

Overall Appearance of

As per care instruction

loose thread or other

Garments after wash

three washes

defectiveness

Dimensional stability

EN ISO 6330/ISO 5077modified

± 5% max

Evaluation Original

B/wash After wash

Point Measurement

Measurement Measurement

Shrinkage %

Front length

Arm hole

(wash shrinkage)

Chest

Sweep

Sleeve length

A/shoulder

COMMENT ON TEST RESULT:

AUTHORIZED LAB SIGNATURE:

Thank You from NATH

CONTAINER DETAILS

2010-08-18T15:29:00.000+06:00

Bangladesh Bank FE Circular 13

2010-08-18T12:46:00.000+06:00

Bangladesh Bank FE Circular 12

2010-08-18T12:32:00.000+06:00

Bangladesh Bank FE Circular 9

2010-08-18T12:28:00.000+06:00

DEQ

2010-08-12T11:10:00.000+06:00

DEQ= Delivered Ex Quay

The delivery of goods to the quay (the port) at destination at seller's expense. Seller is responsible for the import customs clearance and payment of customs duties and taxes at the buyer's end. Buyer assumes the cargo insurance and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym DEQ, for example DEQ CHITTAGONG and DEQ SHANGHAI.

DES

2010-08-12T11:01:00.001+06:00

DES = Delivered Ex Ship

The delivery of goods on board the vessel at the named port of destination (discharge), at seller's expense. Buyer assumes the unloading fee, import customs clearance, payment of customs duties and taxes, cargo insurance, and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym DES, for example DES Helsinki and DES Stockholm.

DAF

2010-08-12T11:00:00.001+06:00

DAF = Delivered At Frontier

The delivery of goods to the specified point at the frontier at seller's expense. Buyer is responsible for the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the point at frontier (discharge) after the acronym DAF, for example DAF Buffalo and DAF Welland.

CIP

2010-08-12T10:59:00.001+06:00

CIP = Carriage and Insurance Paid To

The delivery of goods and the cargo insurance to the named place of destination (discharge) at seller's expense. Buyer assumes the import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CIP, for example CIP Paris and CIP Athens.

CPT

2010-08-12T10:58:00.001+06:00

CPT = Carriage Paid To

The delivery of goods to the named place of destination (discharge) at seller's expense. Buyer assumes the cargo insurance, import customs clearance, payment of customs duties and taxes, and other costs and risks.

In the export quotation, indicate the place of destination (discharge) after the acronym CPT, for example CPT Los Angeles and CPT Osaka.

CFR

2010-08-12T10:56:00.000+06:00

CFR= Cost and Freight

The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F.

In the export quotation, indicate the port of destination (discharge) after the acronym CFR, for example CFR CHITTAGONG and CFR DHAKA AIR PORT.

Under the rules of the INCOTERMS 1990, the term Cost and Freight is used for ocean freight only. However, in practice, the term Cost and Freight (C&F) is still commonly used in the air freight.

FAS

2010-08-12T10:52:00.000+06:00

FAS= Free Alongside Ship: Goods are placed in the dock shed or at the side of the ship, on the dock or lighter, within reach of its loading equipment so that they can be loaded aboard the ship, at seller's expense. Buyer is responsible for the loading fee, main carriage/freight, cargo insurance, and other costs and risks.

In the export quotation, indicate the port of origin (loading) after the acronym FAS, for example FAS New York and FAS Bremen.

The FAS term is popular in the break-bulk shipments and with the importing countries using their own vessels.

FCA

2010-08-12T10:51:00.000+06:00

FCA= Free Carrier

The delivery of goods on truck, rail car or container at the specified point (depot) of departure, which is usually the seller's premises, or a named railroad station or a named cargo terminal or into the custody of the carrier, at seller's expense. The point (depot) at origin may or may not be a customs clearance center. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the air shipment, technically speaking, goods placed in the custody of an air carrier is considered as delivery on board the plane. In practice, many importers and exporters still use the term FOB in the air shipment.

The term FCA is also used in the RO/RO (roll on/roll off) services.

In the export quotation, indicate the point of departure (loading) after the acronym FCA, for example FCA Hong Kong and FCA Seattle.

Some manufacturers may use the former terms FOT (Free On Truck) and FOR (Free On Rail) in selling to export-traders.

Dropshipping (make some money without any investment)

2010-08-12T09:36:00.000+06:00

Dropshipping Best Practices

So you want to get involved with dropshipping? It seems an easy way to make some money without any investment. But is it?

It certainly can be, but it takes just as much preparation to do it properly as it would to open a “brick and mortar” store or an online shop where you are physically stocking the merchandise.

Without going into detail of the basics of starting any business, such as having it registered or licensed, having a separate bank account, having some sort of accounting set up, etc. we will assume that is being done and concentrate on dropshipping itself.

By far the biggest problem is finding a “niche”, an area of the market where you will concentrate your efforts. It’s easy here to choose your hobby, but few can transition from hobbyist to business owner successfully. The main reason being there are too many established businesses already devoted to a popular hobby.

Yes, there are hobbies that will support your business. You may very well have a product for a specific breed of dog or cat and decide to concentrate on that niche. But that is a very “vertical” niche, there is a finite number of people globally that are interested in that one breed.

That is a far cry from “games”, which is a definite horizontal market. It is worldwide and has million, even billions of enthusiasts. Such a market is hard to break into, where a vertical market is almost always capable of supporting a new product or seller.

You don’t even have to own a dog to sell to that vertical. You only need a product and a dependable dropshipper to keep you in business. So, how do you find the “good guys” in dropshipping?

You can try the search engines, using terms like distributor. “Wholesale” is hardly worth the effort, as you will come up with many retailers. “Warehouse Distributor”, “Wholesale Distributor” as a single term may help. Certainly try all variations of “dropship”, but here again you will get many bad hits.

You can also join one of the membership sites that offers sources. Many say “never pay for a list”, but many do pay for a list and there are some good ones around. The main thing here is to make sure you are dealing with a good company that offers a guarantee and stands behind it. There are many tales of woe on forums from people who got involved with bad sources suppliers.

It’s difficult, but you need to make certain you are dealing with a Tier One, top of the distribution channel, dropshipper. There are many people who have taken the anonymity of the Internet and, with an investment in a fancy website, gone about proclaiming themselves dropshippers. These people are referred to as “middlemen”.

They do not hold any inventory of their own. They simply take the order that you sold and pass it on to the real dropshipper, making a profit on your sale. Most offer one or more “levels of membership, offer deeper discounts with more expensive memberships and in general also have websites available. All to dig into your pocket.

Here is what you should require in choosing a dropshipper –

They charge a fee? Is it one time, or annual? Will they give it back as a rebate when you have done a specified amount of business with them? You have to decide this on your own. Some good sources do, some lousy ones don’t.
Do they offer images of their products?
Do they charge more for dropshipping an item than they would for the same item if sold to a retailer? Again, up to you.
Do they have all of the goods they offer to you in their possession? This is critical. Visit them, talk to current customers, ask for photos. Make sure they are real and not middlemen.
Will they ship one item at a time? Without an additional charge, as long as it is over their minimum order level?
Do they ship blind? Does every package that leaves them going to your customer have nothing whatsoever to tie them to the order? Does it have your name on the shipping label?
Do they accept PayPal or credit/debit cards? If you sell using PayPal, you should try and pay that way. You will lose days if you have to transfer money to a bank account. Best solution – a PayPal debit card.

If you can answer Yes to 4, 5 and 6 and if you are satisfied with how they deal with 1 and 2, you are getting close.

Dropshipping

2010-08-12T09:32:00.000+06:00

The Basic Guide To Dropshipping

There is a general perception that dropshipping is a new marketing method. Nothing could be further from the truth. It’s been going on for quite some time and will only grow as the Internet continues to expand.

Chances are you or your parents at one time had something dropshipped long before you heard the term. Possibly an item at a major department or speciality store that they did not have in stock at the time. Or an item at a hardware or lawn and garden centre that had to be ordered. For the convenience of all, they had it sent direct to your home or place of business. The seller did not have the item in stock, but made arrangements for it to be shipped directly to the buyer, who paid the seller and waited for the delivery of the product.

That’s dropshipping. The buyer pays the seller for a “not in stock” product to be delivered directly to the buyer by the wholesaler, importer or manufacturer. It could be a rug ordered from a sample, an appliance in a color the seller does not stock, but is available from the factory, some floor mats for the family sedan that the local store does not keep on their shelves, etc.

Notice to this point no mention has been made of dropshipping on the Internet. Before going there, some background on dropshipping in general was necessary to show this is not an “Internet Only” marketing method and that it has been going on for decades.

In the US there are companies who have been built around dropshipping for 50 years or more. The dealers write the order and collect the payment, then pass the order on to the dropshipper who ships the order to the buyer using the dealer’s name and address on all documents.

That last part of the above sentence is critical to dropshipping. The dropshipper must make sure there is nothing included with the shipment, no matter if it’s one item or cartons of goods, that have a direct tie to the dropshipper. No sales literature, a packing list without their name showing, a shipping label with the dealer’s name and address as the shipper and no names on the shipping carton.

In addition, there must be a bond of trust that the dropshipper will not at some point or another directly contact the buyer, bypassing the dealer who initiated the first sale. One of the things that sets dropshipping apart from commission sales is that the customer “belongs” to the dealer when dropshipping, while the customer “belongs” to the company / shipper when the person taking the order is a commissioned salesperson.

With the advent of the Internet, dropshipping took on a new face. Now there are thousands of dealers / sellers with virtual stores showing thousands of products and not a single physical item in stock. And many more offering products on Ebay and other auction sites worldwide.

And, of course, the largest dropship seller of all, Amazon, which was from the start a virtual store-front dependent on suppliers to dropship for them. Which, in turn, produced many more online virtual stores. In fact, many of the established dropshippers began to offer their own “turnkey” dropship websites to their current and prospective dealers.

The Internet also brought a new player to the game, the “middleman”. These people have set themselves up to appear as genuine dropshippers, seeming to have their own goods and shipping for dealers they attempt to have join with them, usually for a fee. In affect, they are simply “order gatherers” who get their subscribing “members” to sell at inflated prices and submit the orders to them.

The middlemen then pass the orders on to the real dropshippers and keep their profit from the inflated “wholesale” prices they charge those foolish enough to join with them. As a result their members are forced to offer their goods at an unusually high selling price, or cut their profits to the bone, either of which leaves the hapless dealer / member often paying dues for an opportunity that is virtually worthless to them.

There are a number of trustworthy and dependable genuine “tier one” dropshippers available. To qualify as tier one they should:

Hold their own inventory

Have no minimum order amount

Be willing to ship as little as one piece at a time, with no extra charges. (There may be a “small order fee” for items under a certain cost, this is normal with all wholesalers.)

Ship “blind” with no reference to themselves

Should you decide dropshipping is for you, with some investigation, or investment in one of the several true, guaranteed dropship source directories, you can have a very profitable business with little investment.

Payment Terms

2010-08-12T09:02:00.000+06:00

This purely relates to settlement of payments for the goods.

TT means buyer will pay for the goods in advance.

L/C sight means buyer will pay when the all original documents arrive at his bank including the title documents.

The third scenario is buyer will pay 30% in advance before shipment and 70% when the original documents arrive at his bank.

D/A basis.. D/A is guaranteed by the buyer himself. It means if the buyer goes bankrupt, nobody will pay you. So you can consider this payment method when you are sure the buyer is financially no problem. But if you are not familiar with him, it's better use L/C that can be guaranteed by the bank. Normally a bank is not so easy to go bankrupt.