Trade Services Outsourcing
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Home page > Trade Services Outsourcing
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1. Follow up sales orders
- With pre-authorization arrangement, we will maintain regular contact with the designated vendors and / or factories to follow up orders, documents, shipment, etc. while keeping clients an update.
2. Shipping arrangement
This function is sub-divided into (a) book Shipping Space and (b) arrange for Cargo Insurance.
- Detailed service breakdown of booking Shipping Space includes: (I) Check freight rates & shipping schedule; Pre-book shipping space by sea, air, road or combined transport with the nominated freight forwarder or shipping line; (II) Apply for issuing the appropraiate transport documents which mainly refers to Bill of Lading (B/L), Air Waybill (AWB), Forwarder’s Cargo Receipt (FCR), Shipping Company’s Certificate, and Shipping Guarantee; (III) Arrange for “Telex Release”, that is an instruction to release cargo to the designated consignee at destination without the need to surrender original B/L. (IV) Proof-read those mentioned documents to ensure accuracy.
- We will arrange for export 1 Cargo Insurance to cover risks associated with shipment by sea, air or land with the nominated insurance company subject to the specific 2 Incoterms e.g. CIF, CIP in use. Besides, we will assist clients to submit cargo claims to the insurance claims agent in case of cargo damage and / or loss during transit.
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- Cargo Insurance - Unless otherwise specified, we will cover cargo insurance for clients on the basis of the most popular set of insurance clauses that provided by the
Institute London Underwriters. For example, Institute Cargo Clauses (A) provides cover against all risks of loss of or
damage to the insured cargo for sea transport mode.
- Incoterms - International Commercial Terms provide a set of international rules for the interpretation of the most commonly used trade terms in International Trade
through defining the obligations of the exporter and importer. Thus, the risk of misunderstanding and subsequent disputes could be eliminated or minimized.
Incoterms is a trademark registered by the International Chamber of Commerce (ICC).
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3. Handle Letter of Credit (L/C)
1 Letter of Credit (L/C), or formally known as Documentary Credit (DC), is one of the most popular payment tools that found in International Trade.
Judge Kerr JL once described its importance as 'The Life Blood of International Commerce'. BURST has well-experienced and qualified practitoner awarded
with the internationally recognized 2 CDCS designation for handling L/C documents in a cautious and professional manner.
- We will assist clients to review and evaluate the workability of export L/C terms and conditions that issued by the L/C issuing bank based on the clients’ provided L/C draft with reference to the latest bank rules and guidelines, namely 3 UCP 600 and 4 ISBP 745, supplemented by 5 ICC published opinion, if any. Only through detailed and professional examination in advance that can minimize potential L/C discrepancies or pitfalls which might spark off the problem in claiming for L/C payment at a later stage.
- We will assist clients to complete the necessary bank documents such as L/C application, Trust Receipt (T/R), etc. and apply to the designated Bank for issuing various types of L/C including Back-to-Back L/C, Transferable L/C, Standby L/C, Red Clause L/C or Revolving L/C in favor of local or overseas vendors and factories.
- We will assist clients to handle L/C amendment according to the client's instructions, if any.
- We will propose favorable L/C terms and conditions to clients that can be applied to both import and export scenario.
- We will provide L/C consulting service related to the use of specific L/C types and technical terms.
- We will help draft customized standard L/C terms and conditions to safeguard clients’ interest.
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- Letter of Credit (L/C) - It is a written, irrevocable undertaking given by the issuing bank usually representing importer or buyer, to a beneficiary, usually a seller or exporter
to make payment either at sight or at a determinable future date a stated sum against the complying presentation of documents that fulfill L/C terms, the applicable provisions of
UCP 600 and International Standard Banking Practice. Since banks deal with documents and not with goods, services or performance to which documents may relate
, L/C is also known as Documentary Credit (D/C).
- CDCS - Certified Documentary Credit Specialist, also known as L/C Specialist, is awarded by Chartered Institute Bankers
- UCP 600 - Uniform Customs and Practice for Documentary Credits (2007 revision, ICC publication no. 600)
- ISBP 745 - International Standard Practice for the Examination of Documents under Documentary Credits (2013 revision, ICC publication no. 745)
- ICC - International Chamber of Commerce, the World Business Organization, headquartered in Paris, France, is the global leader in the
development of standards, rules and reference guides for International Trade
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4. Prepare full set of I/E Shipping documents, LC and Banking documents
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- Shipping Documents - This term nowadays is often used interchangeably with Import and Export document despite differences in their nature. Originally, Shipping
documents simply refer to transport documents specifically related to ocean bill of lading (OBL) which is a document of title for sea transport. As time goes by, the
so-called Shipping document evolves to become a “casual” terminology that generally applies to various kinds of trade documents for Import and Export Trade.
- Complying Presentation - It means the delivery of full set of Shipping documents by the Beneficiary to the L/C issuing bank that is in accordance with the
terms and conditions of the L/C, the applicable provisions of the bank rules, UCP 600, and international standard banking practice. In return, the L/C issuing bank has to make payment without recourse.
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5. Handle Bank Bills payment (Bills Negotiation) and Bank Collection
- Bank Bills payment : It mainly refers to Export Bills 1 Negotiation, also known as Bills Purchase. We will pick out the appropriate negotiation clause when preparing the required banking documents and L/C application. For export L/C transactions, we will assist clients to deal with the designated bank for securing proper pre-shipment or post-shipment Trade Finance to improve company’s cash flow.
- Bank Bills 2 Collection : We will handle full set documents under 3 D/P (Documents against Payment) and 4 D/A (Documents against Acceptance) terms in accordance with the latest bank rules,5 URC 522, supplemented by ICC published opinion, if any to facilitate payment collection from overseas collecting bank (for export collection), or through the clients’ bankers to make payment to their vendors or manufacturers (for import collection).
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- Negotiation - This term in banking sector means that the purchase by the nominated bank of full set of Shipping documents under a complying presentation in
accordance with L/C terms, the applicable rules of UCP 600 and ISBP, by advancing or agreeing to advance funds to Beneficiary, usually the exporter or
seller, serving as a post-shipment trade finance.
- Collection - It is a method of settling payment between buyer and seller through bank channel. Unlike in L/C case as mentioned, a bank handling collection is acting as
the agent for its customer, either the seller of buyer, without undertaking to make payment against the presentation of complied documents. In practice, Collection can
be sub-divided into two categories, namely D/P and D/A.
- D/P - It stands for Documents against Payment. The collecting bank may be instructed by the seller or exporter to release full set of Shipping documents to the buyer or
importer against immediate payment for the goods or services.
- D/A - It stands for Documents against Acceptance. The collecting bank may be instructed by the seller or exporter to release full set of Shipping documents to the buyer or
Importer against the proper endorsement on the tenor (usance) bill confirming to pay at maturity, say, 30 days after B/L date.
- URC 522 - Uniform rules for Collections (1995 revision, ICC publication no. 522)
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6. Apply for Certificate of Origin and Trade Documents Endorsement
- Process and coordinate with Hong Kong Trade and Industry Department or Government-authorized Certification Authorities such as Federation of Hong
Kong Industries (FHKI) to apply for Import and Export Licenses and official Certificates such as Certificate of Origin (CO), Re-export CO or CO
without transit / with transshipment to fulfill the Import and Export requirements of different countries.
- For certain specific markets, say, Middle East, we will further assist clients to apply to Consulate (Embassy) to legalize or Chamber of Commercie to endorse the necessary Trade documents which usually includes Commercial Invoice, Pro-forma Invoice and Packing List prior to export.
7. Lodge Import and Export Declaration (Trade Declaration)
- We will assist clients to lodge Import and Export Trade Declaration with the Commissioner of Customs and Excise an accurate and complete Trade Declaration (TDEC) typically in declaration Form 1, Form 2 or Form 2A through online transmission ("Tradelink" electronic declaration) within 14 days after the importation or exportation of the articles so as to comply with the current Import and Export (Registration) Regulations.
8. Trade Support Services - Value-added service
BURST, being a capable and considerate Trade Service provider, is always seeking for value added service items in line with market trend.
- Prepared well-designed operation workflow for every client at the outset to increase the visibility of their back-end Trade operational activities.
- Our Trade Service consultant will attend meeting with clients to identify and fix problems related to Import and Export Trade.
- An on-going Import and Export Trade Service Consultancy that covers Trade rules, L/C operations, Cargo Insurance and I/E Shipping documentation are available to clients.
- Accompany clients or buyers to pay visit to the mainland vendors and / or factories to facilitate business negotiation and handle ad hoc duties.
- Compile and submit monthly report enabling clients to review past transaction record in details.
- Provide mini-Trade ancillary services such as data entry, mailing, labeling, bookkeeping, etc.
- Host a variety of customized Import and Export Trade Practice Training for our clients
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For details of how we can help you handle your back-end operations in cost-effective manner through our Trade Services Outsourcing scheme, please call us at +852 2361-8399. ※
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