Finance/International Commerce: Detailed Transaction Steps Analysis

This assignment provides a detailed analysis of the steps involved in international commerce transactions, focusing on the roles of the forwarding agent, the financial department, and the customer. It outlines the processes and documents required for a successful transaction, including shipping orders, insurance policies, commercial invoices, documentary credits, and commercial bills. The assignment examines the flow of goods and payments, highlighting the responsibilities of each party involved. The forwarding agent's steps include shipping orders, insurance and invoices, dock receipts, and bills of lading. The financial department's steps encompass documentary credits, insurance, collection instructions, and commercial bills. The customer's steps involve pro forma invoices, collection instructions, shipping orders, and commercial bills. The assignment uses a case study approach, providing concrete examples and references to relevant codes and conditions, such as CIP. It also includes a bibliography of sources related to international commerce.

Running head: FINANCE/ INTERNATIONAL COMMERCE
Finance/ International Commerce
Name of the Student:
Name of the University:
Authors Note:

FINANCE/ INTERNATIONAL COMMERCE
1
Table of Contents
Steps involved with Forwarding Agent:....................................................................................2
Steps involved with Financial Department:...............................................................................2
Steps involved with Customer:..................................................................................................3
Bibliography:..............................................................................................................................5

FINANCE/ INTERNATIONAL COMMERCE
2
Steps involved with Forwarding Agent:
There are several steps that need to be followed for the transaction with the
forwarding agent, as goods will be sold from the seller to the buyer. The seller needs to select
an adequate forwarding agent that can support the delivery from Spain to Roma.
Proces
s
Document Explanation
Step 1: Shipping Order
S/O
Making slot for the transfer of goods from Spain to Italia for
30,000 units of organic greige fabrics HTS Code
5512001219. The goods will be transferred to Zeta Italiana,
Roma – Italia.
Step 2: Insurance Policy
and Commercial
Invoice
The Reference Code:232 is relevantly used for detecting
freight cost and insurance CIP conditions, where total cost of
£1,800 will be incurred by the seller for completing the
shipping process.
Step 3: Dock Receipt D/R The goods will be transferred from storage of Paseo Pereda
to the forwarding agent warehouse, where it. will be shipped
to the appropriate address
Step 4: Bill of Lading and
Shipping
Guarantee
33 cases of organic greige fabrics, weighing about 15,200 in
gross and 15,000 in net. The delivery of the goods is mainly
paid by the seller as they follow CIP condition, while
conducting relevant delivery.

FINANCE/ INTERNATIONAL COMMERCE
3
Steps involved with Financial Department:
The financial department of seller relevant comprises of different measures, which
eventually help in determining the total cash flows conducted by the seller.
Proces
s
Document Explanation
Step 1: Documentary
Credit D/C
After the confirmation of 30,000 units for organic greige
fabrics the overall prices are set at £5.4 per unit, which led to
the total consignment value of £162,000.
Step 2: Insurance Policy
and Commercial
Invoice
The commercial discount is also recorded at 2%, which is
mainly at the levels of £324, which increases the overall total
amount to £162,324.
Step 3: Collection
Instruction
The payment is recorded for the freight cost, as the seller will
be paying for the delivery of the good, which amount to
£1,800. the freight cost will be received at the levels of
£1,775 and Insurance CIP conditions included at £25
Step 4: Commercial Bill After delivery of the goods the payment of £162,324 will be
received from the buyer to the seller with the help of SWIFT
Code BSCHTESXXX
Steps involved with Customer:
Relevant steps need to be conducted for customer, which might help in completing the
overall transaction.

FINANCE/ INTERNATIONAL COMMERCE
4
Proces
s
Document Explanation
Step 1: Pro Forma
Invoice
Confirmation of the order for 30,000 units of organic greige
fabrics with set price of £5.4 per unit, which will be paid at the
delivery of the goods.
Step 2: Collection
Instruction
The delivery terms CIP is decided by both Buyer and Seller, while
Swift Code is forwarded by the seller, where payment will be
made after delivery has been completed. The CIP conditions
indicate that freight cost and insurance cost will be borne by the
supplier and not the buyer.
Step 3: Shipping
Order S/O
HTS code 5512001219, Ref. 232 and Invoice: 637574 are
dispatched to the customer after the conformation provided by the
forwarding agent.
Step 4: Commercial
Bill
After confirmation of the 33 Cases delivery to the buyer the seller
will receive the full payment of £162,324.