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Export and Import Procedures, Documents and the WTO

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Lesson

Export and Import Procedures, Documents and the WTO

Part 2: how goods move across a border on paper, and the institutions that guide trade.

In this lesson you will

Outline the steps of an export procedure and of an import procedure
State the purpose of the main export and import documents
Describe the objectives, functions and benefits of the World Trade Organization
Name the role of the International Monetary Fund, World Bank and UNCTAD

Concept

Export steps one to five

Steps 1 to 5.
Step	What happens	Imagined Kanchan Textiles
1 Enquiry and quotation	The importer asks for a price; the exporter sends a proforma invoice	Harbour Fabrics asks about sarees
2 Receipt of order	The importer places a detailed order, called an indent	An order for 2,000 sarees
3 Credit check and letter of credit	The exporter checks the importer's standing and obtains a bank's promise to pay	The bank of Harbour Fabrics opens a letter of credit
4 Code and registration	Importer Exporter Code from the Directorate General of Foreign Trade; registration with an export promotion council (as of 2024)	Kanchan Textiles holds both
5 Pre-shipment finance	A bank lends for production and packing before shipment	Rs 24,00,000 from its bank