Import and export trade transactions are generally done through both the direct method and the indent method
—Goods are obtained by sending orders direct to a foreign manufacturer or his agent under
the direct method.
—Goods are obtained through an agent under the indent method.
—There is no difference between the direct method and the indent method with regard to
the import and export procedure and the documents used.
— Steps related to import procedure can be shown as follows,

• Obtaining details of foreign suppliers.
• Sending a price inquiry
• Making a suitable decision about importing goods after receiving a price quotation.
• Obtaining an import permit if necessary, for the goods to be imported.
• forwarding the indent to the foreign exporter.
• Making arrangements to pay the exporter.
• Obtaining the goods after they arrive at the port.

— Export procedure can be shown as follows.

1. Registering as an exporter
2. Finding of foreign buyers
3. Obtaining export permits if necessary
4. Sending a price quotation in response to the price inquiry received from the importer
5. Receiving the indent
6. Reserving space for the shipment and getting the necessary documents ready
7. Packing the goods in a suitable way for shipment
8. Insuring the goods to be exported
9. Obtaining the bill of lading after handing over the shipment
10. Making arrangements to obtain the money

— Documents used in import and export trade are as follows

Import/ Export permits (licences)
These licences are issued by the department of the controller of Import and Export.
The Controller of Import and export publishes the goods for which permits should
be obtained.
—Indent
This is the order sent by the importer to the foreign supplier. The details of the
goods required by the importer, price, relevant information on the shipment are
included in it.
—Bill of lading
This is issued by the captain of the ship or his agent to the exporter on behalf of the
shipping company. It is certified and promised through this document that the
shipment is undertaken and will be delivered to the port on the relevant country.
—Invoice
Details of the goods which are exported, prices, conditions with regard to payments
and rejections and the route are included in this document.
—Certificate of origin
This document is issued by a recognized chamber of commerce or a government
institution certifying that the shipment is a production of the exporting country.
—Letter of credit
This document sent in order to pay money for the goods sent to the importer by an
exporter. Generally the importer’s bank issues letters of credit on his demand.
 Import entry
This document should be forwarded to the customs by the importer or his agent in
order to claim ownership of goods which have arrived at the harbour for him.
— Export entry
This document is forwarded to the customs of the exporting country by an exporter
giving all the details of the goods he intends to export.
—Insurance certificate
When exporting a stock of goods, the importer or exporter obtains an insurance
certificate for the stocks to be exported. This insurance certificate is obtained by the
importer or exporter according to the sales contract.
— Wharf receipt
— After handing over the goods to the customs, the customs issues this certificate to
the exporter maintaining that the goods are undertaken.
— Letter of indemnity
When a situation has arisen to issue a ‘ Foul’ bill of lading, the exporter gives this
letter to the captain of the ship, to inform the captain that he will undertake all the
future risks with regard to breakages or damage of the goods. This is done in order to get
a ‘clean ‘ bill of lading. When the shipment is in good condition, a clean bill of lading is
issued. When there are breakages or damage of certain goods or in the whole stock,
the foul bill of lading is issued mentioning that the goods are broken or damaged.
— Sanitary certificate
Certain government institutions of this country issue this document assuring the
suitability for consumption of certain agricultural products which are exported from
this country other countries. This is issued on the request of the importing country.
— Warehouse licences
This is a document issued by the authorities of warehouses after storing goods in
bonded warehouses.

 
— The methods used to make payments in foreign trade can be clarified as follows.
— Bank drafts
— Letter of credit
— Electronic payment methods
— Foreign mails and telex transfers

— Bank Draft
This can be used to send money to a person in a far away place of the same country or in a
foreign country. When a person pays the relevant amount and the due charges to his bank
and instructs his bank to pay the money according to his instructions to the person named by
him, then the sender’s bank issues this document to the receiver’s bank or the agent bank
requesting that the money be paid accordingly.
—Electronic payment methods
The present methods of paying money quickly through the internet connections are included
here.
Eg: Credit cards
— Direct credit transfers
Credit transfers are done among own accounts through electronic media such as automatic
teller machines, telephones, internet or by giving instructions to own banks through written
standing orders.
—Foreign mails and telex transfers
This is an order given by a bank through telephone or cable system to the foreign bank or
an agent bank of that particular bank requesting a certain amount of money be paid to a
foreign creditor on behalf of that bank. Telegram system is used for this. If the messages
are sent through a telex machine as mentioned above, then it is called a telex transfer. If a
fax machine is used to send the message, then it is called a fax transfer.