1. Silk purchase is quite a niche approach. Many buyers usually have to have deal with numerous individual enterprises all of whom are different: in scale, in design – some more traditional, some more contemporary, some only dealing in silk products and some with other products - therefore each has to adopt a different approach to their production and marketing. There is no single right way to proceed. The Handmade Textile Association maintains a web shop aimed at international retail and wholesale customers looking for medium-sized quantities. For larger orders of 400 items and up or for custom design orders, the buyers would normally consult with the organization on the custom-made design using different yarn, patterns and colours. 
 2. We start the BPA map through getting order as the first contact between exporter and importer. The steps of getting order are as follows: 3. The importer in Europe shows interest in import of silk products from Cambodia through the web catalog. For an existing buyer, the importer first sends the request for quotation to the Cambodian exporter, indicating the items in the catalog and the quantity after which the exporter quotes prices and terms of trade to the buyer via e-mail. 4. The importer verifies the quotation and, assuming the payment terms are acceptable to both parties, confirms the intent to purchase. Then a Purchase Order (PO) is sent by the importer/buyer to the exporter/seller by email or by fax. The exporter/seller raises a Proforma Invoice (PI) or a Purchase Contract against the PO and send it by email or by fax back to the importer/buyer who is required to countersign and stamp as a token of acceptance. Normally the Purchase Contract is quite simplistic, with inclusion of only necessary terms and conditions. 5. Both parties sign contract which determined the shipping date and commercial terms and conditions, specifically: a. Contract terms: Information on the Goods – Items No, Fabrication: 100% silk, Quantity and unit price, and tariff line number. b. Destination: From Phnom Penh International Airport, Cambodia to Hannover Airport (HAJ) Germany. c. Other terms and specific conditions: In case of dispute, both parties shall settle by amicable negotiation. 6. The Cambodian exporter prepares the shipment for export.

1. Transport is viewed in the BPA as cost incurred by the exporter or importer. Yet transport is clearly more than just a cost layout on the part of the trader. It is a source of intervention – from its location, the interchanges among the modes of transport, the toll imposition, traffic conditions, congestion and other transport issues. 2. Planning for the shipment of goods from the exporter to the importer's country involves the decision on mode of transportation. Four major factors are relevant in this context: the-urgency of delivery; the size and weight of items to be moved; the location and accessibility of the point of delivery; and transit time. 3. Mode of transport: Product characteristics affect the relative cost of transportation by different modes of transport. Sea freight is the most widely used form of transportation for rice trade. There are three options for rice shipments abroad: 1) Sihanoukville; 2) Via Saigon/Cai Mep (Vietnam); 3) Via Laem Chabang or Bangkok (Thailand). The Sihanoukville Autonomous Port (PAS) is the only deep sea port in Cambodia and accounts for approximately 70% of Cambodia's international cargo. The port is served by feeder vessels connecting to intercontinental mother vessels and other regional vessels at the major transit ports in Singapore and Hong Kong and other secondary South East Asian seaports. The lack of handing equipment in Sihanoukville Port is a constraint for the export of large quantity of milled rice. Only vessels with depth less than 8 to 8.5 meters can dock at the Sihanoukville Port, as the waterway is shallow and rocky. The maximum allowable load of vessels docking in the port is 10 thousand tons suitable only for shipment of milled rice to Southeast Asia or Africa. 4. Presently, exports via Sihanoukville remain more costly compared to exports via Vietnam’s new deep sea port in Cai Mep. Even the Ho Chi Minh Port allows vessels with load capacity up to 30 thousand tons in docking station and 60 thousand tons in transfer zone. Nonetheless, a railway connection is currently under reconstruction by an Australian concessionaire. The railways, when completed in the next years, will help promote bulk transport from the northwest to the southern seaport with reduced cost of transportation “Contract terms: from Sihanoukville during end July / August 2010, in 2 equal lots, in mutual agreement. 5. Freight Forwarders are service companies that handle all aspects of export shipping for a fee. They act as the exporter's agent and can improve delivery time and customer service. Freight forwarders often don't own their own trucks but hire transport and contract with local brokers as needed. There are approximately 110 customs broker and freight forwarding companies in Cambodia, excluding the large number of individuals independently performing these services. As there is little regulation or public authority oversight of the sector and quality of service. Professionalism can vary considerably. In general, these companies provide quality services at competitive prices. The rice exporter requests the freight forwarder to provide quotes on insurance and freight, advises on rates and routing, and documentation and Customs clearance services. The rice exporter usually does not need assistance with packaging as the service is already done by the rice miller. 6. Shipping instructions: The exporter must give clear instructions to the forwarder to avoid moving goods in advance of documentation, which could be inviting problems and expense. Countless export operations have gone astray because the exporter failed to give sufficiently precise instructions. The resulting loss of time and money are often large. For surface freight, documents should be mailed to the forwarder and only exceptionally handed to his uniformed driver. 7. Forwarder's Consignment Note: This is a simple form of instruction, which is designed to be the simplest and clearest way to give instructions. Instructions should always be given in writing, sometimes by fax and in many cases on forms provided by the forwarder or designed by the exporting firm. Where exporters make their own arrangements for delivery directly to docks or terminals, they should ensure that shipping instructions are received at the port by the day prior to delivery. 8. Obtain Cargo Insurance: Although the insurance industry is young in Cambodia, factories and the transport of merchandise within Cambodia are fully insured by a few insurance companies. Whether a Marine Insurance Policy is obtained by the exporter or importer depends on the buyers requirements. Most, if not all, of the rice shipment is F.O.B. Sihanoukville. The exporter subcontracts to the freight forwarder the task of procuring the inland part of the insurance policy and the cost of the insurance premium is billed from the freight forwarder to the exporter together with the freight forwarding costs. “Contract terms: INSURANC : Buyers to cover the marine insurance. Sellers’ shipping advice to be done within 3 working days after date of shipment, with all necessary shipping details, to allow buyers to insure the cargo in due time.” 9. Booking Cargo space: The exporter instructs to his freight forwarder to undertake the following: (1) make the initial reservation of cargo space verbally over the telephone, followed by a formal booking request, (2) register details on customs entries' forms and send to customs and (3) register cargo on a shipping note and send shipping note to shipping company. The shipping line then issues a Shipping Note and a Release Order (RO).81 The exporter sends the shipping note along with the RO to the inland transport agent to collect the container from the yard. The RO is usually faxed.

1. Export processes with Government agencies: The following are documents, which need to be secured from government agencies: 2. For export by air (to all destinations except the USA), the exporter need to submit: - Certificate of Origin - Invoice - Packing List - Sales Contract 3. The Certificates of Origin are required for export to the EU because of the established EBA trade arrangements which typically allow exporters to enjoy duty exemption with the EU upon submission to the EU of the Certificate of Origin Form A as issued by the Bilateral Trade Department of the Ministry of Commerce, formerly the Foreign Trade Department (“FTD”).92To receive a CO, the silk exporters will need to register first with the Trade Preferences Department (“TPD”). This initial process is required for both for-profit and non-governmental organizations (“NGO”) and is only done once. The CO application process for exports by air to the EU, however, can usually occur after the cargo ships since most exports are duty and quota free. Moreover the exporter does not have to pay for the Export Management Fee for small quantities of goods valued under 6,000 Euros for European countries and under $800 USD for other countries.

1. The freight forwarder/exporter proceeds next to arrange Camcontrol Inspection at the Camcontrol office in the Cargo Terminal and provide the following documents: Packing List, Commercial Invoice, Airway Bill, Sale Contract, and a Certificate of Origin. Camcontrol then fills out a separate Inspection Survey Report. Next, the freight forwarder/exporter pays an official export tax0.1% fee, based on the value of the goods, at the Camcontrol cashier. An Inspection Fee Receipt is issued to the exporter. The Camcontrol inspection report is submitted to the Head of the Camcontrol PPIA for approval and signature. A Certificate of Quantity document can also then be issued if needed.

1. Export documentation falls into three essential categories: a) Internal company documentation; b) Documentation to facilitate the physical movement of the goods including establishing title or ownership during transportation, c) Documentation required by consignee for Customs clearance, payment, etc. The following are documents, which need to be prepared either internal by the exporters and other with services providers 2. Commercial Invoice: The exporter-prepared commercial invoice is a paramount document. It should incorporate or annex a detailed packing list where there is more than one package. The commercial invoice, which for some destinations may be produced on a combined invoice and certificate of value and origin form, is the basis for all subsequent documentation. Commercial invoices, with an adequate number of copies, plus the packing list if this is a separate document should be available at destination in advance of the goods. (See Annex II.4: Commercial Invoice). 3. Invoicing regulations vary according to destination: special invoice forms, certificates of origin or consular documents may be specified and care must be taken in fulfilling these destination requirements. 4. Bills of Lading: For ocean shipments this is the supreme document. In legal terms it is "a receipt for goods shipped, a document of title and evidence of the contract of affreightment". In commercial terms, the Bill of Lading has an accepted special identity, and may be regarded as a combined "ticket for the journey" and "title deeds" of the goods. Possession of a negotiable Bill of Lading, properly completed, constitutes effective control of the goods. When Bills of Lading are to be established in the name of the exporter the forwarder needs to be told. Otherwise, it is fairly normal practice that the Bill of Lading will be established in the name of the forwarder as agent