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Conclude contract and trade terms
Case Study
Title:
Jasmine Rice Exportation from Thailand to the United States, 2011
Corridors and Routes:
Not Specified
Trade Product:
Jasmine rice
Trade Type:
Export
Process Analysis:
Export from Thailand
Exporting Country:
Thailand
Importing Country:
United States of America
Category:
Contract between seller and buyer
Country and Procedure Description:
Conclude contract and trade terms/Buy (Export from THA to USA/Jasmine rice)
Related Rules, Laws and Regulations:
Incoterms
Actors and Participants:
- Exporter or representative
- Importer
Actors and Participants:
- Exporter or representative
- Importer
Input Criteria to Enter or Begin the Business Process:
- Exporter has a list of jasmine rice potential buyers. - Exporter is eligible to export rice. The qualifications of exporter meet regulatory requirements outlined in Ministry of Commerce Regulation on the Export of Rice No. 1 (B.E. 2534), 5 (B.E. 2637), and 7 (B.E. 2539). - As required by Rice Trading Act (B.E. 2489), exporter has already received a permission from Department of Internal Trade (a government agency under the administration of Ministry of Commerce) to trade rice with overseas trading partners (general classification). The application form for a request of a permission to trade rice with overseas trading partners costs 5 THB. The permission to export rice costs 20,000 THB yearly. - In line with Export Commodity Standards Act (B.E.2503 and 2523), exporter has successfully registered itself as a registered jasmine rice exporter with Office of Commodity Standards, one of the divisions in Department of Foreign Trade. The registration takes less than 1 working day and costs 2,500 THB. It expires on December 31 of every year. - To register with Office of Commodity Standards, exporter must have the qualifications listed in Ministry of Commerce Regulation on the Export of Products under the Standard Scheme (B.E. 2504).
Activities and Associated Documentary Requirements:
1. Exporter prepares Quotation to inform an importer about quoted price and sales terms. 2. Importer reviews the Quotation and determines if the quoted price and sales terms are acceptable. If the quoted price and sales terms are not acceptable, importer requests exporter to revise the quoted price and sales terms. 3. If the quoted price and sales terms are acceptable, importer confirms exporter the purchase of goods with Purchase Order. 4. Exporter prepares the delivery of goods accordingly. 5. Exporter acknowledges the receipt of Purchase Order and confirms that the jasmine rice will be delivered according to established conditions and terms by sending importer Proforma Invoice. 6. Importer receives Proforma Invoice.
Output Criteria to Exit the Business Process:
- Importer and exporter have concluded trade contract and terms.
- Based on a purchase order, an exporter can prepare goods for export.
Activity Diagrams:
Number of Required Documents:
2
Minimum Required Time:
Maximum Required Time:
Average Required Time:
2
Minimum Cost:
Maximum Cost:
Average Cost: