Conclude contract and trade terms

Case Study

Title: Textiles Imports to Nepal from India, 2010

Corridors and Routes: Not Specified

Trade Product: Textiles

Trade Type: Import

Process Analysis: Import to Nepal

Exporting Country: India

Importing Country: Nepal

Category: Contract between seller and buyer

Country and Procedure Description: Buy/Conclude contract and trade terms (Import to NPL from IND/Textiles)

Related Rules, Laws and Regulations:

Actors and Participants: - Importer
-Exporter/Representative

Input Criteria to Enter or Begin the Business Process: -Buyer looks to purchase textiles from Indian sellers, and begins to narrow down supplier by the supplier providing the buyer with samples & price quotes

Activities and Associated Documentary Requirements: 1. Collection of samples and prices The importer contacts exporters or exporters’ agents in India to collect samples. Business contracts for importing textiles from India are normally arranged through agents. Exporter's agents visit Nepalese importers with samples of their textiles and price quotations. 2.Selection of goods and negotiation of trade terms Nepalese importers enter into negotiation with the exporter's agents then fix the terms of trade and finalize a deal. 3. Sign and exchange contract documents Once the trade terms are finalized, the exporter prepares and signs the contract and sends it to the importer (through a courier or the exporter's agent) for signing. After signing by the importer the contract documents are exchanged and the importer arranges the 50 per cent advance payment. . Documents: Proforma Invoice Purchase Order Contract Documents

Output Criteria to Exit the Business Process: -Accepted terms of trader by the importer and exporter

Activity Diagrams:

Number of Required Documents: 3

Minimum Required Time:

Maximum Required Time:

Average Required Time: 2

Minimum Cost:

Maximum Cost:

Average Cost: USD 2.77 (per truck)