Conclude contract and trade terms

Case Study

Title: Import of Rice from India to Nepal

Corridors and Routes: Barauni - Kathmandu

Trade Product: Rice

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/Rice)

Related Rules, Laws and Regulations: In Nepal, following act and regulations are associated in the process of trading business. - Export and Import control Act 2013(1957) -Foreign Exchange (Regulation) Act 2019 (1962) - Competition Promotin and Market Protection Act - Food Act 2023 (1966) - Feed Act 2033 (1976) - Drug Act 2035 (1978) - Pesticides Act 1991 - Value Added Tax Act 2052 (1996) -Environment Protection Act 2053 (1997) - Animal Health Service act 2055 (1999) -Veterinary Council Act 2000 - Plant Protection Act 2064 (2007) -Customs Act 2064 (2007) - Finance Act 2068 (2011) Similarly, following rules/ regulations and directives are also related with trading process in Nepal. - Food Rules 2027 (1970) - Drugs Registration Rules 2038 (1981) - Feed Regulation 2041 (1984) - Pesticides Rules 1994 - Animal Health and Livestock Service Rules 2056 (1999) - Customs Rules 2065 (2007) - Plant Protection Rules 2066 (2010) - Animal Quqrantine Directives 2064 - Commerce Mannual 2065 - Customs Mannual 2068 - Directives of Import and Sale of Gold 2068

Actors and Participants: -Importer
-Exporter
-Broker

Input Criteria to Enter or Begin the Business Process: - Registered business firms Importer have a list of potential brokers and exporters

Activities and Associated Documentary Requirements: 1. Importer contact broker and asks for the following - Price - Quality - Quantity - Mode of payment - Mode of delivery 2.Broker offers trade terms 3.Importer receives offer of trade terms 4.Importer reviews the trade terms, if trade terms are not agreed upon importer requests for revision. 5.If trade terms are acceptable importer expresses intent to purchase. 6. Broker establishes the relation between importer and exporter. 7.Exporter issues the Pro forma invoice. 8.Importer receives Pro forma invoice and reviews, if it is not acceptable, he contacts exporter and requests to review. 9. If Pro forma invoice is acceptable importer issues purchase order. 10. Exporter acknowledges the purchase order

Output Criteria to Exit the Business Process: -Importer and exporter have concluded trade terms

Activity Diagrams:

Number of Required Documents: 5

Minimum Required Time:

Maximum Required Time:

Average Required Time: 2

Minimum Cost:

Maximum Cost:

Average Cost: NPR 50