FOB Export Operation Procedure (From China)
1. Customer Communication and Order Confirmation
1. Customer Inquiry
Before placing a formal Purchase Order, customers usually submit an Order Inquiry to understand product details.
2. Quotation
The sales department provides a Proforma Invoice based on product name, model, manufacturer, quantity, delivery time, payment terms, packaging specifications, and container type.
3. Order Confirmation
After negotiation, the customer issues an official Purchase Order.
4. Production Order Placement
Once the order is confirmed, the factory is instructed to begin production.
2. Internal Review and Production Notification
5. Business Approval Process
The salesperson fills out an Export Contract Review Form, listing all estimated costs. Attachments should include the customer order and the supplier’s contract. The approval process goes through:
Salesperson → Department Manager → Administration → (if needed) General Manager.
After approval, a sales order is created for tracking.
6. Production Notice
Production notice is issued when the following are confirmed:
- For L/C payments: Confirm receipt and review of the L/C one month before shipment.
- For T/T payments: Confirm deposit has been received.
- For credit accounts (e.g., D/A): Requires managerial confirmation.
3. Pre-Shipment Preparation and Documentation
7. Inspection Arrangement
- Internal inspection: Schedule one week before shipment.
- Customer inspection: Schedule in advance and notify planning department.
- Third-party inspection: Contact inspection agency two weeks in advance.
8. Basic Document Preparation
Based on packing info provided by the factory, prepare export contracts, commercial invoices, and packing lists.
9. Commodity Inspection
For regulated products, inform the factory of inspection requirements and provide necessary documents. Ensure the factory knows the port of export to facilitate inspection certificate issuance.
4. Booking and Logistics
10. Space Booking
- For FOB CHINA contracts: Contact the customer’s designated freight forwarder early to confirm port, vessel schedule, and ensure the factory can meet the timeline.
Submit booking confirmation (ING ORDER) two weeks before shipment. - If the seller pays for freight: Research vessel schedules, prices, and select a suitable shipping line.
- For LCL shipments: Book LCL space, confirm customs cutoff and warehouse requirements.
- All bookings should be confirmed in writing with full shipment details.
11. Container Trucking Arrangement
- After inspection, arrange container pickup. Provide complete loading instructions, including booking confirmation, container type, pickup address, and customs broker.
- Notify the factory of container schedule and request shipping notification post-loading.
- Record container and seal numbers for the Bill of Lading (B/L).
12. Customs Declaration
Submit documents and container info to the customs broker and ensure clearance at least two days before the vessel’s cutoff date.
5. Transport and Export Documentation
13. Obtain Shipping Documents
- Within two days after departure, submit B/L details to the shipping line or forwarder.
- Confirm draft B/L and charges. If required by the customer, send B/L draft for approval.
- Pay freight charges and collect the original B/L and related documents.
14. Prepare Other Export Documents
- Commercial Invoice: Must match the L/C terms and be dated after L/C issuance and before shipment.
- Certificate of Origin (FORM A or General CO): Apply before shipment, and ensure transport dates are compliant.
- Shipping Advice: Send shipment details (vessel name, ETA, value, packaging, marks, etc.) shortly after departure.
- Packing List: Clearly indicate quantity, weight, volume, and match B/L data.
6. Document Handling and Post-Shipment
15. Document Submission
- L/C: Submit all required documents for negotiation within the allowed time.
- T/T: Fax B/L to the customer upon receipt, send original upon confirmation of balance payment.
- T/T Prepaid: Ensure full payment is received before container pickup and send B/L thereafter.
16. Business Recordkeeping
Each completed export order should be recorded digitally and on paper for tracking and analysis.
17. Document Filing
All original L/C and negotiation documents must be archived for future reference.
18. Market Intelligence
The documentation team should continuously monitor freight rates, sailing schedules, and routes to support accurate quotations.
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