The ordering and delivery process in international steel trade typically involves several key steps, which are outlined below:
I. Ordering Stage
- Quotation: Based on the type, specifications, quantity, delivery time, and other relevant information of the steel products, the seller will provide a quotation to the buyer. The quotation usually includes the quality grade, specifications, packaging requirements, delivery time, transportation method, and other details of the steel products. Quotation methods can vary, including FOB (Free On Board), CNF (Cost and Freight), and CIF (Cost, Insurance, and Freight).
- Ordering and Contract Signing: After the buyer and seller reach an agreement on the quotation, they will proceed with the formal ordering process. Both parties will negotiate on the product name, specifications, quantity, price, packaging, origin, shipment date, payment terms, settlement method, claims, arbitration, and other terms and conditions, and incorporate the agreed terms into the “Purchase Contract”. The contract is typically in duplicate, stamped with the company seal by both parties and takes effect. Each party retains one copy.
II. Delivery Stage
- Payment Method: The buyer will make the payment according to the terms agreed in the contract. Common international payment methods include letter of credit (L/C), telegraphic transfer (TT), and direct payment. Among these, L/C is the most commonly used payment method in international trade, ensuring that the exporter can receive the payment.
- Preparation and Inspection: After signing the contract, the seller will promptly source the goods, prepare the required steel products, and arrange for the inspection of the export goods. Inspection is a crucial step to ensure that the goods comply with the contract specifications and to avoid disputes after delivery.
- Shipment and Transportation: The goods will be loaded onto the vessel according to the transportation requirements, and the corresponding transportation insurance will be arranged. Shipment is a key link in the delivery process, ensuring that the goods are safely and punctually delivered to the destination.
- Bill of Lading and Settlement: After the shipment, the seller will issue a bill of lading, which allows the buyer to take delivery of the goods. The buyer will then settle the payment according to the terms agreed in the contract.
Please note that the specific process may vary depending on the terms of trade and the destination. Both the buyer and seller should negotiate and adjust according to the specific situation in practical operations.
