| [1] Method to secure exporting goods |
(1) Self manufacturing
(2) Purchase using Local L/C |
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- Recognized as export and entitle to customs duty refundment and trading finance.
- Can receive raw supplies in definite since a opening bank positively confirms payment. |
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| (3) Purchase using purchase license |
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- Recognized as export and entitle to customs duty refundment and trading finance.
- Unlike local L/C, a opening bank does not confirm payment but it only exercise as a meditator or simply confirm issuance basis.
- The purchase license is advance remittance method which is excluded from L/C opening subject. It has practical use and advantage when trade/export finance is insufficient.
- Able to receive the license regardless of difference restriction when multiple processing is necessary in manufacturing export goods. |
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[2] Importing raw materials
- Importing raw materials when exporter has manufacturing facility. |
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<1> Draw contract
<2> Import license for raw materials to acquire foreign currency |
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| - In a wide sense, the import license support system for raw materials and tools & materials are to promote foreign currency acquiring. |
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| 1. Raw materials to acquire foreign currency |
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- Referring to parts, components, subsidiary materials necessary to remodify, regenerate, repair, assembly, process and manufacture goods to acquire foreign currency.
Exception)
-Items need growth process (the young fishes---to an adult fish)
-Durable tools and materials (Needles for sewing machines and chips for electronic goods parts ) |
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- Import is allowed for the items that are restrict to import in accordance with related law
- No import quota to import.
- Import duty is waived that are levy on imports for local market.
- Extend on usance period and unlimited region.
- The country of origin can be waived on the imported goods when receiving customs clearance.
- Trade fiance benefit, duty refudment and will receive other benefits. |
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<3> Opening import L/C
<4> Proof of required amount |
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- When procuring raw materials to acquire foreign currency, exact yields of material needs to be calculated because one is receiving finance and tax benefit.
- If difficult to proclaim basic yield due to difficulties in manufacturing process or the exporting goods are manufacturing for the first, yield in unit is applicable.
- If firm yield-ratio requires long tim to calculate by yield-ratio certificate issuing organization due to many kinds of materials and manufacturing uniqueness, a certificate of assumed yield-ratio can issued.
- Required documents for non-proclaimed items |
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1. Proof of requirement application
2. All the necessary documents such as export credit, export permit, local credit and purchase license etc.
3. Production detailed statement for required materials.
4. The least proof documents required for proof of requirement such as samples, catalogues, instruction for usage. |
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<5> Shipping documents
<6> Goods carrying into bonded area
<7> Import declaration
<8> Manufacturing goods |
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[3] Purchasing raw materials
- Procure raw materials from domestic when exporter has manufacturing facility. |
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<1> Conclude raw materials purchasing contract
<2> Open local L/C or apply for raw material purchasing license for foreign currency acquiring.
<3> Manufacturing goods |
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[4] Purchase completed goods |
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<1> Conclude sales contract
<2> Receive goods |
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[5] ex post facto management of raw materials for foreign currency acquiring (Since there are many different regulations according to each countries, only summary is provided here) |
| (1) The needs of ex post facto management |
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- Since there are many benefits given to the act of foreign currency acquiring, the service has to be used for its original purpose and as is licensed.
- Supervision is required if the service is used for the original purpose. |
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(2) Items subjected to ex post facto management
(3) A person responsible to render ex post facto management |
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<1> A person who imported or consigned to import materials or tools
<2> A person who purchased materials and tools from local
<3> A person who obtained materials and tools |
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(4) ex post facto management authorities
(5) ex post facto management method |
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| - As per a person responsible to execute foreign currency acquisition or per import as per items or as per the total amount purchased in local. |
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| (6) ex post facto management procedure |
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<1> Import entry detail declaration and ex post facto management card
<2> Foreign currency aquisition procured declaration
<3> Procurement execution declaration |
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| (7) ex post facto management waiver |
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<1> Nonperformance is trifling
<2> Modifying approval for purpose |
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| 1. Applying for Modifying approval for purpose |
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| - If necessary to change its original purpose to others on the products manufactured using the raw materials and tools for foreign currency aquisition purpose: Apply for purpose modification before fixed period. |
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| 2. If necessary to change its original purpose |
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- In case if the person responsible to execute can not carry out the execution due to a war or natural disaster.
- Other force majure of the person responsible to execute |
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| 3. Transfer or take over of the materials for foreign currency acquisition |
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| - Should apply for an approval to transfer or to be able to take over by a person who will use the service for the original purpose of the materials and tools for foreign currency acquisition. |
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| (8) Sanction against non-performed foreign currency acquisition |
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[6] Procuring funds to manufacture goods to export (Since there are many different regulations according to each countries, only summary is provided here) |
| (1) Understanding trade finance |
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| - The trade finance is referring to the entire credit in purpose to enlarge exporting by coordinating finance to export. |
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(2) Subject to finance
(3) Export excluded from finance
(4) Standard finance for L/C |
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| - A method receiving a finance per each time based on a L/C within a fixed finance limitation. |
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| (5) Performance result finance |
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| - A finance calculated based on the past performance within a fixed finance limitation. |
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| -A loan system on the fixed ratio based on a L/C regardless of its use. |
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Trade Helper 
Ex-Import Procedure(to Way of Payment)
Export-Import procedure according to the Irrevocable Documentary Credit method
Secure Exporting Goods 
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