Certificate of Compliance (COC)
A COC (Certificate of Compliance or Conformance) is the document your supplier sends you in which he assures you that the shipment and its lot contents conform to standards you’ve agreed to or are mandated in some other way*. It’s simply a signed statement, like the expense report, of how much was spent in aggregate and on what. It is an assurance that what is being promised is true, although no evidence for that is presented.
A Certificate of Conformity or CoC is a mandatory document which is necessary for Customs clearance of exports to many countries around the globe
It is a document issued for industrial products within the framework of the European Union and Customs Union agreements, indicating that the goods are in free circulation by paying taxes in the Union or in the Union. It is regulated only by the European Union and the Customs Union countries.
EFTA (European Free Trade Agreement) and Free Trade Agreements with the scope to all products in the agreement between Turkey, the EU Treaty should indicate in relevant countries to benefit from the exemption of goods other than industrial products document.
At the stage of the contract, the buyer is the pre-invoices which include the conditions of sale in terms of goods, units and the total amount, and the terms of the offer, which have the nature of the offer, and the contract when the contract is not made. Commercial invoices are also demanded on the basis of official institutions, as they do not have commercial qualifications.
Receiver information, document date and number, item details, unit price, total amount, unit value, currency, weight, container information and Incoterms details are the invoices containing information about loading and goods.
It is the invoices issued by the consulate of the importer country in the country of the exporter, checked and approved or delivered to the buyer for the importation process. The Middle East countries may request the approval of the consular documents together with the invoice.
It is the invoices issued by the carrier which includes the transportation cost of the goods (freight) and the transport information. In accordance with the delivery form, when the transport price is paid by the exporter, the transport documents contain a statement of payment (Freight Prepaid).
Types of Payment Used in Foreign Trade
Types of payment in international trade are important in terms of foreign exchange and customs legislation, and payments are made within the framework of the agreement between the exporter and the exporter. The types of payments commonly used in international trade are given below.
Main Points of Payment Method Selection:
Each payment method has different risk values for importer and exporter.
A loading which is not paid for exporters is a gift given to the importer.
Therefore, exporters want the payment to be in their hands as soon as possible. The most acceptable payment method for exporters is the payment method that is not given or given before the order is made.
In terms of importers, every payment made before the products arrive is in a kind of donation made to the exporter.
Therefore, for importers, it is best to take the products as soon as possible and try to make the products after selling the products.
1) Cash Payment
It is the payment method that the importer pays before the actual export to the exporter. In the form of this payment, the exporter does not assume any risk and the importer carries the risk of loss due to reasons such as not sending the goods or not being suitable for the order of the goods. Advance export costs may be collected by credit card by the third parties who declare that they act as importers, exporters or actors in the form of a wire transfer through banks, and that the seller sells the foreign currency abroad or that the credit card has been issued from abroad.
2) Cash Against Good
It is the type of payment that is paid after the goods are received by the importer. After shipment of the goods to the importer, the shipment of the shipment shall be sent to the importer through a bank provided that it is delivered directly or without charge. It is the type of payment which the exporter takes the most risk. Since the payment of the goods takes place after the receipt of the goods, there is a risk that the price of the goods will not be paid.
Cash Against Documents
It is a form of payment that allows the exporters to deliver to the importer via the bank in return for payment or policy acceptance or issuance of bonds, after the shipment of the goods by the exporter in accordance with the sales contract with the importer, after the shipment of the goods. After collecting the issuance fee, the bank shall deliver the documents to the importer.
Letter of Credit
Upon the request of the importer or upon the request of the importer or in accordance with the conditions of the letter of credit of the importer, and in accordance with the conditions of the letter of credit, to be paid by the exporter or his order or to accept and pay the policies which the exporter will draw, or to accept
such payments or the policies taken is authorized by another bank to authorize
In short, according to the instructions given by the importer, it is a form of payment that commits to the exporter in return for the submission of documents related to the importation of the goods exported by the exporter and the fulfillment of the conditions required for a certain period until a certain amount of the bank where the importer works.
It is a form of payment that pays the payment of the price of the goods in a certain term and that the payment is a means of payment.
Letter of Credit with Acceptance Credit: This is a form of payment in which letter of credit in letter of credit issued according to international rules and regulations is released following the acceptance of the policy presented with these documents with the bank of the importer or correspondent bank and the payment of the costs at the policy term.
Provision for a Loan: It is a form of payment in which the cost of the goods is paid to the exporter after the bank has submitted the documents to the importer following the acceptance of the policy attached to the documents by the importer.
Acceptance Credit against Goods: It is a form of payment for the payment of the policy at the time of receipt of the goods by the importer and accepting the policy.