For US,

The event of Sept. 11, 2001 has reinforced the need to enhance the security of the United States. Congress responded by passing the Public Health Security and Bio-terrorism Preparedness and Response Act of 2002 (the Bio-terrorism Act), which President Bush signed into law June 12, 2002 that means every food importer in United States has to register with the FDA before importing any kind of consumptions into US . If you have any questions concerning the verification notification process, please contact FDA's Help desk 1-800-216-7331 or (301) 575-0156. If you can not get help from the FDA or do not understand due to complication of paper work, please call our HuongDuong Coffee Corporate Headquarter International Trade at (214)-243-6189. We will be happy to help you.

For other Countries around Globe,

Import Permits (Licenses)

The import permit or import license is a form of non-tariff barrier. Its purposes include:

• control of the kind and quantity of product
coming into a country,

• control of the import origin of the product,

• regulation of the outgoing foreign exchange,
and

• stop illegal importers.

In many countries, the importer must obtain a specific import permit for each import shipment, but a shipment valued below a minimum requirement does not require a permit.

The government foreign trade office or the Central Bank is in charge of the import licensing. In many countries, the specific import permit can be obtained from authorized banks, with the exception of goods requiring a special permit.

The import permit application may require the presentation of a pro forma invoice (the sales confirmation). An application fee usually is required.

In certain countries, depending on the availability of the country's foreign exchange reserves at the time of an import permit application, the importer may be required to deposit a sum in local currency, or in foreign currency based on the currency used on the invoice which is often in U.S. fund, equal to a percentage (20% to 100% usually) of the invoice value before a permit is granted. A deposit is required in certain countries in the application of a letter of credit (L/C) after the import permit is issued, not before the issuance of the import permit.

The importer may be required to present a valid business license in order to apply for an import permit. In the process, illegal importers are stopped.

In a few countries, the import permit is issued once to cover all consignments, except goods that require a special permit.

The L/C from the importer's country may stipulate that the import permit or license number is to appear on all or specified export documents, otherwise the bank will reject such documents.

Nevertheless, the following procedure is served as a guide line for any companies in doing business with Huong Duong Coffee, Inc. internationally.

The term “Seller” thereafter means Huong Duong Coffee, Inc. The term “Buyer” thereafter means Your Company.

The LC

• 1st.Seller and Buyer conclude a sales contract, with the method of payment usually by letter of credit (documentary credit).

• 2nd. Buyer applies to his issuing bank, usually in Buyer's country, for the letter of credit in favor of Seller.

• 3rd. Issuing bank requests another bank, usually a correspondent bank in Seller's country, which is to advise, and usually to confirm, the credit.

• 4th. Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit.

• 5th. If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

• 6th. Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

• 7th. Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

• 8th. Bank, if other than the issuing bank, sends the documents and draft to the issuing bank

• 9th. Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored.

• 10th. Documents release to Buyer after payment, or on other terms agreed between the bank and Buyer.

• 11th. Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.

The INCOTERMS

The INCOTERMS (International Commercial Terms) is a universally recognized set of definitions of international trade terms, such as FOB, CFR(in the real import/exporting world is being used as C&F) and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France. It defines the trade contract responsibilities and liabilities between buyer and seller. It is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they have agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.

FOB {+ the named port of origin}
Free On Board

The delivery of goods on board the vessel at the named port of origin (loading), at seller's expense. Buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks.

In the export quotation, indicate the port of origin (loading) after the acronym FOB, for example FOB Saigon Port or Hai Phong Port.

Under the rules of the INCOTERMS 1990, the term FOB is used for ocean freight only. However, in practice, many importers and exporters still use the term FOB in the air freight.

In North America, the term FOB has other applications. Many buyers and sellers in Canada and the U.S.A. dealing on the open account and consignment basis are accustomed to using the shipping terms FOB Origin and FOB Destination.

FOB Origin means the buyer is responsible for the freight and other costs and risks. FOB Destination means the seller is responsible for the freight and other costs and risks until the goods are delivered to the buyer's premises, which may include the import customs clearance and payment of import customs duties and taxes at the buyer's country, depending on the agreement between the buyer and seller.

In international trade, avoid using the shipping terms FOB Origin and FOB Destination, which are not part of the INCOTERMS (International Commercial Terms).

CFR {+ the named port of destination}
Cost and Freight

The delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the cargo insurance and other costs and risks. The term CFR was formerly written as C&F. Many importers and exporters worldwide still use the term C&F.

In the export quotation, indicate the port of destination (discharge) after the acronym CFR, for example CFR New York, New York and CFR Long Beach, Ca

Under the rules of the INCOTERMS 1990, the term Cost and Freight is used for ocean freight only. However, in practice, the term Cost and Freight (C&F) is still commonly used in the air freight.

CIF {+ the named port of destination}
Cost, Insurance and Freight

The cargo insurance and delivery of goods to the named port of destination (discharge) at the seller's expense. Buyer is responsible for the import customs clearance and other costs and risks.

In the export quotation, indicate the port of destination (discharge) after the acronym CIF, for example CIF Boston, Ma and CIF Twain

Under the rules of the INCOTERMS 1990, the term CIF is used for ocean freight only. However, in practice, many importers and exporters still use the term CIF in the air freight.


Director of Global Operation
Email: peter@cafehuongduong.com