HK1037411A - Universal shopping center for international operation - Google Patents

Description

Global shopping center for international operations

Technical Field

The present invention relates to an electronic commerce catalogue and ordering system for use on the internet/intranet. In particular, the present invention is directed to facilitating international purchases of goods via the internet/intranet and is directed to all aspects of such transactions.

Background

Customers have found advantages in shopping from home by using catalogs, television shopping channels, or through computer trading systems. There are many public internet sites and private intranet sites that offer a variety of goods and services for sale. Most of these public and private inline sites operate in a national structure where buyers and sellers are restricted to a particular language and currency.

There are several ways of using transaction systems that use electronic communications, including the internet, as a way to exchange items for funds. Conventional techniques include several examples that contain relevant factors for international transactions for items to be sold across national boundaries.

U.S. patent No.5,319,542 to King, jr, et al teaches a system for ordering items (items) therein using an electronic catalog stored in a publicly accessible database. This patent includes a description of the relevant scheme of the online catalog set forth by Prodigy corp. at column 1, line 26. The use of the Prodigy system suggests the use of the internet to provide catalog information and as a way to introduce electronic shopping lists for delivery to vendors. A key aspect of the directory system is that both public and private directories can be maintained. These directories may be updated electronically via the internet, as no other methods are described. The catalog system includes provisions for pre-negotiated prices and pre-determined shopping lists for specific customers. Since catalog data from multiple vendors can be provided to a common electronic catalog, a key marketing aspect of this system is to provide competitive product information. The aspect of requiring approval of the process appears to be limited to being performed within the customer's own organization and not being performed by a third party bank or clearing house.

U.S. patent No.5,420,405 to chase discloses a system for generating electronic or virtual currency for personal transactions. Virtual currency may centralize the functions of cash, checks and credit cards, while the system always provides oversight to prevent fraud. Virtual currency is considered an international means of exchange, including providing automatic sales tax collection and payment. As a result, the purchase price is multiplied by city, state and federal taxes in a country. The system permits automatic transactions using all kinds of personal terminals, also using record keeping of personal accounts. Such terminal systems include known global payment systems that use point-of-sale billing via wireless signals. The Chasek system uses an electronic banking subsystem that transfers funds between two people to each other. The operation of the system includes using exchange means data packet bytes indicating a personal account administrator (customer), payer, transaction amount, transaction type, vendor, password, and country code. This exchange uses the personal account administrator to transfer between the customer (who has transferred funds into a predetermined account) and another individual, such as a vendor, who then gains access to these funds via the personal account administrator. Communication between the individual account administrator and the vendor account administrator is performed using radio waves via satellite transponders to ensure that the individual account administrator in one country can reach the vendor account administrator in another country.

U.S. patent No.5,594,225 to Botvin discloses a method of conducting financial transactions via a digital facsimile machine in which the transaction is permitted after a draft document faxed by a payer to a payer's bank is displayed and processed via a machine-readable device.

U.S. patent No.5,666,493 to Wojcik et al discloses a system for managing customer orders including an electronic catalog to streamline purchase functions. The system has an order management function that processes orders with financial services and generates financial records. The system also includes logistics functions for organizing the orders for optimal delivery over existing transmission systems. A catalog management system is also included and configured to cooperate with the order management functions. This functionality is achieved by accessing the various subsystem data bases by horizontally combining the various subsystems on a real-time basis to generate an efficient data flow between the various subsystems. The selection of details for the transfer of items is one of the subsystems accessed on a real-time basis. Thus, the customer entering the order as it is entered may be provided with shipping costs and other shipping details. Likewise, credit reviews may be performed on a real-time basis as orders are entered.

U.S. patent No.4,926,368 to Morita et al discloses an electronic money converting device. Also Bosten U.S. patent No.4,766,293 discloses a transaction card that can approve transactions using different currencies. U.S. patent No.5,644,721 to Chung et al discloses a computer planning system that uses "global currency" to perform scheduling of travel plans throughout the world. U.S. patent No.5,644,115 to Fraser discloses a system for automatically matching buyers and sellers using the internet among other techniques. U.S. patent No.5,351,189 to Doi et al and U.S. patent No.4,383,306 to Morimoto et al both disclose an electronic language translator.

If there is international sales, the actual currency conversion becomes a factor in customs debate, as well as import/export taxes and transportation issues. These are not considered in conventional trading systems. Moreover, in conventional internet or intranet transaction systems, translation of all foreign language catalogs for all items including sales and shipping costs are not always provided. As a result, commodity buyers from foreign countries are often faced with significant undesirable costs in shipping commodities. Such systems are clearly not suitable for the global market or for business requirements internationally.

Summary of The Invention

It is therefore an object of the present invention to consolidate all of the different parts of an international purchase into one program so that a buyer can shop almost anywhere in the world through a computer.

It is another object of the present invention to provide a transaction system whereby buyers can shop almost anywhere in the world through computers using their own language.

It is yet another object of the present invention to provide a transaction system whereby buyers can shop almost anywhere in the world through a computer and can see price displays for items priced in the buyers own currency.

It is another object of the present invention to provide a transaction system whereby buyers can shop almost anywhere in the world through a computer and can be provided with a full shipping fee for delivering selected items whereby the shipping fee is paid as part of the full price of the selected items.

An additional object of the present invention is to provide a transaction program whereby a buyer can shop almost anywhere in the world through a computer and can be provided with full shipping fees for the delivery of selected items whereby the price of the selected items for purchase includes any import taxes and other taxes added to the buyer thereby allowing the buyer to pay these funds as part of the cost of the selected items at the time of purchase.

It is another object of the present invention to provide a transaction system whereby a purchaser can shop almost anywhere in the world through a computer and use an approved credit card, legacy system or other electronic currency.

It is another object of the present invention to provide a trading system whereby buyers can shop almost anywhere in the world through a computer so that buyers can compare products in different countries on a global scale.

It is another object of the present invention to provide a transaction system whereby buyers can shop almost anywhere in the world through a computer to facilitate direct consumer sales or buying and selling for commercial sales.

An additional object of the present invention is to provide a location whereby manufacturers can expand new export markets by trading systems that allow buyers to virtually shop virtually anywhere in the world through computers, thereby reducing the manufacturer's distribution costs and, as a result, the consumer costs.

These and other objects of the present invention are achieved by a system for performing international transactions over EMF legacy links, performed using computer-to-computer communications over the internet. This process begins with accessing an internet site and a private site controlled by an international transaction program. The customer visits the site and then selects a language in which to browse the catalog information. The customer also selects the currency in which to pay for the product to be purchased. After selecting the product in question, the customer may swipe the fare calculation included in the international transaction to purchase the selected product by selecting a shipping destination. If the customer selects, he begins to build an order for the selected product, including an automatic credit review and creation of an electronic title.

Brief description of the drawings

Fig. 1(a) and 1(b) are flow charts describing the operation of the transaction system of the present invention.

Description of The Preferred Embodiment

The design of the international shopping and transaction system of the present invention creates a seamless order entry system for shopping on the world wide web or private network. A large number of computer databases and systems are accessed to accomplish the functions necessary for domestic and international transactions for shopping and services. All transactions between the different external databases and the transaction program are controlled by the transaction program. The transaction system contains or interacts with various databases including:

1) product and catalog information, including translations of product catalogs in different languages;

2) currency information including conversion data and alarm data representing instability;

3) product codes from coordinated tax tables, including tax and import information, including administrative requirements and data for meeting these requirements, as well as foreign tax information, including methods of calculating all taxes, luxury taxes, and the like;

4) a vendor inventory (inventory) and an order entry database;

5) shipping information, including all selections for each leg of the journey between the product's origin and the customer's destination.

6) Credit audit and/or funds transfer confirmation databases and processing systems; and

7) customer information, including credit and financial data, and purchase records and profiles.

These databases interact in the manner shown in the flow chart of fig. 1 to provide all the necessary information to complete a transaction as described below. Communications between the transaction program, the customer, and the various databases may be performed using any electromagnetic force (EMF) wave communication link, such as radio waves, light pulses, telephone lines, and the like. These systems centralize all of the aforementioned databases, (as depicted by databases 1-7 in FIG. 1), including databases owned by the system operator controlling the transaction system of the present invention, as well as external databases (such as credit audit database 6).

The initial portal to the system provides the opportunity to determine the language spoken by the customer. Language selection operates a default value to select the currency that the customer is most likely to use unless the customer indicates another currency. The system is set up so that customers in any or all countries can be linked to any language and price converted to any currency. However, in practice some products are not available in all countries and are not suitable for all countries. Once the language is determined and the currency is selected, the customer can then browse through a list of products that include prices reflecting the currency and tax rate of the country in which the customer is located.

The precise operation of the international transaction system of the present invention is described with reference to the flow chart of fig. 1, which is suitable for domestic as well as international transactions. At step 101, a user accesses an internet site on which a customer portion of a transaction is performed. A menu is provided to the user or customer allowing selection from a large number of different categories in a manner known in the conventional art. However, the present transaction system differs from conventional systems in that the user is able to select a preferred language at step 102.

A large number of directories, each translated into a large number of different languages, are available on the system. The particular directory or set of directories, represented in the preferred language at step 104, is accessed from the processing center designated as the first database and downloaded for access by the user. Preferably, a language translation database (not shown) containing translations of all the inventory material is maintained in a separate database on a computer separate from those computers processing and customer interfaces. This arrangement saves time and memory space for the computer actually processing the transaction. The first database may be managed by a system operator of the trading system of the present invention or external to the trading system. In the latter case, the system operator may access such data via the internet, an intranet, or any other electromagnetic force (EMF) wave communication link.

Preferably, the user is provided with a large number of different directories from where selections are made on a real-time basis. It is expected that many catalogs come from sources outside the united states, as well as from the world in english. Thus, there must be a pre-translated version of the catalog in a non-English language, allowing real-time access to each of a large number of different language catalogs.

This is based on the first dataLibraries and processing centers (depicted as 1 in FIG. 1)^stA database) that serves as a catalog generator. At step 106, the desired catalog (and its country of origin) is selected and the customer's country is entered to select a default currency which is used as a trigger to direct operation or part of the operation of the transaction process once the product is selected from the electronic catalog. Download of source country of selected directory (step 106) automatic access of translation database (step 191) (depicted as 2 in FIG. 1)^stDatabases and processing centers) to provide a particular currency conversion between the country of origin of the catalog and the country of the customer's home as a currency conversion for automatic default selection. However, the customer may alternatively select a currency conversion, as described above with reference to step 112.

Since a large number of catalogs are desired, customers may utilize "search rights" for a particular product (or service) from all catalogs to reduce search time for a desired product. If a "search right" option is required at step 107, automatic access to the language translation database occurs to search through the various directories contained therein to find the selected language version. Once this is done, the catalog listing is provided to the customer in the form of a menu so that the customer can browse through all and any items in the catalog.

At step 108, the customer selects and browses a particular catalog and product in the catalog under consideration. The products are presented in a menu format that allows the products to be studied for changes, exchanges, and other characteristics of their products. This is done in a manner well known in the conventional art with respect to electronic catalogs and in the form of menus. On the other hand, a catalog from a particular vendor may not be selected by "search right" of the entire catalog library. And the "search right" engine may again be activated (step 107) to find a particular product in the selected catalog. Alternatively, a printed index (such as those used in hardcopy catalogs) may be provided.

Selection from the catalog (step 110) results in a web page link for any listed product. The search right function of the product web page enables a customer to search for keywords for one or all of the listed categories. In each catalog, the manufacturer index allows viewing of the product from the perspective of one manufacturer. The customer can also be programmed to return or move forward at any time. The image (or images) of the product is typically accompanied by a description of the product, the manufacturer's name, shipping weight, cost (in the customer's currency), and other information regarding ordering options (available size, color, style, etc.) and methods of selecting multiple copies of such products (with the desired options).

When a particular product is selected (step 110), a price in the customer's currency is automatically requested. Typically the currency is selected by default (based on the selection of step 102). However, the customer has the option of selecting a particular currency (step 102) in which the catalog price for the product he wants to select is expressed. A currency conversion is performed at the second database and the processing center (step 191). The second database provides "real-time" conversion of currency from the country of origin of the catalog to the currency selected by the customer. The price is provided to the customer in a clear representation such that it is a price that is transmitted at the vendor's factory or one of the vendor's branches rather than at the customer's location.

However, real-time currency conversion has difficulties. For example, since monetary trading is performed electronically, there is always a change in exchange rate. Thus, for the purpose of executing the selected transaction at a particular point in time, the exchange rate must be frozen. This may be done automatically when the customer begins to request a converted catalog price by selecting a particular product (step 116). To compensate for the inconsistency between the exchange rate used by the customer in conducting the transaction with the vendor (either independent of or via the transaction system of the present invention) and the actual exchange rate, the transaction system increases the exchange rate by a small percentage (step 117). This percentage may be a fee adjustment for the vendor or customer to use the transaction system and take advantage of the convenience inherent therein.

At step 118, an automatic alarm is triggered when one or both currencies exhibit a large fluctuation in value during the selected conversion. This fluctuation may be determined by the system operator so that when the operator sees the currency unstable, transactions in one or both subject currencies are suspended by the system. Such pausing may be performed automatically or manually, depending on the wishes of the system operator. When the decision is made, a message is sent to the customer (step 190) instead of sending a price, indicating that the transaction for the particular currency is suspended due to instability in the currency market. At this time, the customer may be offered other currency options as long as such other currency options are available. For another option, the customer may be offered a higher price to compensate for the large swings in currency conversion value. Any or all of these options may be provided to the customer at step 190 along with any other desired inventory information. If the currency conversion is stable, the price is displayed to the customer at substantially the same time after step 190 or after the selection step 112 (step 190). Also displayed along with the price is information indicating that the price displayed is limited to the vendor's factory or one of his points of egress, but this may be selected by the vendor. The information also indicates that the customer must request additional information to obtain the price of the product to be delivered to the customer's selected destination. It is critical that the information clearly indicates to the customer that the price involved in obtaining the item is much more expensive than just obtaining the item at the source origin or vendor's branch of the factory. This is particularly true if the vendor and customer are in different countries, such as the united states and the netherlands (table a below shows this.

Table a is shown in the attached page.

Based on the calculations (as appropriate) for each of the items listed in table a, the customer is provided with the option of determining the true price for the transaction. If the customer makes such a request (step 120), the next stage of the process of the present invention is performed. In response to the customer's confirmed answer, the item code for the selected item, the look-up table containing adjusted international tariff tables and classification systems, is obtained (step 122) by accessing a third database and processing centre, and also the formatting of any necessary import/export data and the administrative requirements for all countries involved in the possible transaction. If the vendor's originating or destination country has a different merchandise code than in the adjusted table, a search is made in the other database by the third database and the processing center to determine the correct merchandise code. This search (not depicted) is used to find other data related to the product and the destination country, and also to generate appropriate files from the third database. The merchandise code may be displayed for the customer as his or her information. However, this is not essential. Rather, the merchandise code is used in connection with the destination country to trigger certain subsequent operations of the transaction process of the present invention as described in FIG. 1 above in steps 130 and 132.

The "true price" or price at which the selected product is delivered to the designated location (assuming a location that is convenient for the customer) is accompanied by all freight charges, insurance fees (if needed), sales taxes, commission fees, document generation and transfer fees, import/export taxes, and "value-added" taxes and luxury taxes (if in effect) for each trip segment. The first step in calculating the freight cost is to find the total number of items to be shipped. This is entered by the customer at step 124. At this point a decision is made whether to retail or wholesale the transaction based on the type and quantity of the product and the identity of the customer from the catalog data. This determination may trigger the selection of the transport conditions for the item described previously at step 128 above.

Such an operation will immediately trigger an operation of a predetermined number available to the vendor to check the selected product (step 125). This may be done by accessing a fourth database (step 192) and a processing center (preferably generated and maintained by the selected vendor). The operation includes automatically contacting the vendor and requiring confirmation of the inventory (inventoryy). If the requested number of products is not available, a message is sent back to the transaction program for display to the customer. Also, any additional information regarding the availability of the product, such as the date the shipment is desired, etc., may be provided at the same time.

At step 126, the customer enters a destination to calculate a fee for shipping the selected product to that destination. This information, in conjunction with the goods code, causes specific calculations regarding packaging, shipping, tariffs, premiums, etc. for the remainder of the transaction process. This is necessary in order to select the correct delivery path and cost. For example, if the destination location is in the vendor's origin country (determined at step 193), the calculation of shipping fees and taxes is greatly simplified. The standard freight fee and optional premium and other fee calculations are provided to the customer at step 127. Due to the simplicity of the calculation, this information can be displayed on the screen as soon as the customer specifies the destination location.

The options displayed in conjunction with step 127 allow the customer to select the various shipping and insurance options available (depending on the retail/wholesale status). Moreover, vendors offer customers standard shipping packages that are not more expensive (due to the size of the vendor and the balance with the shipper) than the options available to individual customers. Customer option selections may be made at step 128 (if permitted by the vendor in the domestic transaction), as appropriate. Simplified operation of the process of the present invention will occur if it is a domestic transaction and does not include a customer shipping option. As a result, only sales taxes are added to the freight fee. Once the selection is made at step 128, the sales tax may be automatically calculated and displayed to the customer at step 129. For most domestic transactions in the united states, the process ends at this point unless the customer chooses to enter the order and begins the portion of the process involving credit confirmation and electronic title delivery and transport of the selected item.

The calculation of shipping costs is more complicated for international transactions, to which the present invention is particularly directed, and for situations where the customer may select some shipping options. First, (at step 130), tax units (revenue units) are calculated for products shipped in four different ways, including: metric unit for air transport, metric unit for sea transport, standard english unit for air transport and standard english unit for sea transport. The precise calculation of various types of tax units is well known and need not be described in further detail for an understanding of the present invention. These calculations are standard in the transportation industry and are triggered at step 122 based on information obtained from a third database, including packaging requirements based on characteristics of the selected product. The type of tax unit selected by the vendor, customer or instant transaction program depends on several different factors including: the vendor's origin country; the origin country of the transporter; the type of product involved (item code) and the cheapest method (most important) of transportation of the item in question.

In step 132, the determination of the discrete segments or paths of the overall transportation path is determined based on the transportation data contained in the fifth database and the processing center. This is also achieved based on a standard shipping path that the vendor has agreed upon, a path that the customer requires, or a combination of portions of both. The shipping path is also based on the product type or provided merchandise code indicated by the third database, which also provides shipping and administrative requirements for the particular product. In many cases, various discrete stretches of the path are specified by characteristics of the product being transported. For example, a car transported from germany to the united states will be transported by sea and loaded onto a ship at the germany port, which is the most convenient for car manufacturers. The manufacturer most likely specifies shipping from the german port of its choice up to new york city. In this case, the customer may choose how to transport the car from Warf to the final destination via the U.S. customs. Thus, discrete stretches of the transportation path are determined between the vendor and the customer (step 132), and the cost of these discrete stretches along the entire journey may also be determined (step 134).

An example of such costs can be found in table a, which describes an example of the costs for each discrete leg of the journey, and describes how such costs can be added to the departure prices of the issued items. Each discrete leg of the trip includes costs such as insurance costs, customs duties, sales taxes, handling costs and cost fees. Thus, based on the origin and destination of the item and the tax unit of the item packaging and classification for the item itself, the cost of each discrete path is calculated using factors similar to the examples found in table a. The calculation was performed in several sub-steps as shown in table a.

Of course, the substeps are determined by the origin and destination. At step 134, all fees such as shipping, procedure and basic taxes (e.g., sales taxes) as well as cost fees, insurance fees, import/export fees, and the like are calculated to provide a total fee for obtaining the selected product at the selected destination. In many places, the import/export fees are not based on the shipping price of the item, but rather on the sum of the initial base fees, including all the necessary fees to move the product or item to the location where the tax is assessed. These taxes are added together to generate the next base sum of fees because under some conditions additional taxes such as luxury taxes, value-added taxes, etc. are based on the next base sum of fees including transportation taxes, some sales taxes, and some import/export taxes. The final sum displayed at step 136 includes all taxes based in all cases on applying a factor (based on tax rate) to the original two sums. The example of table a represents the type of calculation involved and how some taxes are calculated in the destination country based on the originally calculated product cost, shipping cost, insurance cost, tariff, etc.

The results of the calculations at step 134 are converted to the currency requested by the customer in the same manner as described with respect to steps 112, 116, 117 and 118. So that the potential customer may have the entire fee for the foreign transaction displayed in front of the customer himself (step 136) before the transaction is actually performed. This is in contrast to electronic or internet trading systems, which are not engaged in international trading or have only the simplest of taxes and transportation fees.

At this point, the customer may choose to study the prices of other products or enter an order for the selected product. To order a product (step 140), the customer activates the appropriate area on the menu screen. This activation triggers two processes. In a first process, the order is electronically sent directly to the vendor (step 142), for delivery to the customer's destination. Although this is the preferred method, the order may be electronically buffered or processed by the operator via the recording device, or a combination of the three, to access the order entry operation using a fourth database and processing center preferably maintained by the vendor. The vendor then processes the order, deducts the selected product from the catalog and arranges for the product to be shipped to the desired destination.

In order for a vendor to ship a selected product, access to a source of funds from a customer is necessary. It is therefore necessary that the electronic order also initiate a second process in which the customer's credit is confirmed (step 150). This may be done by accessing (at step 150) a fifth database and processing center, preferably a credit or funds transfer system. This operation is preferably performed using a credit card processing center to receive and encode a credit card number using a commercial security system such as pgp (pretty goodprotection) to confirm the validity of the credit card. The same processing center may send confirmation to the vendor (step 160) of the order for each customer by accessing the vendor order entry system (fourth database). The transfer of credit data between the customer, vendor and standard credit card systems is performed by an instant transaction system.

However, standard credit card authorization is not necessary for the invention to function. Traditional authorization may be performed using two commercial banks, one representing the vendor and the other representing the customer. This is the way funds are typically transferred between two countries having different currencies. However, such transfers are often awkward and time consuming, requiring the exchange of banknotes and the consent of the chief bank. Thus, conventional fund exchanges between foreign banks greatly hinder the operation of the system of the present invention even though it may be performed electronically by the transaction system of the present invention. Thus, the use of international credit cards, such as American Express (American Express), generally helps to speed up the operation of the present invention. However, even international credit cards sometimes prevent the operation of the invention due to the limitations of the bank issuing the credit card.

Thus, another preferred method of auditing credits includes establishing a clearinghouse system that operates in parallel with the systems of commercial banks and credit card organizations. Each vendor participating with the transaction system provider operating the present invention will be arranged to accept credit verifications from local clearing houses established by local system operators in the respective country in which the vendor is located. The clearinghouses of different countries are in direct electronic communication with each other via the internet, satellite link, intranet, dedicated data line or any EFM communication link, providing data transfer secured by commercial encryption components such as PGP or SET. The clearing house of each country receives local credit cards in the same way as any local vendor. Thus the customer's local credit card can provide funds access to the local clearing house, as any vendor can obtain funds via the credit card, and it can transfer the customer's credit to the clearing house across the sea without going through a complex international financial process. Foreign vendors whose products are to be purchased by the customer may be paid via an electronic clearing house that has received a license (clearence) from the clearing house of the customer's country. The clearing house in the vendor country should take the role of a local credit card company to transfer funds to the vendor on behalf of the customer. Preferably, the entire transaction will occur in the same manner as most credit card transactions are traditionally processed. So that funds available to the customer from local bank credit in the netherlands can be exchanged for funds available to the united states manufacturer who sent the car to export to the port in foginia (see table a).

Once the electronic funds (or other authorization) are transferred from the local clearing house to the vendor (step 161), the vendor will utilize the connection to the transaction system of the present invention to generate an electronic title, also referred to as a commercial invoice (step 165). Paper copies of the title or commercial invoice are also generated from electronic originals for archival purposes or for presentation to an institution (entity) that requires a hard copy for further processing of the title or commercial invoice. The generation of electronic titles (step 165) is performed to form a faster title transfer through all official channels that must be approved for title and transferred from there to the customer. The electronic title may be generated by the vendor or by an instant transaction system authorized by the vendor. Traditionally hard copies of commercial invoices are associated with the items and must be manually communicated to all official agencies (e.g., national customs services) who must process the paper, inspect the items and authorize the shipment of the items into or out of the particular country. Moreover, the traditional processing of commercial invoices incurs additional costs to the customer, but this is unavoidable because it must occur in each discrete hop in the transportation path. In addition, the loss of these papers can be catastrophic given the immediate receipt of the article.

Upon generation of an electronic commercial invoice (step 165 based on vendor authorization, i.e., authorization provided by the vendor), the vendor must perform two types of operations. The first is administrative, including meeting the requirements of the various governments and regulatory bodies that control the business and manufacturer at the vendor's site (step 180). The second is to arrange for transport to the customer's requested location (step 170). In the simplest case, this means paying sales taxes and transportation fees for at least part of the journey to transport the item to the destination requested by the customer.

However, when international transactions are involved, much more administrative work is required as described in table a. Furthermore, the complexity and expense of the actual packaging, handling and shipping process is increased. In this case, the vendor must arrange and pay for the transport from the factory to the port of shipment (step 170), and also pay all handling, warf, packaging and insurance fees normally necessary when shipping the valuable items. Similar processing occurs when items are shipped by air, although it is somewhat simpler to consider moving items from an end point (typically where the national customs and export authorities must approve the items) to the aircraft. Of course, to move anything to an international transport vehicle such as a ship or aircraft, commercial invoices, packaging checklists and some government clearance are required to indicate that the goods have been inventoried and approved for export. In another case, the transaction system of the present invention may make a shipping arrangement on behalf of a vendor.

Administrative functions must also be performed along with the actual packaging, handling and transportation of the goods. The system of the present invention processes this by sending an electronic application to the necessary government agency based on the product code from the coordination with the destination country (step 180). This combination will trigger a series of operations (beyond the large number of possible operations) to meet the administrative requirements of executing the transaction, which include generating all the necessary files based on the data from the third database.

For example, the combination of the destination and the item code may automatically trigger a request to the department of commerce (DO) to request an export permit. This can be done electronically, as the DOC, like most government agencies, is able to receive communications via email and reply to letters. An email may be sent as part of the request for export permission and a response from the state department returned in electronic form. If the goods code and destination country certificate make such a request, the electronic file from the DOC is then used to make a request to the state department to obtain permission to export the item in question. Electronic representations of export licenses from the department of commerce and electronic license files from the state department are electronically sent to the U.S. customs department along with electronic titles to be immediately approved, which allows items to be quickly transferred from local transport to international transport such as airplanes or ships.

At step 170, the vendor may choose to pay local taxes, local shipping fees, insurance fees, packaging fees, etc., or commission itself to have some of them executed by the transaction system of the present invention. For example, the transaction system provider may arrange to pay local taxes and arrange to pay local shipping and insurance premiums. However, since most vendors currently have adequate systems to handle these tasks efficiently, this responsibility cannot be placed on the hands of the operator of the trading system.

On the other hand, the payment of export taxes, export royalties and processing via customs are tasks that are more suitable for the transaction system of the present invention, since these requirements are generally paid by the customer, and the system operator can directly access the funds provided on behalf of the customer, or own the electronic clearing house via a credit card company or system operator. If a signature is necessary and the signature is converted back to an electronic file, the electronic file can be easily converted to a hard copy. With the increasing acceptance of governmental agencies that accept electronic signatures, such as those provided by facsimile machines, it is feasible to attach an electronic signature to a modified electronic document in several ways known in the conventional art. Approval by various government agencies and customs departments may be added to the document electronically, either by machine or by scanning handwritten signatures and stamps from authorized officials.

When dealing with international transportation means such as ships or airplanes, the items to be transported are usually shipped with a commercial invoice affixed thereto. The item is placed under the supervision of a senior, such as a captain of the international conveyance, and the captain holds a commercial invoice (step 186). Typically, the load bill and export package list are attached to the article and a copy of the commercial invoice is left. In a conventional transaction, when the destination is reached, the senior (e.g., captain) of the international vehicle will return a commercial invoice to a commercial establishment that specifies the transfer of the paper on the vehicle to the customs department of the destination country. This also increases the cost of international transactions. However, with the system of the present invention, the electronic title and export package inventory of the item may be handed over by the system operator directly from the international transport facility officer to the national tariff department of the destination country at the port where the item in question is received (step 187). This is typically performed by a carrier such as FedEx, UPS, etc., and is typically performed in connection with moving the item from warf/ramp/tarmac to a national tariff area (step 177). Instead of providing a hard copy of the commercial invoice, an electronic copy with the authorization of the international carrier may be provided as an electronic file or a hard copy may be generated and provided with the signature of the international carrier principal. Preferably, the electronic file will be provided to the customs officer along with the payment of pre-computed customs duties, import taxes, value-added taxes, luxury taxes, and the like (step 188). The transfer of funds to the national customs department or other government department may be done electronically if permitted. Otherwise, the transaction system of the present invention may be arranged for providing funds to an international carrier or some other agent for presentation to customs officials on providing a trade title, packing list, or the like so that the item may pass through national customs.

Once the item is moved out of the tariff zone, the local carrier takes over (step 178) and begins sending to the customer's desired destination (step 179). The present invention enables payment to be arranged for a local carrier so that the customer does not have to look at the process. This arrangement is expected to be more convenient because the translation system operator may make the best arrangement available to the individual customers to the local carrier. The system operator can also directly access customer funds to ensure payment to the local cargo plane.

Once the commercial invoice passes through the customs department, the file may be electronically transmitted directly to the customer via the internet, intranet, fax, PTP, or any convenient means (step 189). An electronic title modified according to the customs regulations and international transport means of both countries will provide a complete memo of the transfer of items from the factory until the final destination is reached. Based on the date of addition to the electronic title, the customer will know exactly where on the entire path from the factory to the final destination his item is at that time. The customer thus has a complete record of the costs to monitor and determine the location of possible failures.

Once the order is entered (step 140), the customer information is loaded into the customer database and inventory information is updated. The customer information may be used to generate a customer profile to be stored in a 6 th database (not shown) and a processing center. This information can then be used to direct the customer to the catalog and products associated with the original purchase, as well as the originally selected language and currency.

The present invention provides a comprehensive point-to-point cost analysis for any international transaction as well as transactions conducted within a single country. All charges are made public to the customer before the order is actually entered. The transaction system also provides for automatic transfer of funds via a credit card system or virtual currency in the clearing house to carry out transactions, making payments electronically to any necessary government agencies. By conducting electronic transactions, the necessity of transferring paper, which is common in international transactions, is eliminated, and the overall cost is reduced. Also, by providing the electronic title as a commercial invoice, the flow of documents is facilitated, the cost is reduced, and the customer receives a receipt for the purchase in a more immediate manner. As a result, international transactions may be performed without assessing unexpected fees to the customer upon shipment.

Although several embodiments of the present invention have been disclosed by way of example, the invention is not limited thereto. Rather, the invention is to be construed as including all such modifications, alterations and adaptations as would be apparent to those skilled in the art to which the invention pertains and as may be constructed solely by the appended claims.

Claims (1)

1. A process for performing an international transaction over an EMF communication link using computer-to-computer communication, comprising the steps of:

(a) selecting a language to browse catalog information for a product;

(b) selecting a currency to obtain a price for the product;

(c) selecting a product to purchase and a destination for the selected product to purchase, thereby triggering all fee calculations involved in transporting the selected product to the destination based on the destination and the selected product; and

(d) ordering the selected product, thereby triggering electronic funds transfer authorization and generating an electronic title for the selected product.