Sharon Tess Jose

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Assignment II

Q.1 Documents are the soul of international trade transactions”. Elaborate this statement and
discuss the importance of documentation in EXIM business. (2 marks)

In continuation, explain the following documents:

a. Bill of Entry ( 1.5 marks)

b. Certificate of Origin (1.5 marks)

Q2. Write a short note on: (5 marks)

a. Shipping Marks

b. Dangerous Goods

c. FIATA

d. IATA

e. IMO
Sharon Tess Jose
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Answers

1) Documents are the soul of international trade transactions

The transport document is the document issued when the carrier takes possession of the
goods delivered to the sender. The transport document reflects the undertaking of the
freight carrier, under certain conditions, to transport the goods to a specific destination in
exchange for a monetary sum. It should be added that as indicated by the sender, the
shipper must include in this document a list of recipients, whether individuals or legal
entities, entitled to claim the shipment at the point of destination.
 It allows those nominated to demand the goods upon their arrival before the
customs authorities;
 It makes it possible to observe the terms of the carriage contract;
 It indicates that the goods were delivered without apparent damage;
 And in the case of maritime transport, this document makes it possible, through a
simple endorsement, to transfer ownership of the goods.
a. Bill of Entry
The Bill of Entry to be submitted by the importer for home consumption or
warehousing products or for ex-bond clearance for home consumption shall, as the
case may be, be provided in Form I or Form II or Form III.
b. Certificate of Origin
Certificate of Origin is a solution that provides proof of the origin of products
imported into any country. These certificates are important for exporters to prove
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where their goods come from and thus to demand any benefits Indian origin goods
might be liable for in the country of export

2)
a) Shipping Marks
The aim of the shipping marks is to recognize and assist in transporting cargo easily,
smoothly and safely to its final destination without interruption or misunderstanding,
and to allow cargo to be tested against documents. In certain cases, however,
markings have been so lengthy and extensive that they can no longer be kept on the
sides of packages. Packages have been said to become papers. Unnecessary costs,
defects, uncertainty and delays in shipment are the result, and the intention of
shipping markers is undermined. Shipping markers vary greatly from country to
country and across modes of transport. With the growing amount of foreign trade, the
introduction of multimodal and mixed transport, the increasing need to handle those
data in order to allow the optimum use of digital networks and automated data
processing facilities, and the increasing understanding of costs, it is clear that easy
and reliable requirements should be developed for shipping marks.
b) Dangerous goods
Hazardous products (also referred to as Unsafe Cargo) are the substances, materials
and articles protected by the IMDG Code and are freight deemed to be hazardous
because of its flammable, corrosive, toxic nature or other properties.

The IMDG (International Maritime Hazardous Goods) Code is a code adopted by

Resolution MSC.122(75) of the International Maritime Organization's Maritime
Safety Committee for the Carriage of Dangerous Goods (Hazardous Cargo).

 Class 1 – Explosives

 Class 2 – Gases; compressed, liquefied or dissolved under pressure
 Class 3 – Flammable liquids
 Class 4 – Flammable solids; Substances liable to spontaneous combustion; Substances
which, in contact with water, emit flammable gases
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 Class 5 – Oxidizing substances (agents) and organic peroxides

 Class 6 – Toxic and infectious substances
 Class 7 – Radioactive materials
 Class 8 – Corrosives
 Class 9 – Miscellaneous dangerous substances and articles Non-classified materials

C) . FIATA

A non-governmental, membership-based body serving the freight forwarding industry is the

FIATA International Federation of Freight Forwarders Associations. In some 150 nations,
FIATA has association members and individual members, also known as the 'Architects of
Transport'.

FIATA has consultative status with the Economic and Social Council of the United Nations
(including ECE, ESCAP, ESCWA), the Committee on Commerce and Development of the
United Nations and the UN Commission on Foreign Trade Law. FIATA is regarded by
several other governmental associations, governmental agencies and private international
transport organisations as serving the freight forwarding industry.

d) . IATA

IATA is the abbreviation of an organisation formed to audit and distribute freight and
passenger transport fares. It stands for the Organization of Foreign Air Transport. IATA may
be a part of airline organisations meeting the ICAO criteria.
IATA strives to give both customers and airline firms a good and reliable service. IATA
offers experience in high speed, eligibility, protection, competitiveness and also analyses
pricing strategies such as ticket and service fees and business commissions. Via a
subscription scheme, IATA operates. Different countries' problems are resolved in
conferences and consultations held at particular times.

IATA determines air traffic requirements.

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Among airline firms, IATA provides equal competition.

The procedures for freight shipment are designated by IATA.

The specifications for terminal designs and their management are set by IATA.

In the standardisation process of the equipment used, IATA plays a role.

e. IMO

The International Maritime Organization (IMO) is a United Nations Specialist Body

responsible for initiatives to improve the protection and security of international shipping
activities and to eliminate underwater pollution caused by ships. For the protection and
security of foreign transport, the IMO sets guidelines. It supervises all facets of shipping laws
around the world, including regulatory concerns and shipping performance. The International
Maritime Organization is an organisation responsible for improving the protection and
security of international ships. One of its major functions is to establish policies and
initiatives to keep waters safe by protecting ships from underwater waste. The legislative
body of the IMO, the Assembly, meets every two years, with the first meeting in 1959.
The IMO is not responsible for their regulations being followed. If an IMO programme is
adopted by a country, it becomes a national statute and it is their duty to implement.