Documents in foreign trade III

Certificate of Insurance

A certificate of insurance is a document that provides proof that the goods being transported
have been insured. It is an insurance policy document that certifies that goods being exported or
imported have been insured against transit risks. It must be produced when a making claim to the
insurance company. It can be an open (floating) insurance policy for the following reasons:

 It covers all exports within a stipulated period of time

 It does away with individual cover for each consignment
 It can be a specific insurance policy to cover a particular cargo
 It accompanies the goods being transported
 It is required as part of a documentary credit

Bill of lading

A bill of lading is important because it is:

 A document required whenever goods are transported by sea

 An agreement entered into carrying goods between an exporter and a shipping company
 An acknowledgement of receipt, or evidence for goods on board the ship
 A document of tittle
 A quasi-negotiable instrument, which can be endorsed in favour of someone
 A document that allows goods to be bought or sold while in transit at sea
 Completed in at least triplicates and distributed in such a way that one copy remains with
the exporter (consignor), the second copy is sent to the importer and the third copy
remains with the captain of the ship vessel which accompanies the goods

A bill of lading shows:

 A detailed description of goods

 The quantities of goods
 The condition of goods, which can be described as either clean or dirty
 The ports of loading and the offloading the goods
 The cost of transportation of the goods or freight charges
 The names and addresses of the consignor and the consignee
 The anticipated date of arrival of the ship, that is, when the ship is supposed to dock at
the port of destination
 The total value of the goods
 The name of the person who pays the insurance
 The signatures of the exporter and the captain of the vessel or ship