International trade documents

o International market involves various typcs of trade

documents that necd to be produced while making
transactions. Each trade document is differ from other
and present the various aspects of the trade like
o deseription
quality
o number
o transportation medium
o inspection and so on.
List of documents
o The following is alist of documents often used in
international trade
o Air Waybill
o Bill of Lading
o Certificate of Origin
o Combined Transport Document
o Draft (or Bill of Exchange)
o Insurance Policy (or Certificate)
o Packing List/Specification
o Inspection Certifieate
AIR WAYBILLS
o Air Waybills make sure that goods have been
received for shipment by airline. It is an evidence
of the contract for carriage. A typical air waybill
sample consists of three originals and nine copics.
o the first original is for the carrier and is signed by
an export agent;
osigned
the second original.
by an export
the consigne's copy. is
agent:
o the third original is signed by the carrier and is
handed
goods.
to the export agent as a receipt for the
 Role of aiway bill
Air Waybills serves as:
" Proof of receipt of the goods for shipment.
"An invoice for the freight.
"A certificate of insurance.
"A guide to airline staff for the handling, dispatch
and delivery of the consignment.

MATIC
 BILL OF LADING (B/L)
Bill of Lading is a document glven by the shipplng agency for
the goods hipped for transportatlon from one detination to
another and h slgned by the representatives of the carrying
vessel.

BIU of landing h bued in the set of two, three or more. The

number in he set will be indicated on each bll of lading. Thk b
done due to the safety easons whlch ensure that the document
never comes into the hands of an unauthortzed peron.Only one
orignal s suMlclent to take possenion of gods at port of
dscharge

MATIC
Parties in B/L
o The main parties involve in a bill of lading are:
Shipper
The person who send the goods- Consignee
The person who take delivery of the goods
Carrier
The person or company who has concluded a
contract with the shipper for conveyance of
goods.
Parties in B/L
o The main parties involve in a bill of lading are:
Shipper
The person who send the goods- Consignee
The person who take delivery of the goods
Carrier
The person or company who has concluded a
contract with the shipper for conveyance of
goods.
 documents

oCombined Transport Document is also

known as Multimodal Transport Document,
and is used when goods are transported
usingmore than onc mode of transportation.
o In the case of multimodal transport
document, the contract of carriage is mecant
for a combined transport from the place of
shipping to the place of delivery.

ATIC
CERTIFICATE OFORIGIN
The Certilficate of Origin hrequired by the custom authority of the
duty. It is
importing country for the purpoe of imposing import
usually iseed by the Chamber Commerce and contains
information like ical of the chamber, detais of the good to be
transported and so on.

o The certincate mast provide that he Informatkon would

normally nclude:
The name of the company and address as exporter.
The name of theimporter.
o agree
Package
withnumbers, shipping
that on other marks and description of goods to
documents.
" Any welght or measurements must agree with thove shown on
other documents
o It should be stgned and stamped by the Chamber of Commerce
 BILL OFEXCHANGE
oA Bill of Exchange is a special type of written
docunent under whiel1 an exporter ask
importer a certain amount of money in future
mnd the importer also agrees to pay the
importer
the futuretlhai
date. amount of money on or before
o This clocument has special importance in wholesale
trade where large amount of money involved.
o Following persons are involved in a bill of exchange:
Drawer: The person who writes or prepares the bill.
Drawee: The person who pays the bill.
Payee: The person to whom the payment is to be made.

MATIC
 cOMMERCIAL INVOICE

o Commercal Invosce document is provided by the seller to

the buyer Also known as export nvoce or import invoice.
commerc1al invosce ts finally used by the custom author1ties
of the imporner's country to evaluate the good for the purpose
of taxation
o The invOIce must:
"Be issued by the beneficary named n the credit (the seller)
" Be address to the appl1cant of the crcd1t (the buyer)
"Be signed by the beneticary (uf requred)
"cred1t
Include the description of the goods exactly as detailed in the

MATIC
PACKING LIST

o Also known as packing specification. it contains

details about the packing materials used in the
It also includes details like
shipping of goods.
asurement and weight of goods.
The packing List must:
o Have a deseription of the goods ("A") consistent
with the other documents.
o Have details of shipping marks ("B") and numbers
consistent with other documents.
 INSURANCE CERTIFICATE
o Also known as Insurance Policy, it certifies that
goods transported have been insured under
open policy and is not actionable with litle details
about the risk covered.

MATIC
INSPECTION CERTIFICATE
o Cetificate of Inspection is a document prepared on the
request of seller when heatwants the consignment to be
checked by a third party the port of shipment before
the goods are sealed for final transportation.
o In this process seller submit a valid Inspection
Certificate along with the other trade documents like
bill, bill of lading ete. to
invoice. packing list, shipping
the bank for negotiation.
o On demand, inspection can be done by various world
renowned inspection agencies on nominal charges