DOCUMENTS USED IN FOREIGN TRADE

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DOCUMENTS USED IN FOREIGN TRADE

  1. Bill of lading
  2. Airway bill
  3. Indent
  4. Certificate of insurance
  5. Consular invoice
  6. Ship manifest
  7. Make receipt
  8. Certificate of origin
  9. Weight note
  10. Dock lading account
  11. Export/import license
  12. Custom specification
  13. Dock warrant
  14. Export invoice
  15. Ship report
  16. Freight note
  17. Bill of health
  18. Shipping note

 

  1. BILL OF LADING :it is a document which enables the holder of claim ownership of the goods on arrival it is a document of the title of goods on board. It contains the name of the ship, shipper names, quality and types of goods. e.tc.

It is usually prepared by the ship owner in there copies one to the exporter, the shipper and the importer.

Bill of lading can be dirty bill or clean bill

  1. Dirty bill when there are some damages or deficiencies to the goods.
  2. Clean bill signed by the transporter that shows that the goods are in perfect condition or free from damages.

  IMPORTANCES OF BILL OF LADING

  1. It is a document of ownership
  2. Acts as a contract of carriage between exporter and shipping company.
  3. It represents receipts of goods shipped.
  4. It is a document of evidence.
  5. Airway bill : is a document that is used when goods sent by air like bill of lading. Airway bill is made in triplicate. One for the exporter or consignor one for the importer or consign. It is not a document of title.
  • Certificate of origin : is a document that states the country from which the shipment of goods come from or are manufactured. It helps to determine custom duties and obtain preferential traffic ECOWAS, also, it enables the customs and wise authority determine the duties the duties the importer should pay on goods.
  1. Consular invoice: is ad document signed by the buyer’s consular for assessing liability for import duties and to ensure that the goods have been correctly period. This document lists the prices of goods being sent.
  2. Weight note: is a document that is supplied by a seller to the buyer which specifies the weight and measurement of the goods when sale is affected. It is issues to the exporter when he deliver the goods at the dock by ports authorities specifies the weight and measurement of the goods.
  3. Indent : this is an order to buy goods sent by the buyer or importer to the seller/exporter or to his agent. It is a foreign order which gives details of the goods required by the purchases. Indent can be closed or open.
  4. OPEN INDENT : if the indent empowers the agent to by the goods from any sourcde i.e in which the choice of producers is unspecified.
  5. CLOSED OR SPECIFIED INDENT : is when importers send an indent to his agent in another country with the instruction to buy specific goods from a main manufacturer.
  6. Certificate of insurance : this is a document which prove that the parties to the transactions have insured the goods in transit it is a marine insurance, certificate also known as policy of insurance. The insurance is taken by the exporter to assure the safety of goods in transit because of marine insurance may be bond by the exporter or the importer depending on the agreement between the two parties.
  7. Export/import license : developing countries impose, protectionist laws in order to control international trade that may lead to dumping of goods if not checked. Authority to import or export must be obtained in form of license before exporting or importing goods.
  8. Dock warrant a.k.a wharf finger receipt or dock receipt : it is a receipt of goods stored in the warehouse which entitles the holder to take possession of the goods. it states that the export has kept the goods at the warehouse a waiting loading or importer a waiting clearing.
  9. Freight Note : this is issues by the shipping company to the exporter or importer whoever is responsible for paying the cost of transportation informing them of transport charges.
  10. Shipping agents : is a document sent by an exporter to his shipping agents containing instructions for shipping the goods it is a request to its destination.
  11. Export invoice : is a document sent to the importer by the exporter giving full detail of the goods despatched, description,term of sales quantity, price e.t.c and total amount to be paid.
  12. Custom specification : is a document submitted to the customs authorities that is responsible for recording the value of imports and exports. The information being required for the calculation of the balance of trade , which knows the value of goods exported and the country of which they have been consigned.

    See also

    CONCEPTS OF INTERNATIONAL TRADE

    INTERNATIONAL TRADE

    MODERN TRENDS IN RETAIL TRADE

    INSURANCE III

    INSURANCE II

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