Business documents. Commercial and transportation documents request for payment request for on extension

Commercial and transportation documents
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People in international trade know that they can have serious problems if their documentation is not in proper order. There are more than 100 documents used in import-export operations. Luckily, importers and exporters до not deal with а11 of these documents. The majority is used by government bodies and service agencies.

Each individual shipment is characterized by its own set of trade documents, including

а) commercial documents (contract or purchase order and invoices)

Ь) banking documents (L/C от bank drafts)

с) transportation documents (delivery instnictions, bill of lading, forwarder's invoice, etc.)

д) government control documents (validated import/export lisense, certificate of origin, customs entry, etc.).

We'll not be discussing а11 documnets used in international transactions, but highlight some of them.

The commercial invoice is the most important document used in international trade. Sometimes it is called а bill. The invoice shows the names of the seller and buyer, invoice date, the country of origin and the county from which the shipment is made, the detailed description of the merchandise, the purchase price of each item in the currency used for the transaction, the port of entry.

Perhaps most important, the commercial invoice indicates the amount of money the buyer owes the seller.

The pro Forma invoice is similar to а regular commercial invoice, but it has the words "pro-forma" written at the top of the document. The words mean that the document received by the importer looks like the actual invoice, it shows the exact cost of а particular order and specific shipping terms, but it isn't really an invoice and the buyer doesn't have to pay it. Importers use pro-forma invoices to apply for an import license or to open а letter of credit.

The purpose of transportation documents is to keep track of cargo movement. If а shipment disappears, there is always а trail of documets that will help to locate the merchandise. When а party (а trucking company, а steamship company) receives goods it examines the boxes to see if there's any damage caused by someone else and only after that it issues а receipt showing that the goods have been delivered.

Of particular importance are the following transportation documents

а) packing list, which shows how many boxes there are in а shipment and what is in each of the boxes

b) shipper's letter of instruction - а document sent by the exporter to the freight forwarder to let him know what to до with the goods, i.e. where to ship, whether to insure the goods or not, etc.

с) insurance sertificate, which serves as а proof that insurance has been bought on this particular shipment

д) bill of lading/airwaybill - а document, which serves as а receipt for the goods, а contract of carriage. Usually, а bill of lading/aiiwaybill specifies the terms and conditions of transporting the goods.

The government control documents facilitate control over imports and exports. Many countries require their exporters to be licensed. Without а validated license the shipment will be stopped at the port and the exporter will be held in violation of the country's export control regulations.

The certificate of origin shows the country of origin of the imported goods. But which country is considered the country of origin? The problem with the certificate of origin is that nowadays not too many goods are produced wholly in one country. The country of origin is the country from which the product is shipped to the buyer's country, provided that 35% of the value of the product was added in this country. The exporter can get а sertificate of origin from the local Chamber of Commerce.

The purpose of а11 of the commercial documents is to facilitate, control and follow international cargo movements.