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DOCUMENTS USED IN FOREIGN TRADE
COMMERCIAL INVOICE.
BILLS OF LADING / AIRWAY BILL.
MARINE INSURANCE POLICY AND CERTIFICATE.
BILLS OF EXCHANGE.
CONSULAR INVOICE.
CUSTOMS INVOICE.
CERTIFICATE OF ORIGIN.
INSPECTION CERTIFICATE.
PACKING LIST.
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BILL OF LADING ( B / L )
IT IS THE MOST IMPORTANT DOCUMENT IN FOREIGN
TRADE.
IT IS A DOCUMENT OF TITLE TO THE GOODS.
IT IS A RECEIPT FROM THE SHIPPING COMPANY.
IT IS AN EVIDENCE OF TRANSPORTATION OF
GOODS.
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TYPES BILL OF LADING
FREIGHT PAID AND FREIGHT COLLECT : IF THE SALE OF
GOODS IS ON c.i.f. , TERMS THE EXPORTER MUST PAY
THE FRIGHT AND GET A FREIGHT PAID BILL OF LADING.
AND IF THE SALE IS ON f.o.b. , TERMS THE FREIGHT IS
NOT PREPAID THEN THE BILL IS CALLED FREIGHT
COLLECT BILL OF LADING. THE FREIGHT IS COLLECTED
FROM THE IMPORTER.
CLEAN VS. CLAUSED BILL OF LADING: B / L MUST BE
CLEAN. IT MEANS NO ADVERSE NOTATION OF ANY KIND
MUST APPEAR ON IT WITH REGARD TO THE APPARENT
ORDER AND CONDITION OF GOODS. IF THE GOODS SHOW
SIGN OF DAMAGE B / L CONTAINS AN ENDORSEMENT TO
THIS EFFECT. THIS IS A CLAUSED B / L. CONT.
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TYPES BILL OF LADING
THROUGH BILL OF LADING :WHERE THERE IS NO DIRECT
SHIPPING LINK BETWEEN SELLERS AND BUYERS PORT,
AND THE TERMS OF SALE IS c.i.f. BUYERS PORT THE
EXPORTER WILL ARRANGE TO GET B / L TO ENSURE
NECESSARY THROUGH TRANSSHIPMENT AND
SUBSEQUENT CARRIAGE BY A SECOND VESSEL FROM
THE INTERMEDIARY PORT.
TRANSMISSION OF THE BILL OF LADING TO IMPORTER:
BILLS OF LADING ARE MADE OUT IN SETS HAVING
NUMBER OF COPIES AS PER THE REQUIREMENTS OF THE
PARTICULAR TRANSACTION AND THE IMPORTER. IT IS
IMPORTANT THAT THE FULL SET OF B/L TOGETHER BE
PRESENTED BY THE SHIPPER TO THE BANK.
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TYPES BILL OF LADING
CHARTER PARTY BILL OF LADING :
FOR THE TRANSPORT OF BULK CARGOES, A
SHIPPER OR A GROUP OF SHIPPER MAY LEASE A
VESSEL FOR A PARTICULAR TRIP OR A ROUND OF
TRIPS OR FOR A SPECIFIED PERIOD OF TIME. THE B /
L ISSUED BY THE PARTY, WHICH LEASES OR
CHARTERS TO THIRD PARTY SHIPPERS IS CALLED A
CHARTER PARTY B / L.
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AIRWAY BILL
IT IS AN ACKNOWLEDGEMENT ISSUED BY AN AIRLINE
COMPANY OR THEIR AUTHORIZED AGENT.
AIRWAY BILL IS NOT A DOCUMENT OF TITLE TO GOODS.
IT IS NOT A NEGOTIABLE DOCUMENT.
IT IS NOT NECESSARY FOR A CONSIGNEE TO POSSESS
THE AIRWAY BILL FOR TAKING DELIVERY OF GOODS.
FOR A SHIPPER THE AIRWAY BILL IS NOT AS SAFE A
DOCUMENT AS A BILL OF LADING.
HOUSE AIRWAY BILL IS A RECEIPT FOR GOODS ISSUED
NOT BY THE ACTUAL CARRIERS OR THEIR AGENTS BUT
AN INTERMEDIARY CARGO CONSOLIDATING AGENT.
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MARINE INSURANCE POLICY
IF THE TERMS OF SALE ARE c.i.f OR c.i. THE INSURANCE
WILL BE TAKEN BY THE EXPORTER.
IF THE TERMS OF SALE ARE f.o.b. THE INSURANCE WILL
BE TAKEN ON ACCOUNT OF THE OVERSEAS BUYER.
THE USUAL PRACTICE IN INTERNATIONAL TRADE IS TO
COVER THE GOODS FOR FULL c.i.f. VALUE PLUS 10%.
A MARINE POLICY CAN BE TAKEN EITHER BY AN OPEN
POLICY OR A SPECIFIC POLICY.
RISKS COVERED ARE : PERILS OF THE SEA, FIRE,
PIRACY, JETTISONING, BARRATRY, PERILS OF WAR,
THEFT, PILFERAGE, EXPLOSION, DAMAGE TO
MACHINERY, BREAKAGES, LEAKAGES, HEATING etc.
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CLAIMS
IN THE EVENT OF ANY LOSS OF OR DAMAGE TO THE
INSURED GOODS, AS PER THE PROVISIONS OF THE
CARRIAGE OF GOODS BY SEA ACT OF 1925.
DOCUMENTS TO BE SUBMITTED FOR CLAIMS
THE INSURANCE POLICY.
THE ORIGINAL INVOICE AND THE PACKING LIST.
A COPY OF THE BILL OF LADING.
COPIES OF CORRESPONDENCE WITH THE SHIPPING
COMPANY.
TIME LIMIT FOR FILING A SUIT AGAINST THE SHIPPING
COMPANY IS ONE YEAR.
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BILL OF EXCHANGE
IT IS AN UNCONDITIONAL ORDER IN WRITING,
ADDRESSED BY THE DRAWER TO THE DRAWEE
REQUIRING THE DRAWEE TO PAY ON DEMAND A
STATED SUM OF MONEY TO THE BEARER /
SPECIFIED PERSON OR ORGANIZATION.
A BILL OF EXCHANGE IS A NEGOTIABLE
INSTRUMENT.
IN INTERNATIONAL TRADE THE NORMAL PRACTICE
IS TO SEND DOCUMENTS IN TWO SETS, AS WELL AS
BILL OF EXCHANGE.
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TYPES OF BILL OF EXCHANGE
CLEAN AND DOCUMENTARY BILLS: A CLEAN BILL IS NOT
ACCOMPANIED BY THE RELATIVE SHIPPING DOCUMENTS.
AFTER THE SHIPMENT THE DOCUMENTS ARE SENT
DIRECTLY TO THE IMPORTER AND THE BILLS ARE SENT
TO THE BANK FOR COLLECTING THE PAYMENT.
DOCUMENTARY BILL IS ACCOMPANIED BY THE RELATIVE
SHIPPING DOCUMENTS.
SIGHT & USANCE BILLS: A SIGHT BILL IS PAYABLE
AT SIGHT OR DEMAND OR ON PRESENTATION, AND A
USANCE BILL IS REQUIRED TO BE PAID WITHIN THE
PERIOD SPECIFIED.
D/P & D/A BILLS: (DOCUMENTS ON PAYMENT &
DOCUMENTS ON ACCEPTANCE).
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CONSULAR INVOICE
IT IS A SPECIAL TYPE OF INVOICE REQUIRED FOR
THEIR IMPORTS BY SOME COUNTRIES SUCH AS
U.S.A. , CANADA, PHILIPPINES AND SOME MIDDLE
EAST COUNTRIES.
A CONSULAR INVOICE IS MADE OUT ON A
PRESCRIBED FORMAT CERTIFIED BY THE
CONSULATE OF THE IMPORTING COUNTRY
STATIONED IN THE EXPORTERS COUNTRY.
IMPORTING COUNTRY WANTS TO HAVE
AUTHENTICATED PARTICULARS OF THE GOODS
THAT ARE IMPORTED INTO THEIR COUNTRY.
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CUSTOMS INVOICE
CERTAIN COUNTRIES SUCH AS CANADA AND U.S.A.
NEED CUSTOMS INVOICE. CANADA HAS
PRESCRIBED A SPECIFIC FORM OF CUSTOMS
INVOICE FOR ALLOWING ENTRY OF MERCHANDISE
AT PREFERENTIAL TARIFF RATES.
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CERTIFICATE OR ORIGIN
IN MANY COUNTRIES, PERMISSION TO IMPORT IS
REFUSED UNLESS A CERTIFICATE OF ORIGIN IS
PRODUCED BY THE BUYER.
IT MAY FORM THE PART OF INVOICE ITSELF.
THE ESSENTIAL FEATURE IS CERTIFICATION OF THE
COUNTRY OF ORIGIN INDICATING WHERE THE GOODS
WERE ORIGINALLY PRODUCED.
THERE MAY BE PREFERENTIAL TARIFF IN FAVOUR OF
GOODS FROM PARTICULAR COUNTRIES.
A CERTIFICATE MAY BE NEEDED WHERE GOODS OF A
PARTICULAR TYPE FROM CERTAIN COUNTRIES ARE
BANNED.
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INSPECTION CERTIFICATE
INSPECTION CERTIFICATE BY AN ESTABLISHED
INSPECTION AUTHORITY IS NEEDED UNDER
SOME CONTRACTS OR BY SOME COUNTRIES.
THIS CERTIFICATE IS ISSUED BY ONE OF THE
AUTHORIZED INSPECTION AGENCIES IN THE
EXPORTERS COUNTRY BY THE AGENCY
NOMINATED BY THE IMPORTER.
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PACKING LIST
IT SHOULD GIVE
ITEM BY ITEM, THE CONTENTS OF THE CONTAINERS.
THE DESCRIPTION OF THE GOODS.
NUMBER AND MARKS ON THE PACKAGES.
QUANTITY PER PACKAGE.
NET WEIGHT AND GROSS WEIGHT.
MEASUREMENT.
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