Trade Documentations

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Documents play a key role in international transactions. Both buyers and sellers need documents for bookkeeping, accounting, taxation, export and import formalities, as well as making payments using letters of credit and other documentary payment methods.

This segment will give some examples of the most commonly used documents in the international trade. It is not an exhaustive listing. Specialized trades, special circumstances and different countries of origin and destination may require additional documentation.

Transaction Documents

The key transaction document is the invoice or commercial invoice. This document is used by all parties to the transaction for accounting and bookkeeping purposes. It is also required for export and import formalities as well as most banking and payment procedures.

Export Documents

These are documents required by the customs or national export authority of the country of export and vary greatly from country to country. Included are licenses, permits, export declarations, inspection certificates, commercial invoices, packing lists, certificate of origin and sometimes transport documents.

Transport Documents

These are documents issued by shipping line, air cargo carrier, trucking company or freight forwarder that detail the terms of transport for cargo. The key transport document is the bill of lading.

Inspection & Insurance Documents

These documents generally issued by third part inspection firms at the request of the buyer to certify the quality and quantities of a shipment. Inspection documents are also issued to satisfy country export and import requirements.

The insurance documents evidence insurance coverage of a shipment and can be in the form of a policy or a certificate.

Banking & Payment Documents

Banking and payment documents include letters of credit, amendments to letters of credit, documents against payment, various advices, plus virtually all the other documents used in trade particularly bill of lading, commercial invoice, insurance, inspection certificate, certificate of origin, surveyors report, etc.

Import Documents

These are documents required by the customs authority of the country of import and vary greatly from country to country. The minimum documentation requirement is an entry form and a commercial invoice. However, many other forms may be required, especially if the imported merchandise is sensitive i.e. animals, weapons, chemicals, drug or food, if the importer is requested special tariff treatment under an import program i.e. GSP, NAFTA, AFTA, or if the import comes from certain countries.

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