Documents Used In Foreign Trade

Documents Used in Foreign Trade Bill of Lading: Definition: A document conferring ownership claim on goods upon arrival, serving as proof of title for goods on board a ship. Content: Contains ship name, shipper details, and goods’ quality and types. Preparation: Typically created in three copies by the ship owner for the exporter, shipper, and […]

Documents Used in Foreign Trade

  1. Bill of Lading:
    1. Definition: A document conferring ownership claim on goods upon arrival, serving as proof of title for goods on board a ship.
    2. Content: Contains ship name, shipper details, and goods’ quality and types.
    3. Preparation: Typically created in three copies by the ship owner for the exporter, shipper, and importer.
    4. Types: Dirty bill (indicating damages or deficiencies) and clean bill (verifying perfect condition).

 

Importance of Bill of Lading:

1. Ownership document.

  1. Contract of carriage between exporter and shipping company.
  2. Represents receipt of shipped goods.
  3. Provides evidence.

 

  1. Airway Bill:

Definition: Document for air freight, similar to a bill of lading, made in triplicate but not a title document.

 

  1. Certificate of Origin:

Definition: States the country of origin for shipped goods, aiding in determining customs duties and securing preferential treatment in organizations like ECOWAS.

 

  1. Consular Invoice:

Definition: Document signed by the buyer’s consular, assessing liability for import duties and verifying proper valuation of goods.

 

  1. Weight Note:

Definition: Seller-supplied document specifying weight and measurements of goods during sale, also issued by port authorities upon delivery.

 

  1. Indent:

Definition: Order to buy goods sent by buyer to seller, specifying required goods. Can be open (unspecified source) or closed (specific goods from a particular manufacturer).

 

  1. Certificate of Insurance:

Definition: Proof that parties have insured goods in transit, often a marine insurance policy.

 

  1. Export/Import License:

Definition: Necessary authorization obtained before exporting or importing goods, especially in countries with protectionist laws.

 

  1. Dock Warrant (Wharf Finger Receipt/Dock Receipt):

Definition: Receipt for goods stored in a warehouse, allowing the holder to take possession, indicating goods are awaiting loading or clearing.

 

  1. Freight Note:

– Definition: Issued by shipping company to the responsible party for transportation costs.

 

  1. Shipping Note:

Definition: Instructions sent by an exporter to shipping agents, detailing the shipping process and destination.

 

  1. Export Invoice:

Definition: Document sent by exporter to importer providing comprehensive details of dispatched goods, including description, terms, quantity, price, etc.

 

  1. Custom Specification:

Definition: Document submitted to customs authorities, recording import/export values for calculating the balance of trade.

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