Chapter 7
Import & Export
Documentations
Trade documentations
• Exporters: Prepare the documentation set
• Importers: check the documentation set
• Most international trade documents can be divided into 4 categories:
- Commercial documents
- Banking documents
- Transportation and insurance documents
- Government formalities documents
Commercial documents
Payment documentations
Commercial documents are prepared by the buyer and the seller for
each other:
• Inquiry / Quotation
• Pro-forma invoice
• Terms and conditions of sale
• Purchase order
• Order acceptance and confirmation
• Sales contract
• Commercial invoice
Banking documents
Payment documentations
Depending on the payment methods, required documents can be
different:
• Application for letter of credit
• Letter of credit
• Advice of letter of credit
• Drafts (drawn on a bank for payment)
Transportation and insurance
Documents to keep track of merchandise during delivery
• Packing list
• Delivery instructions to domestic carrier
• Inland bill of lading
• Insurance request and insurance certificate
• Ocean bill of lading or airway bill
• Arrival notice
• Carrier’s certificate and release order
Government documents
Documents can be different depending on the countries:
• Import license, foreign exchange authorization
• Export license application, validated license
• Certificate of origin
• Inspection report
• Commercial, special, and consular invoices
• Shipper’s export declaration
• Customs entries
Commercial Invoice
• Issued by seller, request buyer to pay the sum of the invoice
• No fixed or compulsory form, but need to have all necessary information
(Invoice number, goods description, term of delivery, port, unit price, total
price…)
• Used for: payment request, customs declarations, take delivery of the goods
and claim, Supply detail of the goods that serve as a benchmark on checking
the goods
Commercial Invoice
UCP (Uniform Customs and Practice for Documentary Credits)
requirements:
– Issued by the beneficiary, signature is not required
– Same currency with L/C information
– Same description with L/C information
Packing List
• Documents issued by sellers when deliver the goods
• A description on the packaging of the shipment (seller, buyer, goods
descriptions, term of delivery, ports, quantity of packages, packaging
materials, gross & net weight, measurement…)
• No fixed or compulsory form, but need to have all necessary information
(Invoice number, goods description, measurement information…)
Bill of lading (B/L)
• A bill of lading is a legal document between a shipper and a carrier about the
goods being shipped.
• Issued by a carrier, served as a shipment receipt when the carrier delivers the
goods at a predetermined destination.
• Contains information about: the shipper, the consignee, description of the
goods being shipped, the quantity of the goods, transportation method, the
date of shipment…
Bill of lading (B/L)
• Used as documents for custom clearance, banking documents, ownership
confirmation
• 2 types of B/L: Clean B/L (declares there was no damage to or loss of goods
during shipment) and Unclean B/L ( packages are not in original condition)
• Banks usually just accept clean B/L issued by carrier
Certificate of Origin C/O
• Certificate serves as a formal declaration of where a product is made
determining the tariff and trade conditions under which goods are sent
abroad.
• Issue by authorized agency of exporter’s country (Import-export management
departments of cities, branches of VCCI, management departments of
economic zones)
• Apply for C/O at C/O issuing organization or through Electronic C/O System
Certificate of Quality/Quantity
• Document confirming the quality of the goods in accordance with the
Contract.
• Issue by exporter or authorized agency of exporter’s country depending on
the agreement between parties
• COA: Certificate Of Analysis
