Introduction to International Trade Documentation – Part 2

There are several broad categories of documents used in international trade. A category indicates either that the documents are issued by a particular group (i.e. a shipping or logistics company) or are required by a particular entity (i.e. a bank or custom authority). In many cases, documents issued by one entity (i.e. the bill of lading issued by a shipping or logistics company) may be required by more than one entity (i.e. the importer, the country of import customs authority, etc.). In other cases, a single entity may both issue documentation as well as require documentation from other entity (i.e. banks issue documents related to letters of credit, but may require a number of specific documents from both the importer and exporter). The following is a brief summary of the broad categories of international trade documentation.

Transaction Documents

Transaction documents are the documents the buyer and the seller generate to form the basis of their agreement to sell and purchase specific goods under specific terms and conditions. The quantity and formality of this type of documentation is greatly influenced by the nature of the relationship of the buyer and seller as well as the goods sold. Transaction document include the letter of inquiry, request for proposal, proposal, letter of intent, purchase order, contract of sale, pro-forma invoice, and commercial invoice.

Transport Documents

Transport documents are the documents issued by the shipping line, airline, railroad, barge operator, international trucking company, freight forwarder or logistics company as a receipt and contract for carriage of the goods to the stated destination. The key document in international shipping is the bill of lading in one of its many forms.

Export Documents

Export documents are the documents required by the export authority of a country. The quantity and formality of this type of documentation is greatly influenced by the requirements of the country of export and the nature of the goods being exported. Export documents may include export license and permit, commercial invoice, bill of lading, certificate of origin, export declaration and inspection certificate(s).

Import Documents

Import documents are the documents required by the import authority of a country. The quantity and formality of this type of documentation is greatly influenced by the country of import and the nature of the goods being imported. Import documents may include import license and permit, commercial invoice, bill of lading, certificate of origin, import declaration and inspection certificate.