Introduction to International Trade Documentation – Part 1

Chapter1 Introduction to Trade Documentation

INTRODUCTION

Documentation lies at the heart of all international trade transactions. It provides buyers and sellers with an accounting record; shipping and/or logistics firms with instructions of what to do with freight; country of export and import with regulatory compliance, census and taxation information; and banks with instructions and accounting tools for collecting and disbursing payments.

THE PURPOSE OF DOCUMENTS IN INTERNATIONAL TRADE

Documents serve a key role to each party involve in international trade.

To The Exporter documents provide an accounting record of a transaction, a receipt for goods shipped, the means for export clearance of the goods, as well as information and instructions to the many individuals, companies and governmental agencies who transport, handle, or inspect the shipment.

To The Importer documents provide an accounting record of a transaction, assurance that the goods ordered are the goods shipped, and the means for clearing goods through customs at the country of destination.

To The Shipping Company and Freight Forwarder documents provide an accounting record of a transaction, instructions on where and how to ship the goods, and a statement giving instructions for handling the shipment.

To The Bank documents provide instructions and accounting tools for collecting and disbursing payment.

To The Insurer documents provide a means of evaluating risks, valuing a shipment and tracing the point of loss in a coverage claim.

To The Country of Export and Its Regulatory Agencies documents provide necessary proof of the right to export, statistical and census information regarding the goods exported, and an accounting tool for assessing duties and fees.

To The Country of Import and Its Regulatory Agencies documents provide proof of the right to import, statistical and census information regarding the goods imported, evidence that the goods imported will not harm the health and safety of its citizens, and an accounting tool for assessing duties and fees.

To all of the above documents provide proof of ownership of goods at any time and place throughout the transaction.