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Introduction to International Trade Documentation – Part 3

The Commercial Invoice The commercial invoice is the key transaction or accounting document. It identifies the seller and buyer, gives identifying numbers such as invoice number, date and shipping date, identifies the mode of transport, delivery and payment terms, and gives a complete list and description of the goods or services being sold including quantities, prices, and discount. The Bill of Lading The bill of lading is the key of transportation document. It is issue by a carrier such as shipping line or airline to a shipper (the exporter or seller), signed by the captain, agent, or owner of a vessel and furnishes written evidence of the receipt of the goods (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading. A bill of lading is, therefore, both a receipt for merchandise and a contract to deliver it as freight. It can also serve...

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 purc...

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 ...

Introduction to Exporting - Part 7

Chapter 7 Delivering the Goods   International Trade Regulations You’ll have to familiarize yourself with your target market’s import regulations, product standards and licensing requirements to make sure that your products are imported without difficulty. If you’re a service exporter, you may have to acquire professional or other accreditation from the country where you’ll be operating.   Export Declarations For every shipment leaving a country, customs formalities must take place to meet regulatory requirements. Customs clearance is a transaction whereby a declaration is developed and required documents are submitted to authorities, and can only be performed by companies holding valid customs licenses, so-called customs house brokers. Export customs clearance can either be performed by a freight forwarder with a valid license or an agent appointed by the freight forwarder. Alternatively, it can be performed by a customs house broker appointed directly by the sh...

Introduction to Exporting - Part 6

CHAPTER 6 ENTERING YOUR TARGET MARKET   Understanding Entry Strategies Developing a market entry strategy simply means finding the best methods of delivering your goods to your market and of distributing them there. Or, if you’re exporting services, it means setting up ways to obtain and manage contracts in the foreign country. Working Out Your Entry Strategy Based on your market research, you’ve chosen the most promising markets for your product or service. Using what you know about these markets, you next decide which entry method best suits your needs. Some factors to consider are: How is business conducted in your target market and industry sector? What are your company’s export strengths and weaknesses? What is your company’s financial capacity? What product or service are you planning to export? How much service and after-sales support will your customers require? What trade agreements or barriers apply to your target market? Methods...