Documents used in export trade its types and contents

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Discuss the various documents used in the export trade. Or What is the need for export documents in international trade ? Illustrate your answer in commercial, legal and incentive perspectives.

Proforma Invoice

In the starting of the export contract the offer made by the exporter is called proforma invoice. It is a quotation.

Contents of Proforma Invoice

These are as under :

(i) Name and address of the exporter and importer
(ii) Mode of transpiration
(iii) Name of the destination
(iv) Invoice number and date
(v) Reference number of exporter and importer
(vi) Marks and container number
(viii) Packing description

Importance :

1. Proforma Invoice is the basis of all trade transactions.

2. It may be useful in obtaining import Licence and foreign exchange.

Commercial Invoice or Export Invoice

It is basic export document. It is also called as a document op contents. It comprises all the information required for the preparation of other documents.

The commercial invoice is prepared in the name of the importer. It must be prepared strictly in accordance with the contract of sale.

Contents of Commercial Invoice/ Export Invoice

Following are the contents of commercial invoice –

(i) Name and address of the exporter and consignee.
(ii) Name and number of vessel.
(iii) Port of loading and destination.
(iv) Invoice number and date.
(v) Buyer’s reference number and date.
(vi) Terms of payment and delivery.
(vii) Container number.
(viii) Packing description.

Significance of Commercial Invoice / Export Invoice

It is the main document used in shipping documents. It is used in various export formalities.

Packing List

The exporter prepares the packing list. It contains the detailed description with their gross and net weight, etc.

With other things it provides the following:

(i) Marks and container number
(ii) Number and packing description
(iii) Description of goods in terms of quantity
(iv) Signature of the exporter.

Mate’s Receipt

Mate’s receipt is issued by the commanding officer of the ship. It is issued when the cargo is loaded. It is a prima facie evidence that goods are loaded in the vessel.

Types of Mate’s Receipts

There are two types of mate’s receipt

(i) Clean Mate’s Receipt – If commanding officer is satisfied that the goods are packed properly and there is no defect in the packing of the cargo or package he issues clean mate’s receipt.

(ii) Qualified Mate’s Receipt – It is issued when the goods are not packed properly and the shipping company does not take any responsibility of damage.

Contents of Mate’s Receipt

Contents of mate’s receipt are as under:

(i) Name and address of the shipper
(ii) Name of the shipping line.
(iii) Name of the port of loading.
(iv) Name and the number of vessel.
(v) Name of the port
(vi) Container status and seal number.
(vii) Marks and container number.
(viii) Packing description and total number of containers and packages.

Mate’s receipts is an acknowledgement of goods received for export on board the ship. It is a transferable document. It enables the exporter to clear port trust dues.

Bill of Lading

When the quantity of goods to be shipped is less, the export agent hires the ship which also carries the goods of other exporters. In such a case, a document which is the receipt of goods received by shipping company is given by the shipping company to the export agent. This document is called ‘Bill of Lading. It is issued by the shipping company or its agent. The shipping company accepts the receipt of goods on board the vessel.

A bill of Lading is a document of title to the goods, a receipt from the shipping company, and a contract for the transportation of goods.

Types of Bill of Lading

These are as under:

(i) Claused bill of lading
(ii) Stale bill of lading
(iii) Clean bill of lading
(iv) Transhipment or through bill of lading
(v) Freight collect bill of lading
(vi) Freight paid bill of lading

Contents of Bill of Lading

With other information it provides the following information:

(i) Gross weight and volume
(ii) Amount of freight paid or payable.
(iii) Shipping bill number and date.
(iv) Signature and initials of the Officer.

Purpose of Bill of Lading

These are as under –
(i) It is a contract for the carriage.
(ii) It is an acknowledgement document.
(iii) It is useful for claiming incentives offered by the government.
(iv) It acts as a document of title to goods for importer.
(v) It is useful to the shipping company for collection of transport charges from.

Certificate of Origin

The certificate of origin classifies that the goods exported are originally manufactured in the country.

Types of the Certificate of Origin:

Following are the types of certificate of origin –

(i) Non-preferential certificate of origin
(ii) Certificate of origin for availing concessions under GSP
(iii) Certificate for availing concessions under Commonwealth preferences
(iv) Certificate for availing concessions under other systems of preference

Contents of Certificate of Origin

It provides following information with other things,

(i) Signature and initial of the concerned officer of the issuing authority.
(ii) Seal of the issuing authority.

Shipping Bill

This is the main customs document, required by the customs authorities.

Shipping bill is normally prepared in the following five copies:

(i) Customs copy.
(ii) Drawback copy.
(iii) Export promotion copy.
(iv) Port trust copy.
(v) Exporter’s copy.

Types of Shipping Bill

Customs authorities have introduced three types of shipping bills:

(i) Dutiable shipping bill
(ii) Drawback shipping bill
(iii) Duty-free shipping bill.

Contents of Shipping Bill

Following are the contents of shipping bill :

(1) Name and address of the exporter and importer.
(ii) Name of the vessel, master and flag.
(iii) Description of goods, quantity and details.
 (iv) Name of the port of destination.
(v) FOB price and real value of goods.

Significance of Shipping Bill

These are as under –

(i) It is required by the customs authorities to grant permission for the shipment of goods.
(ii) The cargo is moved inside the dock area only after the shipping bill is duly stamped.

Airway Bill

An airway bill, is a receipt issued by an airline for the carriage of goods.

Contents of Airway Bill

It contains the following –

(i) Name of the airport of departure and destination,
(ii) The names and addresses of the consignor and consignee,
(iii) Total number of containers and packages,
(iv) Description of goods in terms of quantity.

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