Mentioned the Common Import and Export Documents are used In International Trade.
There are many
documents involved in international trade, such as commercial documents, financial
documents, transport documents, insurance documents and other international
trade-related documents. In processing the export consignment, documentation
may be executed in up to four contracts: the export sales contract, the
contract of carriage, the contract of finance and the contract of cargo
insurance. It is therefore important to understand the role of each document
and its requirements in international trade.
Commercial Documents
An offer to sell goods
and should state clearly the price, details of quality, quantity, trade terms,
delivery terms, and payment terms.
Prepared by: exporter
Sales Contract
An agreement between
the buyer and the seller stipulating every detail of the transaction. Since
this is a legally binding document, it is, therefore, advisable to seek legal
advice before signing the contract.
Prepared by: exporter
and importer
Pro Forma Invoice
An invoice provided by
a supplier prior to the shipment of merchandise, informing the buyer of the
kinds and quantities of goods to be sent, their value, and importation
specifications (weight, size, and similar characteristics). This is not issued
for demanding payment but may be used when applying for an import
license/permit or arranging foreign currency or other funding purposes.
Prepared by: exporter
Commercial Invoice
A formal demand note
for payment issued by the exporter to the
importer for goods sold under a
sales contract. It should give details of the goods sold, payment terms and
trade terms. It is also used for the customs clearance of goods and sometimes
for foreign exchange purpose by the importer.
Prepared by: exporter
Packing List
A list with detailed
packing information of the goods shipped.
Prepared by: exporter
Inspection Certificate
A report issued by an
independent surveyor (Inspection Company) or the exporter on
the specifications of the shipment, including quality, quantity, and/or price,
required by certain buyers and countries.
Prepared by: Inspection
Company or exporter
Insurance Policy
An insurance document,
with full details of the insurance coverage, evidencing insurance has been
taken out on the goods shipped.
Prepared by: insurer
or insurance agent or insurance broker
Insurance Certificate
This certifies that the
shipment has been insured under a given open policy and is to cover loss of or
damage to the cargo while in transit.
Prepared by: insurer
or insurance agent or insurance broker
Product Testing Certificate
This certifies the
products are confirmed to a certain international/national technical standard,
such as product quality, safety, and specifications.
Prepared by: accredited
laboratories
Health Certificate
Document issued by the
competent country when agricultural or food products are being exported, to
certify that they comply with the relevant legislation in the exporter’s
country and were in good condition at time of inspection, prior to shipment and
fit for human consumption.
Prepared by: exporter/inspection
authority
Phytosanitary
Certificate
Frequently an
international requirement that any consignment of plants or planting materials
importing into a country shall be accompanied by a Phytosanitary Certificate
issued by the exporting country stating that the consignment is found
substantially free from diseases and pests and conforms with the current
phytosanitary regulations of the importing country. Application of the
certificate in Hong Kong should be made to the Agriculture and Fisheries Department.
Prepared by: exporter
Fumigation Certificate
A pest control
certificate issued to certify that the concerned products have been undergone
the quarantine and pre-shipment fumigation by the approved fumigation service
providers. It is mainly required by the US, Canada, Australia, New Zealand and
UK’s customs on solid wood packing material from Hong Kong and the Chinese
Mainland.
Prepared by: exporter
or Inspection Company
ATA Carnet
An international
customs document used to obtain a duty-free temporary admission for goods such
as exhibits for international trade fairs, samples and professional equipment,
into the countries that are signatories to the ATA Convention.
Prepared by: exporter
Consular Invoice
A document required by
some foreign countries, showing shipment information such as the consignor,
consignee, and value description, etc. Certified by a consular official of the
importing country stationed in the foreign country, it is used by the country’s
customs officials to verify the value, quantity, and nature of the shipment.
Prepared by: exporter
Transport Documents
Shipping Order S/O
A document with details
of the cargo and the shipper’s requirements, and is the basic document for
preparing other transport documents such as bill of lading, air waybill, etc.
Prepared by: shipper/transport
companies
Dock Receipt D/R or
Mate’s Receipt
A receipt to confirm
the receipt of cargo on quay/warehouse pending shipment. The dock receipt is
used as documentation to prepare a bill of lading. It has no legal role
regarding processing a financial settlement.
Prepared by: shipping
company
Bill of Lading (B/L)
An evidence of a
contract between the shipper of the goods and the carrier. The customer usually
needs the original as proof of ownership to take possession of the goods. There
are two types: a STRAIGHT bill of lading is non-negotiable and a negotiable or
shipper’s ORDER bill of lading (also a title document) which can be bought,
sold or traded while goods are in transit and is used for many types of financing
transactions.
Prepared by: shipping
company
House Bill of Lading
(Groupage)
A bill of lading issued
by a forwarder and, in many cases, not a title document. Shippers choosing to
use a house bill of lading should clarify with the bank whether it is acceptable
for a letter of credit purpose before the credit is opened. Advantages include
less packing, lower insurance premiums, quicker transit, less risk of damage
and lower rates than cargo as an individual parcel / consignment.
Prepared by: forwarder
Sea Waybill
A receipt for cargo
which incorporates the contract of carriage between the shipper and the carrier
but is non-negotiable and is therefore not a title document.
Prepared by: shipping
company
Air Waybill (AWB)
A kind of waybill used
for the carriage of goods by air. This serves as a receipt of goods for
delivery and states the condition of carriage but is not a title document or
transferable/negotiable instrument.
Prepared by: airline
House Air Waybill
(HAWB)
An air consignment note
issued by an air freight agent to provide the cargo description and records.
Again, it is not a title document.
Prepared by: forwarding
agent
Shipping Guarantee
Usually a pre-printed
form provided by a shipping company or the bank, given by an importer’s bank to
the shipping company to replace the original transport document. The consignee
may then in advance take delivery of goods against a shipping guarantee without
producing the original bill of lading. The consignee and the importer bank will
be responsible for any loss or charges occurred to the shipping company if
fault is found in the collection. It is usually used with full margin or trust
receipt to protect the bank’s control to the goods.
Prepared by: importer’s
bank/shipping company/consignee
Packing List (sometimes
as packing note)
A list providing
information needed for transportation purpose, such as details of invoice,
buyer, consignee, country of origin, vessel / flight date, port / airport of
loading, port / airport of discharge, place of delivery, shipping marks /
container number, weight / volume of merchandise and the fullest details of the
goods, including packing information.
Prepared by: shipper
Financial Documents
Documentary Credit D/C
A bank instrument
(issuing or opening bank), at the request of the buyer, evidencing the bank’s
undertaking to the seller to pay a certain sum of money provided that specific
requirements set out in the D/C are satisfied.
Prepared by: the
issuing bank upon an application made by the importer
Standby Credit
An arrangement between
a customer and his bank by which the customer may enjoy the convenience of
cashing cheques, up to a value. Or a credit set up between the exporter and the
importer guaranteeing the exporter will pay the importer a certain amount of
money if the contract is not fulfilled. It is also known as performance bond.
This is usually found in large transactions, such as crude oil, fertilizers,
fishmeal, sugar, urea, etc.
Prepared by: exporter
/ issuing bank
Collection Instruction
An instruction is given
by an exporter to its banker, which empowers the bank to collect the payment
subject to the contract terms on behalf of the exporter.
Prepared by: exporter
Bill of Exchange (B/E)
or Draft
An unconditional
written order, in which the importer addressed to and required by the exporter
to pay on demand or at a future date a certain amount of money to the order of
a person or bearer.
Prepared by: exporter
Trust Receipt (T/R)
A document to release
merchandise by a bank to a buyer (the bank still retains title to the
merchandise), the buyer, who obtains the goods for processing is obligated to
maintain the goods distinct from the remainder of his / her assets and to hold
them ready for repossession by the bank.
Prepared by: importer
Promissory Note
A financial instrument
that is negotiable evidencing the obligations of the foreign buyer to pay to
the bearer.
Prepared by: importer
Government Documents
Certificate of Origin
(CO)
This certifies the
place of manufacture of the exported goods to meet the requirements of the
importing authorities.
Prepared by: Trade
and Industry Department and five Chambers of Commerce [1]
Certificate of Origin Generalized
Systems of Preferences (GSP) Form A (or as Form A)
A CO to support the
claim for preferential tariff entry (a reduced or zero rate) of the exporting
country’s products into the GSP donors under the GSP they operate. In general,
a Form A is issued only when the goods concerned have met both the origin rules
of the preference receiving country as well as the origin criteria of the
respective donor country’s GSP.
Prepared by: Trade
and Industry Department and five Chambers of Commerce
Import / Export
Declaration
A statement made to the
Director of Customs at the port of entry/exit, declaring full particulars of
the shipment, eg. the nature and the destination / exporting country of the
ship’s cargo. Its primary use is for compiling trade statistics.
Prepared by: exporter/importer
Import / Export Licence
A document issued by a
relevant government department authorising the imports and exports of certain
controlled goods.
Prepared by: Trade
and Industry Department, Customs & Excise Department, etc
International Import
Certificate (IIC)
A statement issued by
the government of country of destination, certifying the imported strategic
goods will be disposed of in the designated country. In Hong Kong, it is issued
only to meet an exporting country’s requirement.
Prepared by: Trade
and Industry Department
Delivery Verification
Certificate (DVC)
A statement issued by
the government of country of destination, certifying a specific strategic
commodity has been arrived in the designated country. In Hong Kong, it is
issued only to meet an exporting country’s requirement.
Prepared by: Trade
and Industry Department
Landing Certificate
A document issued by
the government of the country of destination, certifying a specific commodity
has arrived in the designated country. In Hong Kong, it is issued by the Census
and Statistics Department. Application requirements include a letter stating
the reason for the application, import declaration & receipt; bill of
lading, sea waybill & land manifest; supplier’s invoice; and a packing list
(if any).
Prepared by: Census
and Statistics Department
Customs Invoice
A document specified by
the customs authorities of the importing countries stating the selling price,
costs for freight, insurance, packing and payment terms, etc, for the purpose
of determining the customs value.
Prepared by: exporter
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