What are the Documents Commonly used in International Trade?


Documents Common used in International Trade

Bill of lading - This is a commercial document signed by the ship owner or shipmaster or by an agent of the ship owner, stating the condition under which the goods are being carried. It is prepared in triplicate. Shipmaster, consignor and consignee hold copies.
The bill must state:
The name of the ship
The quantity
The type of goods
Special marking on the package
The names of the port of embarkation and that of unloading etc.

Certificate of Origin - This states the authentic original place of production. This applies because some countries have a mutual agreement to charge not or lesser customs duties on goods imported from one to the other.

Consular Invoice - This is an invoice that has been signed by the consultant or embassy of the country to which the goods are being exported. This serves as an evidence that goods have been priced and that no undesirable goods enter the importer country.

Letter or hypothecation - A letter from an exporter to his bank authorizing the bank to sell goods being exported for the best possible price, if the bank cannot obtain payment on a bill of exchange drawn on the importer that is has already discounted for the exporter. The exporter pays for the deficit in case good sold do not yield enough sums to pay the bank.

Airway Bill - This corresponds to the bill of lading but is used when goods are sent by air. It is made out in triplicate; the consignor retains one copy, another by airline and one is carried with the goods for the consignee

Certificate of Insurance – It is usually enclosed which together with the other documents assures interested parties that the goods have been properly insured

Shipping Note – It is a document that tells the authorities in the foreign country what goods are involved, their port of destination and the ship they are to be sent in. A copy of the note is signed by port authorities and retained by the exporter as proof delivery to the port. It is then referred to as a dock receipt.

Mates Receipt – A document signed by an officer of a vessel evidencing receipt of a shipment onboard the vessel. It is not a document of title and is issued as an interim measure until a proper bill of lading can be issued.

Comments

Post a Comment

Popular posts from this blog

What are the Misconceptions about employee motivation?

Image
Misconceptions about employee motivation In order for an employee to be motivated, depends on various factors such as level and status of the respective employee. There is no one principle to motivate all employees. There are some factors that are considered as motivating tolls for employees however in reality these may not be motivational. The followings are some misconceptions about employee motivation; 1.       Financial reward Money alone cannot generally act as a motivational tool for employees. Formal and informal recognition tends to add motivation for some employees rather than money. Money may tend only to motivate some employees in short term where an employee may be in high need for money. At some stage, i.e. senior level an employee may have enough money and therefore money may no longer motivate him/her. 2.       Natural motivation There is no such a natural motivation. No one can be motivated naturall...
Read more

Share capital, Invitation, Application, Allotment, calls and paid-up procedures

Capital of a limited company is divided into shares of a fixed amount . The amount stated in the Memorandum is known as the Authorized Share Capital . For example, this may be shs. 10 million divided into 100,000 shares of shs. 100 per share. This fixed amount per share is called its par or nominal value . A company may not issue share capital in excess of what has been authorized . The actual amount that has been issued to shareholders is termed Issued Share Capital . If in the above example only 80,000 shares have been issued, then the company's issued capital is shs. 8 million. The steps followed when a company issues shares are: Invitation The company invites the public to apply for its shares through a Prospectus which is an offer document that invites the public to subscribe and purchase shares of a company . A Prospectus gives objectives and information on attractiveness of the company. Application The public applies for shares in the company, usually...
Read more

CLASSIFICATION OF MANUFACTURING COSTS

CLASSIFICATION OF MANUFACTURING COSTS The three elements of production costs are materials, labour and expenses.   Each one may be categorized as either direct or indirect cost. Direct costs are those costs which may be identified with the product and therefore can be included directly in the cost of the product. These are costs that can conveniently and easily be traced to a particular product, department or any other object that costs are accumulated.   Examples are: (a) Direct materials - all materials that form an integral part of the finished product, like leather for shoes, wood for furniture, etc. (b) Direct labour - it is labour applied directly on the raw materials, in order to convert these into finished product. Like the wages paid to factory workers or machine operators engaged in the production process are classified under this category. (c) Direct expenses - are those specifically attributed to the product, like the royalty paid to an inve...
Read more