Types Of International Trade Documents | With Explanation

There are various types of international trade documents which facilitate international trade. This documents are as follows:

1. Consular invoice
2. Bill of lading
3. Certificate of origin
4. Shipping note
5. Airway bills
6. Indent
7. Ship manifest
8. Mate receipt
9. Foreign note
10. Customs specification
11. Dock warrant
12. Dock landing account
13. Bill of sight
14. Bill of entry
15. Calling forward note
16. License
17. Export invoice
18. Ship report
19. Insurance certificate
20. Bill of export

1. Consular invoice: Consular invoice is types of international trade documents and it’s an invoice issued in the embassy of the importing country showing the original price of the goods in the country of origin. This is to avoid under invoicing for correct import duties to be paid. In other words, it is the invoice that has been signed by the consul of the country to which the goods is to be consigned. The invoice is signed to prevent undertaking the price so as not to attract less customs duties. It is a special form of invoice, legalized by a consul in and importing country.

The invoice will ensure correct payment of duties by showing the correct price of the goods. The document must be produced in a number of copies, one of which is retained by the consul and sent by him to the custom authorities at the destination Port.

Purpose or uses of consular invoice

• It is used by the custom authorities to ascertain duty payable on goods
• It prevents falsification of prices of goods.

2. BILL OF LADING: Bill of Lading is a types of international trade documents which contains the details of the goods being sent. It is the document of title to goods which are sent across two countries. It is an evidence of shipment and a document of title to claim goods. It is a document of title giving the holder a right to take possession of the goods to which it refers. A bill of lading is a contract of carriage of goods between an exporter and the shipping company. It is issued out by a shipping company’s official as a receipt for the goods shipped and at the same time undertakes to carry the goods to the port of destination. The bill of lading is a document of title. It is made out in triplicates, one copy being returned by the exporter, the second by the ship master while the third is sent to the importer.

Types of bill of Lading

• Clean bill of Lading: A clean bill of Lading is one signed by the transporter. It shows that the goods are in good order or condition or are free from irregularities or damage
• Dirty or foul bill of Lading: A foul bill of Lading is one which indicates some deficiencies, irregularities or damage on the goods.

3. CERTIFICATE OF ORIGIN: Certificate of Origin is a types of international trade documents signed by a customs officer of the exporting country to show the country from which the goods have been exported or where it originated from. This document is important when the importing country has a preferential tariff applicable only to certain countries. The certificate of Origin is prepared by the producer to accompany the goods in order to determine the place of Origin. This is important when countries in the same economic Union, e.g, ECOWAS wants to charge differential tariffs on goods from their members.

Purpose of Certificate of Origin

• It shows where the goods come from.
• It serves as an instrument for preferential tariff.
• It helps to determine outflow of foreign exchange to the country of origin.

4. SHIPPING NOTE: Shipping note is a document sent to the shipping agent by the exporter. The document contains instructions for transporting the goods. It is a request to the shipping company to transport the goods to a named destination at a particular time. If the forwarding agent handles shipment, it has to obtain a shipping note to request a shipping company to transport the goods.

5. AIRWAY BILL: Airway bill is a numbered document made out by or on behalf of the consignor of goods to be transported by air freight. It shows names of consignor, consignee, airport of loading and destination. It also shows the nature, weight and value of goods, the marks, numbers and dimensions of the packages, the routine and the freight charged. It is used when goods are being transported by air.

6. INDENT: Indent is a types of international trade documents used in international trade. It is an order to buy goods conveyed by an importer to a potential supplier. It can be placed with the seller or his agent. Indent gives details of the goods required, approximate price and the date of the delivery. Indent can be opened or closed.

7. SHIPPING MANIFEST: Shipping manifest is a document to be completed by the captain of the ship and lodged which with the customs authorities before the ship can leave the port. It shows particulars of the ship, it’s cargo and destination. The shipping manifest must be left with the customs before the ship leaves port and copies are sent to the ship’s agent at the port of destination.

8. MATE RECEIPT: Mate receipt is a types of international trade documents used when goods are loaded on a ship by lighter. This is usually signed by an authorized officer of the ship stating that the goods are received in good condition. This document will be exchange afterward for a Bill Lading.

9. EXPORT INVOICE: An export invoice is a document sent by the exporter to the importer, given full description or complete summary of the goods dispatched. It shows the list of goods, terms of sales, quantity, price, name of ship and the total amount to be paid, etc. The exporter will send this document to the importer.

10. SHIP REPORT: Ship report is a document which must be supplied by the master of a ship to the custom authorities on arrival at a port. This report gives the particulars of the ship, crew, passengers, cargo and port of departure. Until his report is received, the goods cannot be offloaded.

11. FREIGHT NOTE: Freight note is a types of international trade documents which shows the carriage charges for a particular cargo for a specified journey. It is issued by the shipping company to give details of charges for shipping a particular consignment of cargo for a specified journey.

12. CUSTOMS SPECIFICATION: Customs specification is a document lodged with the customs authorities which shows the value of the goods exported and the country to which they have been consigned. The information in this document enables the ministry of trade to calculate the import and export so as to show the balance of trade.

13. DOCK WARRANT: Dock warrant is a receipt for goods delivered and stored in the warehouse. It entitled the holder to take possession of the goods. It is also known as dock receipt. This document will state that goods have been kept in the warehouse by the owner awaiting clearing or loading.

14. DOCK LANDING ACCOUNT: Dock landing account is a document issued to the master of the ship on it’s arrival at a port. The ship is given a reference number and information on cargo together with particulars of any damage goods.

15. BILL OF SIGHT: Bill of sight is a document used in the import trade where importers are requited to complete the appropriate entry” document if there is insufficient information about the cargo to determine correct duty in advance. In other words, bill of sight is a document used in import trade which is submitted to the customs authorities, if a full description of the imported goods cannot be provided. This document enables the goods to be landed and their inspection is authorized by the customs while a full description of the goods will be provided later.

Uses of Bill of sight

• It is used to determine the duty on the cargo
• It is very important when there is insufficient information about the cargo.

16. BILL OF ENTRY: Bill of entry is a foreign document which contains detailed particulars of all imported goods into the country. It provides the customs with particulars of goods imported which must be presented at the port on arrival before they are allowed into the country.

17. CALLING FORWARD NOTE: Calling forward note is a types of international trade documents sent by the shipping company to the forward agent, stating the date which goods must arrive at the port for loading.

18. LICENSE: License allows the importer to bring a certain quantity of foreign goods into a country and to purchase foreign exchange. They are required to restrict import quota. License must be obtained by The Importer before goods can be imported. This is used to control foreign trade so as to prevent dumping.

19. INSURANCE CERTIFICATE: Insurance certificate is a types of international trade documents which shows that the exporter has paid for insurance to protect him against risks. The Marine insurance policy is entered into to cover the cargoes against the perils of the sea. It is compulsory that goods are insured before their exported.

20. BILL OF EXCHANGE: Bill of exchange is an unconditional order in writing addressed by one person to another and signed by the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to the other of a specified person. Bill may be inland of foreign. Foreign bill of exchanges is a negotiable instrument which can be discounted by bank and is sent by the seller to the buyer. A foreign bill must be drawn up in replicates.

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