Notes On Documentation In International Trade:

       The important documents that are used in international marketing may be grouped under two categories:

I Substantive Documents:

1. Bill of Lading:

       It is an official document issued by the shipping company acknowledging the receipt of the goods. It contains the name of the ship, the destination port, units, weight and description of the goods shipped.

       It serves three main purposes:

  1. It is a document of title of goods
  2. It is a receipt from the shipping company
  3. It is a contract for transportation of goods.

2. Insurance Policy:

       In insurance, the loss in cargo arising from the perils of sea is covered. It is a quasi negotiable instrument and the title to the clam can be passed on to another party by mere endorsement.

3. Bill of Exchange:

       Bill of exchange is another document which is used in international marketing. It is of two types:

  1. Clean Bill of exchange and
  2. Documentary Bill of Exchange.

       The Documentary Bill of Exchange of two types:

  1. Documents against Payment (D/P)
  2. Documents against Advance (D/A)
II Auxiliary Document:

1. Certificate of Origin:

       This certificate is issued by the government of the issuing company certifying the origin of the goods shipped. It is obtained by the exporter and sent to the importer to help him get concession in import duty. This certificate shows that the goods have been produced in the country mentioned in the certificate.

2. Consul ring Invoice:

       This is an invoice sent by the council of the importing country to the exporting country. This is obtained by the exporter and is sent to the importer to obtain proper clearance of the goods on the arrival of the ship. It is generally prepared in triplicate.