1、International Trade DocumentationWhat is a document?l“document”comes from the Latin“documentum”meaning official paper.lThe word also carries meanings of“proof”and“evidence”.lA document is an official paper that serves as proof or evidence of something.What are international trade documentslOfficial
2、papers that serve as proof or evidence of international transactions.lOfficial papers has been expanded to include non-paper proof or evidence,such as faxes and pure electronic transmissions that are never actuallyl printed l (electronic data interchange)The purpose of documents in international tra
3、delTo the exporterlAn accounting record of a transactionlA receipt for goods shippedlThe means for export clearance of the goodslTo the importerlAn accounting record of transactionlAssurances that the goods ordered are the goods shippedlThe means for clearing goods through customs at the destination
4、lTo the shipping company and freight forwarderlAn accounting record of a transactionlInstructions on where and how to ship the goodslTo the bankslInstructions and accounting tools for collecting and disbursing paymentslTo the insurerlA means of evaluating riskslValuing a shipment lTracing the point
5、of loss in a coverage claimlTo the country of export and its regulatory agencieslProof of the right to importlStatistical and census information regarding the goods exportedlAn accounting tool for assessing duties and feeslTo the country of import and its regulatory agencieslProof of the right to im
6、portlStatistics and census information regarding the goods importedlEvidence that the goods imported will not harm the health and safety of its citizenlAn accounting tool for assessing duties and fees lTo all of the abovelProof of ownership of goods at any time and place throughout the transactionTh
7、e key documents of international tradelCommercial invoicelKey transaction or accounting documentsldescription of the goodslQuantitylPricelTotal amountlDelivery and payment termslBill of ladinglKey transportation documentlA receipt for merchandise lA contract to deliver it at the prescribed port of d
8、estinationlWhoever holds the document can claim possession of the goodsl “shipper”“consignee”“carrier”lCertificate of originlEstablish the country of origin of the goods shippedlSubmit it to the authority of importing countrylIssued by China exit and entry inspection and quarantine bureau orl Counci
9、l for the promotion ofl international trade l General tax 45%l Most-favored-country treatment 15%l General system of preference l treatment 5%l lThe insurance policylTo guarantee the financial protection against the risk of loss or damage with regarding to a contingency or perillDraftslSigned by a p
10、erson(drawer),and addressed to another person(drawee)to pay a stated sum of money to the third person(payee)on demand or at a fixed or determinable future time.What to do as a documentation specialistlStep 1lLook through the letter of creditlTerms and conditionslContract VS LClUCP600,ISBP(Internatio
11、nal Standard Banking Practice for the Examination of Documents under Documentary Credits)Article 17 Original Documents and Copies la.At least one original of each document stipulated in the credit must be presented.lb.A bank shall treat as an original any document bearing an apparently original sign
12、ature,mark,stamp,or label of the issuer of the document,unless the document itself indicates that it is not an original.For examplelTransshipment lContract not allowed lLC allowedlContract allowed lLC not allowedDiscrepancies between contract and LC-amend LC or notlAdvantageous to the seller(benefic
13、iary)or not?lYes-not amend LClNo-amend LC?lWorth?-time and moneyAmendment to an LCbuyer request seller(applicant/importer)(beneficiary/exporter)order notificationissuing bank notification advising bank(buyers bank)(sellers bank)lStep2lFill in Documents requiredl Strict CompliancelLClEach otherlGoods
14、l Completely lContentlCategorylCopies lIn timelThe date of issuing a document does not exceed the expiry date of LC or other prescriptive datesle.g.latest date of shipmentlConciseness lTerseness and economy in writing achieved by expressing a great deal in just a few wordslTo reduce the possibility
15、of documents with discrepancieslorderlinesslNo more than three times of covering correction stamp in one documentlHigh quality of sheets-image of the companylStep3 lLook through documents requiredlStrict CompliancelLClEach otherlStep4lPresent documentslExpiry datelPresentation periodlExpiry placelSt
16、ep5 lFile for referencelCommercial invoicelBill of ladingFlow chart of export documents S/C,P/I,P/OAmendmentL/CD/PT/T Manufacture or purchase Exporting detail sheet Consign for shipment(shipping order)Inspect and quarantine Inspection Bill for custom clearance Inspection certificate Custom clearance
17、 documents Custom clearance documents commercial invoice packing list custom declaration export sheet of cancel after verification or Foreign exchange control declaration custom declaration warrant Custom clearance Confirm B/L C/O,FORM A,Insurance Policy Sign on B/L Other documents for settlement Ne
18、gotiating bank Paying bank Collecting bank Remitting bank L/C T/T D/PRemitting bank receiving bank custom clearance and pick up goods Terms of PaymentlRemittancelCollectionlLetter of creditRemittancelTelegraphic Transfer,TTlMail Transfer,MTlDemand Draft,DDRemittance procedurelBuyer Sellerlremitter(p
19、ayer)payee(beneficiary)lBuyers bank Sellers banklremitting bankreceiving bank lCash in advancelOpen accountCollection1 Clean Collection2 Documentary Collection Documents against Payment,D/P D/P at sight D/P at days after sight Documents against Acceptance,D/ADocumentary collection procedurelBuyer Se
20、llerlDrawee PrincipallBuyers bank Sellers banklCollecting bank Remitting bankLetter of creditlLc is a banks commitment to pay the seller a specified sum on behalf of the buyer under precisely defined conditions.lThe buyer specifies certain documents(including a title document)from the seller before
21、the bank is to make paymentl the seller is assured that payment will be received after the goods are shipped so long l as the specified documents are provided.Parties of L/C1、APPLICANT2、BENEFICIARY3、OPENING BANK/ISSUING BANK4、NOTIFYING BANK/ADVISING BANK5、NEGOTIATING BANK6、PAYING BANK7、CONFIRMING BA
22、NK8、ACCEPTING BANKDocumentary credit procedurelBuyer SellerlApplicant BeneficiarylBuyers bank Sellers banklOpening bank Notifying banklPaying bank Negotiating bankTypes of credit1 1、CLEAN/DOCUMENTARY 2 2、REVOCABLE/IRREVOCABLE 3 3、CONFIRMED/UNCONFIRMED 4 4、SIGHT PAMENT DEFERRED PAYMENT ACCEPTANCE NEG
23、OTIATION5 5、SIGHT/TIME 6 6、TRANSFERABLE UNTRANSFERABLE 7 7、STANDBY 40A REVOCABLE IRREVOCABLE REVOCABLE TRANSFERABLE IRREVOCABLE TRANSFERABLE REVOCABLE STANDBY IRREVOCABLE STANDBYHow to open a credit1 1、Mail2 2、Telegraph、Telex、SWIFT SWIFT creditSOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICAT
24、IONlTerms and conditions of creditCOMMERCIAL INVOICE(1)SIGNED COMMERCIAL INVOICE IN(1)SIGNED COMMERCIAL INVOICE IN QUADRUPLICATE SHOWING A QUADRUPLICATE SHOWING A DEDUCTION OF USD141.00 BEING DEDUCTION OF USD141.00 BEING ORC ORC（ORIGIN RECEIPT CHARGEORIGIN RECEIPT CHARGE）CHARGES.CHARGES.(2)BENEFICIA
25、RYS ORIGINAL(2)BENEFICIARYS ORIGINAL COMMERCIAL INVOICES AT LEAST COMMERCIAL INVOICES AT LEAST IN TRIPLICATE ISSUED IN THE IN TRIPLICATE ISSUED IN THE NAME OF THE BUYER INDICATING NAME OF THE BUYER INDICATING THE MERCHANDISE,COUNTRY OF THE MERCHANDISE,COUNTRY OF ORIGIN AND ANY OTHER RELEVENT ORIGIN
26、AND ANY OTHER RELEVENT INFORMATION.INFORMATION.(3)COMMERCIAL INVOICE MUST (3)COMMERCIAL INVOICE MUST INDICATE THE FOLLOWING:INDICATE THE FOLLOWING:A)THAT EACH ITEM IS LABELLED A)THAT EACH ITEM IS LABELLED “MADE IN CHINA”“MADE IN CHINA”B)THAT ONE SET OF NON-B)THAT ONE SET OF NON-NEGOTIABLE SHIPPING D
27、OCUMENTS NEGOTIABLE SHIPPING DOCUMENTS HAS BEEN AIRMAILED IN ADVANCED HAS BEEN AIRMAILED IN ADVANCED TO BUYER.TO BUYER.PACKING LIST WEIGHT LIST MEASUREMENT LIST (1)SIGNED PACKING LIST IN (1)SIGNED PACKING LIST IN QUADRUPLICATE SHOWING GROSS QUADRUPLICATE SHOWING GROSS WEIGHT,NET WEIGHT,NET/NET WEIGH
28、T,NET WEIGHT,NET/NET WEIGHT,MEASUREMENT,COLOR,WEIGHT,MEASUREMENT,COLOR,SIZE AND QUANTITY BREAKDOWN FOR SIZE AND QUANTITY BREAKDOWN FOR EACH PACKAGE,IF APPLICABLE.EACH PACKAGE,IF APPLICABLE.(2)DETAILED WEIGHT AND(2)DETAILED WEIGHT AND MEASUREMENT LIST SHOWING IN MEASUREMENT LIST SHOWING IN DETAIL THE
29、 COLORS,SIZES AND DETAIL THE COLORS,SIZES AND QUANTITIES IN EACH CARTON AND QUANTITIES IN EACH CARTON AND ALSO NT.WT AND G.WT.ALSO NT.WT AND G.WT.BILL OF LADING Category 1:+RECEIVED FOR SHIPMENT B/L ALONGSIDE BILLS+ON BOARD B/L SHIPPED B/LCategory 2:+CLEAN B/L +UNCLEAN B/L CLAUSED B/L FOUL B/LCatego
30、ry 3:+BLANK B/L OPEN B/L BEARER B/L+STRAIGHT B/L+ORDER B/L+TO ORDER+TO ORDER OF SHIPPER APPLICANT ISSUING BANK ENDORSEMENT+BLANK ENDORSEMENT+SPECIAL ENDORSEMENTCategory 4:+LONG FORM B/L+SHORT FORM B/LOther Categories:+STALE B/L+ANTE DATED B/L+ADVANCED B/L+ON DECK B/L（1）FULL SET OF CLEAN SHIPPED ON B
31、OARD MARINE BILLS OF LADING,MADE OUT TO OUR ORDER,MARDED:“FREIGHT PREPAID”,NOTIFY:OPENER,INDICATING L/C NO.AND S/C NO.,“RECEIVED FOR SHIPMENT”B/L NOT ACCEPTABLE.(2)BILL OF LADING MUST SPECIFICALLY STATE THAT THE MERCHANDISE HAS BEEN SHIPPED OR LOADED ON BOARD A NAMED VESSEL.(BILL OF LADING MUST EVID
32、ENCE THAT MERCHANDISE HAS BEEN SHIPPED OR LOADED ON BOARD A NAMED VESSEL IN THE ON-BOARD NOTATION.)（3）FULL SET CLEAN ON BOARD OCEAN BILL OF LADING，MADE OUT TO THE ORDER AND BLANK ENDORSED，EVIDENCING SHIPMENT FROM GUANGZHOU TO LA SPEZIA PORT NOT LATER THAN APRIL 05，1998 MARKER“FEIGHT PREPAID”AND NOTIFY TO THE APPLICANT.
