International Commercial

Documents
International shipment requires many
different types of documents.
Depends on the country of destination, the type of goods,
the method of transportation, the method of payment and
so on.
Must also contain very detailed information and specific
statements, and must be often be filed in a
certain time frame with a specific
administration.
It is common to have to issue more than
one original for some of these documents,
as well as a multitude of copies.
Commercial Invoice
Refers to a specific shipment
Tells exactly what the importer is billed for. It must include:
A precise product description
An accurate Harmonized System number
The terms of trade (INCOTERMS)
A detailed list of the items that the exporter has pre-paid
The terms or payment
The currency of payment
The complete shipping information (itinerary, shipping carrier,
etc.)
The customary information (names, addresses, etc.)
Pro-forma Invoice
Not an invoice, but a quote
Must be carefully written: if it is used to obtain a Letter of
Credit, it should match the actual invoice exactly to avoid
discrepancies.
Consular Invoice
Necessary for exports to decreasing number of
Latin American countries.
Commercial invoice printed on stationery of importing
countrys Consulate, and stamped by Consulate.
Considered a trade barrier.
Export License
Export license is the express authorization by a countrys
government to export a specific product before it is
shipped.
Reasons for a country requiring an export license:
Government is trying to exert some control over foreign
trade for political or military reasons.
Government is attempting to control the export of natural
resources.
Government is attempting to control the
export of national treasures or antiques.
Importing countries require certain documents
in order to:
Ensure that no shoddy quality goods are imported.
Help determine the appropriate tariff classification.
Help determine the correct value of imported goods.
Help determine the correct country of origin for
tariff purposes.
Protect importers from fraudulent exporters.
Limit (or eliminate) imports of products that the
government finds inappropriate for whatever reason.
Certificate of Origin
A document provided by the exporters Chamber of
Commerce that attests that the goods originated from the
country in which the exporter is located.
Used by importing country to determine tariff of goods.
Certificate of manufacture
A document provided by the exporters Chamber of
Commerce that attests that the goods were manufactured
in the country in which the exporter is located.
Certificate of Inspection
A document provided by an independent inspection
company that attests that the goods conform to the
description contained in the invoice provided by the
exporter.
Also attests that the value of the goods is reflected
accurately on the invoice.
Obtained by the exporter in the exporting country, before
the international voyage takes place.
The Certificate of Inspection is the result of a
Pre-Shipment Inspection (PSI).
Pre-Shipment Inspection
The inspection makes sure that the goods are conform
to regulation.
To ensure that the invoice reflects accurately the type of
goods shipped by the exporter and their value.
Certificate of Certification
Also known as Certificate of Conformity.
Provided by an independent inspection company that
attests that the goods conform to the manufacturing
standards of the importing country.
Phyto-Sanitary Certificate
A document provided by an independent inspection
company, or by the Agricultural Department of the
exporting countrys government.
Attests that the goods conform to the agricultural
standards of the importing country.

Certificate of Free Sale
Attests that the goods sold by the exporter can legally be sold in
the country of export.
Designed to prevent the export of products that would be
considered defective.
Import License
A document issued by the importing country, and designed to
prevent import of non-essential or overly luxurious products in
developing countries short of foreign currency supply.
Certificate of Insurance
Some Incoterms (CIF, CIP) require that the exporter provide
insurance. A certificate of insurance offers proof of coverage.
Bill of Lading
A generic term used to describe a document issued by the
carrier to the shipper. A bill of lading is:
a contract between the carrier and the shipper
the carrier agrees to transport the goods from point of
origin to point of destination for a given amount.
a receipt for the goods
the carrier certifies that the goods were received in good
condition at the point of origin
a Certificate of Title
the carrier will only deliver the goods to the
party that has the original bill of lading
Different types of Bill of Lading
Ocean Bill of Lading
A bill of lading used in international transportation of goods
on ocean-going vessels.
Air Waybill
A bill of lading used in the transportation of
goods by air, domestically or internationally.
Uniform Bill of Lading
A bill of lading used for inland transportation.
Intermodal Bill of Lading
A bill of lading used for intermodal or multi-modal shipments,
i.e. shipments use take more than 1 mode of transportation
Bill of Lading as a Receipt for the goods
Clean Bill of Lading: Certifies that the goods were received
by the carrier in good condition.
No annotation are made on the BOL, other than a signature
for receipt of the goods.
Soiled (or Fouled) Bill of Lading: BOL that reflects the fact that
the carrier received the goods in anything other than good
condition.
It is characterized by the presence of additional
comments or notes in addition to the signature of
the carriers representative.
Bill of Lading as a Certificate of Title
Straight Bill of Lading
A BOL on which the name of the consignee has been
entered.
Non-negotiable - the ownership of the goods cannot
change while the goods are in transit.
Consignee is the owner of the goods upon arrival or the
party to whom the goods should be surrendered at their
destination.
The consignee will have the original bill of lading at the
point of arrival of the goods.
Bill of Lading as a Certificate of Title
Negotiable or To Order Bill of Lading: BOL on which the
name of the consignee has been left blank, or where the words
to order have been entered where the consignees name is
expected.
Allows the owner of the goods to sell them while they are in
international transit.
The transfer of ownership to the new owner is done with the
BOL, since it is a Certificate of Title to the goods.
Whoever has the original BOL when the cargo arrives in the port
is the owner of the goods.
Only Ocean BOL can be negotiable (air waybills, uniform bills of
lading and multimodal bills of lading are all straight).
Charter parties
A type of contract of carriage between a ocean carrier and a
shipper.
The shipper uses all or most of the carrying capacity of the
ship to transport commodities such as oil, ore, grain or
polymer pellets.
Also use when air transport is leased.
Other Shipping Documents
Packing List: It documents what each shipment contains: how
the goods are packaged, marked, what merchandise is in each
container, and their respective weight and dimensions.
Shipper's Letter of Instruction: Delivered to shipping company
if shipper wants specific directions followed during transport. It
can be critical in livestock shipments.
Manifest: Shipping document that is internal to the carrier, but
is often examined by government entities. A list of the entire
cargo that a vessel, aircraft or container transports, as well as
the ownership, port of origin, port of destination, specific
handling instructions of that cargo.
Dangerous Goods
The shipment of dangerous goods is regulated by a number
of organizations and rules:
International Maritime Organization's International
Maritime Dangerous Goods Code.
International Air Transport Association's Dangerous Goods
Regulations.
Local shipment codes, such as the United
States' Code of Federal Regulations, Title 49
(abbreviated 49CFR).
The pro forma invoice is a perfect preview of the actual
invoice.
The commercial invoice is clear, detailed and precise.
All required certificates are provided right away.
The correct number of originals and copies of a multitude
of documents are prepared and delivered to the importer.
The packing list is prepared carefully and precisely.
The export paperwork is prepared and filed correctly and in
a timely manner.