international trade documentation

1. 9 September 2019
Faculty of Management Sciences
Unit 3, Part 1: International Trade Documentations
Lecturers: Mrs. Ester Jesaya & Mr Jacinto Silva
Ekalipi@nust.na; jsilva@nust.na
Contact numbers: 0612072597 (Mrs. Jesaya); 0612072042 (Mr. Silva)

2. Contents
1. Objectives of the unit
2. Commercial Documents
3. Transport documents
4. Regulatory Documents
5. Export Assistance
6. References
Faculty of Management Sciences

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By the end of this unit, students should be able to:
 List and explain the required documentations in cross border trade;
 Discuss the documents relevant to different transactions taking into
consideration the types of products being exported or imported into
Namibia;
 Evaluate the importation procedures of certain products in Namibia.
Objectives of the Unit

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Classification of Export/Import documents into the main categories
International trade transactions demand various documents of which each must be filled out in a particular way,
depends on the country of destination for the goods, the types of the goods to be exported or imported, the mode of
transportation, the method of payment chosen by the exporter and importer, and the bank involved (David, 2013).
Proper documentation will smoothen up the process of export/import, while incomplete documentation will result in
severe financial and goodwill losses and avoidable delays. Therefore, such losses can be prevented by understanding
the documentation requirements of all involved parties and thoroughly planning to get the right documents, at the
right time and the right place.
The following categories exist for the Export, and Import document:
a) Commercial Documents
b) Transport documents
c) Regulatory Documents
d) Export Assistance Documents
Export/Import documentation

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Who, What is involved, and Why
Each party here
requires some
documentation
for verification
and issue
documents
relevant to their
operation.
HOMEWORK
Which
document does
each of these
parties requires
or issue?

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Commercial documents are important in transferring ownership from exporter to importer, they show proof of purchase,
insurance and are required for shipment release.
a) Bill of exchange- abbreviated B/E is a written pledge of payment, where an exporter requires the importer to pay a
certain amount to a named person or bearer.
b) Commercial Invoice- this a primary document that summarises the description of the shipment and contains other
important information such as the details of the buyer, Freight Company, seller, foreign customs, bank details and
import/export brokers. It indicates the payments terms and currency in which payment is to be made. It also specifies
shipment and the terms under which they are shipped. At times, traders use a pro-forma invoice that allows for
payment to be processed before goods are released.
c) Insurance Certificate and policy- certifies that shipment is insured with full details of the insurance coverage. Proof
that shipment is insured while in transit.
d) Letter of Credit- a written commitment by importers bank that a payment has been made in full. The documents
stipulate the conditions that should be met for payment to be processed. The aim of a letter of credit is to
give security to the exporter that he will be paid and to the importer that he will receive the goods accordance to
the agreed terms.
Commercial documentation

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9. a) Bill of Lading- abbreviated B/L or BoL is a legal document issued by the carrier or their agent as a contract of carriage that
serves as a shipment receipt. It contains other pertinent details such as the name of the vessel carrying the goods, port of
departure and port of destination and the exporter’s details.
Types of bill of lading
 Non-negotiable bill of lading: indicates that the consignor will deliver a consignment to the consignee named plae only. It
is used when the buyer has paid in advance or when the goods are shipped on open account.
 Negotiable bill of lading: a title document to the goods. It is used to the order of a party, usually the consignor, whose
endorsement is required to effect its negotiation.
 Air waybill: is a BOL used for air transport. It is not negotiable.
 Ocean bill of lading (marine or port-to-port BOL): document covering port-to-port consignments carried solely by sea
transport.
 It must contain a notation that the goods were loaded on board or on deck.
 On-board notation: the goods were loaded on board or carried onto a ship.
 On-deck notation: the goods were secured on the deck of a ship, rather than in its hold, and are therefore, subject to
the elements.
 Clean bill of lading: the carrier notes that the merchandise has been received in apparent secure and good condition.
 Claused bill of lading (unclean bill of lading): opposite of clean bill of lading. It serves to confirm that a consignment was
not delivered securely. It contains a notations that specify a shortfall in quantity or deficient condition of the goods or
packaging.
Transportation Documents

10. b) Load Manifest – a document internal to the shipping (carrier) that lists
cargo on board the transportation vehicle.
c) Packing List – contains the list of items as well as the dimension and
quantities shipped
d)Shipper’s letter of Instructions: documents that spells out the requirements
for handling in-transit goods.
 It is important when cargo is susceptible to damage or requires special
attention (such as live animals and plants, temperature sensitive goods)
 The consignor issues the document, which then gives specific and detailed
instructions to the service provider or providers to perform functions such
as:
 Arranging transport; Booking ships; Delivering goods to a customs broker in
the receiving country; Crating the goods; Adding marks to the crates
 SLI must be clear and precise.
Transportation Documents (cont’d..

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Transportation Documents Samples

12. These are documents required by law, whose aim is to provide proof of compliance to set
requirements
A. Certificate of Origin- issued by the export country’s chambers of commerce, this document
certify that shipment was indeed manufactured/produced in the said country. Comes in handy
when importing country has strict policies placed to bar export from specific countries.
B. Import License- applicable to goods that are restricted into a country, the import license
issued by the importing country proves that importer is allowed to import the goods. E.g. car
importation is restricted in Namibia, therefore importers that wish to import need an import
license.
C. Shipping bill for export- varies from country to country, a customs documents where
drawback is claimed, e.g. on goods exported, dutiable goods transhipped or re-exported from
bonded warehouse, prepared based on the export goods category. Used for statistical record
D. Certificate of inspection- applicable to horticultural products including food, to show that the
shipment left the exporters hand in the right condition and quantity
E. Certificate of manufacture: the document that state the location of production, and it must be
signed by the Chamber of Commerce in the exporting manufacturer’s country.
Regulatory Documentation

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e) Certificate of Health Document prepared by an authorized inspection authority of the
exporting country for agricultural or food products being exported, to certify that they comply
with the relevant legislation in the exporter's country and were in good condition at time of
inspection, prior to shipment and fit for human consumption
f) Phytol-Sanitary Certificate – a certificate provided by the agricultural authorities of the
exporting country, attest that the agricultural products exported are free of disease and pests.
g) Electronic Export Information- this document is relevant when shipment exceed a certain
value to confirm that the information given is true and accurate. It is used to be called SED.
h) Certificates of analysis: attests to the composition and purity level of products as stated in
the commercial invoice.
I) Certificate of certification: provided by the independent inspector that confirms goods
conform to the manufacturing standards of the importing country.
Regulatory Documentation
(cont’d..)

14. j) Export License: the government document that authorizes the export of these specific
goods in specific quantities to a particular destination.
k) A certificate of End Use: document intended to assure authorities in the exporting country
that the product will be used for legitimate purposes (e.g. enriched uranium will be used to
operate nuclear power plant rather than weapons).
 The end use certificate are provided by the importing country’s government.
Export Assistance Documents
Involve those documents that are required for getting government assistance, such as
subsidies. It includes documents, such as export-import contract and certificate of quality
control.
Regulatory Documentation & export assistance documents
Research on the template of each document mentioned to familiarize yourself.

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A number of documents are required by the countries in which the commodities are imported. However, there are
different reasons why those documents are needed.
• To make sure that no goods of poor-quality are imported.
• To help determine the appropriate tariff classification,
• To determine the correct value of the imported goods,
• To protect importers from fraudulent exporters
• To limit the imports of goods that the government finds inappropriate for whatever reason.
The documents that fall under import
 Certificate of Origin
 Commercial invoice
 Certificate of Manufacture
 Certificate of Inspection & Certification
 Phyto-Sanitary Certificate
 Import License
 Certificate of Insurance.
 Certificate of health
 Certificate of analysis
Documents Required by Importing Countries
So what are the documents that falls
under export?

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Class Activity
GSK Stones incorporation, a Namibian company is in the
business of exporting Marble stones to Europe.
A) Analyse the appropriate mode of transportation for GSK
Stones incorporation to ensure that the stones get to USA
B) What are the required documentations?

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Coyle, J. J., Novack, R. A., Gibson, B. J., & Bardi, E. J. (2013). Management of
Transportation. United States: Cengage Learning Academic Resource Centre.
David, P. (2013). International Logistics: The Management of International Trade
Operations. Berea: Cicero Books LLc.
Jean-Paul Rodrigue, C. C. (2006). The Geography of Transport Systems. London:
Routledge.
Pienaar, W. J., & Vogt, J. J. (2009). Business logistics management: a supply chain
perspective (3rd Ed.). Cape Town: Oxford University Press.
ICC. (2011, December 5). The Incoterms® rules are an internationally recognised
standard and are used worldwide in international and domestic contracts for the sale of
goods. Retrieved from International Chamber of Commerce: https://iccwbo.org/resources-
for-business/incoterms-rules/
References

18. Part 2 of Unit 3 is focusing on
Terms of trade – Incoterms and
Terms of Payment
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Faculty of Management Sciences