The document provides information on various trade documents used in international transactions. It discusses key documents like bills of lading, air waybills, certificates of origin, and insurance policies. It explains the purpose and important details that must be included in these documents to facilitate international shipments and ensure both buyers and sellers fulfill their obligations. Maintaining proper documentation is essential for global trade.
Documents involved in International trade, INCOTERMS, Trade and Exchange Cont...Mohammed Jasir PV
Documents involved in International trade: Statutory Documents, Financial Documents, Transport Documents, Risk Bearing Documents. INCOTERMS: C.I.F., F.O.B., C.I.P. Financing of Imports by Opening of Letter of Credit: Documents required, Trade and Exchange Control Formalities, Sanction of LC Limit. -- Export Finance: Financing of Export/ Deemed Export: Pre ship, and Post Ship Finance, Export Methods --, E.C.G.C. and other formalities. Uniform Custom Practices of Documentary Credits -- Uniform Rules Collection
INTERNATIONAL TRADE DOCUMENTS used in Export and Import Procedures are Commercial Invoice, Packing List, Certificate of Origin, Irrevocable Letter of Credit, Bill of Lading and CMR Document.
Documents involved in International trade, INCOTERMS, Trade and Exchange Cont...Mohammed Jasir PV
Documents involved in International trade: Statutory Documents, Financial Documents, Transport Documents, Risk Bearing Documents. INCOTERMS: C.I.F., F.O.B., C.I.P. Financing of Imports by Opening of Letter of Credit: Documents required, Trade and Exchange Control Formalities, Sanction of LC Limit. -- Export Finance: Financing of Export/ Deemed Export: Pre ship, and Post Ship Finance, Export Methods --, E.C.G.C. and other formalities. Uniform Custom Practices of Documentary Credits -- Uniform Rules Collection
INTERNATIONAL TRADE DOCUMENTS used in Export and Import Procedures are Commercial Invoice, Packing List, Certificate of Origin, Irrevocable Letter of Credit, Bill of Lading and CMR Document.
Some of the documents required in export transaction are preliminary inquiry and offer, confirmation of order, export license, finance among others. There are two dozen commercial and regulatory documents that are involved in the pre-shipment stage of an export transaction.
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Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together.
Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among the Partner States while maintaining tariffs or barriers for the rest of the world (non-member countries).
Geographical proximity, cultural, historical, and ideological similarities, competitive or complementary economic linkages, and a common language among the Partner States are importantly required for effective economic integration.
The aim of economic integration is to lessen costs for both consumers and producers, in addition to increase trade between the countries taking part in the agreement.
A primary economic objective of integration is to raise:
a) real output and income of the participants
&
b) rate of growth
by increasing specialization and competition by facilitating desirable structural (linkages) changes.
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import where the overseas based seller is referred to as an "exporter". Thus an import is any good(e.g. a commodity) or service brought in from one country to another country in a legitimate fashion, typically for use in trade. It is a good that is brought in from another country for sale. Imported goods or services are provided to domestic consumers by foreign producers. An import in the receiving country is an export to the sending country.
Seminar by Ravindran Raghavan on freight documentation and Incoterms 2010. Note that Incoterms may be revised and updated by ICC, hence read with caution as these contents could have become outdated when you download them.
1. Airway Bill
2. Bill of Lading
3. Other documentation for cargo shipment
4. Incoterms 2010 -EXW, FOB, CIF, DAP, DDP
Understanding INCO Terms: A Comprehensive Guide to International Tradeworkshamruthi
This presentation includes information of definition of INCO Terms, Importance of INCO Terms in international trade, pros and cons of INCO Terms, explanation of the different INCO Terms (EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP) and the key differences between each term
Have you ever wondered about the meaning of commodity trading terms, or Incoterms? FOB…DES…DDP. Say What?!?
Incoterms were established by the International Chamber of Commerce (ICC), a non-governmental organization, to standardize the interpretation of major trade terms.
Sales contracts using Incoterms define the obligations and risks of both the seller and the buyer. The obligations cover the period while the merchandise is in transit, whether by land, sea, air or a combination of modes.
Each shipping order is to be stamped by the customs to allow export. Каждый заказ на доставку должен быть проштампован таможней, чтобы разрешить экспорт Cargo Officer signs a shipping order and it becomes a Mate’s Receipt. On basis of Mate’s Receipt a Bill of Lading is issued.
Incoterms are widely used in international commerical transaction or procurement process and there used is encourged by trade councils and international lawers
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Analyzing the instability of equilibrium in thr harrod domar model
Export documentations
1. International Trade
Documentations
Presented by : Vikas Gupta
Date : 12th June 2011
2. Introduction
International market involves various types of trade documents that need to
be produced while making transactions. Each trade document is differ from
other and present the various aspects of the trade like description, quality,
number, transportation medium, indemnity, inspection and so on. So, it
becomes important for the importers and exporters to make sure that their
documents support the guidelines as per international trade transactions.
A small mistake could prove costly for any of the parties. For example
A trade document about the bill of lading is a proof that goods have been
shipped on board, while
Inspection Certificate, certifies that the goods have been inspected and
meet quality standards
So, depending on these necessary documents, a seller can assure a buyer that
he has fulfilled his responsibility whilst the buyer is assured of his request being
carried out by the seller
3. What is Export Documentation
The paperwork that is required for an export sales
transaction
The means by which the shipping process is facilitated
and recorded.
Documentation is essential for moving goods through
the channels of distribution, transferring responsibility
or possession, clearing goods through customs, and
facilitating payment according to the agreed upon
terms
4. Purpose of Export Documentation
Export documentation provides evidence that
the negotiated terms between the buyer and
the seller have been complied with
This is essential if the seller wishes to get paid
Export documentation provides important
information that is used by the seller, the
freight companies, governments, and the
buyer
5. Steps in the Documentation process
Receive the order under accepted terms & consult
with a banker or a freight forwarder.
Begin organizing information for required export
documents and export license applications.
Evaluate modes of transportation, requirements for
perishable products, and cost of various alternative
modes.
Prepare goods for shipping (marking / labeling,
packing, consolidating / containerizing, insuring)
Complete and forward required export documents
6. Steps in the Documentation
process…..
Transport goods to port of export
Complete Customs documentation
Transfer goods to carrier
Ship goods and forward appropriate export
documents
Unload goods at foreign port.
Clear customs.
Transport goods from foreign port to intermediate
and/or ultimate consignee
Note: Responsibility for different steps in the documentation & shipping
process depends on the terms of sale & the method of payment and collection
7. The terms of Sale ... INCOTERMS
Understanding the Incoterms, also called the terms of sale, is the first step in
responding to a trade lead or starting to prepare a quote.
Definition: An international rule for pricing terms which represent different
levels of financial responsibility for the buyer and seller in an export transaction
The INCOTERMS establish :
the geographical location where the buyer becomes responsible for the
goods
payment of shipping, handling, insurance, inland freight, etc.
the point where ownership of the goods or the title for the goods
changes ownership
Note: The terms of sale should always be followed by a physical location so
that the buyer cannot surprise the seller and select a costly or infeasible
location
8. The Thirteen INCOTERMS
EXW : Exported when removed from Works
FCA : Free Carrier
FAS : Free Alongside Ship
FOB : Free On Board
C&F or CFR : Cost (of the Product) & Freight
CIF : Cost, Insurance and Freight
CPT : Carriage Paid To
CIP : Carriage & Insurance Paid to
DAF : Delivery At Frontier
DES : Delivered Ex-Ship
DEQ : Delivered Ex-Quay
DDU : Delivered Duty Unpaid
DDP : Delivered Duty Paid
9. EXW: Exported when removed
from Works
EXW signifies a precise location where the product is made ready to the buyer.
When offering a “EXW” quotation: the price includes only those costs involved up to
an agreed point of origin, usually the shipper’s factory. The shipper / seller places the
product at the control of the buyer at a concurred place, date, time, etc.
EXW costs can include:
Raw or processed product
Standard packaging
Pallets, banding, shrink-wrap, slip sheets, slings, one-ton-big-bags
Special labeling
Translation and printing
Inspection certificates (Phytosanitary, Health, Quality, or Export License)
Bracing or inspecting a container
Export packaging
10. FCA {Free Carrier (named place)}
FCA signifies a precise location where the product is turned over to a carrier
or person who will ensure carriage, and the goods are cleared for export.
When offering a “FCA” quotation: the price includes those costs involved
up to that agreed point, including transportation and loading if required
FCA costs can include ( in addition to the EXW costs):
Loading on board carrier
Transportation to the carrier
Insurance coverage to carrier (optional)
11. FAS : Free Alongside Ship
FAS signifies a precise ocean port location where the product is turned
over to a carrier, and the goods are cleared for export
When offering an “FAS” quotation: the shipper/seller places the
product alongside the vessel
FAS costs can include ( in addition to the FCA costs):
inland transportation (from your plant to the port)
port charges (including Terminal Handling or Receiving Charges, or
stevedore, wharf age, forklift, off-load, etc.)
12. FOB : Free On Board
When offering an “FOB” quotation: the shipper / seller places the
product over the ship’s rail. FOB only applies to sea or water
transportation
The costs associated with FOB include:
loading on board ship
heavy lift charges
These costs are correct in theory, but actually the loading and heavy lift
charges will be included in the shipping cost from the port to the final
destination which the buyer will pay
13. C&F : Cost & Freight
C&F signifies that the seller loads the product on board a carrier, clears the
goods for export, arranges and pays the ocean freight and other charges.
The risk during carriage is transferred to the buyer, and the goods change
hands when they pass the ship’s rail at the port of shipment. (the final
destination)
The charges associated with CFR include (in addition to the FOB costs):
Ocean Freight
Fuel Adjustment Factor
Currency Adjustment Factor
Destination Delivery Charges or Container Service Charges
14. CIF : Cost Insurance & Freight
CIF signifies that the seller loads the product on board a carrier,
clears the goods for export, arranges and pays the ocean freight
and other charges.
The seller insures the shipment, and the goods change hands
when they pass the ship’s rail at the port of shipment
Costs associated with CIF include (in addition to C&F);
Marine cargo insurance
15. Frequently used Documents in
International Trade
The following is a list of documents often used in international trade:
Air Waybill
Bill of Lading
Certificate of Origin
Combined Transport Document
Draft (or Bill of Exchange)
Insurance Policy (or Certificate)
Packing List / Specification
Inspection Certificate
17. Introduction
Air Waybills make sure that goods have been received for shipment by air. A
typical air waybill sample consists of three originals and nine copies.
The first original is for the carrier and is signed by a export agent;
The second original, the consignee's copy, is signed by an export agent;
The third original is signed by the carrier and is handed to the export agent
as a receipt for the goods
Air Waybills serves as:
Proof of receipt of the goods for shipment
An invoice for the freight
A certificate of insurance
A guide to airline staff for the handling, dispatch and delivery of the
consignment.
18. Principal requirement for an Air
Waybill
The proper shipper and consignee must be mention.
The airport of departure and destination must be mention.
The goods description must be consistent with that shown on other documents.
Any weight, measure or shipping marks must agree with those shown on other
documents.
It must be signed and dated by the actual carrier or by the named agent of a
named carrier.
It must mention whether freight has been paid or will be paid at the destination
point.
20. Introduction
Bill of Lading is a document given by the shipping agency for the
goods shipped for transportation form one destination to another
and is signed by the representatives of the carrying vessel
Bill of landing is issued in the set of two, three or more. The
number in the set will be indicated on each bill of lading and all
must be accounted for. This is done due to the safety reasons
which ensure that the document never comes into the hands of
an unauthorised person.
Only one original is sufficient to take possession of goods at port
of discharge so, a bank which finances a trade transaction will
need to control the complete set
21. Basic Features
The bill of lading must be signed by the shipping company or its
agent, and must show how many signed originals were issued
It will indicate whether cost of freight/ carriage has been paid or
not :
Freight Prepaid: Paid by shipper
Freight collect: To be paid by the buyer at the port of
discharge
The bill of lading also forms the contract of carriage
22. Basic Features
To be acceptable to the buyer, the B/L should :
Carry an "On Board" notation showing the actual date of
shipment, (Sometimes however, the "on board" wording is in
small print at the bottom of the B/L, in which cases there is no
need for a dated "on board" notation to be shown separately
with date and signature.)
Be "clean" have no notation by the shipping company to the
effect that goods/ packaging are damaged.
23. Main parties involve in Bill of
Lading
Shipper
The person who send the goods
Consignee
The person who take delivery of the goods
Notify Party
The person, usually the importer, to whom the shipping company or its agent
gives notice of arrival of the goods
Carrier
The person or company who has concluded a contract with the shipper for
conveyance of goods
24. Requirements of the credit as well
as compliance with UCP 500
The bill of lading must meet all such requirements:
The correct shipper, consignee and notifying party must be shown
The carrying vessel and ports of the loading and discharge must be stated
The place of receipt and place of delivery must be stated, if different from port of
loading or port of discharge
The goods description must be consistent with that shown on other documents
Any weight or measures must agree with those shown on other documents
Shipping marks and numbers and / or container number must agree with those
shown on other documents
It must state whether freight has been paid or is payable at destination
It must be dated on or before the latest date for shipment specified in the credit
It must state the actual name of the carrier or be signed as agent for a named carrier
26. Introduction
The Certificate of Origin is required by the custom
authority of the importing country for the purpose
of imposing import duty.
It is usually issued by the Chamber of Commerce and
contains information like seal of the chamber, details
of the good to be transported and so on
27. Principal requirement for a
Certificate of Origin
The certificate must provide that the information required by the credit and be
consistent with all other document, It would normally include:
The name of the company and address as exporter
The name of the importer
Package numbers, shipping marks and description of goods to agree with
that on other documents
Any weight or measurements must agree with those shown on other
documents
It should be signed and stamped by the Chamber of Commerce
29. Introduction
Combined Transport Document is also known as Multimodal Transport
Document, and is used when goods are transported using more than one mode
of transportation. In the case of multimodal transport document, the contract
of carriage is meant for a combined transport from the place of shipping to the
place of delivery. It also evidence receipt of goods but it does not evidence on
board shipment, if it complies with ICC 500, Art. 26(a).
The liability of the combined transport operator starts from the place of
shipment and ends at the place of delivery. It need to be signed with
appropriate number of originals in the full set & proper evidence which
indicates that transport charges have been paid or will be paid at destination
30. Principal requirement in a
Multimodal Transport document
Multimodal transport document would normally show :
That the consignee and notify parties are as the credit
The place goods are received, or taken in charges, and place of final
destination
Whether freight is prepaid or to be collected
The date of dispatch or taking in charge, and the "On Board" notation, if any
must be dated and signed
Total number of originals
Signature of the carrier, multimodal transport operator or their agents
32. Introduction
Commercial Invoice document is provided by the
seller to the buyer. Also known as export invoice
or import invoice, commercial invoice is finally
used by the custom authorities of the importer's
country to evaluate the good for the purpose of
taxation.
33. Principal requirement in a
Commercial Invoice
The invoice must :
Be issued by the beneficiary named in the credit (the seller)
Be addressed to the applicant of the credit (the buyer)
Be signed by the beneficiary (if required)
Include the description of the goods exactly as detailed in the credit
Be issued in the stated number of originals (which must be marked
"Original”) and copies
Include the price and unit prices if appropriate
State the price amount payable which must not exceed that stated in the
credit
include the shipping terms
35. Introduction
A Bill of Exchange is a special type of written
document under which an exporter ask importer a
certain amount of money in future and the importer
also agrees to pay the importer that amount of
money on or before the future date. This document
has special importance in wholesale trade where
large amount of money involved.
36. Persons involved in Bill of
Exchange
Following persons are involved in a bill of exchange:
Drawer: The person who writes or prepares the bill.
Drawee: The person who pays the bill.
Payee: The person to whom the payment is to be made.
Holder of the Bill: The person who is in possession of the bill
37. Types of Bill of Exchange
On the basis of the due date there are two types of bill of
exchange:
Bill of Exchange after Date: In this case the due date is counted
from the date of drawing and is also called bill after date
Bill of Exchange after Sight: In this case the due date is
counted from the date of acceptance of the bill and is also
called bill of exchange after sight
39. Introduction
Also known as Insurance Policy, it certifies that goods transported
have been insured under an open policy and is not actionable with
little details about the risk covered.
It is necessary that the date on which the insurance becomes
effective is same or earlier than the date of issuance of the
transport documents. Also, if submitted under a LC, the insured
amount must be in the same currency as the credit and usually for
the bill amount plus 10 per cent
40. Principal requirement in a
Insurance Certificate
The requirements for completion of an insurance policy are as follow :
The name of the party in the favour which the documents has been issued
The name of the vessel or flight details
The place from where insurance is to commerce typically the sellers warehouse or the port of
loading and the place where insurance cases usually the buyer's warehouse or the port of
destination
Insurance value that specified in the credit
Marks and numbers to agree with those on other documents
The description of the goods, which must be consistent with that in the credit & on the invoice
The name and address of the claims settling agent together with the place where claims are
payable
Countersigned where necessary
Date of issue to be no later than the date of transport documents unless cover is shown to be
effective prior to that date.
42. Introduction
Also known as packing specification, it contain details about the
packing materials used in the shipping of goods. It also include
details like measurement and weight of goods.
The packing List must :
Have a description of the goods ("A") consistent with the other
documents
Have details of shipping marks ("B") and numbers consistent
with other documents
44. Introduction
Certificate of Inspection is a document prepared on the request of seller
when he wants the consignment to be checked by a third party at the
port of shipment before the goods are sealed for final transportation.
In this process seller submit a valid Inspection Certificate along with the
other trade documents like invoice, packing list, shipping bill, bill of
lading etc. to the bank for negotiation
On demand, inspection can be done by various world renowned
inspection agencies on nominal charges
46. Negotiation
Negotiation means the purchase by the nominated (negotiating)
bank of drafts and shipping documents under a complying
presentation by advancing or agreeing to advance funds to the
beneficiary
An exporter presents a draft (a bill of exchange) and shipping
documents specified in the letter of credit to a nominated bank or
any bank if there is no nominated bank, which becomes a
negotiating bank, to get paid
47. Instructions for opening
Letter of Credit
Items usually included in the instructions to open an L/C
An Irrevocable letter of credit subject to Buyer’s country regulations
The name and address of the beneficiary - in favor of exporter
Whether the L/C is to be transferable or not
Terms of payment such as at sight or usance
Where negotiation or payment is to be effected
Whether the payment is to be made in U.S. dollars or other foreign
currency
What trade terms are to be used: FOB, CFR or CIF?
48. Instructions for opening
Letter of Credit
Coverage of marine insurance: All Risks, WA, FPA, War Risks, Warehouse
to warehouse or any special coverage such as a rejection clause
Whether partial shipments are allowed or not
Whether transshipments are allowed or prohibited
Presentation period / date: A period of time for presentation of
documents after shipment
Ports of loading and unloading
The latest shipping date
The expiry date
49. Documents for Negotiation
Documents to be required for negotiation
Commercial invoice
Packing list
Marine insurance policy or certificate
Ocean bill of lading
Other documents requested by the buyer and
accepted by the seller
50. Examination of Letter of Credit
When a letter of credit is received, exporter must:
Examine the conditions and documents specified in the L/C and determine
whether he can meet them or not.
If there are any conditions he cannot meet, request his buyer to amend the
L/C before he starts manufacturing export goods.
If the L/C calls for a time draft, have the L/C specify that the discount
interest for the time draft shall be for account of importer, when agreement
was a sight draft but L/C is opened with a time draft
(4) Hold off shipping the order until he receives an amendments to the L/C
as requested
51. Common Discrepancies of LC
(1) Drafts
a. Draft amount is different from invoice
b. Draft tenor is different from the L/C
c. Wrong drawee
(2) Commercial invoices
a. Different merchandise description from the L/C
b. Invoices is not issued by the beneficiary
c. Insufficient copies are presented
d. Incorrect accountee's name and address are stated
e. Different prices from the L/C
f. Terms of trade such as FOB, CFR or CIF different from the L/C
52. Common Discrepancies of
LC….
(3) Packing List
a. Different description of merchandise from the L/C
b. Different number of unit, net weight and gross weight from the L/C
(4) Marine Insurance Certificate or Policy
a. Different coverage from the L/C
b. Insufficient coverage
c. Not the same currency as the L/C
d. Different merchandise description
e. The effective date later than the shipping date
f. Broker's cover note presented instead of insurance certificate or policy
53. Common Discrepancies of
LC….
(5) Ocean Bill of Lading
a. Less than a full set of original B/L is presented
b. The B/L not properly endorsed
c. The B/L not marked with "On Board“ notation, if B/L contains the indication “intended
vessel” or "Received for shipment"
d. In the case of CFR or CIF, the term "Freight Prepaid" is not marked
e. Merchandise description is different from the L/C
f. Different ports of loading and / or unloading from the L/C
g. Notations on the B/L that the merchandise or packages are damaged
h. The B/L indicates the "On Deck" shipment
i. Stale B/L : Not presented within time limit after shipment as stipulated in the L/C
j. Late shipment: The bill of lading date marked later than the shipping date specified in
the L/C
54. Negotiation with Discrepancies
In case discrepancies are found by negotiating bank, exporter must correct the
discrepancies.
If exporter cannot correct them such as the shipping date, then exporter should
a. request the issuing bank to amend the letter of credit to cover discrepancies
or authorize to pay in lieu of discrepancies
b. At the same time, inform the buyer of the discrepancies and request his
acceptance and amendment to the Letter of Credit.
c. Release shipping documents to issuing bank after the L/C is amended. Buyer’s
acceptance of discrepancies are not enough. The Letter of Credit must be
amended.
d. Do not send the shipping documents to the issuing bank on a collection basis.
55. Presentation of Documents
Draft and all shipping documents must be presented to a negotiating bank
together with the original letter of credit.
Presentation must be made within a specified period of time after shipment in the
L/C, but not later than 21 days after shipment
A bank must determine whether or not presentation is a complying presentation
in 5 banking days In case discrepancies are found by negotiating bank, exporter
must correct the discrepancies
If a nominated (negotiating) bank, a confirming bank, if any, or the issuing bank
determines that a presentation does not comply,
it may refuse to honor or negotiate, then
it must give a single notice to presenter no later than the close of the 5th
banking days
56. Presentation of Documents…
The notice must state
The bank is refusing to honor or negotiate
Each discrepancy
The bank’s disposal of shipping documents:
The bank is holding documents pending instructions from the
presenter or
The issuing bank is holding documents until it receives a waiver from
the applicant & agrees to accept it or
The bank is returning documents or
The bank is acting according to the previous instructions from the
presenter
57. Presentation of Documents…
If a bank does not follow these negotiation and notice provisions,
The bank cannot claim that the documents do not constitute a
complying presentation.
The bank must honor or negotiate.
A document presented but not required by the Credit will be
disregarded.
If a Credit contains a condition without stipulating the document to
indicate compliance with the condition,
Banks will deem such condition not stated and will disregard it.