Export trading is the most important and profitable business. It also has great impact in a country’s economy.
It need some certain documents which we describe here. The following documents used in export trade:
Documents used in export trade
- Foreign indent: It is a document, which is sent by the exporter to the importer of goods. It contains particulars of the goods sent to importer. It also contains other relevant information about the goods sent (like quantity, quality, price per unit, packet of the goods, methods of payments, etc.).
- Shipping order: It is an order issued by the shipping company to the captain of the ship, directing him to load the goods mentioned in the order.
- Mate’s receipt: It is a document issued by the Mate (captain) of the ship acknowledging the receipts of the goods that exporter loads directly on the ship. When the goods are loaded in good condition, the captain of the ship issues a clean Mate’s receipt. The foul Mate’s receipt is issued when defective goods are loaded in the ship.
- Bill of lading: It is an official receipt of the shipping company acknowledging receipt of goods on board of the ship. It contains the terms and conditions on which the goods are to be taken to the port of destination. Without this document, importer cannot take delivery of the goods imported.
- Insurance policy: It is a mode of contract between two parties whereby the insurer undertakes to identify the insured against a loss arising from the happenings of an uncertain event. The purpose of an insurance policy is to insure the goods of the exporters. The insurance policy is sent to the importer along with other relevant documents (like indent, bill of lading, etc.).
- Certificate of origin: It is a document in which the exporter, with a view to declare the place of origin of goods, enables the importer to enjoy preferential tariff. This document is sent to importer, so that he enjoys the advantage of lower customs duty in his own country.
Related Content of Import-Export:
- What is the Definition of Import?
- General Procedure of Import Trade
- Documents used in Import Trade
- What is the Definition of Export?
- Stages of Export Involvement
- Procedures for Export Trade
- Standard Terms of Sale