Export trading is the most important and profitable business. It also has a great impact on a country’s economy. It needs some certain documents which we describe here. The following documents used in export trade:
Documents used in export trade
1. 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 the importer. It also contains other relevant information about the goods sent (like quantity, quality, the price per unit, a packet of the goods, methods of payments, etc.).
2. Shipping orders
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.
3. Mate’s receipt
It is a document issued by the Mate (captain) of the ship acknowledging the receipts of the goods that the 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 on the ship.
4. Bill of lading
It is an official receipt of the shipping company acknowledging receipt of goods on board the ship. It contains the terms and conditions on which the goods are to be taken to the port of destination. Without a bill of landing, the importer cannot take delivery of the goods imported.
5. Insurance policy
It is a model of a 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 ensure the goods of the exporters. The insurance policy is sent to the importer along with other relevant documents (like indent, bill of lading, etc.).
6. Certificate of Origin (CO)
It is a document in which the exporter, with a view to declaring the place of origin of goods, enables the importer to enjoy preferential tariffs. This Certificate of Origin (CO) document is sent to the importer so that he enjoys the advantage of lower customs duty in his own country.
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