Documents play a key role in international transactions. Both buyers and sellers need documents for bookkeeping, accounting, taxation, export and import formalities, as well as making payment using letters of credit and other documentary payment methods.
This section gives examples of the most common documents used in international trade. It is not an exhaustive listing. Specialized trades, special circumstances and different countries of origin and destination may require additional documentation. For more information contact your local logistics company representative or refer to A Short Course in International Trade Documentation, also by World Trade Press..
Following a general discussion of a) document categories, b) transport documents and c) documents and international payments; sample documents will be presented and defined, key elements listed, and cautions offered concerning important issues and common problems. Emphasis will be given to issues regarding letters of credit.
Document CategoriesDocuments for international trade fall into several overlapping categories.
The key transaction document is the invoice or commercial invoice. This document is used by all parties to the transaction for accounting and bookkeeping purposes. It is also required for export and import formalities as well as most banking and payment procedures.
These are documents required by the customs or national export authority of the country of export and vary greatly from country to country. Included are licenses, permits, export declarations, inspection certificates, commercial invoice and sometimes transport documents.
These are documents issued by a shipping line, air cargo carrier, trucking company or freight forwarder that detail the terms of transport for cargo. The key transport document is the bill of lading.
These documents are generally issued by third party inspection firms at the request of the buyer to certify the quality and quantities of a shipment. Inspection documents are also issued to satisfy country export and import requirements.
These documents evidence insurance cover-age of a shipment and can be in the form of a policy or a certificate.
Banking and payment documents include letters of credit, amendments to letters of credit, various advices, plus virtually all the other documents used in trade (bills of lading, commercial invoice, insurance document, inspection certificates, etc. ).
These are documents required by the customs authority of the country of import and vary greatly from country to country. The minimum documentation requirement is an entry form and a commercial invoice. However, many other forms may be required, especially if the imported merchandise is sensitive (e.g., animals, weapons, drugs, food), if the importer is requesting special tariff treatment under an import program (e.g., GSP, NAFTA) or if the import comes from certain countries.