International Trade Documents

Documentation Requirements

• International transactions require numerous documents, each with different requirements
• Documents must be filled correctly and within a specific time frame
• Most countries require documents to be printed on paper, not submitted electronically
• Multiple original documents may be issued for different parties

Invoices

• Commercial invoices for international transactions are more detailed than domestic ones
• Invoices must include:
  • Detailed description of goods with HS number for customs classification
  • Incoterm rule of the transaction
  • Costs of domestic transportation, loading, insurance, etc.
  • Weight and dimensions of goods
  • Itinerary of shipment
  • Terms of payment
• Types of invoices:
  • Pro forma invoice: a quote provided by the exporter to the importer for obtaining a letter of credit
  • Consular invoice: a commercial invoice printed on stationery provided by the consulate of the importing country
  • Specialized invoice: may be required by some countries on special forms

Export Taxes and Quotas

• Some countries impose export taxes on certain commodities
• Export quotas: a limit set by the exporting country's government on the quantity of a specific commodity that can be exported in a given year
• Governments control exports when the commodity is scarce or when they are one of the few producers of a particular product

Import Documents

• Certificate of Origin: attests that the goods originated from the country in which the exporter is located
• Certificate of Manufacture: attests that the goods were manufactured in the country in which the exporter is located
• Certificate of Inspection: attests that the goods conform to the description contained in the invoice
• Certificate of Analysis: attests that the goods conform to the chemical description and purity levels contained in the invoice
• Phyto-Sanitary Certificate: attests that agricultural goods are free of pests and disease and conform to the standards of the importing country
• Certificate of Certification: attests that the goods conform to the agricultural standards of the importing country
• Certificate of Free Sale: attests that the product exported conforms to all regulations in place in the exporting country and can be sold freely
• Import License: express authorization granted by the government of the importing country to import a particular product
• Import Forms: administrative forms submitted by the importer to clear customs

Transportation Documents

• Bill of Lading: a document that fulfills three functions in international transport:
  • Contract between the carrier and the shipper
  • Receipt for the goods
  • Certificate of title
• Types of Bills of Lading:
  • Ocean Bill of Lading: for transportation by ocean
  • Air Waybill: for transportation by air
  • Intermodal Bill of Lading: for transportation on more than one mode of transportation under a single contract
  • Uniform Bill of Lading: for transportation by road or rail
• Charter Party: a contract of carriage between a carrier and a shipper, in which the shipper uses all or most of the carrying capacity of the ship
• Aircraft Leases:
  • Wet Lease: owner of the aircraft provides airplane, insurance, maintenance services, fuel, and a flight crew to the lessor
  • ACMI Lease: owner of the aircraft provides airplane, crew, maintenance, and insurance to the lessor
  • Dry Lease: owner provides only the aircraft and no other services

Learn about the different documents required for international transactions, including invoices, export and import documents, and transportation documents. Understand the importance of correct documentation and timing.