International Trade Documents

Study Notes

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

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

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

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

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