1. SHFU-IF-IS-LIANGW Topic 8. Commercial documents  ：  Documents made by seller ／ beneficiary ： commercial invoice, packing list, weight memo, measurement list, etc   Documents issued by carrier or insurance company ： transportation document, parcel post receipt, insurance document, etc

2. SHFU-IF-IS-LIANGW   Documents issued by administration authority or functional institution ： certificate of origin, export ／ import license, certificate of origin, export ／ import license, inspection certificate, certificate of value, etc inspection certificate, certificate of value, etc   Other special documents or required evidences ： customs invoice, consular invoice, carbon copy, customs invoice, consular invoice, carbon copy, certificate of shipment, beneficiary’s declaration, certificate of shipment, beneficiary’s declaration, receipt of registered mail, etc receipt of registered mail, etc

3. SHFU-IF-IS-LIANGW are ： Basic documents are ：   Commercial Invoice 商业发票   Transportation documents 货运单据   Insurance documents 保险单据 Accessory documents refer to   Other documents except for the above three ones

4. SHFU-IF-IS-LIANGW 8.1. Commercial Invoice A commercial invoice, issued by the exporter, is both an evidence of dispatchment of goods and an import demonstration showing details breakdown of the goods as well as the monetary amount due.

5. SHFU-IF-IS-LIANGW Functions of invoice ： evidence of seller’s performance of his side of the transaction contract, certificate of claiming ／ effecting payment for goods and book-keeping, certificate of declaration and calculation base of custom duty ／ tariff, substitute for draft, evidence for insurance claim when the goods has been damaged.

6. SHFU-IF-IS-LIANGW Categories of invoice ： 1 ． commercial invoice 2 ． custom invoice （ combined certificate of value and origin ） 海关发票 ( 价值产地联合证明 ) 3 ． consular invoice 领事发票 4 ． manufacturer’s invoice 制造商发票 5 ． proforma invoice ＊ 形式发票 (informal invoice) 6 ． certified / swear invoice 证实 / 宣誓发票

7. SHFU-IF-IS-LIANGW Content of invoice ： （ see specimen ） 1 ． heading 2 ． body 3 ． Complementary Clause

8. SHFU-IF-IS-LIANGW Commercial Invoices under a L/C   (1)Name and address of export company should be the same as the beneficiary stated in the credits. Invoices of a transferable credit can be issued by the second beneficiary.   (2)Drawee of invoice should be the applicant, with the name & address conforming to the credit.   (3)A “Pro-forma” or “Provisional” invoice is not acceptable.

9. SHFU-IF-IS-LIANGW   (4)Description of the goods should be identical to that in the credit. Note, General terms of goods can be used in other documents but with no contradiction to the credit. Eg. “1000 pcs of men’s T-shirt” in invoice, “Men’s garment” in B/L and insurance policy. ---------------------------------------------------------- “200 boxes of canned luncheon meat” in inv. “Food” in other documents.

10.   (5)Details of the goods, prices and terms as mentioned in the credit should be included in the invoice. Details may include the class, specification, package of the goods, etc. And the name of a port or place must be followed the price term.   (6)Any other information indicated in the invoice, such as shipping marks, quantities, transportation information should be exactly the same as they are in the credit.

11. SHFU-IF-IS-LIANGW   (7)Value of the invoice should not exceed the available balance of the credit, unless otherwise stipulated in the credit or there is a tolerance clause. Eg. Credit amount is “about USD35,000”, 31500≤inv ≤ 38500 “EUR42,000 or so”, 37800 ≤inv ≤ 46200 “JPY1,760,000. 5% more or less” 1672000 ≤inv ≤1848000

12.   (8)The invoice should cover the complete shipment as required by the credit, if no partial shipment is allowed.   (9)If signature of invoice is required by the credit, the invoice should be signed. usually, it is an authorized signature on behalf of the beneficiary.

13. SHFU-IF-IS-LIANGW Different modes for goods transportation

14. SHFU-IF-IS-LIANGW Considering marine transportation, something to say:   About partial shipment Partial shipment means a large amount of export goods are involved in one transaction and are shipped in several lots by several carriers onto different means of conveyance.

15. SHFU-IF-IS-LIANGW Note ， transport documents indicating that shipment has been made by the same means of conveyance and for the same journey with the same destination will not be regarded as covering partial shipment, even if the transport documents indicate different dates of shipment and/or different ports of loading, places of taking in charge, or discharge.

16.   Eg. The same carrier, s.s. “ Red Star”, 07/20 load at Shanghai, destination is N.Y. 09/18 load at Dalian, destination is N.Y.

17. SHFU-IF-IS-LIANGW   About transshipment Transshipment means unloading and reloading from one vessel to another vessel in the course of ocean carriage from the port of loading to the port of discharge stipulated in the credit.

18. SHFU-IF-IS-LIANGW 8.2. Ocean ／ Marine Bill of Lading (B/L) 海运提单 An ocean bill of lading is issued by the carrier or his agent to the shipper. It acts as an evidence of receipt for shipment of goods or goods loaded on board, with detailed information about shipper and consignee, the port of loading and discharge ／ destination, contractual rights and liabilities of the parties involved.

19. ： Functions of negotiable bill of lading ： 1 ． receipt of goods 2 ． evidence of contract for transportation 3 ． document of title 物权凭证 4 ． evidence for claim and compensation from the carrier for damage or loss of the goods due to carrier’s responsibility during the shipment

20. SHFU-IF-IS-LIANGW Information on B/L ： on the face see specimen see specimen on the back

21. SHFU-IF-IS-LIANGW Categories of bill of lading ：   shipped on board B/L 已装船提单 vs.   received for shipment B/L ＊ 备运提单 ？ How to change a received for shipment B ／ L into a shipped on board B ／ L

22. SHFU-IF-IS-LIANGW   direct B/L 直达提单 —— “port to port” ocean conveyance   transshipment B/L 转运提单 —— “port to port” ocean conveyance with goods being transshipped during the voyage   through B/L 联运提单 —— combined transportation starts with ocean conveyance followed with another inland or inner river or air transportation

23. SHFU-IF-IS-LIANGW   named consignee B/L, straight B/L ＊ 记名提单，直交提单 ！ Only the named consignee can take delivery of the goods ！ Non-negotiable document vs.   order B/L 指示式提单 ！ Goods will be consigned to order of someone (B/L is made out to order) ！ Negotiable document ！ Holder of endorsed B/L can take delivery of the goods from carrier

24. SHFU-IF-IS-LIANGW   Note ： An order bill of lading is a negotiable document. Any transferee for value who takes possession of an endorsed bill of lading obtains a valid title to it, provided that the transferor had a valid title in the first place. So the title of the goods can be transferred in the form of endorsing a B/L. 不记名提单经持有人背书可转让物权

25. SHFU-IF-IS-LIANGW However, the transferee has no recourse to the prior endorser. And in any case the holder of the endorsed B/L is subject to the obligation of outstanding freight charges between the shipper and the carrier before he takes delivery of goods. ！提单背书人不负连带责任，不受后手追索 ！提单的正当持有人权利不优于前手，须受托运 人与承运人之间债务（通常指未付清的运费） 的约束

26. SHFU-IF-IS-LIANGW   clean B/L 清洁提单 goods shipped on board in apparent good order and condition vs.   unclean ／ dirty B/L ＊ 肮脏提单 there is postil or remark on goods short shipped, or goods shipped on board not in apparent good order and condition. for example, “100 bales cotton, 2 bales torn ”, “50 crates ball bearings, 1 crate splintered”, “200 boxes glasses, 2 boxes broken”, etc.

27. SHFU-IF-IS-LIANGW   liner B/L 班轮提单 the carrying vessel is run by the common carrier based on known tariff ／ freight charges and strictly follows a regular schedule which has fixed sailing route, specified time, stipulated port ／ dock for calling at during the whole conveyance ／ voyage. vs.   charter party B/L ＊ 租船提单 charter party is the contract signed between the ship- owner and the charterer ／ hirer (a merchant, either the applicant or the beneficiary under a L/C), by which a ship is let or hired for the conveyance of goods on a specified voyage, or for a defined period. 1 ） voyage charter 2 ） time charter

28. SHFU-IF-IS-LIANGW   normal B/L, fresh B/L 正常提单 duly issued by the carrier and is remitted to the buyer before the goods arrive at the destination.   stale B/L ※ 过期 ( 迟期 ) 提单 refers to the following situations that — the B/L is issued on a date which is later than the specified shipment period, or the B/L is late presented, or the B/L reaches the buyer later than the goods arrive at the destination.   anti-dated B/L ＊ 倒签提单 B/L the shipment is late and the carrier anti-dates the B/L at the shipper’s request and at the risk of being accused.

29. SHFU-IF-IS-LIANGW   long form B/L 全式提单 with all the necessary shipping information on its face and the printed full terms and conditions of the shipment contract on its back. vs.   short form B/L 简式提单 only with all the necessary shipping information on its face but without the printed full terms and conditions of the shipment contract on its back. often seen in U.S. has same legal effectiveness as long form B/L.

30. SHFU-IF-IS-LIANGW   on board B/L 舱内货提单 vs.   on deck B/L ＊ 舱面货提单

31. SHFU-IF-IS-LIANGW   container B/L 集装箱提单 unitization transport ( 货物成组化运输 ) ： container ／ pallet ( 集装箱 / 托盘 ) FCL--- full container load ( 整箱货 ) LCL--- less container load ( 拼箱货 ) CY ---- container yard ( 集装箱堆场 ) CFS--- container freight station ( 集装箱货栈 )

32. SHFU-IF-IS-LIANGW Note ！！！ According to UCP600, B/Ls attached with “ ＊ ” are regarded to be unqualified documents and are generally unacceptable under a L/C unless otherwise specified in the terms and conditions of the L/C.

33. SHFU-IF-IS-LIANGW 8.3. Other Transport Documents Note ！！！ The following transport documents are not regarded as document of title unless specially remarked.

34. SHFU-IF-IS-LIANGW   combined transportation document (CTD) ／ multi-modal transport document (MTD) 联合运单／多式运单 transportation operator carries out the conveyance which consists of two or more than two modes to transport the goods from the place of taking in charge to the place of delivery. Eg ， land bridge service ( 陆桥运输，海 — 陆 — 海联运 ) ， overland common points ( 陆上铁路可到地点运输， 海 — 陆联运 ) ！ Usually the goods is received for conveyance ！ If it is negotiable, it can be a document of title

35. SHFU-IF-IS-LIANGW   forwarder B/L ※ 运输行提单 B/L issued by forwarder as agent of carrier or multi- transportation operator is acceptable under a L/C.   railway bill (RWB) 铁路运单   airway bill (AWB) 航空运单   post parcel receipt (PPR) 邮包收据   courier ／ expedite delivery service receipt ！！！ Anyone of the above four documents usually is made out to a named consignee.

36. SHFU-IF-IS-LIANGW 8.4. Insurance Document Goods being shipped may lost, or suffer from damages at different degree (even hundred-percent destruction) due to all kinds of perils of the sea including natural disasters or unexpected accidents.

37. SHFU-IF-IS-LIANGW   Marine natural disasters usually refer to storm, thunderbolt, seaquake, earthquake, cyclone, typhoon, tide, maelstrom, gulf, etc.   Accidents during shipping period usually refer to fire, explosion, stranding ／ running aground, striking a rock ／ reef, collision, etc.

38. SHFU-IF-IS-LIANGW

40. Generally, an underwriter or insurance company or his agent will be responsible to compensate the loss for the owner at the cost of agreed premium for specified value of the goods covered by stipulated marine risks.

41. SHFU-IF-IS-LIANGW 8.4.1 Introduction of loss ／ average of goods during marine transportation 1 ． total loss ( 全损 ) 保险标的在运输过程中全部灭失或等同于全部灭失 1 ） actual total loss ( 实际全损 ) all the goods are lost or become worthless 2 ） constructive total loss ( 推定全损 ) 3 ） partial total loss ( 部分全损 )

42. SHFU-IF-IS-LIANGW 2 ． partial loss ( 部分损失 ) 货物的损失不到全损的程度 1 ） general average ( 共同海损 ) A deliberate sacrifice of cargo is made to save a ship from danger and ensure the safety of other cargoes 2 ） particular average ( 单独海损 )

43. SHFU-IF-IS-LIANGW Total losses Partial losses Total losses Partial losses 1. all the goods 1. some of the goods 1. all the goods 1. some of the goods are lost are lost are lost are lost (or) (or) (or) (or) 2. all the goods 2. goods are damaged, 2. all the goods 2. goods are damaged, become worthless/ but still have value become worthless/ but still have value entirely damaged entirely damaged

44. SHFU-IF-IS-LIANGW Names for types of losses: Partial Total voluntary sacrifice general average * to save the ship loss accidental particular average * total loss loss * In the language of marine insurance, an “average” is a loss where the owner’s insurance company is liable for only part of the value of the goods.

45. SHFU-IF-IS-LIANGW Sacrifice of goods to share by all Save ship from danger parties involved Other losses born by the owner Other losses born by the owner alone alone

46. SHFU-IF-IS-LIANGW   Marine insurance always cover the losses due to a deliberate sacrifice to save the ship from danger.   It is only fair that the loss due to sacrifice of goods to save ship from danger be shared by all parties involved ， i.e. the owners of the ship and of the other cargoes.   The insurance company alone is liable for the particular average suffered by the owner.

47. SHFU-IF-IS-LIANGW 3. Marine Transportation Risks 1) Basic Risks （基本险别，可单独投保的） -- FPA (free from particular average ，平安险 ) -- WPA ／ WA ( with particular average ，水渍险 ) ！ FPA ＋？？ franchise （相对免赔率 ） excess deductible （绝对免赔率） IOP （ Irrespective of Percentage ）不计免赔 -- AR （ All Risks ，一切险） ！ WPA+ ？？

48. SHFU-IF-IS-LIANGW A WA policy may states a percentage over which the loss is covered. That means a limitation that excludes small losses from the coverage. A WA policy may states a percentage over which the loss is covered. That means a limitation that excludes small losses from the coverage. Example: Example: The policy says the minimum loss must be 4% for the loss to be covered, then The policy says the minimum loss must be 4% for the loss to be covered, then losses <4% is not covered; losses <4% is not covered; losses >=4% is covered losses >=4% is covered

49. SHFU-IF-IS-LIANGW WA policy with a franchise of 5% －－ losses <5% is not covered; losses <5% is not covered; losses >=5% is completely covered losses >=5% is completely covered WA policy with minimum loss of 5% to be covered, excess deductible －－ losses <5% is not covered; losses <5% is not covered; losses >=5%, only the part of the losses over 5% will be covered losses >=5%, only the part of the losses over 5% will be covered

50. SHFU-IF-IS-LIANGW The differences between the types of marine insurance coverage lie in their coverage of particular average losses. Name of coverage Extent of coverage ＿＿＿＿ Free from particular average － covers very few particular average losses With particular average － covers many particular average losses All risks － covers nearly all particular average losses

51. SHFU-IF-IS-LIANGW  “Free from particular average” coverage literally means that no particular average losses are covered. But modern “FPA”coverage includes some accidental particular average losses.  “All risks” coverage no longer includes all risks. It now covers nearly all risks.

52. SHFU-IF-IS-LIANGW 2) Additional risks ( 附加险, 不可单独投保的 ) -- extraneous risks ( 一般附加险 ) -- special additional risks ( 特殊附加险 )

53. SHFU-IF-IS-LIANGW Extraneous Risks   Theft, Pilferage, and Non-Delivery (TPND) 偷窃提货不着险   Rain ， Fresh Water Damage (RFWD) 淡水雨淋险   Risk of shortage 短量险   Inter-Mixture Contamination Risk 混杂玷污险   Leakage Risk 渗漏险   Clash Breakage Risk 碰损破碎险   Taint of Odour Risk 串味险   Sweating Heating Risk 受潮受热险   Hook Damage Risk 钩损险   Breakage of Packing Risk 包装破碎险

54. SHFU-IF-IS-LIANGW Special Additional Risks   War Risks 战争险／兵险，可单独投保   Risks of Strike ， Riots and Civil Commotion (SRCC) 罢工、暴动、民变险，可单独投保   Failure to Deliver Risk 交货不到险   Rejection Risk 拒收险   Aflatoxin Risk 黄曲霉素险   On Deck Risk 舱面险   Import Duty Risk 进口关税险   Survey in Customs Risk 海关检验险   Survey at Jetty Risk 码头检验险

55. SHFU-IF-IS-LIANGW 4. Insurance Clause 1) Institute Cargo Clauses （ I.C.C ，伦敦协会货物条款） 2) China Insurance Clauses （ C.I.C ，中国保险条款） Generally ， ICC (A) ≈ CIC ［ AR ］ ICC (B) ≈ CIC ［ WA ］ ICC (C) ≈ CIC ［ FPA ］

56. SHFU-IF-IS-LIANGW 8.4.2. Categories of Insurance Documents 1 ． insurance policy 保险单 —— the insured must be clearly specified 2 ． insurance certificate 保险凭证 —— simplified insurance policy ， has same legal effectiveness as the former 3 ． cover note ＊ 暂保单 4 ． floating policy 浮动保单 5 ． general policy / blanket policy 总括／预约保单 6 ． open policy/insurance declaration 开口保单

57. SHFU-IF-IS-LIANGW 8.5. Other documents 1 ． Certificate of Origin ( 产地证明 ) Generalized System of Preferences Certificate of Origin ( 普惠制产地证 ) 2 ． Inspection Certificate of ×× ( 检验证书 ) 3 ． Packing List ( P/L ，装箱单 ) Weight Memo ( W/M ，重量单 ) Measurement List ( M/L ，尺码单 ) 4 ． Import / Export License ( 进出口许可证 ) ……

58. SHFU-IF-IS-LIANGW 8.6. Documents Examination under L/C Full set of documents may consist of the following ：   Draft (if is required)   Invoice   B/L, or other transportation document   Packing list ／ Weight Memo   Insurance policy ／ certificate   Certificate of Origin   Inspection Certificate(s) ， and so on

59. SHFU-IF-IS-LIANGW Keys in checking documents As to each of these documents there are special points should be paid attention to.   Bill of Exchange   Commercial Invoice   Bill of lading   Insurance Policy One other important thing, i.e.   Understanding about important clauses set in.

60. SHFU-IF-IS-LIANGW Sample L/C TO ： BANK OF CHINA SHANGHAI BRANCH FROM ： THE HONGKONG AND SHANGHAI BANKING CORPORATION NEW YORK BRANCH LC NO ： 1678 APPLICANT ： HOME TEXTILES CO.LTD. NEW YORK, NY.,U.S.A. BENIFICIARY: SHANGHAI TEXTILE IMP AND EXP CORP DATE OF ISSUE: 28 FEB 2007 EXPIRY DATE AND PLACE: 30 APR 2007 SHANGHAI

61. SHFU-IF-IS-LIANGW AMOUNT: USD 64,500 (SAY U.S. DOLLARS SIXTY FOUR THOUSAND AND FIVE HUNDRED ONLY) AVAILABLE BY NEGOTIATION WITH BANK OF CHINA AGAINST BENEFICIARY'S DRAFT AT SIGHT DRAWN ON US SHIPMENT FROM SHANGHAI TO NEW YORK NOT LATER THAN 15 APR 2007 PARTIAL SHIPMENTS ALLOWED TRANSHIPMENT NOT ALLOWED

62. SHFU-IF-IS-LIANGW DESCRIPTION OF GOODS: 10,000 METER 100 PCT COTTON PRINT 54/56" AT USD 6.45 PER METER CIF NEW YORK DOCUMENTS REQUIRED: --COMMERCIAL INVOICE IN DUPLICATE --FULL SET CLEAN ON BOARD BILLS OF LADING MARKED FREIGHT PREPAID --INSURANCE POLICY/CERTIFICATE DOCUMENTS REQUIRED: --COMMERCIAL INVOICE IN DUPLICATE --FULL SET CLEAN ON BOARD BILLS OF LADING MARKED FREIGHT PREPAID --INSURANCE POLICY/CERTIFICATE

63. SHFU-IF-IS-LIANGW Sample Draft under L/C BILL OF EXCHANGE For (amount in figure)(date of issue) At _______ sight of this FIRST bill of exchange (SECOND being unpaid) Pay to __________________________________ or order the sum of _______________________________________(amount in words) only. Drawn under L/C No. ___________ dated _________________ To: For and on behalf of:

64. SHFU-IF-IS-LIANGW Sample Draft under L/C BILL OF EXCHANGE ForUSD 64,50015 Apr.2007 (amount in figure)(date of issue) At _/__ sight of this FIRST bill of exchange (SECOND being unpaid) Pay to Bank of China Shanghai Branch or order the sum of U.S. Dollars sixty four thousand and five hundred only (amount in words). Drawn under L/C No. __1678_______ dated __28 Feb. 2007______ To:For and on behalf of: The Hongkong and Shanghai BankingShanghai Textile Imp Corporation New York Branchand Exp Corp

65. SHFU-IF-IS-LIANGW Thinking over the following questions ：  What are the functions of a commercial invoice?  What is meant by a clean ／ dirty bill of lading?  What are the functions of a bill of lading?  What particular information does a commercial invoice include?  What are qualified types of bill of lading which are generally accpted under a letter of credit?

66. SHFU-IF-IS-LIANGW  In what respect does W.A differ from FPA?  What particular information does an insurance policy generally include?  What is the special stipulation in UCP for the description of goods respectively in an invoice and other documents ?