1. Project Ⅱ Task 6 Main documents and Sales Contract

2. Learning Objectives To identify the necessary documents associated with international trade To know how to make out commercial invoice, packing list and bill of lading

3. For most countries exports and imports are the most important international activities. International trade is the exchange of goods and services across international territory or boundary. Each country may import some goods and raw materials that it needs and export some goods that it produces. Thus the import and export trades are two sides of the same coin, and both can have beneficial effects on the home market. However, the procedure of foreign trade is much more complicated than that of domestic trade, and the former involves specialized knowledge and highly trained personnel. This unit discusses the procedure of export and import transactions and some important documents involved in international trade. Import and Export Practice boundary n. 边界, 分界线 territory n. 领土, 版图, 地域

4. Contents Section 1 Main documents Section 2 Sales Contract Exercises

5. Documents are of great importance because in the process of international trade, the relevant parties only deal with documents, instead of goods. Banks will generally pay against documents, exporters will only receive payment by presenting the required documents, and importers will take possession of the goods when holding the documents. Especially, under documentary credit terms, complying documents are extremely important because if any discrepancies of the documents are found, the exporter may not be paid. There is a case that payment was denied, the credit required for the commercial invoice to describe the goods as “100% Acrylic Yarn”. When the invoices were presented to the bank, they described the goods as “Imported Acrylic Yarn”. Even though the packing list attached to the invoice described the goods as “100% Acrylic Yarn”, the court upheld the bank’s refusal to pay under the credit because the documents did not strictly comply with the requirements of the credit. Section 1

6. This case teaches two important lessons. First, documents must be accurate. Second, the parties involved should check the documents to make sure they are in order. The first party is the exporter, who should check all the documents both against the terms of the credit and against each other for internal consistency before presentation to the advising bank. The second party is banks. According to UCP 600, the nominated bank, confirming bank and the issuing bank must examine a presentation to determine, on the basis of the documents alone, whether or not the documents appear on their face to constitute a complying presentation. The following is a list of common documents used in international trade: Section 1

7. commercial documents commercial invoice packing list weight list transport documents ocean bill of lading non-negotiable sea waybill charter party bill of lading rail waybill air waybill road, rail or inland waterway transport documents multimodal transport documents courier receipt/ post receipt/certificate of posting ———————————————————— —————————————— ———————————————————— I. Main documents

8. Section 1 insurance certificateinsurance policy insurance certificate official documents certificate of origin certificate of origin Form A inspection certificate consular invoice export license import license ______________ I. Main documents