1. Lecture 16 Documentation in international trade

2. I. Introduction
II. Kinds of international trading documents
III. Issues concerning documents
IV. specimens
V. Useful expressions

3. I. Introduction
Documentation refers to all or any financial and commercial documents relating to a transaction. Documentation forms a very important aspect of international trade. It is usually true to say that without the correct documents the exporter may not be paid and the importer may not be able to take possession of the consignment.

4. Meanwhile, international transactions contain many pitfalls
Meanwhile, international transactions contain many pitfalls. Making a simple mistake with documents can be subject to delays in payment or wastage of human or financial resources.

5. So an understanding of the most commonly used documents in international trade is essential for successful operation. There are many documents involved in international trade, such as draft, commercial invoice, bill of lading, insurance policy/certificate, inspection certificate, etc.

6. As transactions in international trade are made among traders in different countries, export documents are a cost-effective means to ensure smooth payment and delivery.

7. The completion of a deal is more based on the documents than on the commodities. And the exchange of documents concerned with payments for goods has become a common principle in international trade.

8. Meanwhile, in case of disputes, export documents are also the basis and legal documents for arbitration and claiming for compensation.

9. II. Kinds of international trading documents
Documents can be classified into four groups according to their natures.
commercial documents
financial documents
Official documents
Other certificates

10. 1.commercial documents 1)commercial invoice 2)weight list/note/memo
3)packing list
4)insurance policy/certificate

11. 5)transport documents
A. bill of lading
B. airway bill
C. cargo receipt
D. postal receipt/postal parcel receipt/ parcel receipt

12. 2.financial documents 1) bill of exchange/draft 2) cheque / check
3) promissory note

13. 3. Official documents 1) Inspection certificate
2) Certificate of origin
3) Customs invoice
4) Consular invoice
5) Consular certificate of origin

14. 4. Other certificates 1) beneficiary’s certificate
2) black list certificate
3) copy of cable/telex/fax
4) certificate of vessel’s nationality/certificate of registry

15. 5) itinerary certificate
6) captain’s receipt
7) freight receipt

16. III. Issues concerning documents
consistency among documents
ambiguity as to issuers of documents
originals
authentication
signature

17. 1.consistency among documents
One of the major issues in the preparation, presentation, and verification of documents by sellers, buyers, and banks in payment transactions is consistency among documents.

18. All parties have the obligation to check the documents to make certain they are in order. All documents must be in agreement and uniformly conform to one another. Information on all documents must be accurately presented. Subtle differences can mean the difference between a successful and an unsuccessful transaction.

19. The following is a list of points of consistency buyers, sellers, and banks should all be aware of when preparing, presenting, and checking documents for documentary collection transactions:

20. 1) Name and address of shipper/consignor
2) Name and address of buyer/consignee
3) Issuer’s name and address
4) Description of the goods, quantities, units

21. 5) Country of origin of the goods
6) Country of destination of the goods
7) Invoice numbers, documentary credit numbers
8) Certifications

22. 9) Legalizations
10) Shipping marks and numbers
11) Net weight, gross weight, volume
12) Number of crates, cartons, or containers

23. 2. Ambiguity as to issuers of documents
If terms such as “first class,” “well-known,” “independent,” “official” “competent” or “local” are used in a documentary credit to refer to the issuer of a required document (e.g., inspection certificate or certificate of origin),

24. banks are authorized to accept whatever documents are presented, provided that on their face they appear to be in compliance with the credit and were not issued by the seller.

25. 3. originals
The originals of specified documents should be provided unless copies are called for or allowed. If more than one set of originals are required, the buyer should specify in the credit how many are necessary.

26. Unless otherwise noted in the documentary credit, banks are authorized to accept documents as originals, even if they were produced or appear to have been produced on a copying machine, by a computerized system, or are carbon copies, provided they have the notation “original” and are, when necessary, signed.

27. 4. Authentication
Unless otherwise noted in the documentary credit, banks are authorized to accept documents that are authenticated, validated, legalized, visaed, or certified so long as the document appears on its face to satisfy the requirement.

28. This means that the banks are not responsible for the verification of the certification or authorized signature. Certificates must usually bear the signature of the issuer.

29. 5. Signature
Banks are authorized to accept documents that have been signed by facsimile, perforated signature, stamp, symbol, or any other mechanical or electronic method.

30. UCP500（uniform customs and practice for documentary credits） 对商务发票的要求
1.发票必须由信用证中指定的受益人出具（可转让信用证除外）
2. 发票必须以开证申请人为抬头人

31. 3. 发票无需签字， 但是如信用证要求的证明文句是在未要求签字的发票上表示的，则该证明文句应签字且加注日期
4. 除非信用证另有规定， 银行拒受金额超过信用证金额的商业发票
5. 商业发票对货物的描述，必须与信用证一致
6. 所提示的正本与副本数量准确