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Chapter 2 Documents of Import & Export
1- Commercial invoice A commercial invoice is the accounting document by which the seller claims payment from the buyer for the value of the goods and \or services being supplied. This is a document issued by the seller to buyer of the goods. It is often used by the customs authorities at destination to determine the true value of the goods on which duties will be assessed. It also serves as the basis for consular documentation.
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2- Certificate of origin
A certificate of origin is a statement signed by the appropriate authority, as required by the documentary credit, providing evidence of the origin of the goods. In many countries a certificate of origin, although prepared by the exporter of his agent, has to be issued in a mandatory form and manner, with a certification by an independent organization, e.g. a Chamber of Commerce. The certificate of origin contains details of the shipment to which it relates, states the origin of the goods, and bears the signature, or the stamp.
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3. Insurance document The insurance document must: 1- be the one specified in the document credit. 2- cover the risks specified in the documentary credit. 3- Indicate cover is effective at the latest from the date of loading on board or dispatch or taking in charge of the goods. - Be for the CIF ( cost. Insurance and freight named place of destination) or CIP (freight carriage and insurance paid to named place of destination) value of the goods, as the case may be, plus ten percent, but only when the CIF or CIP value can be determined from the documents on their face otherwise, the insurance coverage must be for a minimum of 110 percent of the amount for which payment, acceptance of the gross amount of the invoice, whichever is the greater.
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4- Inspection certificate
An inspection certificate is a statement issued and signed by the appropriate authority, either a government entity or a private inspection company, providing evidence that the goods were inspected. In many countries, an inspection certificate is issued by an independent inspection company contracted for either by buyer or by the seller The inspection certificate contains details of the shipment to which it relates, states the results of the inspection, and bears the signature, the stamp or the seal of the inspecting entity:
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5- Transport documents Bill of lading A/ Bill of lading essentially: - Provide evidence of contract of carriage. The bill of lading by itself is not a contract of carriage as it signed only be carrier. - Serve as a receipt for goods delivered to the carrier. - Serve as a document of title enabling the goods to be transferred from the shipper to consignee.
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B/ The particulars in a bill of lading
A bill of lading usually contains the following particulars: i. Information relating to the goods, such as: - Their general nature - The number of packages or pieces - The weight of the goods or the quantity of the goods ii. Information relating to the parties such as: - The carrier - The shipper - The consignee (if named by the shipper ) iii. Other information relating to the voyage such as: Name of vessel - Port of shipment/trans-shipment/destination - Bill of lading number - Term of contract (prepaid or collection) - The place of issuance of the bill of lading
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C/ King of bill of lading
There are two main kinds of bills lading: i. The shipped on board B/L This means that the cargo is on board the vessel. In the term of payments using documentary credits, payments will be made usually against the presentation of ‘shipped on board’ B/L only because it is this document which confirms to the buyer that the goods have actually been shipped. ii. Received for shipment B/L This means that the shipping company confirms having received the goods for shipment by the vessel mentioned in the B/L. From the point of view of the consignee or the buyer, it does not provide as good a guarantee as the ‘shipped on board B/L’. Bill of lading may be classify according to voyages: There are several type of bill of lading according to voyages, namely:
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