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Documents used in international trade

Answer Text:
Documents used in International trade
i) Consular Invoice. A document that shows that the prices of the goods that have been charged is fair as certified by the consul with the embassy of the exporting country.
ii) Proforma Invoice. A document sent by the
exporter to the importer if he/she is not willing to sell goods on credit
iii) Letter of Hypothecation. A letter written by the exporter to his/her bank authorizing it to resell the goods being exported.
iv) Commercial Invoice. A document issued by the exporter to demand for the payment for the sold on credit to the importer.
v) Certificate of Origin. A document that shows the country from which the goods are being imported have originated from.
vi) Certificate of insurance. A document issued by the insurance company or agent, undertaking to cover the risk against the loss
or damage to goods being exported.
vii) Freight Note. A document prepared by the shipping company to show the transportation charges for goods
viii) Bill of Lading. A document of title to goods being exported issued by the shipping company to the
importer who should use it to have goods
released at the port of entry.
ix) Import Licence. A document issued by the country to allow the importer to buy goods from abroad.
x) Letter of Credit. A document issued by the importers bank to the exporter‟s bank to assure the exporter of
the payment for the goods ordered. The exporter can then be paid by his bank on the basis of this letter.
xi) Order of Indent. This asks the supplier to supply goods.