Types And Use Of Foreign Trade Documents

Improvement of foreign trade documents and handling of document accidents

Documents are the core of the whole foreign trade work. By learning the documents, the novice can clearly link the whole foreign trade link.

Types and use of foreign trade documents

In foreign trade practice, the production of documents and issuers usually have exporters. Exit In general, the state's commodity inspection agencies, freight forwarder and importers are in English or Chinese and English.

Common foreign trade documents are:

1. contract (CONTRACT)

CONTRACT is a general term and can be issued by both parties. If the seller is made by the seller, it may be called Sale The confirmation (SALES CONFIRMATION), which is issued by the buyer, may be called PURCHASED CONFIRMATION. In addition to the same factors as the domestic sales contract, such as the name and address of the seller and the buyer, the time, place, name of the trade commodity, the way of payment, and the liability for breach of contract, additional clauses can be added according to the characteristics of different products. In addition, there are always more detailed conventions for formal foreign trade contracts, such as letter of credit opening requirements under letter of credit, various rules of force majeure, etc.

For the shortage of bulk cargo, such as minerals, grain and agricultural by-products, which are easy to handle during the loading and unloading and storage and transportation, there will always be an additional "short and short" clause, which allows for a certain range of discrepancy on the basis of the total amount and amount of the contract. Finally, it will be settled according to the actual delivery volume. For example, "5% MORE OR LESS ALLOWED", that is, many or 5% less.

In theory, the contract should be in two copies, with each party holding one copy of the original seal. foreign trade In practice, it is not too demanding to copy, and the general fax is also accepted as a memorandum. More reliance on commercial credit, as well as prepayment, letter of credit and other substantive control means. The contract itself seems unimportant. Because of this, customers in some countries even make fixed contracts and leave the terms "effective after the letter of credit is issued" to further weaken the binding force of the contract and circulate them everywhere as an enquiry tool. In case of such a contract, it is not necessary to take it seriously and reserve time until the letter of credit is received.

2. invoice (INVOICE)

Commercial invoice (Commercial Invoice). The concept of "invoice" in foreign trade is totally different from domestic financial invoice. The foreign trade invoice is a document produced by the exporter itself, which is used to explain the name, quantity, unit price, total value, etc. of the goods. The invoice format is not restricted, but it must include the above elements and complete the name. The invoice must be marked with an invoice number (drawn up by oneself) and the time of issue. It can be made in several copies according to needs, consisting of several original and duplicate copies, with the words "ORIGINAL" and "COPY". At the end of the invoice, it usually has the word "E.&O.E.", which means "error checking", that is, the invoice is allowed to change if there is any mistake.

The sample of invoice is shown in pattern 2.

3. PROFORMA INVOICE

The style is similar to commercial invoice. It can almost directly bring the commercial invoice back to the title and change it to "PROFORMA INVOICE". The use of proforma invoice is similar to unilateral contract as a tool for quotation and determination of transactions. Some countries prefer to confirm the form invoice as a contract. Therefore, in addition to the same content as commercial invoices, it can also add terms such as delivery date and so on in the form of "REMARK" filling in blank space, so as to further implement the transaction. In addition, for those transactions requiring import licensing or foreign exchange quotas, customers also need pro forma invoice for early application. In the international express delivery of goods, also need to attach the form invoice, as a courier company unified declaration.

4. packing list (PACKING LIST)

Similar to the foreign trade invoice, the nature is mainly used to explain the packaging of goods, such as name, quantity, packing method, gross weight and volume. Depending on the product category, additional details can be added, such as net weight.

The style is similar to the invoice, but it does not need to indicate the value of the goods. Usually, a number of original and duplicate copies are required.

Samples are shown in pattern 3.

5. bill of lading (BILL OF LOADING)

The bill of lading is the certificate issued by the shipping company after the goods are delivered to the shipping company for the purpose of representing the real right and picking up the goods at the destination. Each shipping company has its own bill of lading, but its contents are very similar. The bill of lading is the core document. In a sense, it represents the value of the goods and the value of the goods. For bill of lading, we will use a chapter to learn about it. According to the different modes of transportation, it is divided into AIR WAY BILL (AWB) and OCEAN BILL OF LOADING (referred to as B/L) and others. But in practice, ocean bills of lading are most common, followed by air waybill.

The bill of lading is made by the shipping company according to the shipper's consignee and consignee's name, address, destination, description and other relevant data. There are three pairs in general, and you can pick up any one original. The two remaining parts will be invalidated once the goods are picked up. In order to prevent the loss of the bill of lading during transmission, if the customer does not specify the requirement, only one or two originals can be given to the customer. In addition to the fixed column in the bill of lading, the bill of lading must also be marked "ON BOARD DATE" when issuing the bill of lading, which is the standard for calculating the actual delivery date. For shipping bill of lading samples, please see pattern 4.

6. shipping advice (SHIPPING ADVICE)

A notice of shipment to the consignee is made by the consignor before or at the time of the ship opening. The format is not limited, but should include the following contents: consignee (Consignee), consignor (Consigner), goods name (Goods), bill of lading number (B/L Number), container / lead seal number (Container/Seal Number), ship name (Vessel Name), voyage (Voy), destination port (Destination Port), sailing date, and expected date of arrival.

7. insurance policy (INSURANCE POLICY)

In order to prevent possible damage in international cargo transportation, traders usually make insurance for some goods of high value.

An insurance company is issued an insurance policy on the basis of the insurance coverage as one of the cargo documents. The risks of marine cargo insurance are divided into two categories: basic risk and additional risk.

(1) there are three kinds of basic risks: Free from Particular Average-F.P.A, With Average or With Particular Average-W.A or or, and all risks.

1. The scope of liability for FPA is: the total loss or constructive total loss of the insured goods during the transportation due to natural disasters. All or part of the losses caused by natural disasters to the sea before and after the accident were caused by the accident. All or part of the loss caused by the disappearance of one or more pieces of cargo when loading or unloading. The insured shall pay a reasonable fee for the salvage, prevention or reduction of cargo damage within the insured area, but not exceeding the insured amount of the goods to be delivered. The loss caused by unloading and the special expenses arising from unloading, storing and transporting goods at the port of refuge in the port of refuge after the distress of the means of transport. Sacrifice, apportionment and rescue costs of CO sailors. The contract of carriage shall be stipulated in the contract of carriage, and the cargo shall be reimburse by the shipper according to the provisions.

2. The scope of liability of WPA: in addition to the responsibilities of Ping An and WPA, it is also responsible for partial loss caused by natural disasters.

3. The scope of liability for all risks: in addition to the responsibilities of FPA and WPA, it is also responsible for all or part of the losses caused by the general external causes during the transportation of the insured goods.

(2) additional risk is the expansion and supplement of basic liability. It can not be insured separately. Additional risks are covered by general additional risks and special risks. Generally, there are 11 kinds of general risks. They include: Theft Pilferage and Nondelivery-T.P.N.D, Fresh Water and/or Rain Damage, short term risk (Risk of Risk), leakage risk (leaking), miscellaneous pollution risk (risk factor), collision risk, breakage risk (risk factor), risk of heat loss (risk factor), risk of exposure to heat (risk factor), risk of hook damage, risk of package breakage, risk of rust. Special additional risks include: Failure to Deliver Risk, import and export duty insurance (Import Duty Risk), deck insurance (On Deck Risk), refusal of insurance (Rejection), aflatoxin (risk), seller's interest (risk), export cargo to port 9 or Macao, fire insurance liability extension clause, strike insurance, (marine, war risk, etc.) {page_break}

The insured amount is generally CIF plus plus 10%. The calculation formula of insurance premium is:

Insurance amount =CIF value * (1+ addition rate)

It is not necessary to first calculate the premium, which can be directly converted to CIF according to the known CNF price.

CIF=CFR/[1- premium rate * (1+ addition rate)]

In actual operation, if the value is not large, such as below 2000 dollars, the general processing is simple, and a unified charge of 100 yuan will be used as the insurance premium.

8. commodity inspection certificate, quality certificate, weight certificate, health certificate, etc. (INSPECTION CERTIFICATE OF QUANTITY, WEIGHT, HEALGH. )

According to the different products, according to the state regulations or according to customer needs and industry habits, some commodities export must be compulsive and issued inspection certificate by the state inspection and Quarantine Bureau. According to the difference of inspection items, they are classified into quality certificate, weight certificate and hygiene certificate. Goods that must be inspected must be registered with the commodity inspection bureau. Before the export, fill in the commodity inspection application form (obtained at the Commodity Inspection Bureau) and send the sample of the commodity to the Commodity Inspection Bureau for inspection. After the inspection is qualified, the commodity inspection authorities shall issue a commodity inspection release list and declare the export by the release side. In addition to the State Commodity Inspection Bureau, it is also common for clients to entrust third party non-governmental inspection bodies for inspection. For example, the most famous SGS inspection company (Societe Generale de SurveillanceS.A. standard standard Technology Service Co., Ltd., headquartered in Geneva), many African and Central South Korean traders have recognized the SGS inspection because of their limited import and export commodity inspection capabilities. SGS has branches in Guangdong, Shanghai, Qingdao and other places. It can be inspected at the request of customers. Meanwhile, SGS has been in cooperation with the official government of China, the State Commodity Inspection Bureau, and the National Commodity Inspection Bureau has designated the China Import and Export Commodity Inspection Corporation (CCLS) to carry out pre shipment inspection. Liaoning, Beijing, Tianjin, Hebei, Shandong, Hubei, Shanghai, Shanghai and other places have CCLS's proxy to issue SGS inspection reports.

The sample of commodity inspection application is shown in pattern 5. In fact, the routine inspection of many commodities includes quality, weight, sanitation, heavy metals and other items. As for the name of the inspection certificate, it can be chosen according to the requirements of customers. That is to say, the content of the certificate is the same, and the title is different.

9. certificate of origin

Certificate of origin includes general certificate of origin (CERTIFICATION OF ORIGINA) and GSP certificate of origin (GSP FORM A). The certificate of origin is a proof of the export and production of the goods, and is the "identity card" of the export products entering the international trade field. On the basis of the above, goods importing countries impose different tariff treatment and decision restrictions on imported goods. China's certificate of origin has a fixed printing format, generally issued by the commodity inspection bureau. If an exporters apply for such a certificate, they must first register with the local authorities before they are eligible to apply for the visa.

GSP is a universal, non discriminatory and non reciprocal preferential tariff system for developed countries to export manufactured goods and semi manufactured goods to developing countries. GSP certificate of origin is a certificate issued by the donor country to prove the origin of the export goods from the beneficiary country, and it can make the goods enjoy preferential tariff treatment in the favored countries. The same is usually issued by the commodity inspection bureau. The export enterprise must provide necessary proofs and evidence to the local Commodity Inspection Bureau for processing the certificate at the commodity inspection bureau. First, it must register the enterprise, and then apply for a visa.

Certificate of origin and GSP card can also be issued by all the trade promotion associations and chambers of Commerce (many of these two organizations are two signboards and the same team). The format is the same, but the seal is different.

The sample certificate of origin certificate is 6.

The sample of GSP certificate of origin is 7.

For the GSP card, we need to fill in the application form 8.

10. beneficiary statement (BENEFICIARY CERTIFICATION) elite foreign trade forum http://bbs.cnexp.net

The statement of Beneficiary only appears under the letter of credit (the beneficiary itself is the term in the letter of credit operation mode, generally pointing out the exporter). If it is not a letter of credit, it is commonly known as SUPPLIER DECLARATION or similar statement.

The statement of beneficiary is mainly used for matters which are inconvenienced or cannot be proved by official documents, the matters required by the customer, or other contents similar to the letter of guarantee (which guarantees certain liability or certain liability that may arise).

There is no prescribed format in writing. It only needs to be listed as BENEFICIARY CERTIFICATION, and there are "WE HEREBY CERTIFICATE THAT" in the text. Add the contents of the client's statement, and then seal it.

Examples are as follows:

BENEFICIARY CERTIFICATION

DATE: 8 OCT. 2005

WE HEREBY CERTIFICATE THAT COPY OF ALL SHIPPING DOCUMENTS HAVE BEEN HAVE 5 CERTIFICATE

FUDA IMP&EXP CO., LTD

NO.88 XINHUA RD, SHANGHAI, CHINA 200020

11. shipping company / cargo declaration statement (FORWARDER CERTIFICATION)

Documents with the nature and format similar to the beneficiary's declaration are issued by shipping companies or freight companies. It is used to prove that the freight company meets the customer's requirements in the operation. The common type is stated that the age of the ship is in line with the requirement (for example, within 15 years), and it is stated that the flag of Israel is not hoisted (usually in the Middle East).

12. verification of export receipts

The verification account for export receipts is a management document for the declaration of foreign exchange earnings uniformly distributed by the State Administration of foreign exchange. Before the export, it is to be collected by the external authority. After being completed, it will be submitted to the customs as one of the export declaration documents, and the customs will return the seals after customs clearance. After receiving foreign payment, the bank will collect the water from the bank and send it to the foreign exchange administration for verification.

The sample of verification form is shown in pattern 9.

13. declaration of export goods

Customs declaration is made and submitted to customs. However, in addition to large foreign trade companies or export enterprises, many exporters generally entrust freight forwarders to declare customs matters together. There are six separate customs declarations: customs operations Union, customs retention Union, enterprise retention Union, customs verification Union, export collection commission and export tax rebate. After customs clearance, return the collection and refund. For export declaration, please see pattern 10. {page_break}

14. letter of credit

If a letter of credit is used as a settlement, the bank will make a notification after the letter of credit is opened and arrived at the Bank of the exporter (the beneficiary of the letter of credit), and the letter of credit will be forwarded to the exporter, together with the letter of credit, and the specific operation of the letter of credit.

For example, the credit reference book can be seen in pattern 11.

In addition, other documents are occasionally encountered in practice, such as:

Customs invoice (Customs Invoice)

The customs invoice is a document issued by the exporter to the importer's customs, which is similar to the ordinary commercial invoice. Its format is generally formulated and replaced by the customs of the importing country. It is mainly used for customs statistics of the importing country, verification of origin, and check of the composition of the imported commodity price. Its format can be downloaded from the official website of customs offices in various countries. For example, Canadian customs invoice is shown in pattern 12.

Consular invoice (Consular Invoice)

A specially printed invoice issued by the consul of the importing country to the exporting country. This invoice proves that the details of the export goods are used for the dumping of foreign goods by importing countries, and can be used as a basis for calculating import duties, which will help the goods to pass through the customs of the importing countries smoothly. When issuing consular invoices, the consulate generally has to charge a certain fee based on the value of the imported goods. Such invoices are mainly used by Latin American countries.

Draft (Draft)

A bill of exchange is an order issued by the drawer and paid by the drawee according to the agreed time of payment (at sight or in advance) to the specified payee on condition that I pay a certain amount. Generally appear in the letter of credit operation, the bank provides blank bills, exporters fill in, the drawee signed to confirm payment.

For example, draft pattern 13.

After understanding the knowledge of these documents, we have a clear process concept for foreign trade.

1. in the early stage of foreign trade negotiation, we make proforma invoice for quotation, transaction reference or customer application for import license.

2. after the transaction is confirmed, make the foreign trade contract. Elite foreign trade forum http://bbs.cnexp.net

3. when preparing for delivery, make commercial invoice, packing list, verification form, declaration form, apply for commodity inspection release list, and so on.

4. after the customs declaration, the customs returns to the verification form, the declaration receipt and the cancellation Union.

5. after delivery, three certificates and three bills of lading are obtained.

6. make, apply for and arrange all the required documents, such as invoice, packing list, commodity inspection certificate, certificate of origin, beneficiary's certificate and so on, to receive payment.

7. write off and refund the tax on the bank's water memo, verification form and customs declaration form.

Whether or not the letter of credit is used, the documents are all important. Foreign trade documents are usually complete sets, that is, according to the requirements of customers, relevant documents as a set, for delivery, resale and payment of goods. The basic principle of the production of documents is "uniform documents, single consistency", that is, the production of documents is in line with the requirements of letters of credit (in the operation of letters of credit), and the contents of the same set of documents are identical in the same set of documents. For example, the quantity of goods, whether in the invoice, packing list or other documents, should be consistent in the number column, including the unit of measurement. In the bill of lading, the shipping mark (the symbol used to print on the outer package box) can not be shown in the invoice "N/M" (no shipping mark). In addition, each document will indicate the date of issue, and the date of the various documents should be stipulated in the foreign trade operation. The date of issue should be in accordance with logic and international practice. Generally, as a set of documents for collection, the date is set on the basis of ON BOARD DATE on the bill of lading to determine the date of each document:

The invoice (INVOICE) date is generally earlier than all the documents.

Packing list (PACKING LIST) must be on the same date with the invoice, before the date of bill of lading.

The bill of lading (ON BOARD DATE) shall not exceed the period stipulated in L/C.

The date of issue of INSURANCE POLICY should be earlier than or equal to the date of bill of lading, not earlier than the invoice.

Certificate of origin (C/O, FORMA) is not earlier than the date of invoice, not later than the date of bill of lading.

The date of INSPECTION CERTIFICATION is not later than the date of bill of lading, but it cannot be earlier than the date of bill of lading.

Beneficiary's certificate (BENEFICIARY CERTIFICATION is equal to or later than Bill of lading day;

The shipping company's certificate (FORWARDER CERTIFICATION) is equal to or earlier than the date of bill of lading.

The draft (DRAFT) date should be later than the bill of lading, invoices and other documents, but not later than the validity period of L/C.

The production of documents should start with good habits from the very beginning. According to the practice of the old foreign trade salesperson, after the transaction is confirmed, file the transaction in time and sort out the filling contents in advance according to the column of the documents, such as the name of the customer, the description of the goods, etc. When making a specific order, it can be called directly, avoiding the possibility of spelling mistakes in temporary typing. According to this principle, various kinds of foreign trade production software have been appeared on the market, which can input data in advance and automatically generate according to the category of documents.

In addition to making single mistakes, there are many loopholes in the process of foreign trade. There are unavoidable errors in the operation of different departments or errors caused by changing circumstances. For example, the original shipment of 100 boxes, according to the volume of the production of commodity inspection and customs declaration, the actual shipment time found that the warehouse records error, the actual shipment volume of only 98 boxes, or in the handling process damaged 2 cases. For such a case, it can be handled flexibly according to circumstances. The operation of a letter of credit depends entirely on the letter of credit. The non letter of credit will act according to the object of the delivery of the document. Therefore, it can be divided into two categories: "going wrong" and "separate processing".

The so-called mistake is wrong, that is, although it does not conform to the actual conditions, it still makes the list according to the conditions stipulated in advance, so the influence of the approval is also negotiated with the client. For example, in case of shortage of goods, the documents should be made in full. This is more often seen in the handling of the mistake of the letter of credit. We will explain the topic in the letter of credit later. The so-called split processing is based on the different objects delivered by the documents, and separately produces different documents. For example, when the amount and amount of customs declaration and the actual amount of error are available, the documents to the customs are made according to the actual amount and amount according to the original customs declaration documents. If the quantity of the bill of lading is the same as the number of customs declarations, the unit price can be adjusted slightly, and the total amount will be reduced if the total quantity remains unchanged, so as to make it conform to the actual charge. In addition, due to data errors such as customs declaration, resulting in the actual amount of foreign exchange and customs declaration inconsistent, will affect the write off. In general, there is no difference in the amount, for example, within 2000 dollars, it can still be written off. You can also cut the length of your think tank, make up the extra money to make up for other less money, and make the accounts flat. Finally, there is another low-level mistake that may be committed and the loss of the document.