Certificate of Origin
For goods imported to some countries, especially those which have a reciprocal tariff agreement with the exporter’s country, a certificate of origin is required. It is prepared fort the goods that are produced in a particular country and may thus be eligible for a preferential rate of duty or no duty at all (Generalized System of Preference). Sometimes a ‘certificate of manufacture’ is required which is the confirmation of a producer that the goods have actually been produced by his/her factory. Similar Certificates requiring additional information are often required where there is conflict between countries and imports from the enemy country(ies) are ‘blacklisted. ‘Blacklist Certificates’ are the evidence that all parties involved, including the bank and shipping line, are not Blacklisted and that the ship will not call at enemy ports.
Packing List-Weight List
It is a document evidencing the weight of the goods to be carried to the destination of importer by the carrier. It is mainly required in case of transportation other than by sea. Weight list can be evidenced either by means of a separate document, or by a weight stamp/declaration of weight superimposed on the transport document by the carrier or his agent. It can take the form of ‘weight list. The former is the list of the weights of the individual parcels and the latter is the list showing details of the goods contained in each case or packet. Sometimes, measurement list’ is also required which is the list of the dimensions of the individual loaded cases. Below points should be kept in consideration while issuing Packing List: (1) Gross weight, Net weight and measurement, number of cartons/packages Should similar with those of Bill of Lading (2) Marked as “Original” (3) Shipping marks should same (4) Complying with LC terms
Foreign trade documents are important for the exporters or importers in terms of regulatory compliance and release of goods. The documents incomplete, faulty or not given to the authorities on time may give rise to some risks in the products’ delivery or during collection of the product costs. This will generate a prudential risk for the bank’s business. Considering the need globally Documents in International Trade Transactions are categorized in five groups-
Evidence of shipment: Examples of Documents Bill of Lading, Airway Bill, Truck Receipt, Courier Receipt etc.
Cover against risk to the Insurance Policy, Insurance goods during their carriage, Example: Insurance policy, Insurance Certificate, Declaration under open cover etc.
Evidence of financial claims Example: bill of exchange, Cheque, Promissory Note etc.
Evidencing compliance with the requirements of country of export or the country of import Example: Certificate of Origin, Legalized Invoice, Export License etc. In documentary collection and documentary credit payment methods, banks are directly related with documents. Under documentary collection, documents are two types; commercial documents and financial documents. Under financial documents, documents which show the financial claim are included like bill of exchange, cheque, and promissory note etc. And commercial documents include all documents like bill of lading, insurance policy, commercial invoice, certificate of origin etc. except the financial documents. On the other side in documentary credit, documents are divided in four groups; transport documents, commercial invoice, insurance documents and other documents. The requirements and nature of documents depend upon purchase/sale agreement. In case of LC, these documentary requirements are noted in the LC itself.
‘Other documents’ indicate the documents required in documentary credit operation other than the transport documents, insurance documents and invoice. These are may be of different types and natures depending on the objective conditions of the payment methods.
Health Certificate/Phyto Sanitary Certificate/Certificate of Analysis
It is often necessary for shipping documents to contain something more than a certified invoice as an evidence of quality in order to meet health requirements in the country of destination or to satisfy the importer about the precise strength or chemical composition of the goods. A ‘health certificate’ may be required in respect of live animals, meat, hides etc.;
It is required for perishable items such as vegetables and a certificate of analysis’ may be required concerning the strength of metals or chemical content of some particular types of goods such as drugs.
It is a confirmation that the goods have been inspected prior to shipment and found as per requirements of the client (importer) and generally issued by a neutral organization. It is also called survey report (unlike the insurance survey report assess the loss of goods).