Types of International Trade Documents
International trade involves the exchange of goods or services across national borders. This trade requires various trade documents to ensure a smooth transaction between the parties involved. These documents vary depending on the type of transaction and the parties involved. In this article, we will discuss the types of international trade documents that are commonly used.
1. Proforma Invoice
A proforma invoice is a preliminary invoice that is issued by a supplier to their buyer. It is used to provide a quotation for the goods or services that the buyer is interested in purchasing. The proforma invoice provides details on the pricing, quantity, and delivery terms. It is not considered as a legal document and is used primarily for customs clearance purposes.
2. Commercial Invoice
A commercial invoice is a legal document that is used in international trade transactions. It is issued by the supplier to the buyer, and it includes information on the goods that have been sold, such as the quantity, pricing, and delivery terms. It is used for customs clearance purposes and is used by the buyer to arrange for payment and insurance of the goods.
3. Bill of Lading
A Bill of Lading is a legal document that is issued by a carrier to a shipper. It is a receipt for the goods that have been shipped and provides proof of shipment. It includes information such as the name of the vessel, the port of loading and unloading, and the quantity of goods that have been shipped. It is used for customs clearance purposes, and it is also used by the buyer to arrange for the payment and insurance of the goods.
In conclusion, international trade documents are essential for the smooth running of international trade transactions. The types of documents required depend on the nature of the transaction and the parties involved. The proforma invoice, commercial invoice, and Bill of lading are some of the commonly used international trade documents.
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