Foreign Trade Documentation – The Paperwork! 📄
Rule #1 of Foreign Trade: The goods don't move until the papers move. Unlike buying bread from a shop, sending a ship to America requires A LOT of documents.
Why?
- Proof of Ownership: Who owns the cargo?
- Customs Clearance: Is it legal? Is tax paid?
- Payment Security: The seller wants money; the buyer wants goods. Documents bridge the trust gap.
The "Big 5" Documents 🖐️
These are the absolute essentials. We will study each in detail later.
1. Commercial Invoice"The Bill (Price & Qty)"
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2. Bill of Lading (B/L)"The Receipt from Ship"
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3. Marine Insurance"Safety against Sinking"
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4. Bill of Exchange"Order to Pay Money"
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5. Certificate of Origin"Proof of Nationality"
Categories of Documents 📂
1. Commercial Documents (Between Buyer & Seller)
- Commercial Invoice: The bill.
- Packing List: What's inside each box?
- Bill of Exchange: Payment instrument.
2. Official Documents (For Government/Customs)
- Shipping Bill: Permission to export.
- Certificate of Origin: "Made in India" proof.
- Consular Invoice: Signed by the embassy.
3. Transport Documents (For Logistics)
- Bill of Lading (B/L): For Sea.
- Airway Bill (AWB): For Air.
- Lorry Receipt (LR): For Road.
The Golden Rule
Discrepancy = Rejection. If the Invoice says "100 Boxes" and the Bill of Lading says "99 Boxes", the bank will refuse payment. Accuracy must be 100%.
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Which document acts as a receipt from the shipping company?
💡 Final Wisdom: "In Foreign Trade, documents are as valuable as the goods. If you lose the Bill of Lading, you can't claim your ₹1 Crore cargo!" 📜💎
Next up: Commercial Invoice - The most basic and important document! 🧾