List of document used in international trade

There are so many important documents that are widely used in international trade.

List of important document for international trade are –

1. Bill of exchange

A bill of exchange is a negotiable instrument that carries an unconditional order to pay a specified amount of money. It is an unconditional order signed by maker to pay a certain amount to the bearer of the instrument.

There are some features of bill of exchange. This is given below:

• A bill of exchange must be in written form
• There must need a confirm order to make a payment
•  The order should not have any condition
• The amount should be definite
• The date should be fixed
• The bill must be sign by the both  parties (drawer and drawee)
• The amount should be paid on demand or expiry of the date
• The amount must be paid to the beneficiary of the bill

There are different types of bill of exchange. This are –

1. Banker acceptance bill: A bill that is accepted by a bank.
2. Clean bill: This types of bill is not accompanied by documents.
3. Documentary bill: It supports bill of exchange by providing essential document that confirm the truthiness of he transactions.
4. Sight bill : It is also called demand bill. A bill that is presented by the holder of the bill for payment or maturity of the date.
5. Usance bill: It is a time bounce bill.  It means the payment needs to meet within specific time period.
6. Document against acceptance: This a bill of exchange in which all documents are release on acceptance of bill. When importer accepts that all documents related with shipment of the goods hand over to him and provides a bill is known as document against acceptance.
7. Document against payment: This is a bill of exchange in which all documents are release on payment of bill. When importer accepts that all documents related with shipment of the goods hand over to him and provides a bill is known as document against payment.

• Trade bill: This type of bill is specially related only trade.
• Demand bill: The demand bill is payable when it is demanded.
• Inland bill: A bill that is payable inside the origin country is known as inland bill.
• Foreign bill: A bill that is payable outside the origin country is known as foreign bill.
• Accommodation bill : This types of bill withdrawn without any conditioned usually known as accommodation bill.
• Supply bill: A bill that is withdrawn by supplier or contractor from the government department is called supply bill.

2. Bill of lading: Bill of lading is evidence of contact. However, It is the evidence between career and exporter to deliver the goods to a specific place and person.

Some features of bill of lading are –

• Title of the goods
• Receipt of the goods
• Acknowledgement of goods( shipping company has move to deliver the goods)
• Describes the goods received for transportation
• The name of the port ( where they were loaded and where they were unloaded)

There are different types of bill of lading. These are –

• Clean bill : The clean bill stated that goods are undamaged and in good condition.
• Foul bill : This bill stated that goods are damaged and in bad condition.
• On board bill: When the goods loaded on ship, the shipping company issues this bill.
• Received for shipment bill: before loading has started, the shipping company issues a bill of loading receipt of the goods.
• Straight bill: This bill stated that the specific person will receive the goods.
• Port to port bill : All carrier are equally responsible for damages of goods if the goods have transported more than one carrier
• Airway bill: Airway bill does not transfer the title of goods to the holder

3. Letter of credit:  A letter of credit is usually known as a documentary credit, banker’s commercial credit, or letter of undertaking. It is a payment guarantee used in international trade to provide a financial guarantee from a bank to an exporter of goods.

There are different types of letter of credit. Have a look-

• Clean  L\C: The issuing bank agrees to make a payment without any document to the exporter
• Documentary L\C: The issuing bank agrees to make payment only when the exporter submits all relevant documents.
• Fixed L\C: It is fixed for a specific time period and amount.
• Revolving L\C: It covers multiple transactions over a long time period.
• Confirmed L\C: It reduced the risks of default for the seller. Confirmed L\C stated that the second will make payment for the exporter if the first bank fails to do it.
• Unconfirmed L\C: It is not confirmed by any bank.
• Transferable L\C: It allows the first beneficiary to transfer some or all of the credit to another party
• Non-transferable L\C: It is not allowed the first beneficiary to transfer some or all of the credit to another party
• Revocable L\C: The issuing bank can change or cancel the terms and conditions of revocable L\C.
• Irrevocable L\C: The issuing bank can not change or cancel the terms and conditions of revocable L\C.

4.Certificate of origin of goods: It is a widely used document in international trade. Besides, It is a document that provides goods that comes from a specific region.

5. Inspection certificate: A document which is issued by an independent third-party stated that the goods have been inspected sincerely and confirm the quality with the contractual terms.

6.Packing weight list: It is stated the detailed information on the packaging of the goods. However, it contains product weight, quality, size, quantity, etc.

7.Consular invoice: Consular  invoice describes the goods being transported

8.Insurance document: To protect goods from sudden accidents, it is important to make insurance for the goods. for this reason, the exporter makes insurance to protect goods.

Finally, we learn the list of important documents widely used in international trade. Besides, this learning will help your clear understanding of the important document used in international trade. However, if you go for international trade. this learning will help you a lot. So learners enjoy this learning.