No Marshmallows, Just Term Papers
International Commercial Documents
A sure thing about international commerce: it requires large amounts of paperwork.
This chapter examines invoices, export documents, and export controls.
9-1 Documentation Requirements
I. Most international trade transactions require numerous documents, filled out with specific information and instructions, and filed in a certain time frame
9-2a Commercial Invoice
I. The invoice that accompanies the shipment is called the commercial invoice
II. This invoice should present precisely what the importer is being billed for
a. A very precise description of the product should be given
b. The tariff paid is a function of the classification (type) of the product imported
c. Tariff rates are determined using a multiplicity of criteria:
i. Number of units in shipment
iv. Total value
d. Terms of trade (Incoterms)
e. Detailed list of items exporter has pre-paid for importer
f. Terms of payment
g. Currency of payment
h. Shipping information
i. Customary information—names, addresses, …etc.
9-2b Pro forma Invoice
I. Not an invoice but a quote
II. Must be written with extreme care to avoid discrepancies with letter of credit which can result in complexities surrounding amendments
III. Should include an expiration date
a. Under Uniform Commercial Code of the United States (UCC) and under the domestic laws of many other countries, the offer can be withdrawn at any time, without prejudice, for almost whatever reason
b. In international transaction conducted under the United Nations’ Convention on the International Sales of Goods (CISG) the offer cannot be withdrawn by the seller (or the buyer) before its expiration date. Most countries have...