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1. Export documents

An import part of export practice and management is a good comprehension of the various documents involved to process the export consignment. Moreover, the need to understand the role of such documents and their limitations together with likely problems which they may encounter is likewise important.

In processing an export consignment involving extensive documentation, one must bear in mind there can be up to four contracts to execute. These include: the export sales contract, the contract of carriage, the financial contract and the contract of cargo insurance. All these have to be reconciled with the processing of the export consignment.

1.1. Air Waybill

The air waybill is the consignment note used for the carriage of goods by air. It is often called an air consignment note and is not a document of title or transferable/negotiable instrument. The document travels with the cargo and it is not possible to use it as a negotiable instrument for letter of credit purposes as the cargo would arrive at the destination airport days or sometimes weeks before the air waybill arrival via the banking system, thereby allowing the consignee to take delivery of the goods.

1.2. Bill of Exchange

Under the terms of the Bills of Exchange Act 1882, a bill of exchange has been defined as an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay, on demand, or at a fixed or determinable future time, a certain sum in money to or to the order of a specified person or barer.

1.3 Bill of Lading

A bill of lading is a receipt for goods shipped on board a vessel, signed by the person (or his agent) who contracts to carry them, and stating the conditions in which the goods were delivered to (and received by) the ship. It is not the actual contract, which is inferred from the action of the shipper or shipowner in delivering or receiving the cargo, but forms excellent evidence of the terms of the contract. 

1.4. Cargo Insurance Policy and Certificate

It is most important to have insurance cover against loss or damage that may occur during shipment. The export sales contract with the buyer must clearly state who is responsible for arranging the insurance at all stages from the time the merchandise leaves the export’s premises until the buyer takes possession.

1.5. Certificate of Origin

The certificate of origin specifies the nature of quantity/value of the goods etc. together with their place of manufacture. Such a declaration stating the country of origin of the goods shipped is required by some countries often to simplify their custom duties.

1.6. Dock Receipt

This may be issued by a Port Authority to confirm receipt of cargo on the quay/warehouse pending shipment. It has no legal role regarding processing financial settlements of international consignments.

1.7. Export Cargo Shipping Instruction (ESCI)

At the time of booking a cargo for shipment exporters or their agents complete the Export Cargo Shipping Instruction and forward it to the shipping company. It provides all the relevant data which the carrier needs to complete the bill of lading and specifies who is responsible for freight charges.

1.8. Export Invoicing

1) Commercial invoice. The commercial invoice gives details of the goods and issues by the seller (exporter). It forms the basis of the transaction between the seller and buyer, and is completed in accord with the number of prescribed copies required. The invoice gives description of the goods, stating prices and the relevant Incoterms 2000 exactly as specified in the credit, as well as shipping marks.

2) Consular Invoice. Consular invoices are mandatory when shipping goods to certain ports of the world particularly to those countries which enforce ad valorem import duties.

3) Custom invoices. Custom invoices may be required by the authorities of the importing country. An adequate number should be provided for the use of the Customs authorities overseas.

4) Pro-forma invoice. This type of invoice is prepared by the exporter and may be required in advance for license or letter of credit purposes. The document includes the date, name of consignee, quantity and description of the goods, marks and measurements of packages, costs of the goods, packing, carriage, freight, postage, insurance premium, terms of sale, terms of payments, etc.

1.9. Health Certificate

A health certificate is issued when agricultural products are being exported to certify they comply with the relevant legislation in the exporter’s country.

1.10. Packing List

In recent years the role of the packing list document has intensified as being a mandatory document required by Customs and banks under documentary credit system. It is very much in evidence in containerized shipments.

The document gives details of the invoice, buyer, consignee, country of origin, vessel/flight date, port\airport of loading, port\airport of dispatch, place of delivery, chipping marks/container number, weight/volume (cube) of merchandise and the fullest details of the goods, including packaging information.

1.11. Parcel Post Receipt

This is issued by the Post Office for goods sent by parcel post. It is both a receipt and evidence of dispatch.

1.12. Phytosanitary Certificate

The importation of all planting materials, forests trees and other trees and shrubs, and certain raw fruit and vegetables must be accompanied by a phytosanitary certificate in most countries.

1.13. Quality Certificate

A quality certificate is used by the exporter and confirms for the importer that the quality\specification of a particular consignment of goods is in accord with the export sales contract at the time of shipment. It is usually required under letter of credit terms.

1.14. Ship’s Delivery Order

A delivery order is written authority to deliver goods, etc. to a named party in exchange for the bill of lading usually at the port of destination. It is issued at the port of destination and is subject to all the terms and conditions of the carrier’s bill of lading.

1.15. Weight Certificate

A weight certificate confirms that the goods accord with the weight specified on the bill of lading/invoice/certificate of insurance or other specified document.