Monday, June 15, 2015

Top 10 export and import documents part 2

                                   Top 10 export and import documents 

                                                            Part 2

Irrevocable letter of credit L / C

In an Irrevocable letter of credit L/C the importer's bank agrees to the exporter ( called ''the beneficiary'') that the exporter will get paid if it can prove it has shipped the prper goods by providing the corresponding documents required by the letter of credit.

Exporter like letters of credit because the advance assurance of payment ensure the seller that it will not waste time preparing or shipping an order to a buyer who ultimately refuse to accept or pay for the goods.

An Irrevocable letter of credit cannot be amended or cancelled without the consent of all parties. The terms '' letters of credit''  and '' documentary credit'' mean the same thing.  Exporters , importers and bankers in some parts of the world ( USA, Asia) tend to use the term   ''letter of credit '' or abbreviation '' L/C " , while in other areas ( Europe) prefer to use '' documentary credit '' or '' DIC ''.

CMR Document

The CMR transport document is an international consignment note used by drivers, operators and forwarders alike that governs the responsibilities and liabilities of the parties to a contract for the carriage of goods by road internationally.

The carrier usually completes the form , but the sender - in other words the exporter is responsible for the accuracy of the information and must sign the form when the goods are collected. The consignee will also sign the form on delivery, which is essential for the carrier to be able to confirm the delivery of the goods and to justify the payment for its services.

The CMR transport document is not a document of title and is therefore non-negotiable. This document is prepared by the exporter and the freight forwarder and is addressed to the importer and the carrier.

Bill of lading  B/L

A bill of lading B/L is a document issued by the agent of a carrier to a shipper, signed by the captain, agent, or owner of a vessel, furnishing written evidence regarding receipt of the goods ( cargo ), the conditions on which transportation is made ( contract of carriage ) , and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading.

A bill of lading is , therefore, both a receipt for merchandise and a contract to deliver it as fright. There are a number of different types of bills of lading and a number of regulations that relate to them as a group of documents.

Since this is a negotiable instrument , the Bill of lading may be endorsed and transferred to a third party while the goods are in transit. This document is prepared by the shipping and addressed to the exporter, the shipping company trough the agent, and the importer.

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