Commercial Documentation Flashcards
When are ‘export documents’ prepared?
Most commercial documents are prepared in the country of origin. Exporters always issues commercial invoices; determining who is responsible for the rest of documentation depends on the Incoterm governing the transaction.
What are some challenges regarding ‘import documentation?
Because we are at the receiving end of the import, we have little control or input plus documentation could be received late. It is important to understand the terms of Incoterms ( International Commercial Terms), so differences in language, culture, political systems and business climate.
What is the main goal of an import forwarder?
To advise the customer (importer) of the import documentation requirements and to guide the overseas shipper on the required documents so that they are complete and correct in order to meet all of Canada entry requirements of Canada Customs (CBSA) and other government departments.
What is the importance of a ‘Commercial Invoice’?
- It is a contractual document between buyer and seller, whereby the seller supplies a specific product at an agreed price with some conditions (terms of delivery [Incoterm] and payment).
- It is the accounting document against which the buyer pays the seller.
- It is the main document used to support the customs declaration, since it provides the information on the commodity description, the origin, quantity and the value.
What is a ‘Pro Forma Invoice’? What are some similarities and differences between this and Commercial Invoice?
An estimated invoice issued by the seller in advance of a shipment. It has the same information as a commercial invoice, accept it is not a final invoice nor a request of payment. It is seen as a commitment from the seller to supply goods and when accepted by the buyer by way of a purchase order. Usually it prepares importer for customs and financial purposes.
Pro Forma Invoices can be used to accompany shipments of no commercial value, like gifts and samples for free distribution at trade shows.
What is a ‘The Packing List’, and why is it important?
Also called a packing slip, it is the itemized list of articles included in each shipping package, giving the quantity, discerption, item numbers, model numbers and weight of contents, as well as dimensions, and net and gross weights of the shipping packages. Prepared buy the shipper and used by the consigned for tallying when goods are delivered, and inventory management.
It provides a means of quickly identifying merchandise.
It is essential to support the insurance claim in the event of loss.
Gives the receiver a means to quickly unpack/check contents by package.
Helps planning pickup and delivery, as it provide weights and measurements.
