| In today's shrinking world, there is hardly any | | | | papers stipulated in it are in order. |
| business transacted which does not require goods | | | | Shipment documents - a bill of lading is needed for |
| and services to cross national shores. Import and | | | | sea shipments or an airway bill when goods are sent |
| export activity is routine for many businesses, and | | | | by plane, as proof of dispatch. |
| the lifeblood of others. No doubt, you have used | | | | Certificates of origin - some countries have |
| imported materials in your company before, but if | | | | restrictions on the volume of business that can be |
| this is the first time that you are importing or | | | | done with other countries. Alternatively, there may |
| exporting something directly yourself, the following | | | | be tariff benefits accorded to goods from specific |
| checklist will help you. | | | | supply sources. In such cases, an exporter will need |
| It is said that international trade does not deal with | | | | to submit a Certificate of Origin, which is endorsed |
| goods or services, but with documents. Strange, but | | | | by a designated regulatory authority or Chamber of |
| true! The importance of correct paperwork cannot | | | | Commerce. |
| be overstated when it comes to import and export | | | | Quality or inspection certificates - if the buyer |
| transactions. If you're the type who cannot abide | | | | specifies an inspection prior to shipment, be sure he |
| paperwork, may we suggest that you hire someone | | | | wants to see some proof of that on paper! |
| who can! Documentation is crucial to international | | | | Packing list - finally, something that makes sense! |
| trade, and there's plenty of it to deal with. | | | | How would you like to receive a container full of |
| The documents required to successfully complete an | | | | cartons with no clue as to which one contains what |
| import and export transaction vary from country to | | | | item? |
| country, but broadly they will cover the following: | | | | Invoice - but of course! Make sure you've written |
| Purchase order - sure, this is a business requirement, | | | | everything correctly, including the currency of |
| but a purchase order may also be needed by the | | | | transaction. |
| buyer or seller for arranging finance. A bank may ask | | | | Others(!) - these are specific requirements, and |
| the importer for a copy before it issues a letter of | | | | change from country to country. For example, |
| credit to him, which will be used to pay the exporter. | | | | Australia has stringent quarantine restrictions |
| On the other hand the exporter might be able to get | | | | governing the trade of food and animal products. You |
| financing from his bank, on the basis of a confirmed | | | | would need to secure a permit, or subject your |
| order (also called purchase order financing). | | | | goods to an inspection or both. |
| Letter of credit - this is used for making payments | | | | This might seem like a long list, but is in no way |
| for imported goods, once the necessary documents | | | | exhaustive. That is why you need to hire someone |
| are handed over (see, we told you they were | | | | who understands import and export documentation, |
| important). A letter of credit basically says that the | | | | so that you can be sure that your international |
| importer's bank guarantees to pay provided all the | | | | business proceeds smoothly. |