Significance of Documentation in the International Shipping of Cargo Documentation is one of the main aspects of international trade. It represents the contract of carriage, detailed description of the goods, the terms and conditions under which the logistic operation takes place, payment terms, and the ownership of goods. Moreover, it verifies that the goods were delivered in the right condition. There are various documents involved in the international shipment process that we shall discuss here. These documents are obligatory while dealing in international trade, so read them carefully! Performa Invoice Performa invoice can be said to be a precursor to an invoice. It is a type of quotation form used in an international transaction to specify the exact rates and services/products that the other party will receive. A proforma invoice is required to plan for financing, to claim the goods at customs, and to apply for the proper import licenses, and more. It contains certain information like description and classification of the goods, the details about the buyer and seller in the transaction, the payment term of the sale, delivery details including the delivery charges, and the currency used in the quote. Commercial Invoice After sending the proforma invoice and receiving their orders, you will be required to produce a commercial invoice that contains detailed information of the entire export transaction. Although it looks like a proforma invoice, it gives necessary specifications regarding the nature of the goods, including its identification, market value, purchase order number, etc.
It is this document that specifies the details of the transaction to the tax authorities, that is why it is significant for the party importing the goods. Certificate of Origin Often some countries ask for a certificate of origin that specifies the country of origin of goods. This certificate is accepted only when it is signed from a country’s consulate office. Even though you have specified the country of origin of goods in commerce invoice, it is vital to prepare the certificate of origin. Also, make sure that it conforms to all the laws and regulations while creating it.
