Explain the following documents used in international trade:
(a) Indent;
(b) Bill of lading
(c) Consular invoice
(d) Certjficate of origin
(e) Bill of exchange.
Explanation
Documents used in International trade:
(i) Indent: An indent is a document used by the importer to order goods from the exporter through his agent which gives details about the goods required. Indent can be closed or open. A closed indent restricts the agent to a named manufacturer from who the goods must be obtained. An open indent on the other hand gives the agent a free hand in obtaining the goods from any source.
(ii) Bill of Lading: A document signed by the ship owner specifying that certain goods have been shipped in one of his ships. It serves as a document of the title to the goods stated on the bill. It also serve as a contract of carriage between the exporter and the shipping company. It represents an acknowledgement of the receipt of goods by the ship owner.
(iii) Certificate of origin: The document certifies that the goods listed on the certificate are wholly or partly produced in the country where the certificate was issued. The certificate must be signed by an approved authority and it must accompany the invoice of the goods sent to the importer. It is used to claim preferential treatment on location where there is bilateral trade agreement.
(iv) Consular invoice: A consular invoice is a document prepared by the exporter and signed by the consular of the importing country to vouch for the correctness of the price stated on the invoice. The document is used to calculate duties payable by the customs authority. It is used to prevent the importer from cheating the country on duties payable.
(v) Bill of Exchange: A bill of exchange is an unconditional order in writing, signed by the person giving it, requiring the person to whom it is addressed, to pay a sum certain in money at a fixed or determinable future time, or to the order of a specified person or bearer. It is drawn by the exporter when the importer is unable to pay immediately. The bill has to be accepted by the importer before it becomes a negotiable instrument.