lesson 13

1.What are the possible consequences of incorrect documentation?If the documents are not correct, the importer will have difficulties in taking delivery of the goods, and delays caused by incorrect documentation may affect future business relations between the trading partners.In the case of, any discrepancy, even in minor details, between the documents presented and those specified in the credit may lead to refusal by the bank to make payment.2.What factors decide the types of documents required for a particular transaction?Different documents are required for different transactions, depending on the nature of the deal, the term of delivery, the type of commodity, stipulations of credit, regulations and practices in different countries, etc.3.What is a commercial invoice? What is the relation between the commercial invoice and otherdocuments? Mention some of the major contents to be included in a commercial invoice.The commercial invoice is the general description of the quality and quantity of the goods and the unit and total price. The commercial invoice constitutes the basis on which other documents are to be prepared, and the banks check the conformity between credit terms and documents and the conformity between the documents. Major contents: invoice number and the date; name and address of the buyer and the seller;contract number and credit number; description of the goods including name of the commodity, quantity, specifications, etc; unit price, total price, price terms, and commission and discount if any, terms of delivery and terms of payment; packing, shipping marks, etc; and seal or signature of the exporter.4.Mention 2 types of shipping documents that are similar in function to the packing list. What is thedifference between them and the packing list?Specification list and the weight list are similar to the packing list in function, while the specification list emphasizes the description of the specifications of the goods, and the weight list put emphasis on the weight of the goods and are generally used for goods which are based on the weight for price calculation.5.What are the 3 major functions of the bill of lading?(1) It serves as a cargo receipt signed by the carrier and issued to the shipper or consignor; (2) It constitutesa contract of carriage between the carrier and the consignor; (3) It is a document of title to the goods, andthe legal holder of the bill of lading is the owner of the goods it covers.6.Define the meaning of “ the consignee.” Who is possibly to be the consignee in a bill of lading?Consignee is generally either the importer or made out “to order”.7.What is a clean on board bill of lading? Is a foul (not clean) bill of lading acceptable?A clean bill of lading is one which states that the goods have been shipped in apparent good order andcondition. An on board bill of lading indicates that the shipment has been actually loaded on the carrying vessel bound for the port of destination. A foul bill of lading is not acceptable.8.Give the names of the counterparts of the ocean bill of lading in the case of air transportation andrailway transportation.Airway bill and railway bill, cargo receipt.9.In what currency should the goods be insured? Where are insurance claims to be settled?The currency of the amount insured should be the same as that of the credit. Unless otherwise specified in the credit, the port of destination is taken as the place for settling claims.10.Is it acceptable for the date of the insurance document to be later than the date of the Bill of Lading?Why?No. Because in that case, the goods would be uncovered for the period of time before the date of the insurance of document.Documentation: the preparation and use of shipping documents.Consignee: the party in the bill of lading to whom the goods are shipped.Shipping marks: what is printed on the outer packing of goods as symbol for identification in the course of transportation.Discrepancy: absence of agreement.Liability: what one is responsible for according to law.Apparent: according to appearance; seemingInsurance policy: a document used for covering possible risks.Discount: amount of money that may be taken off the full amount.Title: right to the possession of a position or property.Invoice: a document for the general description of the goods and the price1. 1The use of correct documents is very important in international trade, or the importer will have difficulties in taking delivery of the goods.2．2The commercial invoice is generally called “the invoice”, this document is the general description of the quality and quantity of the goods and the unit and total price.3．3It is necessary to insure the goods against the possible risks they are exposed to in the course of transportation4．4An on board bill of lading indicates that the shipment has been actually loaded on the carrying vessel bound for the port of destination.5．5A clean bill of lading is one which states that the goods have been shipped in apparent good order and condition, which means it is devoid of any qualifying remarks about the packing and the outer appearance of the goods。