Many types documents are required in completing an international trade transaction because many organizations are involved in each transaction.These organization include bank,shipping agents,and insurance companies.Each organizations is contracted to perform a service necessary to the transaction,and each contracted is represented by a document.International trade document.International trade documents can be classified into thee broad categories: commercial documents,transport documents,and financial documents.
The main commercial documents are invoices.The pro-forma invoice is price quotation by an exporter to a potential overseas buyer.It has several uses.First,the overseas buyer might need to present the pro-forma invoice to the government authorities in his country in order to obtain an import license or foreign exchange to pay for the goods.Second,it serves as a price quotation and might include the terms of sale. Moreover,it is used when the exporter requires cash with the pro-forma invoice; the exporter will dispatch the goods and a receipt.
In general, when a pro-forma invoice is issued,there has been on agreement to buy or sell goods.If the buyer accepts the quotation, there is a firm contract of sale.When an order has been made,a "commercial invoice" is sent to buyer,as demand for payment for payment for the goods sold.The commercial invoice is a detailed record of the terms of sale with a price breakdown of all charges and a specific description of the cargo.Since the commercial invoice states the actual value of the shipment, it is used by insurance companies to issue the correct insurance coverage.The commercial invoice is also used by customs of the importing country in assessing import duties.
The certified invoice is a commercial invoice which includes a statement by the exporter not only about their country of origin.The consular invoice is a commercial invoice which is prepared in the exporter is country and certified by the consulate of the buyer is control imports,e.g. to prevent "dumping" of goods.A consular invoice must be used for export to any country which requires its use.