Assignment

1. Give the definition of:

a) an indorsement;

b) blank indorsement;

c) special indorsement;

d) qualified indorsement.

II. Speak on:

Commercial paper must satisfy certain requirements.

Unit 3 commercial documents Study these vocabulary notes

invoice		накладна, квитанція, рахунок-фактура
pro-forma (lat.)		заради форми
price		ціна
quotation		котировка, оферта
overseas		закордонний
obtain		одержати
licence		ліцензія
accept		прийняти
firm		твердий, точний
replicate		повторювати, дублювати
tender		пропонувати, робити заявку
despatch		відправляти, посилати
receipt		квитанція
CIF		ціна, страховка та фрахт
reconciliation		узгодження (погодження)
bill of lading		транспортна накладна, коносамент
waybill		маршрут, дорожний лист
layout		план, схема
certified invoice		завірений рахунок-фактура
consular		консульський
consulate		консульство
weight note		накладна на вантаж
tally (with)		співпадати
quality inspection certificate		сертифікат перевірки якості

Commercial Documents

The main commercial documents are invoices. There are four main types of invoice.

1. A pro-forma invoice. This is a price quotation by an exporter to a potential overseas buyer. There has been no agreement to buy and sell goods at this stage. A pro-forma invoice has several uses.

1. The overseas buyer might need to present a pro-forma invoice to the government authorities in his country in order to obtain an import licence or the foreign exchange to pay for goods.

2. It serves as a price quotation, and might include the terms of sale. If the buyer accepts the quotation, there is a firm contract of sale. The commercial invoice sent later should replicate the pro-forma invoice.

3. In the same way, it can be used to tender for an export contract.

4. It is used when the exporter requires cash with order. When the buyer makes a payment in accordance with the pro-forma invoice, the exporter will despatch the goods and a receipt.

2. A commercial invoice. This is a demand for payment for goods sold. Amongst the information shown in the invoice will be:

1. description of goods, quantity, unit price and total sales price;

2. the terms of delivery (e.g. CIF Sydney Container Terminal);

3. the terms of payment ( e.g. 60 days after date of invoice).

The commercial invoice should be capable of easy reconciliation with the bill of lading or waybill, and SITRO has produced a standard “master document” which provides the same basic layout and references for both the invoice and the transport document.

Note: SITRO – The Simplification of International Trade Procedure Board, established in 1971. In the UK, the government made some efforts to simplify the documentation in international trade by standardising the layout of documents such as bills of lading, waybills and invoices.

3. A certified invoice is a commercial invoice which also includes a statement by the exporter about the condition of the goods sent, or their country of origin. Some form of statement might be provided at the request of the buyer or for the benefit of customs authorities of the buyer’s country.

4. A consular invoice is a commercial invoice which is prepared on a form printed in the exporter’s country by the consulate of the buyer’s country. It is then stamped by the consulate. The purpose of a consular invoice is to help the government of the buyer’s country to control imports into the country ( e.g. to prevent “dumping” of goods ). A consular invoice will be used for exports to any country which requires their use.

Other commercial documents are:

1. a weight note. This is a document issued by the exporter or a third party declaring the weight of the goods in the consignment. This declared weight must tally with the weight declared on the transport document and shown on the invoice;

2. a packing list and specification for use by customs authorities;

3. a supplier’s quality inspection certificate. This is a signed declaration by the exporter that goods have been inspected before despatch and are of quality in accordance with the contract of sale;

4. the buyer can ask an independent checker to look at the quantity of the goods before despatch. This independent person would issue a third party quality inspection certificate.

5. The third party certificate of inspection is a document that might be of particular value to the buyer, because it provides independent evidence to the buyer that the goods have been shipped by the supplier in good condition and according to specification. The buyer must insist on such a certificate being provided as a precondition for paying for the goods in situation where the buyer must pay before even being allowed to see the goods.

Assignment