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In today’s Store Management’s class, we will be learning about Documents Used in Foreign Trade
Documents Used in Foreign Trade
Have you ever bought a shoe from the market and saw, ‘Made in China?’
Over the years, different countries of the world have engaged in buying and selling from one another.
However, for an international trade to succeed and go smoothly, there is a need for some documents to be made available and provided, these documents are as follows:
Indent: This is a document used in international trade; it is an order or privilege to buy goods conveyed by an importer to a potential buyer. Indent is an official order or requisition for goods; it gives details of the goods, approximate price, date of delivery and so on.
It can be open or closed. Open indent is the one that has to do with an order from abroad to a merchant with freedom to purchase goods from any manufacturer he pleases while closed indent the foreign buyer will specify the manufacturer from whom the goods are to be purchased.
Bill Of Lading: A bill of lading is a document of title giving the holder a right to take possession of the goods to which it refers. A bill of lading is a contract of carriage of goods between an exporter and the shipping company.
Certificate Of Origin
A certificate of origin (CO) is a document declaring in which country a commodity or good was manufactured. The certificate of origin contains information regarding the product, its destination, and the country of export. For example, a good may be marked “Made in the USA” or “Made in China”.
Required by many treaty agreements for cross-border trade, the CO is an important form because it can help determine whether certain goods are eligible for import, or whether goods are subject to duties.
Air Waybill (Awb)
An air waybill (AWB) is a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment and allow it to be tracked.
The bill has multiple copies so that each party involved in the shipment can document it. An air waybill (AWB), also known as an air consignment note, is a type of bill of lading.
However, an AWB serves a similar function to ocean bills of lading, but an AWB is issued in non-negotiable form, meaning there’s less protection with an AWB versus bills of lading.
In summary, anytime you see a foreign product in the market, remember that it must have involved some documents for these countries to have their products available in the market.
Explain what you understand by Documents Used in Foreign Trade
Explain two documents used in foreign trade
List five different products made by foreign countries that can be found in your locality.
We hope you enjoyed today’s class. In our next class, we will be talking about Entry For Free Goods.
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