Page 234 - DMGT547_INTERNATIONAL_MARKETING

Unit 13: Export Documentation

exporter has to pay to the embassy concerned fee for the certification of this invoice. The Notes
consular invoice is required to be prepared in a prescribed format and it should be singed/
certified by the consular of the importing country located in the country of export. The
main purposes of the consular invoice are to enable the importer’s country to collect
accurate and authenticated information about the value, volume, quality and source, etc.
of the import for assessing import duties and for other statistical purposes. It helps the
importer to get the goods cleared through the customs without any undue delay.
Customs invoice: Countries like USA and Canada require customs invoice for their customs
valuation. The exporter has to submit the invoice in the prescribed form in such cases.
On the basis of the privet charged, as per the agreement, the commercial invoice may be
of different types (a) fob invoice (b) C&F invoice (c) cif invoice (d) ex-ship price (e) Franco
invoice.
Legalised invoice: Some countries like Mexico require legalised invoice. It is not more
different from the consular invoice as far as the aim of exporting countries is concerned.
The only difference is that there is no prescribed form for obtaining the legalised invoice.

Certified invoice: At times the exporter is called upon to certify on the invoice that the
goods are of particular origin, have been manufactured/packed at a particular place and
in accordance with a specific contract. When such certificates appear on the invoice, it is
called certified invoice.
Bill of exchange: When a draft bill is drawn on a foreign firm, it is termed as a foreign draft
or bill of exchange. It is prepared either in an international currency or Indian rupee
depending on the terms of contract. Accordingly, the bill is known by the name of currency
in which it is drawn. For example, the bill drawn in US dollars is known as “Dollar Bill”
and when prepared in rupees it is termed as “Rupee Bill”. A bill of exchange or draft is of
two types (a) “Sight Draft” and (b) “Usance Draft or Usance Bill”. When a drawer, i.e.
exporter, expects the drawee, i.e., importer, to make payment immediately after the draft
is presented to him, it is called a sight draft. Where the exporter has agreed to give foreign
buyer, he draws a usance bill, i.e. draft which is drawn for payment at a date later than the
date of presentation.
Proforma invoice: While talking about the above-mentioned invoices we should be clear
about proforma invoice. This is the temporary commercial invoice prepared and sent by
an exporter to the importer. It contains almost the same particulars as commercial invoice.
The purpose of this invoice is to help the importer – (1) in getting an import license in his
own country if so required and (2) in opening the letter of credit in favour of the exporter
in his own country. The exporter should cultivate a habit of sending a proforma invoice
even if the same is not demanded.
Packing list: It is a list showing details of goods contained in each parcel/shipment.
It shows item-by-item the contents of the containers or parcels shipped to enable the
buyer/receiver of the shipment to check the shipment. Packing list has to be prepared in
the aligned document form.
Letter of credit: Letter of credit, popularly known as LC, is the most important form of
export trade. It is a promise by the overseas importer through his banker where LC is
opened by him to the exporter through his banker to pay the proceeds and receipt of
documents certifying the shipment of goods. The exporter should carefully examine the
terms and conditions of the LC to ensure that (i) he can meet them and (ii) they conform to
the basic contract entered into with the importer.

Marine insurance: It is the basic instrument in marine insurance. A marine insurance
policy is a contract between the policyholder and the insurance company. It is also a legal

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