Q.Explain the important documents used in export trade and the purpose of each.

Export trade relies on a standard set of documents that pass between the exporter, importer, banks, carrier and customs, each with a definite purpose — describing the goods, serving customs, transferring title, covering risk, or collecting payment.

A number of documents are used in export trade, each with a definite purpose:

1. Commercial invoice — the exporter's bill for the goods, stating the description, quantity, price and terms; it is the basic document against which the others are checked.
2. Packing list — gives details of how the goods are packed (contents, weight and marks of each package) so the consignment can be verified easily.
3. Shipping bill — the main customs document that the exporter (or C&F agent) must submit to obtain customs clearance for export; without it the goods cannot be loaded.
4. Mate's receipt — issued by the ship's officer (mate) acknowledging that the goods have been received and loaded on board; it is later exchanged for the bill of lading.
5. Bill of lading — issued by the shipping company for goods sent by sea; it is a receipt for the goods, evidence of the contract of carriage, and a document of title to the goods. (For air shipment the corresponding document is the airway bill.)
6. Certificate of origin — certifies the country in which the goods were produced or manufactured; the importer needs it to claim any preferential customs treatment and to satisfy his country's import rules.
7. Marine insurance policy — the contract of insurance covering the goods against the perils of transit; it protects whichever party bears the risk during carriage.
8. Bill of exchange — the instrument the exporter uses to collect payment through the banking channel; it is a written order requiring the importer to pay the stated amount on sight or on a future date. …

Do not merely list document names; the question asks for the purpose of each. Also be careful to attribute the 'document of title' feature only to the bill of lading (sea), and remember the shipping bill is a customs do …