Q.Explain briefly the important documents used in export trade.
Export documents can be grouped by the stage of the transaction they belong to.
Documents related to goods: the Commercial Invoice states the description, quantity and price of the goods and is used by customs in both countries to assess value; the Packing List shows how the consignment is packed, helping the buyer and customs identify the cargo without opening every case.
Documents related to shipment: the Shipping Bill is filed with Indian customs and is the primary document permitting the goods to be exported; the Mate's Receipt, issued by the ship's captain on loading, is exchanged with the shipping line for the Bill of Lading (sea cargo) or Airway Bill (air cargo) — the document of title that the exporter needs to claim payment and the importer needs to take delivery.
Documents related to origin and insurance: the Certificate of Origin certifies which country manufactured the goods, which the importer may need to claim a preferential rate of duty; the Marine/Cargo Insurance Policy is evidence that the goods are insured against loss or damage during the voyage.
Documents related to payment: the Bill of Exchange, drawn by the exporter, directs the importer (or the importer's bank) to pay the invoice amount; where a Letter of Credit has been arranged, the exporter's bank examines these very documents against the credit's terms before releasing payment to the exporter.
The important export documents are the Commercial Invoice and Packing List (describing the goods), the Shipping Bill and Mate's Receipt (loading and customs clearance), the Bill of Lading/Airway Bill and Certificate of Origin (title and origin), the Marine Insurance Policy (risk cover), and the Bill of Exchange/Letter of Credit (securing payment).
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