Letter of credit

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After a contract is concluded between buyer and seller, buyer's bank supplies a letter of
credit to seller.

Seller consigns the goods to a carrier in exchange for a bill of lading.

Seller p bill of lading for payment from buyer's bank. Buyer's bank exchanges bill of lading for
payment from the buyer.
Buyer provides bill of lading to carrier and takes delivery of goods.

A standard, commercial letter of credit (LC[1]) is a document issued mostly by a financial

institution, used primarily in trade finance, which usually provides an irrevocable payment
undertaking.

The letter of credit can also be source of payment for a transaction, meaning that redeeming the
letter of credit will pay an exporter. Letters of credit are used primarily in international trade
transactions of significant value, for deals between a supplier in one country and a customer in
another. In such cases the International Chamber of Commerce Uniform Customs and Practice
for Documentary Credits applies (UCP 600 being the latest version).[2] They are also used in the
land development process to ensure that approved public facilities (streets, sidewalks, storm
water ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is
to receive the money, the issuing bank of whom the applicant is a client, and the advising bank
of whom the beneficiary is a client. Almost all letters of credit are irrevocable, i.e., cannot be
amended or canceled without prior agreement of the beneficiary, the issuing bank and the
confirming bank, if any. In executing a transaction, letters of credit incorporate functions
common to giros and Traveler's cheques. Typically, the documents a beneficiary has to present
in order to receive payment include a commercial invoice, bill of lading, and documents proving
the shipment was insured against loss or damage in transit.

[edit] Terminology
[edit] Origin of the term

The English name “letter of credit” derives from the French word “accreditation”, a power to do
something, which in turn is derivative of the Latin word “accreditivus”, meaning trust. This
applies to any defense relating to the underlying contract of sale. This is as long as the seller
performs their duties to an extent that meets the requirements contained in the letter of credit.
[citation needed]

[edit] Types and related terms

Letters of credit (LC) deal in documents, not goods. The LC could be irrevocable or revocable.
An irrevocable LC cannot be changed unless both the buyer and seller agree. Whereas in a
revocable LC changes to the LC can be made without the consent of the beneficiary. A sight LC
means that payment is made immediately to the beneficiary/seller/exporter upon presentation of
the correct documents in the required time frame. A time or date LC will specify when payment
will be made at a future date and upon presentation of the required documents.[citation needed]

Negotiation means the giving of value for draft(s) and/or document(s) by the bank authorized to
negotiate, viz the nominated bank. Mere examination of the documents and forwarding the same
to the letter of credit issuing bank for reimbursement, without giving of value / agreed to give,
does not constitute a negotiation.[clarification needed][citation needed]

[edit] Documents that can be presented for payment

To receive payment, an exporter or shipper must present the documents required by the letter of
credit. Typically instead of presenting goods themselves, a document proving the goods were
sent is presented instead. However, the list and form of documents is open to imagination and
negotiation and might contain requirements to present documents issued by a neutral third party
evidencing the quality of the goods shipped, or their place of origin or place. Typical types of
documents in such contracts might include:[citation needed]

 Financial Documents

Bill of Exchange, Co-accepted Draft

 Commercial Documents

Invoice, Packing list

 Shipping Documents

Transport Document, Insurance Certificate, Commercial, Official or Legal Documents

 Official Documents

License, Embassy legalization, Origin Certificate, Inspection Certificate, Phytosanitary

certificate

 Transport Documents

Bill of Lading (ocean or multi-modal or Charter party), Airway bill, Lorry/truck receipt,
railway receipt, CMC Other than Mate Receipt, Forwarder Cargo Receipt, Deliver
Challan...etc

 Insurance documents
 Insurance policy, or Certificate but not a cover note.

[edit] Legal principles governing documentary credits

One of the primary peculiarities of the documentary credit is that the payment obligation is
abstract and independent from the underlying contract of sale or any other contract in the
transaction. Thus the bank’s obligation is defined by the terms of the credit alone, and the sale
contract is irrelevant. The defences of the buyer arising out of the sale contract do not concern
the bank and in no way affect its liability.[3] Article 4(a) UCP states this principle clearly. Article
5 the UCP further states that banks deal with documents only, they are not concerned with the
goods (facts). Accordingly, if the documents tendered by the beneficiary, or his or her agent,
appear to be in order, then in general the bank is obliged to pay without further qualifications.

The policies behind adopting the abstraction principle are purely commercial and reflect a
party’s expectations: firstly, if the responsibility for the validity of documents was thrown onto
banks, they would be burdened with investigating the underlying facts of each transaction and
would thus be less inclined to issue documentary credits as the transaction would involve great
risk and inconvenience. Secondly, documents required under the credit could in certain
circumstances be different from those required under the sale transaction; banks would then be
placed in a dilemma in deciding which terms to follow if required to look behind the credit
agreement. Thirdly, the fact that the basic function of the credit is to provide the seller with the
certainty of receiving payment, as long as he performs his documentary duties, suggests that
banks should honour their obligation notwithstanding allegations of misfeasance by the buyer.[4]
Finally, courts have emphasised that buyers always have a remedy for an action upon the
contract of sale, and that it would be a calamity for the business world if, for every breach of
contract between the seller and buyer, a bank were required to investigate said breach.

The “principle of strict compliance” also aims to make the bank’s duty of effecting payment
against documents easy, efficient and quick. Hence, if the documents tendered under the credit
deviate from the language of the credit the bank is entitled to withhold payment even if the
deviation is purely terminological.[5] The general legal maxim de minimis non curat lex has no
place in the field of documentary credits.

[edit] The price of letters of credit

All the charges for issuance of Letter of Credit, negotiation of documents, reimbursements and
other charges like courier are to the account of applicant or as per the terms and conditions of the
Letter of credit. If the letter of credit is silent on charges, then they are to the account of the
Applicant. The description of charges and who would be bearing them would be indicated in the
field 71B in the Letter of Credit.[citation needed]

[edit] Legal basis

Although documentary credits are enforceable once communicated to the beneficiary, it is
difficult to show any consideration given by the beneficiary to the banker prior to the tender of
documents. In such transactions the undertaking by the beneficiary to deliver the goods to the
applicant is not sufficient consideration for the bank’s promise because the contract of sale is
made before the issuance of the credit, thus consideration in these circumstances is past. In
addition, the performance of an existing duty under a contract cannot be a valid consideration for
a new promise made by the bank: the delivery of the goods is consideration for enforcing the
underlying contract of sale and cannot be used, as it were, a second time to establish the
enforceability of the bank-beneficiary relation.[citation needed]

Legal writers have failed to satisfactorily reconcile the bank’s undertaking with any contractual
analysis. The theories include: the implied promise, assignment theory, the novation theory,
reliance theory, agency theories, estoppels and trust theories, anticipatory theory, and the
guarantee theory.[6] Davis, Treitel, Goode, Finkelstein and Ellinger have all accepted the view
that documentary credits should be analyzed outside the legal framework of contractual
principles, which require the presence of consideration. Accordingly, whether the documentary
credit is referred to as a promise, an undertaking, a chose in action, an engagement or a contract,
it is acceptable in English jurisprudence to treat it as contractual in nature, despite the fact that it
possesses distinctive features, which make it sui generis.

A few countries including the United States (see Article 5 of the Uniform Commercial Code)
have created statutes in relation to the operation of letters of credit. These statutes are designed to
work with the rules of practice including the UCP and the ISP98. These rules of practice are
incorporated into the transaction by agreement of the parties. The latest version of the UCP is the
UCP600 effective July 1, 2007.[7] The previous revision was the UCP500 and became effective
on 1 January 1994. Since the UCP are not laws, parties have to include them into their
arrangements as normal contractual provisions.

[edit] International Trade Payment methods

This article is in a list format that may be better presented using prose. You can help
by converting this article to prose, if appropriate. Editing help is available. (January 2011)

 Advance payment (most secure for seller)

Where the buyer parts with money first and waits for the seller to forward the goods

 Documentary Credit (more secure for seller as well as buyer)

Subject to ICC's UCP 600, where the bank gives an undertaking (on behalf of buyer and at the
request of applicant) to pay the shipper (beneficiary) the value of the goods shipped if certain
documents are submitted and if the stipulated terms and conditions are strictly complied with.

Here the buyer can be confident that the goods he is expecting only will be received since it will
be evidenced in the form of certain documents called for meeting the specified terms and
conditions while the supplier can be confident that if he meets the stipulations his payment for
the shipment is guaranteed by bank, who is independent of the parties to the contract.
  Documentary collection (more secure for buyer and to a certain extent to seller)

Also called "Cash Against Documents". Subject to ICC's URC 525, sight and usance, for
delivery of shipping documents against payment or acceptances of draft, where shipment
happens first, then the title documents are sent to the [collecting bank] buyer's bank by seller's
bank [remitting bank], for delivering documents against collection of payment/acceptance

 Direct payment (most secure for buyer)

Where the supplier ships the goods and waits for the buyer to remit the bill proceeds, on open
account terms.

[edit] Risk situations in letter-of-credit transactions

This article is in a list format that may be better presented using prose. You can help
by converting this article to prose, if appropriate. Editing help is available. (January 2011)

Fraud Risks

 The payment will be obtained for nonexistent or worthless merchandise against

presentation by the beneficiary of forged or falsified documents.
 Credit itself may be forged.

Sovereign and Regulatory Risks

 Performance of the Documentary Credit may be prevented by government action outside

the control of the parties.

Legal Risks

 Possibility that performance of a Documentary Credit may be disturbed by legal action

relating directly to the parties and their rights and obligations under the Documentary
Credit

Force Majeure and Frustration of Contract

 Performance of a contract – including an obligation under a Documentary Credit

relationship – is prevented by external factors such as natural disasters or armed conflicts

Risks to the Applicant

 Non-delivery of Goods
 Short Shipment
 Inferior Quality
  Early /Late Shipment
 Damaged in transit
 Foreign exchange
 Failure of Bank viz Issuing bank / Collecting Bank

Risks to the Issuing Bank

 Insolvency of the Applicant

 Fraud Risk, Sovereign and Regulatory Risk and Legal Risks

Risks to the Reimbursing Bank

 no obligation to reimburse the Claiming Bank unless it has issued a reimbursement

undertaking.

Risks to the Beneficiary

 Failure to Comply with Credit Conditions

 Failure of, or Delays in Payment from, the Issuing Bank
 Credit Issued by Party other than Bank

Risks to the Advising Bank

 The Advising Bank’s only obligation – if it accepts the Issuing Bank’s instructions – is to
check the apparent authenticity of the Credit and advising it to the Beneficiary

Risks to the Nominated Bank

 Nominated Bank has made a payment to the Beneficiary against documents that comply
with the terms and conditions of the Credit and is unable to obtain reimbursement from
the Issuing Bank

Risks to the Confirming Bank

 If Confirming Bank’s main risk is that, once having paid the Beneficiary, it may not be
able to obtain reimbursement from the Issuing Bank because of insolvency of the Issuing
Bank or refusal of the Issuing Bank to reimburse because of a dispute as to whether or
not payment should have been made under the Credit

Other Risks in International Trade

 A Credit risk risk from change in the credit of an opposing business.

 An Exchange risk is a risk from a change in the foreign exchange rate.
 A Force majeure risk is 1. a risk in trade incapability caused by a change in a country's
policy, and 2. a risk caused by a natural disaster.
 Other risks are mainly risks caused by a difference in law, language or culture. In these
cases, the cargo might be found late because of a dispute in import and export dealings.
Home: Business / International Business

Import Export Business Required Documents

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By: William Nabaza

This knowledge and training I got to learn when I was International Sales Manager of a reputable cctv company in the
Philippines.

There's a saying that import and export business has nothing much to do with the products as compared with
import/export documentations. Correct paperworks play huge roles and cannot be underplayed in accurately
organizing your very own import and export business. At first, don't worry you don't have to do everything appoint
someone knowledgeable in this area who can assist you in import and export documentations, he or she needs to have
import export credentials for your company to have good reputation for your global trading. Later on, as the company
grows with you, you need to learn about these things to do it on your own.

From country to country there are little variation in essential import export documentations and are sure to include
the following:
1. Letter of Credit - Application letter for making payments for imported items, once the required papers are
turned over. It mainly states that importer's bank guarantees payment provided the entire import export
documentations specified in it are in order.

2. Purchase Order - A trade requirement mainly for financing purposes. You as a buyer/importer needs to prove
the order to your bank first to organize a provisional loan or this is to prove to the Customs that the entire thing is
legitimate and true.

3. Certificates of Origin - Differing countries have different limitations on the entrance of new commodities from
other countries, and may apply duties to these commodities or ban them altogether. We're looking at tax benefits on
the other hand, on specified items from specific supply sources. In such cases, the Exporter will require from the
Importer this certificate which is certified by importer's country's designated regulatory authority.

4. Bill of Lading - When commodities are sent via sea route, a required shpment documentations for sea
consignments are presented as further proof that commodities are sent by the supplier.

5. Airway Bill - This is same with bill of lading except this is documents when products are delivered via air
shipment.

6. Inspection or Quality credential - Vital documents required by Importers getting an examination of goods
prior shipment, making sure that deal is established in accordance to the buyer's requirement.

7. Packing List - Basically a list of all the cardboard boxes contained in the container and the contents lists inside
the boxes.

8. Invoice - this essential document will outline the complete synopsis of merchandise and is invoiced in the
currency of sale.

9. Others - Detailed documents requirements from country to country. For example, Australia has strict quarantine
limitations governing trade of animal and food items, be sure to know these and secure a permit or subject your
animal and food items to an inspection and quarantine requirement.

This should not be taken lightly hence the reason to hire staff under you that knows such things and are already
experienced with years to save you in future heartbreaks and huge money losses.

Export Procedures
    
 Documents Required
 - 
 Export Incentives
 - 
 Export Credits

Documents Required

Certain documentation takes

place while exporting from
India. Special documents may be required depending on the type of product or destination. Certain
export products may require a quality control inspection certificate from the Export Inspection Agency.
Some food and pharmaceutical product may require a health or sanitary certificate for export.

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing
shipment. Usually the Shipping Bill is of four types and the major distinction lies with regard to the
goods being subject to certain conditions which are mentioned below:

 Export duty/ cess

 Free of duty/ cess
 Entitlement of duty drawback
 Entitlement of credit of duty under DEPB Scheme
 Re-export of imported goods

The following are the documents required for the processing of the
Shipping Bill:

 GR forms (in duplicate) for shipment to all the countries.

 4 copies of the packing list mentioning the contents, quantity,
gross and net weight of each package.
 4 copies of invoices which contains all relevant particulars like
number of packages, quantity, unit rate, total f.o.b./ c.i.f.
value, correct & full description of goods etc.
 Contract, L/C, Purchase Order of the overseas buyer.
 AR4 (both original and duplicate) and invoice.
 Inspection/ Examination Certificate.

The formats presented for the Shipping Bill are as given below:

 White Shipping Bill in triplicate for export of duty free of

 goods.
 Green Shipping Bill in quadruplicate for the export of goods
which are under claim for duty drawback.
 Yellow Shipping Bill in triplicate for the export of dutiable
goods.
 Blue Shipping Bill in 7 copies for exports under the DEPB
scheme.

Note :- For the goods which are cleared by Land Customs, Bill of Export
(also of 4 types - white, green, yellow & pink) is required instead of
Shipping Bill.

Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant

documents are mentioned below:

 Customs Declaration Form - It is prescribed by the Universal

Postal Union (UPU) and international apex body coordinating
activities of national postal administration. It is known by the
code number CP2/ CP3 and to be prepared in quadruplicate,
signed by the sender.
 Despatch Note, also known as CP2. It is filled by the sender to
specify the action to be taken by the postal department at the
destination in case the address is non-traceable or the parcel is
refused to be accepted.
 Prescriptions regarding the minimum and maximum sizes of
the parcel with its maximum weight :
Minimum size: Total surface area not less than 140 mm X 90
mm.
Maximum size: Lengthwise not over 1.05 m. Measurement of
any other side of circumference 0.9 m./ 2.00 m.
Maximum weight: 10 kg usually, 20 kg for some destinations.
 Commercial invoice - Issued by the seller for the full realisable
amount of goods as per trade term.
 Consular Invoice - Mainly needed for the countries like Kenya,
Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq,
Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is
prepared in the prescribed format and is signed/ certified by
the counsel of the importing country located in the country of
export.
 Customs Invoice - Mainly needed for the countries like USA,
Canada, etc. It is prepared on a special form being presented
by the Customs authorities of the importing country. It
facilitates entry of goods in the importing country at
 preferential tariff rate.
 Legalised/ Visaed Invoice - This shows the seller's genuineness
before the appropriate consulate/ chamber of commerce/
embassy. It do not have any prescribed form.
 Certified Invoice - It is required when the exporter needs to
certify on the invoice that the goods are of a particular origin
or manufactured/ packed at a particular place and in
accordance with specific contract. Sight Draft and Usance Draft
are available for this. Sight Draft is required when the exporter
expects immediate payment and Usance Draft is required for
credit delivery.
 Packing List - It shows the details of goods contained in each
parcel/ shipment.
 Certificate of Inspection - It shows that goods have been
inspected before shipment.
 Black List Certificate - It is required for countries which have
strained political relation. It certifies that the ship or the
aircraft carrying the goods has not touched those country(s).
 Weight Note - Required to confirm the packets or bales or
other form are of a stipulated weight.
 Manufacturer's/ Supplier's Quality/ Inspection Certificate.
 Manufacturer's Certificate - It is required in addition to the
Certificate of Origin for few countries to show that the goods
shipped have actually been manufactured and are available.
 Certificate of Chemical Analysis - It is required to ensure the
quality and grade of certain items such as metallic ores,
pigments, etc.
 Certificate of Shipment - It signifies that a certain lot of goods
have been shipped.
 Health/ Veterinary/ Sanitary Certification - Required for
export of foodstuffs, marine products, hides, livestock etc.
 Certificate of Conditioning - It is issued by the competent
office to certify compliance of humidity factor, dry weight, etc.
 Antiquity Measurement - Issued by Archaeological Survey of
India in case of antiques.
 Transhipment Bill - It is used for goods imported into a
customs port/ airport intended for transhipment.
 Shipping Order - Issued by the Shipping (Conference) Line
which intimates the exporter about the reservation of space of
shipment of cargo through the specific vessel from a specified
port and on a specified date.
 Cart/ Lorry Ticket - It is prepared for admittance of the cargo
through the port gate and includes the shipper's name, cart/
lorry No., marks on packages, quantity, etc.
 Shut Out Advice - It is a statement of packages which are shut
out by a ship and is prepared by the concerned shed and is
 sent to the exporter.
 Short Shipment Form - It is an application to the customs
authorities at port which advises short shipment of goods and
required for claiming the return.
 Shipping Advice - It is prepared in aligned document to be
used to inform the overseas customer about the shipment of
goods.

5
 Instance of Operations Subject to Physical Control
- Designation of parcels to be inspected.
- Physical control of the goods, whether in totality or by testing.
- Issuance of release for operations that gave rise to no finding of violation.

II. DOCUMENTS REQUIRED FOR IMPORTATION/EXPORTATION

Documents to be attached for the purpose of levying duties and taxes
- Invoices corresponding to the goods for which complete declaration has been submitted.
- Bank certification mentioning the name of the bank paying agent and the amount expressed in
the invoiced currency, the exchange rate, and the reference information for the
importation papers;
- Breakdown of the value of each article;
- The exemption vouchers, if appropriate, etc.

Documents to be attached for the purpose of implementation of the customs regimes

- Certificates of origin.

Documents to be attached to ensure enforcement of the various pertinent laws, to the execution of
which the administration lends its assistance.
- Import and export permits specific to each product and lifting the prohibitions or restrictions
stipulated in non-customs-related statutes (efforts to curb fraud, health and veterinary
certificates, industrial standards, etc.);
- Exchange documents;
- Import and export permits required as needed to further the control of foreign trade.

Miscellaneous Documents
- As regards importation: shipping documents, such as bills of lading, waybills, and trucking bills
of lading.
- As regards exportation: notices of dockside delivery, receipt, or consignment, or any other
document in proof of delivery to customs for export of goods;
- Certificate of origin to cover preferred trade;
- Packing lists citing the weight per parcel, the number and types of goods;
- Documents in proof of inscription in the Trade Register, if applicable.

DOCUMENTS OF ORIGIN
The purpose of these documents is to show where the goods originated. Therefore, they play an
important role in order to establish the taxes and duties to be paid on the goods at the customs. One
must find out what type of document exactly is required at the customs in order to be able to benefit
from possible reduced tariffs.
Course objectives:

The main objectives of this learning unit are to learn about different types of documents used in
international trade (import and export), which documents are usually required by customs,
the requirements for various documents and how to fill in these documents correctly.

In this unit you will: learn about the various types of documents used in international trade.

This will be achieved by:

- Analyzing the various classifications and requirements of export documents.

- Learning what functions export documents perform.
- Learning the different types of documents of origin that evidence the origin of goods.
- Analyzing the various commercial and administrative documents.
- Examining other documents that may be required in international trade transactions.

Example of the course Import export documents:

Common Export Documents
The Section covers to documents that are commonly used in exporting, but specific requirements vary
by destination and product. It is divided in the following sections: common export-related documents,
certificates of origin, other certificates for shipments of specific goods, Export licenses and Temporary
shipment documents. For assistance with country-specific documentation requirements, please contact
the Trade Information Center at 1-800-USA-TRADE.

Common Export Documents

Certificates of Origin

Other Certificates for Shipments of Specific Goods

Export Licenses

Other Export Related Documents

Temporary Shipments

Common Export Documents

Airway Bill
Air freight shipments require Airway bills, which can never be made in negotiable form (see sample).
Airway bills are shipper-specific (i.e. USPS, Fed-Ex,UPS, DHL, etc).

Bill of Lading
A contract between the owner of the goods and the carrier (as with domestic shipments). For vessels,
there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or shipper's
order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The
customer usually needs an original as proof of ownership to take possession of the goods (see Sample
Short Form Bill of Lading and Sample Liner Bill of Lading).

Export Packing List

Considerably more detailed and informative than a standard domestic packing list, it lists seller, buyer,
shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity,
description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total
net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial
stationers and freight forwarders carry packing list forms. A packing list may serve as conforming
document. It is not a substitute for a commercial invoice.
Electronic Export Information Form (Shippers Export
Declaration)
The EEI is the most common of all export documents. Required for shipments above $2,500* and for
shipments of any value requiring an export license. SED has to be electronically filed via AES Direct
(free service from Census and Customs) online system.

*Note: EEI is required for shipments to Puerto Rico, the U.S. Virgin Islands and the former Pacific
Trust Territories even though they are not considered exports (unless each “Schedule B” item in the
shipment is under $2,500).

Shipments to Canada do not require an SED except in cases where an export license is required.
(Shipments to third countries passing through Canada do need an SED.)

<Return to Top>

CERTIFICATES OF ORGIN
Generic Certificate of Origin
The Certificate of Origin (CO) is required by some countries for all or only certain products. In many
cases, a statement of origin printed on company letterhead will suffice (download generic certificate or
see sample with explanation). The exporter should verify whether a CO is required with the buyer
and/or an experienced shipper/freight forwarder or the Trade Information center.

Note: Some countries (i.e. Middle East) require that certificate of origin be notarized, certified by
local chamber of commerce and legalized by the commercial section of the consulate of the
destination country.

For textile products, an importing country may require a certificate of origin issued by the
manufacturer. The number of required copies and language may vary from country to country.

Certificate of Origin for claiming benefits under Free Trade

Agreements
Special certificates may be required for countries with which the United States has free trade
agreements (FTAs). Some certificate of origin including those required by the North American Free
Trade Agreement (NAFTA), and the FTA’s with Israel and Jordan, are prepared by the exporter. Others
including those required by the FTA’s with Australia, CAFTA countries, Chile and Morocco, are
importer’s responsibility). Click on a specific country below to learn details on how to document origin.

 Australia (CO samples)

 Bahrain (importer to check with Govt. of Bahrain on format/information)
 CAFTA (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras CO sample)
 Chile (CO sample)
  Israel (sample Note: Green form needs to be purchased from Vendor or US-Israel Chamber of
Commerce or a publishing house )
 Jordan (notarized generic certificate of origin required)
 Morocco (importer makes a claim on the basis of supporting evidence)
 NAFTA (Mexican, Canada, sample)
 Singapore (no certificate of origin is required. However, the importer is required to produce the
necessary permits together with an invoice, at the time of cargo clearance.)

<Return to Top>

OTHER CERTIFICATES FOR

SHIPMENTS OF SPECIFIC GOODS
ATA CARNET/Temporary shipment certificate
An ATA Carnet a. k. a. "Merchandise Passport" is a document that facilitates the temporary
importation of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or
the posting of a security deposit normally required at the time of importation. Apply for an ATA
Carnet.

Certificate of Analysis:
A certificate of analysis is required for seeds, grain, health foods, dietary supplements, fruits and
vegetables, and pharmaceutical products.

Certificate of Free Sale

Certificate of free sale may be issued for biologics, food, drugs, medical devices and veterinary
medicine. More information is available from the Food and Drug Administration. Health authorities in
some states as well as some trade associations also issue Certificates of Free Sale.

Dangerous Goods Certificate

Exports submitted for handling by air carriers and air freight forwarders classified as dangerous goods
need to be accompanied by the Shipper’s Declaration for Dangerous Goods (sample) required by the
International Air Transport Association (IATA). The exporter is responsible for accuracy of the form
and ensuring that requirements related to packaging, marking, and other required information by
IATA have been met.

For shipment of dangerous goods it is critical to identify goods by proper name, comply with
packaging and labeling requirements (they vary depending upon type of product shipper and country
shipped to).  More information on labeling/regulations is available from the International Air
Transportation Association or Department of Transportation - HAZMAT websites.

Fisheries Certificate
The National Marine Fisheries Service conducts inspections and analyses of fishery commodities for
export.

Fumigation Certificate
The Fumigation Certificate provides evidence of the fumigation of exported goods (esp. agricultural
products, used clothing, etc). This form assists in quarantine clearance of any goods of plant or animal
origin. The seller to fumigate commodity at their expense a maximum of fifteen (15) days prior to
loading.

Halal Certificate
Required by most countries in the Middle East, this certificate states that the fresh or frozen meat or
poultry products were slaughtered in accordance with Islamic law. Certification by an appropriate
chamber and legalization by the consulate of the destination country is usually required.

Health Certificate
For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish seafood,
dairy products, and eggs and egg products). Note: Some countries require that health certificates be
notarized or certified by a chamber and legalized by a consulate. Health certificates are issued by the
U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS).

Ingredients Certificate
A certificate of ingredients may be requested for food products with labels that are inadequate or
incomplete. The certificate may be issued by the manufacturer and must give a description of the
product, contents and percentage of each ingredient, chemical data, microbiological standards,
storage instructions, shelf life, and date of manufacture. If animal fats are used, the certificate must
state the type of fat used and that the product contains no pork, artificial pork flavor, or pork fat. All
foodstuffs are subject to analysis by Ministry of Health laboratories to establish their fitness for use.

Inspection Certificate
Weight and Quality certificates should be provided in accordance with governing USDA/GIPSA
regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin
certified by local chamber of commerce at load port and a Phytosanitary certificate issued by
APHIS/USDA and Fumigation certificate are to be provided to buyer. Costs of all inspection,
certificates/ documents at the load port are usually the responsibility of the seller.

Insurance Certificate
Used to assure the consignee that insurance will cover the loss of or damage to the cargo during
transit (Sample). These can be obtained from your freight forwarder or publishing house. Note: an
airway bill can serve as an insurance certificate for a shipment by air. Some countries may require
certification or notification.
Phytosanitary Certificate
All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants, and plant
materials require a federal phytosanitary certificate. The certificate must verify that the product is free
from specified epidemics and/or agricultural diseases. Additional information and forms are available
from Animal and Plant Health Inspection Service (APHIS).

Radiation Certificate
Some counties including Saudi Arabia may require this certificate for some plant and animal imports.
The certificate is statement that the products are not contaminated by radioactivity.

Steamship or Airline Company Certificate

A declaration attached to a bill of lading or airway bill stating that the shipper will not stop at an
unscheduled port, attesting to the accuracy of the shipping route and providing other shipping
information such as name of vessel/plane, nationality of vessel/plane, owner of vessel/plane, names
of ports of call including port of leading and discharge.

Other (product-specific) certificates

Shaving brushes and articles made of raw hair must be accompanied by a recognized official
certificate showing the consignment to be free from anthrax germs. Used clothing requires a
disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a certificate
of weight. Many countries in the Middle East require special certificates for imports of animal fodder
additives, livestock, pets, and horses.

Weight certificate
Certificate of weight is a document issued by customs, certifying gross weight of the exported goods.

<Return to Top>

EXPORT LICENSES
Export license is a government document that authorizes the export of specific goods in specific
quantities to a particular destination. This document may be required for most or all exports to some
countries or for other countries only under special circumstances. Examples of export license
certificates include those issued by the the Department of Commerce’s Bureau of Industry and
Security (dual use articles), the State Department’s Directorate of Defense Trade Controls (defense
articles), the Nuclear Regulatory Commission (nuclear materials), and the US Drug Enforcement
Administration (controlled substances and precursor chemicals).

Destination Control Statement

Destination Control Statement (DCS) is required for exports from United States for items on the
Commerce Control List that are outside of EAR99 (products for which no license is required). A DCS
appears on the commercial invoice, ocean bill of lading or Airway bill to notify the carrier and all
foreign parties that the item can be exported only to certain destinations.

<Return to Top>

OTHER EXPORT RELATED

DOCUMENTS
Consular Invoice
Required in some countries, it describes the shipment of goods and shows information such as the
consignor, consignee, and value of the shipment. If required, copies are available from the destination
country's Embassy or Consulate in the U.S. What Does Consular Invoice Mean?
A document certifying a shipment of goods and shows information such as the consignor, consignee and
value of the shipment. A consular invoice can be obtained through a consular representative of the
country you're shipping to. The consular invoice is required by some countries to facilitate customs and
collection of taxes.

Canadian Customs Invoice

This customs invoice (Sample) is issued in Canadian dollars for dutiable and taxable exports exceeding
$1600 Canadian dollars. Detailed invoice requirements can be obtained at the Canadian Customs
website

Dock Receipt and Warehouse Receipt

Used to transfer accountability when the export item is moved by the domestic carrier to the port of
embarkation and left with the ship line for export.

Import License
Import licenses are the responsibility of the importer and vary depending upon destination and
product. However, including a copy of an import license with the rest of your documentation may in
some cases help avoid problems with customs in the destination country.

ISPM 15 (Wood Packaging) Marking

The International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging
Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary
Measures adopted by the International Plant Protection Convention (IPPC). The IPPC is an
international treaty to secure action to prevent the spread and introduction of pests of plants and
plant products, and to promote appropriate measures for their control. The American Lumber
Standard Committee (ALSC) and the National Wooden Pallet and Container Association (NWPCA)
provide phytosanitary certification for wood packaging materials (WPM). APHIS will issue a
phytosanitary certificate for wood package materials only if the WPM is the cargo.

Pre-shipment Inspections
The governments of a number of countries have contracted with international inspection companies to
verify the quantity, quality, and price of shipments imported into their countries. The purpose of such
inspections is to ensure that the price charged by the exporter reflects the true value of the goods, to
prevent substandard goods from entering the country, and to deflect attempts to avoid payment of
customs duties. Requirements for pre-shipment inspection are normally spelled out in letter-of-credit
or other documentary requirements. Inspections companies include Bureau Veritas, SGS and Intertek.
Some countries require pre-shipment inspection certificates for shipments of used merchandise.

Shippers Letter of Instruction

Issued by the carrier or the forwarder includes shipping instructions for air or ocean shipment
(sample)

<Return to Top>

TEMPORARY SHIPMENTS
ATA CARNET/Temporary shipment certificate
An ATA Carnet a. k. a. "Merchandise Passport" is a document that facilitates the temporary
importation of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or
the posting of a security deposit normally required at the time of importation. Apply for an ATA
Carnet.

Customs Certificate of Registration

Customs Form 4455 may be used (often in conjunction with temporary import bond or ATA Carnet for
goods that are leaving the United States on temporary basis for alteration, repair, replacement, and
processing.

Transporting goods by truck to Canada

Application to transact bonded carrier and forwarding operation—Form E370 is required to bring goods
over the border to Canada.

<Return to Top>
Purchase order
From Wikipedia, the free encyclopedia
Jump to: navigation, search

A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating

types, quantities, and agreed prices for products or services the seller will provide to the buyer.
Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a
PO by a seller usually forms a one-off contract between the buyer and seller, so no contract
exists until the PO is accepted.[1]

[edit] Background
There are several reasons why companies use POs.

PO's allow buyers to clearly and explicitly communicate their intentions to sellers, and sellers are
protected in case of a buyer's refusal to pay for goods or services. POs also help a purchasing
agent manage incoming orders and pending orders. Purchase orders also are an economical
choice for a business because they streamline the purchasing process to a standard procedure.

A Purchase Order Form should be used to request products and services from suppliers. Rather
than calling them to request your purchase, send them a Purchase Order Form. On the Purchase
Order you describe what it is that you require, when you want it and how much you expect to
pay for it. By using this Purchase Order Template, you can ensure you receive exactly what you
have ordered, at the right time and the right price.

[edit] Electronic Purchase Orders

Many Purchase Orders are no longer paper-based, but rather transmitted electronically over the
Internet. It is common for electronic purchase orders to be used to buy goods or services online
for services or physical goods of any type.

What is a Bill of Lading?

A bill of lading is a type of document that is used to acknowledge the receipt of a shipment of goods. A transportation company or car
issues this document to a shipper. In addition to acknowledging the receipt of goods, a bill of lading indicates the particular vessel on
 which the goods have been placed, their intended destination, and the terms for transporting the shipment to its final destination.

Inland, ocean, through, and air waybill are the names given to bills of lading. An inland bill of lading is a document that establishes an
agreement between a shipper and a transportation company for the transportation of goods. It is used to lay out the terms for
transporting items overland to the exporter's international transportation company. An ocean bill of lading is a document that provide
terms between an exporter and international carrier for the shipment of goods to a foreign location overseas.

A through bill of lading is a contract that covers the specific terms agreed to by a shipper and carrier. This document covers the domes
and international transportation of export merchandise. It provides the details of the agreed upon transportation between specific
locations for a set monetary amount. An air waybill is a bill of lading that establishes terms of flights for the transportation of goods bo
domestically and internationally. This document also serves as a receipt for the shipper, proving the carrier's acceptance of the shippe
goods and agreement to carry those goods to a specific airport.

Essentially, an air waybill is a type of through bill of lading. This is because air waybills may cover both international and domestic
transportation of goods. By contrast, ocean shipments require both inland and ocean bills of lading. Inland bills of lading
the domestic transportation of goods and ocean bills of lading are necessary for the international carriage of goods. Therefore, throug
bills of lading may not be used for ocean shipments.

Inland and ocean bills of lading may be negotiable or non-negotiable. If the bill of lading is non-negotiable, the transportation carrier i
required to provide delivery only to the consignee named in the document. If the bill of lading is negotiable, the person with ownersh
the bill of lading has the right of ownership of the goods and the right to re-route the shipment.

Air waybill
From Wikipedia, the free encyclopedia

Jump to: navigation, search

Air Waybill (AWB) or air consignment note refers to a receipt issued by an international airline
for goods and an evidence of the contract of carriage, but it is not a document of title to the
goods. Hence, the AWB is non-negotiable. We shall be dealing with the term non-negotiable
later.

[edit] Description
The Air Waybill (AWB) is the most important document issued by a carrier either directly or
through its authorised agent. It is a non-negotiable transport document. It covers transport of
cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf
of the carrier whose air waybill is issued.

AWBs have eleven digit numbers which can be used to make bookings, check the status of
delivery, and current position of the shipment. The number consists of:

 1. The first three digits are the airline prefix. Each airline has been assigned a 3-digit number by
IATA, so from the prefix we know which airline has issued the document.
 2. The next seven digits are the running number/s - one number for each consignment
 3. The last digit is what is called the check digit. It is arrived at in the following manner:

The seven digit running numbers are divided by 7, by using a long division calculation. The
remainder becomes the check digit. That is why no AWB number ends with a figure greater than
6. Air waybills are issued in sets of different colours. The first three copies are classified as
originals. The first original, blue in colour, is the shipper’s copy. The second, coloured blue, is
retained by the issuing carrier. The third, coloured orange, is the consignee’s copy. A yellow
copy acts as the delivery receipt, or proof of delivery*. The other copies are all white.[1]

There are several purposes that an air waybill serves, but its main functions are:

 Contract of Carriage. Behind every original of the AWB are conditions of contract for carriage
 Evidence of Receipt of Goods

When the shipper delivers goods to be forwarded, he will get a receipt. The receipt is proof that
the shipment was handed over in good order and condition and also that the shipping
instructions, as contained in the Shipper's Letter of Instructions, are acceptable. After
completion, an original copy of the air waybill is given to the shipper as evidence of the
acceptance of goods and as proof of contract of carriage

 Freight Bill

The air waybill may be used as a bill or invoice together with supporting documents since it may
indicate charges to be paid by the consignee, charges due to the agent or the carrier. An original
copy of the air waybill is used for the carrier's accounting

 Certificate of Insurance

The air waybill may also serve as an evidence if the carrier is in a position to insure the shipment
and is requested to do so by the shipper

 Customs Declaration

Although customs authorities require various documents like a commercial invoice, packing list,
etc. the air waybill too is proof of the freight amount billed for the goods carried and may be
needed to be presented for customs clearance The format of the air waybill has been designed by
IATA and these can be used for both domestic as well as international transportation. These are
available in two forms, viz. the airline logo equipped air waybill and the neutral air waybill.
Usually, airline air waybills are distributed to IATA cargo agents by IATA airlines. The air
waybills show:

 the carrier's name

 its head office address
 its logo
 the pre printed eleven digit air waybill number

It is also possible to complete an air waybill through a computerised system. Agents all over the
world are now using their own in-house computer systems to issue airlines' and freight
forwarders' own air waybills. IATA cargo agents usually hold air waybills of several carriers.
However, it gradually became difficult to accommodate these pre-numbered air waybills with the
printed identification in the computer system. Therefore a neutral air waybill was created. Both
types of air waybills have the same format and layout. However, the neutral air waybill does not
bear any pre-printed individual name, head office address, logo and serial number.

[edit] The validity of the Air Waybill

We have seen earlier that the air waybill is a contract i.e. an agreement enforceable by law. To
become a valid contract it has to be signed by the shipper or his agent and by the carrier or its
authorised agent. Although the same individual or organisation may act on behalf of both the
carrier and the shipper, the air waybill must be signed twice one each in the respective carrier
and shipper boxes. Both signatures may be of the same person. This also implies that the air
waybill should be issued immediately upon receipt of the goods and letter in instructions from
the shipper.

As long as the air waybill is neither dated nor signed twice, the goods do not fall within the terms
of the conditions of contract and therefore the carrier will not accept any responsibility for the
goods. The validity of the air waybill and thus the contract of carriage expires upon delivery of
the shipment to the consignee (or his authorised agent).

[edit] Responsibility for Completion

The AWB as we have seen is a contract - an agreement between the shipper and the carrier. The
agent only acts as an intermediary between the shipper and carrier. The air waybill is also a
contract of good faith. This means that the shipper will be responsible for the accuracy and
sufficiency of the details and/or statements relating to the goods listed. The shipper shall also be
liable for all the damage suffered by the airline or any person due to irregularity, incorrectness or
incompleteness of insertions on the air waybill, even if the air waybill has been completed by an
agent or the carrier on his behalf.

When the shipper signs the AWB or issues the letter of instructions he simultaneously confirms
his agreement to the conditions of contract. ≥≥≥≥≥≥≥

[edit] Definition of the term Not Negotiable

Waybills are non-negotiable documents unlike bills of lading which are negotiable. The words
non-negotiable are printed clearly at the top of the air waybill. This means that the air waybill is
a contract for transportation only and does not represent (the value of) merchandise mentioned in
the box nature and quantity of goods. The ocean bill of lading, if negotiated may represent (the
value of) the goods and must be endorsed by the party ultimately accepting the goods. Although
the AWB is a non-negotiable document, it can be used as a means of payment. This can be done
only through the intermediary of a bank and only when the carriage is subject to a letter of credit.
The air waybill executed according to the terms of a letter of credit allows the shipper to present
the original of the air waybill to the bank and collect the billed value of the shipped goods from
the bank. The amount paid by the bank to the shipper will be debited to the consignee who
ordered the goods. At the destination the carrier will only hand over the goods to the consignee
on receipt of a bank release order from the consignee's bankers.

The goods in the air consignment are consigned directly to the party (the consignee) named in
the letter of credit (L/C). Unless the goods are consigned to a third party like the issuing bank,
the importer can obtain the goods from the carrier at destination without paying the issuing bank
or the consignor. Therefore, unless a cash payment has been received by the exporter or the
buyer's integrity is unquestionable, consigning goods directly to the importer is risky.[2]

For air consignment to certain destinations, it is possible to arrange payment on a COD (cash on
delivery) basis and consign the goods directly to the importer. The goods are released to the
importer only after the importer makes the payment and complies with the instructions in the
AWB.

In air freight, the exporter (the consignor) often engages a freight forwarder or consolidator to
handle the forwarding of goods. The consignor provides a Shipper's Letter of Instructions which
authorizes the forwarding agent to sign certain documents (e.g. the AWB) on behalf of the
consignor.

The AWB must indicate that the goods have been accepted for carriage, and it must be signed or
authenticated by the carrier or the named agent for or on behalf of the carrier. The signature or
authentication of the carrier must be identified as carrier, and in the case of agent signing or
authenticating, the name and the capacity of the carrier on whose behalf the agent signs or
authenticates must be indicated.

International AWBs that contain consolidated cargo are called master air waybills (MAWB).
MAWBs have additional papers called house air waybills (HAWB). Each HAWB contains
information of each individual shipment (consignee, contents, etc.) within the consolidation.
International AWBs that are not consolidated (only one shipment in one bill) are called simple
AWBs. A house air waybill can also be created by a freight forwarder. When the shipment is
booked, the airline issues a MAWB to the forwarder, who in turn issues their own house air
waybill to the customer.[2]

[edit] House and Master AWBs and BLs

A freight forwarder offering a consolidation service, will issue its own air waybill or bill of
lading. From now on AWB will be used to refer to both. This is called a Forwarder's or House
AWB with its equivalent House BL. These act as contracts of carriage between the shipper and
the forwarder, who in this case becomes a Deemed Carrier. The forwarder in turn enters into
contracts with one or more carriers, often using more than one mode of transportation. The
contract of carriage between the forwarder and carrier is called a Master Air Way Bill ( MAWB
or MBL). A House Air Waybill (HAWB) or Bill of Lading (HBL) could act as a multimodal
transport document.

[edit] Air Waybill Number

The AWB number has 11 digits and 3 parts.

 The first 3 digits are the Airline Prefix[3]

 The next 7 digits is the Serial Number of the AWB
 The last digit is the Check digit
o The check digit is derived by dividing the 7 digit Serial Number by 7. The remainder
determines the Check Digit. Example: Serial Number 8114074 divided by 7 is 1159153
remainder 3. Therefore the Serial Number + Check Digit is 81140743.[4]

Packing list
Contents

 [+] Understand

 Getting started

 [+] Get in

 Tickets and itinerary

 Identity documents

 Amusements

 Get around

 Talk

 Buy

 [+] Wear

 Extra lightweight

 Stay safe

 Stay healthy
 See and Do

 Eat and Drink

 Other

 Contact
This article is a travel topic.
[edit] Understand
Even the most experienced travellers or frequent fliers tend to leave something they need behind
every trip. A packing list can help make sure you have everything you will need while you are
travelling and at your destination. It can also be a reassuring checklist just prior to departing, and if
you are missing anything you will need, you can figure that out while you still have time to buy it.

When you make your packing list, keep a copy of it for your next trip. Add the stuff you forgot when
you get home, and delete the stuff that you took and never used. You can end up with a useful
personalised document that will save you time and stress when you need it most.

If you need to make an insurance claim for any reason - the packing list can remind you of what you
took, and what you need to claim for.

This article will walk through the process of building your own packing lists for your own travel plans,
hopefully with useful suggestions for things you might not have thought of.

[edit] Getting started

Understand your destination, and focus on what you will need and what not to take. Do you really
need an umbrella? Would a broad-brimmed hat do as well? What does the umbrella weigh, how
much space does it take up, will it be a problem at airport security, and could you just buy one at
your destination if it rains?

Will you be shopping? If it's likely, consider packing a folding bag or duffle. Use it as carry-on on
your return flight for purchases or for holding what's displaced in your checked luggage by
purchases.

It can also help to specify which bag each item will go in, to better judge whether you'll be able to
pack everything in the bags you plan to use.

It's easy to turn money into clothing (or anything else it turns out you really need). One common bit
of advice, perhaps a bit over-stated but with at least a grain of truth: Figure out what you need to
pack and how much money you'll need, then take half the stuff and twice the money.

If you're planning a major trip, especially one a bit off the beaten path, it's worth taking an hour or
two to browse at an expedition store or website, just seeing what's available. Even though their
main goal is to sell you things whether you need them or not, it will at least give you some idea of
what (some) others are buying for their travels.

Understand the weight and size restrictions on the various forms of transport you are using.
Trains, buses and ships are usually more generous than aircraft, but they can still charge fees
based on weight or size. Plane excess baggage fees can be very steep, or they can even refuse to
carry your luggage on that flight. If you have to pack wet towels or jeans and you are on the weight
threshold, these can easily push you over the limit. Allow just a little headroom.

Use waterproof sacks to make packing easier, especially if you are backpacking or going to
multiple destinations, and have to repack constantly. They are often colorcoded, so different items
can go in and out of different sacks (sleepwear, hiking boots, swimwear) that are labelled. Packing is
easier and more organized than stuffing everything into your main bag. Also on a long trip, these
sacks will keep odor, dust, and damp from spreading to all your stuff. Three to five-gallon sized zip
lock bags typify what's usable. Another version of these is the compressible air tight sacks, from
which one can remove all air from clothing items using less space (not less weight).

[edit] Get in
[edit] Tickets and itinerary

If you're traveling by plane, train, etc. don't forget to bring your tickets, or organize etickets.

A printed copy of your itinerary is useful both for your personal reference and to confirm to officials
that your stated travel plans are legit.

[edit] Identity documents

If you're leaving your home country, there's a good chance you'll need to bring your passport or at
least some government-issued proof of your identity and citizenship. For some countries, you will
need to obtain a visa in advance. Extra passport-style photos may come in handy for documents
or passes you may purchase along the way.

If you are young and planning on going into clubs or bars, depending on the country, ID may be
required...bringing your driver's license minimises the need to carry your passport, and therefore
reduces the potential for theft or loss.

If you are travelling internationally, immigration officials will sometimes want to check the legitimacy
of your plans. If you're paying for accommodation make sure you have made a reservation for at
least your first night and carry contact details for your place of accommodation. If staying in a
private home, have the name, address and phone number of your host, and make sure that they
are aware of your name and your exact date of arrival, because immigration officials may call them if
they doubt your plans. If you can't provide details of where you're staying or your host isn't aware
that you're coming, you may be refused entry to some countries. Business travelers may also need
a letter of invitation to present to officials, check with the issuer of your visa if any.

If you are entering another country as a visitor on a visa that forbids you to seek employment, leave
out anything that might make it look like you want to seek work, for example, don't take copies of
your resume, leave your tools of trade at home, and leave your diary at home if you would be
embarrassed for the immigration authorities to read it.

If you are traveling with a child, you may need additional documentation to prove that you're their
legal guardian, such as their birth certificate. If the other parent isn't traveling with you (and
especially if you and the child have different last names), authorities might suspect that you're trying
to take the child out of the country without authorization; proof of custody and/or written permission
from any other legal guardians may help you avoid a hassle. See also Traveling with families for
children's documentation requirements.
Membership cards can be useful: e.g. International Student Identification Card, Hosteling
International, Hertz/Avis/AAA, frequent-flyer or other "affinity" cards.

It's a good idea to have copies of all important documents in case of loss. You can carry
photocopies (separately of course) and/or keep electronic copies in your webmail account inbox, in
an online storage folder, or in a pocket memory stick, to print if needed. It is also advisable to leave
copies with someone responsible at home just in case you lose everything.

[edit] Amusements

Bring some amusements for long waits and journeys. Bring stuff you enjoy, that passes the time, or
that helps you get to sleep.

Hours of music can be held on a cheap mp3 player or an iPod. Load up some spoken books. Give
some thought to loading up your mp3 player with everything you need before you go. Trying to rip a
CD to a mp3 player or iPod in an Internet Cafe somewhere is a frustration you don't need.

Books never run out of batteries, and are great entertainment on buses, planes, boats and lazy
days. But they are heavier than an mp3 player. For long trips, pick ones you won't mind giving away
when you finish them. You can swap them with other travellers, or "leave one, take one" at a hostel
or B&B along the way.

Electronic games, can amuse kids or adults for hours. Bring along a pack of cards for when the
batteries are dead, and all else fails.

[edit] Get around

If you're planning to drive at your destination, a driver's license will be needed and you may need
an international driving permit as well. If you are bringing your own vehicle, you may need a
Carnet de Passage to get it through customs. Both the IDP and the carnet are obtained from the
automobile association in your own country.

The most adventurous free spirits may eschew them, but odds are if you're reading this, you're the
sort who values a guide. Printing off pages from Wikitravel makes for a lightweight reference. If
you're already bringing a laptop, saving pages and maps to your hard drive (in case you lose
power) won't add any weight, but can be a convenient way to find pre-screened attractions and
services on the fly. Alternately, just read it as needed in Internet cafes, and perhaps add your new
discoveries while you're there. An even lighter-weight option is to use the web browser on your
mobile phone, if you have one that works in the location you are visiting. Be sure to review your
data plan before you leave (in case you need to change it to avoid ridiculous pricing), and be aware
of the limitations of the web browsers in non-smartphones - some phones are pretty much limited to
"mobile" versions of web sites, and might not display graphics.

If you're using a commercially printed book, cutting out just the pages for the places you'll be going
cuts down on the size and weight. You may be able to buy maps more easily when you get to your
destination, but if you don't read the local script, it's probably best to buy one at home.

Consider including a compass, or even a GPS receiver, especially if you're going someplace
without a grid of city streets. Find a compass suitable to your destination's latitude. Most
manufacturers balance their compass needles for one of five zones (ranging from Zone 1, covering
most of Northern Hemisphere, to Zone 5, covering Australia and the southern oceans). The needle
may drag or stick on other zones. For example, a compass designed for North America will not give
accurate readings in Australia and vice versa. There are also more expensive multi-zone or global
compasses that function correctly everywhere.

A keychain-size flashlight, e.g. [1] or [2], can be handy.

[edit] Talk
If you do not speak the language, a phrasebook may range from essential to a nice courtesy. Even
if you're sure that someone there will understand you, they'll appreciate you if you take the trouble to
use some of their language.

[edit][add listing] Buy

You will need money, so the main question is what kind and how much. The four main alternatives
are cash, travelers cheques, credit cards, ATM cards. The best way to access cash is through an
ATM with a travel account that won't charge you to get money abroad. For example Commerce
Bank in the US, or Nationwide in the UK (charges introduced Nov 2010). Make sure to take some
spare cash though. These are useful for on-the-spot visas, and large purchases abroad, such as
resorts.

Some countries – China and India, for example – have government controls on foreign exchange
transactions, and in some places it is difficult to use bank cards or to exchange travellers' cheques.
Check the entry for your destination(s) for details before deciding what to carry. If you're relying
primarily on cards, having at least two, each on different networks, is extremely useful.

Having at least two credit cards and keeping them separate, say with one tucked away in your first
aid kit, toiletry bag or in a hidden pocket in your backpack/luggage, will prove incredibly useful if you
have your wallet stolen.

See Money for more tips on accessing and using money while travelling.

In some situations, gifts may be more useful than money. In some cultures, the exchange of gifts is
an important part of business relationships. Trinkets may be a good way to show your appreciation
to a host, or as a friendly overture to the locals.

Don't forget to leave some room and weight allowance for things you buy when abroad. If you
contemplate signifcant shopping, consider packing one or two folding duffles. You can then put
purchases in returning, checked luggage, and soft items displaced by purchases in duffle(s) for
carry-on.

[edit] Wear
What clothes to bring is a big question, both in terms of its importance and percentage of your
luggage.

The strategies of layering and versatility are essential for wilderness travel, and they're useful for
other kinds as well. Items that you can mix and match and wear in various combinations for various
levels of formality and/or warmth are best. For example, khaki slacks can be worn with a dress shirt
and jacket for semi-formal situations, or with a t-shirt for sightseeing. A t-shirt, a long-sleeved shirt,
and a sweater can be worn individually for hot-to-cool situations, or combined for when things get
cold. Especially for women, accessories such as scarves or wraps can turn one outfit into two or
three. A sarong can do multiple duties as clothing, beach towel, etc.

The question of "how many?" is a complex formula of how much you want to be prepared vs. how
much you want to carry. Consider whether you'll be able to do laundry while there; this can save you
from the urge to pack 14 sets of underwear and socks for a two-week trip. The more you can
determine ahead of time what the weather will be like, where you'll be going, what you'll be doing,
the less "just in case" packing you'll be inclined to do. Factor in (air) travel time and time zones when
calculating how much to carry on shorter trips. Some companies make extended wear underwear,
which is good for the long term traveller. You only have to buy one or two, and then wash them in
the sink every night- they are quick dry and antimicrobial, so you'll save a lot of room and stench.
Packing a tux or gown because you're not sure if you'll be going to a formal dinner or not, generally
means "over packing". On the other hand, if there's a pool or beach, you may end up kicking
yourself for not bringing a swimsuit.

Shoes are a bulky nuisance to pack, but make sure you bring at least one pair that you'd be
comfortable walking around in all day. A pair of slippers or flip-flops provide something else to
wear when your shoes start to hurt.

Consider applying waterproofing compound to clothing or luggage before you leave. In general,
you should not carry it; aerosols are not allowed on planes and you don't want extra weight.
However, blasting your hat, jacket or canvas luggage before going may be quite helpful.

Packing too much could ruin your trip. But packing too little could have the same effect. Make sure
you double, triple check the weather, hotel services( i.e. washing clothes, free clothing per room like
bath robe, ect.) and your list. Start making a list about 2 weeks in advance because then you have a
set plan instead of last minute frantic packing.

[edit] Extra lightweight

Sometimes buying new clothes can be cheaper and easier than laundry. Find any clothing you have
that is almost worn out, wear it to start your journey, and discard it when it gets dirty.

A four week trip can be managed with two pairs of jeans, discarding the old pair and wearing the
new after two weeks. T-Shirts, thin socks, and underwear can be rinsed at night and put back on just
slightly damp the next morning. Put socks on around 20 minutes before your shoes to give them a
chance to dry fully from body heat. Pyjamas are optional if not staying in dorm rooms. Travel
deodorant is available in pocketsize packs. Wallet in front right pocket, passport in back pocket, and
mp3 player in your front left pocket and you are ready to go.

It really is possible to travel with nothing but the clothes on your back if you want, and it opens up a
whole new world of travel, particularly at a destination where it isn't too cold. No need to find lockers,
and sightseeing right from the bus station or airport. Walking and the local bus become easy
options. Just be prepared for some quizzical looks at customs and immigration.

[edit] Stay safe

A money belt or passport pouch to protect your valuables is a very good idea. See destination
articles for information on local risks, and the Pickpockets article for more on avoiding thefts. Don't
be lazy and wear your money belt outside of your clothing. In some areas it will get stolen.
A luggage lock to seal checked bags may be a good idea. But for travel in the US, use a lock
approved by TSA [3]; they have master keys for these locks, and with any other lock airport security
will cut it off if they decide to look in your bag.

A number of companies make Pack Safes, which are basically a wire mesh, secured by a padlock,
that can enclose your backpack or suitcase and attach it to a solid object (chair, bed, etc) so that
prying eyes and fingers cannot remove items from your luggage without a bolt-cutter or your keys.
These are good for when you have to leave your bags unattended. i.e. in bus luggage holds,
dormitory rooms, ferries and when you need to go to the bathroom. Don't leave your bag locked up
and unattended in a bus stop or a train station, or airport where security is high, as it may be opened
with an explosive charge by the local bomb disposal unit. They are efficient, if you keep them on
throughout your journey, as opposed to taking them on and off. It is a common myth that they weigh
a lot (in actuality they are a little over a pound) and that they can get tangled (they can't because of
their design). Make sure they fit well, try it on to your bag before purchase, and put on a waterproof
underneath for extra protection.

You probably won't ever need the address and phone number for your embassy, but if you do,
you'll be glad you had them with you. Phone numbers for family at home are also good to have, just
in case.

Most travellers will sensibly avoid areas where armed conflicts are in progress. For those who must
go, see War zone safety. It is a good idea to check with your local foreign affairs department for any
travel warnings to areas you may be visiting. Things may have changed since you were last there.

[edit] Stay healthy

If you have travel insurance — and travel insurance covering at least medical expenses and
evacuation home is highly recommended for travellers who are going to be outside the realm of their
country of residence's healthcare and insurance arrangements — you should carry a copy of your
policy details and the insurer's contact details with you. In some countries, it is difficult to obtain
medical care without being able to demonstrate adequate insurance.

You don't want to sacrifice personal hygiene, but some compromises from your usual assortment of
personal care products might help. Your hotel may provide soap and shampoo (or they may not, this
is worth researching about your destination)... the fact that they're not your usual brand probably
won't matter. Minimal use of make-up is expected of travelers. Of course you'll probably want to
bring your own toothbrush etc. (or a travel toothbrush), deodorant, shaving gear (if applicable),
tampons/pads (if applicable), etc. Women may want to consider a reusable alternative to tampons,
such as a menstrual cup or sponge. Tampons can be scarce outside of shops catering to tourists in
countries in Asia, South America, and Africa. Some public toilets do not supply toilet paper, so it's a
good idea to bring a roll of your own.

Beware that you cannot carry on containers larger than 100 ml (3.4 fl. oz.) of any gel or liquid on
many airlines, and aerosol cans are often restricted or banned.[4] Put cosmetics in your checked
luggage; get travel sized versions of anything you will actually intend to use while on the plane or
inside the secure zone. Consider whether it would be more convenient to simply buy cosmetics after
you arrive, versus spending more time enjoying your destination.

A bottle of no-wash hand sanitizer or wipes can come in handy, no matter where you travel. If
you're going to be outdoors much, sunglasses, sun-screen, lip balm, and other skin-care products
are important in more places than not. Insect repellent is very handy in many places, especially
tropical countries with malaria. Consider a small first-aid kit with adhesive bandages, anti-bacterial
cream, etc.
 In some countries it may be advisable to carry a more comprehensive first aid kit, including
hypodermic needles, wound dressings, etc. Ideally talk to your local travel doctor or family doctor
about what you may or may not need before you go.

If you take any medications, take personal supplies of them, as they may be in short supply, but
resist the urge to re-package them for travel across borders; keeping them in their original
packages, with copies of prescriptions, will save you from hassles (or worse) from customs &
immigration. (Also, make sure they're legal where you're going.) Pain relievers, anti-diarrheal
medicines, etc. may come in handy, but keep in mind that they can also be purchased most places.
If you have any medical conditions, allergies, etc. keep that information on you; med-alert tags will
be recognized in most places. A copy of your eyeglasses prescription might come in handy should
you break or lose your glasses/contacts.

If you are going to the tropics, see also tropical diseases.

[edit] Contact
Bringing a phone along makes perfect sense, but check the place you're going has a compatible
network, and that either your service provider offers roaming there (or that your phone would be
compatible with a local prepaid service.) Even if you don't intend roaming you can usually use your
phone for emergency calls should the need arise. Phone cards and/or numbers for "collect" calling
may be more practical. If you bring your mobile phone, don't forget your charger. See also
Telephone service for travel.

You may want to bring along a laptop, netbook or PDA to get online, remember to carry a plug
adaptor if you need one. Leave some charge in your devices, as you may be required to turn them
on at security checkpoints in order to demonstrate that they are what they seem to be. A PDA offers
the additional advantage that you can carry travel guides, maps, phrasebooks, and books for
general reading in digital form, allowing you to save plenty of weight. GPS-enabled PDAs are they
are a wonderful tool for navigating cities. Make sure you have maps loaded for your destination.
Internet cafes are increasingly common throughout the world, especially in areas where home
internet service is less common, so you may prefer to use them instead of lugging your own system
around.

Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the
products, quantities, and agreed prices for products or services the seller has provided the buyer.
An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer
has a maximum amount of days to pay these goods and are sometimes offered a discount if paid
before.

In the rental industry, an invoice must include a specific reference to the duration of the time
being billed, so rather than quantity, price and discount the invoicing amount is based on
quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer
to the actual hours, days, weeks, months etc being billed.

From the point of view of a seller, an invoice is a sales invoice. From the point of view of a
buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the
term invoice indicates money is owed or owing. In English, the context of the term invoice is
usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or
"We received an invoice from them" (we owe them money).

[edit] Variations
There are different types of invoices:

 Pro forma invoice — In foreign trade, a pro forma invoice is a document that states a
commitment from the seller to provide specified goods to the buyer at specific prices. It is often
used to declare value for customs. It is not a true invoice, because the seller does not record a
pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice
as an accounts payable. A pro forma invoice is not issued by the seller until the seller and buyer
have agreed to the terms of the order. In few cases, pro forma invoice is issued for obtaining
advance payments from buyer, either for start of production or for security of the goods
produced.

 Credit memo - If the buyer returns the product, the seller usually issues a credit memo for the
same or lower amount than the invoice, and then refunds the money to the buyer, or the buyer
can apply that credit memo to another invoice.

 Debit memo - When a company fails to pay or short-pays an invoice, it is common practice to
issue a debit memo for the balance and any late fees owed. In function debit memos are
identical to invoices.

 Self-billing invoice - A self billing invoice is when the buyer issues the invoice to himself (e.g.
according to the consumption levels he is taking out of a vendor-managed inventory stock).

 Evaluated receipt settlement (ERS) - ERS is a process of paying for goods and services from a
packing slip rather than from a separate invoice document. The payee uses data in the packing
slip to apply the payments. "In an ERS transaction, the supplier ships goods based upon an
Advance Shipping Notice (ASN), and the purchaser, upon receipt, confirms the existence of a
corresponding purchase order or contract, verifies the identity and quantity of the goods, and
then pays the supplier."[7]

 Timesheet - Invoices for hourly services such as by lawyers and consultants often pull data from
a timesheet. A Timesheet invoice may also be generated by Operated equipment rental
companies where the invoice will be a combination of timesheet based charges and equipment
rental charges.
  Invoicing - The term invoicing is also used to refer to the act of delivering baggage to a flight
company in an airport before taking a flight.[citation needed]

 Statement - A periodic customer statement includes opening balance, invoices, payments,

credit memos, debit memos, and ending balance for the customer's account during a specified
period. A monthly statement can be used as a summary invoice to request a single payment for
accrued monthly charges.

 Progress billing used to obtain partial payment on extended contracts, particularly in the
construction industry (see Schedule of values)

 Collective Invoicing is also known as monthly invoicing in Japan. Japanese businesses tend to
have many orders with small amounts because of the outsourcing system (Keiretsu), or of
demands for less inventory control (Kanban). To save the administration work, invoicing is
normally processed on monthly basis.

 Continuation or Recurring Invoicing is standard within the equipment rental industry, including
tool rental. A recurring invoice is one generated on a cyclical basis during the lifetime of a rental
contract. For example if you rent an excavator from 1 January to 15 April, on a calendar monthly
arrears billing cycle, you would expect to receive an invoice at the end of January, another at the
end of February, another at the end of March and a final Off-rent invoice would be generated at
the point when the asset is returned. The same principle would be adopted if you were invoiced
in advance, or if you were invoiced on a specific day of the month.

 Electronic Invoicing is not necessarily the same as EDI invoicing. Electronic invoicing in its widest
sense embraces EDI as well as XML invoice messages as well as other format such as pdf.
Historically, other formats such as pdf were not included in the wider definition of an electronic
invoice because they were not machine readable and the process benefits of an electronic
message could not be achieved. However, as data extraction techniques have evolved and as
environmental concerns have begun to dominate the business case for the implementation of
electronic invoicing, other formats are now incorporated into the wider definition. Different
electronic invoicing formats.

[edit] Utility bills

Bills from utility companies are based on measured (metered) use of electricity, natural gas or
other utilities at a residence or business.[8][9] When an individual or business applies for service
from the utility (opens an account), he signs an agreement (contract) to pay for his metered use
of the utility.

[edit] Electronic invoices

Some invoices are no longer paper-based, but rather transmitted electronically over the Internet.
It is still common for electronic remittance or invoicing to be printed in order to maintain paper
records. Standards for electronic invoicing varies widely from country to country. Electronic
Data Interchange (EDI) standards such as the United Nation's EDIFACT standard include
[edit] Payment for invoices
Organizations purchasing goods and services usually have a process in place for approving
payment on the invoice based on an employee's confirmation that the goods or services have
been received.[12][13][14][15] Typically, when paying an invoice, a remittance advice will be sent to
the supplier to inform them their invoice has been paid.

[edit] Standardization
Invoices are different from receipts. Both Invoices and receipts are ways of tracking purchases of
goods and services. In general the content of the invoices can be similar to that of receipts
including tracking the amount of the sale, calculating sales tax owed and calculating any
discounts applied to the purchase.[16] Invoices differ from receipts in that invoices serve to notify
customers of payments owed, whereas receipts serve as proof of completed payment.[17]

Commercial invoice
From Wikipedia, the free encyclopedia

Jump to: navigation, search

A commercial invoice is a document used in foreign trade. It is used as a customs declaration

provided by the person or corporation that is exporting an item across international borders.[1] [2]
Although there is no standard format, the document must include a few specific pieces of
information such as the parties involved in the shipping transaction, the goods being transported,
the country of manufacture, and the Harmonized System codes for those goods. A commercial
invoice must also include a statement certifying that the invoice is true, and a signature.

 A commercial invoice is used to calculate tariffs, international commercial terms (like the Cost in
a CIF) and is commonly used for customs purposes. A bill for the goods from the seller to the
buyer. These invoices are often used by governments to determine the true value of goods
when assessing customs duties. Governments that use the commercial invoice to control
imports will often specify its form, content, number of copies, language to be used, and other
characteristics (see Sample). Commercial invoice - a customs declaration form used in
international trade that describes the parties involved in the shipping transaction, the goods
being transported, and the value of the goods.[6] It is the primary document used by customs,
 and must meet specific customs requirements, such as the Harmonized System number and the
country of manufacture. It is used to calculate tariffs.

Customs Declaration Form (Form 6059B)

Each individual arriving into the United States must complete the CBP Declaration Form 6059B. If you are
traveling with other immediate family members, complete one form per family. You will receive a blank
Declaration Form on the airplane before arriving in the United States. The first airport you land in the U.S.
is your
port-of-entry.

What is a Customs Declaration Form?

A customs declaration form lists the contents of the package for customs. There are two types,
namely CN22 and CN23. When sending packages overseas, fill out one of the forms with a detailed
description of the contents, including the name, quantity and price of each item and affix or attach it
to the package.
Purchase order
From Wikipedia, the free encyclopedia

Jump to: navigation, search

A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating

types, quantities, and agreed prices for products or services the seller will provide to the buyer.
Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a
PO by a seller usually forms a one-off contract between the buyer and seller, so no contract
exists until the PO is accepted.[1]
Contents
[hide]

 1 Background
 2 Electronic Purchase Orders
 3 See also
 4 References
 5 Further reading

[edit] Background
There are several reasons why companies use POs.

PO's allow buyers to clearly and explicitly communicate their intentions to sellers, and sellers are
protected in case of a buyer's refusal to pay for goods or services. POs also help a purchasing
agent manage incoming orders and pending orders. Purchase orders also are an economical
choice for a business because they streamline the purchasing process to a standard procedure.

A Purchase Order Form should be used to request products and services from suppliers. Rather
than calling them to request your purchase, send them a Purchase Order Form. On the Purchase
Order you describe what it is that you require, when you want it and how much you expect to
pay for it. By using this Purchase Order Template, you can ensure you receive exactly what you
have ordered, at the right time and the right price.

[edit] Electronic Purchase Orders

Many Purchase Orders are no longer paper-based, but rather transmitted electronically over the
Internet. It is common for electronic purchase orders to be used to buy goods or services online
for services or physical goods of any type.

Sales order
From Wikipedia, the free encyclopedia

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The sales order, sometimes abbreviated as SO, is an order issued by a business to a customer. A
sales order may be for products and/or services. Given the wide variety of businesses, this means
that the orders can be fulfilled in several ways. Broadly, the fulfillment modes, based on the
relationship between the order receipt and production, are as follows:

 Digital Copy - Where products are digital and inventory is maintained with a single digital
master. Copies are made on demand in real time and instantly delivered to customers.
 Build to Stock - Where products are built and stocked in anticipation of demand. Most products
for the consumer would fall into this category
 Build to Order - Where products are built based on orders received. This is most prevalent for
custom parts where the designs are known beforehand.
 Configure to Order - Where products are configured or assembled to meet unique customer
requirements e.g. Computers
 Engineer to Order - Where some amount of product design work is done after receiving the
order

A sales order is an internal document of the company, meaning it is generated by the company
itself. A sales order should record the customer's originating purchase order which is an external
document. Rather than using the customer's purchase order document, an internal sales order
form allows the internal audit control of completeness to be monitored as a sequential sales order
number can be used by the company for its sales order documents. The customer's PO is the
originating document which triggers the creation of the sales order. A sales order, being an
internal document, can therefore contain many customer purchase orders under it. In a
manufacturing environment, a sales order can be converted into a work order to show that work
is about to begin to manufacture, build or engineer the products the customer wants.

Contents
[hide]

 1 Electronic Sales Order

o 1.1 Open Application Group Integration Specification (OAGIS) from OAGi
 2 Common order types
 3 Customer order fulfillment
 4 See also
 5 External links

[edit] Electronic Sales Order

Many Sales Order are no longer paper-based, but rather transmitted electronically over a
corporate Intranet. These Sales Orders may be communicated across different Enterprise
Business Applications.

[edit] Open Application Group Integration Specification (OAGIS) from OAGi

Use of XML message format for electronic Sales Order have occurred since the inception of
XML in 1998. OAGIS has included a Sales Order since its inception in 1996. Implementations
of Sales Orders based on OAGIS are common, including support by major enterprise business
software vendors, as well as implementations by many of the worlds Fortune 500 companies.

OAGi has a working relationship with UN/CEFACT where OAGi and its members participate in
defining many of the Technology and Methodology specifications. OAGi also includes support
for these Technology and Methodology specifications within OAGIS.

While providing a Cross Industry representation of Sales Order, OAGIS specifies industry
specific requirements for the Industries that work with OAGi to identify these requirements.

More information about OAGi, its members, Use Cases, access to OAGIS and more can be
found on the OAGi Website http://www.oagi.org.

[edit] Common order types

 Quote
 Spot order
 Sales contract
 Intra-company order
 Pull order
 Service order
 Return order
 Product Number

[edit] Customer order fulfillment

The steps involved in fulfilling the demands made in a sales order make up the order fulfillment
process.