STUDENT SHEET COMMERCIAL INVOICE

Check this commercial invoice and answer the questions as follow

Seller (Name, full address, country) Date 30/01/2015 Invoice No. 155-15

LOOK FOOTWEAR LTD.

9/F Lincoln House,976 King’s Road; Taikoo Place,

Island East HONG KONG

Tel: + 852-2828-2840

E-mail: hongkong@lookfootwear.com

Consignee (Name, full address, country) Country of Origin of Goods

SYNTHEFOAM S.A. China

C/Aragón,nº65
Terms and Conditions of Delivery and Payment
08005 BARCELONA -SPAIN
CIF Barcelona Port
Tel: +34 933221587
Nº order: 4500049589
E-mail: export@ synthefoam.es
Bank transfer to 30 days date invoice
VAT NO:ES A-08252121
BIC CODE : HSBCHKHHEBD

Account number: 12345654321

Port of Loading Country of Final Destination

Port of Hong Kong EU

Mode of Transportation and Other Transportation Information Currency of Sale

Ship: HYUNDAY BARON Dollar USA

Delivers 30/01/2012

Nationality: CYPRUS

Marks & Numbers Description of Goods Gross Weight (GW) Volume

Numbers: 1-20 Pallets HS code: 6402.99 6613.87 Lb 866,620 ft3

Mens’ Tennis Shoes

Marks: Tennis1212 LOT:10472 Style 1212

Upper- made of 100% synthetic

leather

Sole: made of rubber and plastics

No & Kind of Packages ( Detailed in Packing-List ) Net Weight QTY Unit Price Amount

(NW)

ISO CONTAINER 20’

20 pallets

Each pallet contains 30 Cartons- 180 pairs (6 pairs/ carton) 3,600 USD 30.00 USD 108,000,00

5511.56 Lb pairs FOB Hong Kong

3,600.00 pairs of Mens’ Tennis Shoes Style 1212 (various sizes)

OTHER COSTS (Specify)

IT IS HEREBY CERTIFIED that this invoice shows the actual price of the
FREIGHT- USD 664.26
goods described, that no other invoice has been or will be issued and

that all particulars are true and correct.

Signature and Status of Authorized Person

INSURANCE: USD 545.00

TOTAL INVOICE AMOUNT CIF Barcelona: USD 109,309.26

This is an operation of international trade, and as such has a number of specific

characteristics.

The first focus will be on the units of measurement.

Units of measurement

Anglo-Saxon system of units

Cubic foot

Metric Converter

Metric Converter v2

Convert units
This bill uses the Anglo-Saxon system.

1.a) Convert the weight (gross and net) into kg.

3000,00kg

1.b) Convert the volume into cubic meters.

24,53994559m3

1.c) Are the written numbers with the conventions used in Spain? What differences do

you see?

Yes, I don’t see any difference.

1.d) Would it be correct to write the date as follows? “01/30/2012”

In Spain would be 30/01/2012

1.e) Is there something more you see differently when expressing units?

No.

The second focus will be on the payment terms.

Currency.
2.a) What is the currency used in this transaction? In this invoice, currency is
expressed in two ways. Point them out?

USD and Euros

2.b) Note the most popular symbols that represent different currencies:

$ and €

2.c) What is the ISO code for these currencies?

For Euros is ISO 4217 978 and for Dollars is ISO 4217 840

2.d) Why using ISO code could be better?

Because it’s easier to find conditions and specifications

About ISO: International Organization for Standardization

ISO_4217

2.e) If the exchange rate were USD/EUR 0.7541 , what would be the invoice amount in
Euros?

82.430,11€

2. f) If the exchange rate were EUR/USD 1.3261, what would be the invoice amount in
Euros?

82.429,12€

2. g) What differences do you observe between them?

Just an euro from difference.

Currency and payment period

2. h) In our case, who would benefit (seller or buyer) from an invoice in Euros ? Why?

It would benefit the buyer, because the buyer would save an amount of 26.879,15€
and the Euro is lower than USD.
Payment period

Without considering the exchange risk.

2. i) Instead of having to pay within 30 days, if the obligation was extended to 60 days.
Who would benefit from extending the term of payment?

The seller, because it will have the opportunity to be less stressed at the time of
paying and do it in 2 terms.

Methods of Payment

2. j) Check the following links. What is the method of payment used in this operation
L/C?

Do you think this is a safe method for the seller?

Spain - Trade Financing

Payment terms summary (pdf)

Bank transfer within 30 days

2. k) What is BIC/SWIFT code?

2. l) Look up the definition of letter of credit. Do you think this is a safe method for the

seller and the buyer?

It’s a safe method for the buyer because it will reduce the risk of non-payers

2. m) The seller has billed without VAT. Is that right? Where and when does the buyer
pay the VAT?

The buyer will pay the VAT as soon as the goods reach the country.
2. n) As seen in this section, what do you think are the main factors to consider in
terms of payment?

The days that will last the payment and the method of payment.

The third focus will be on the delivery terms.

In the resources folder of the current drive you can find two files with information about
delivery terms called Incoterms in international trade.

3. a) What do the acronyms CIF and FOB stand for?

Cost, Insurance and Freight (CIF) and Free On Board (FOB)

3.b) What Incoterm means more risk for the seller: CIF or FOB?

It is the same risk for the seller on both.

3.c) Indicate two differences between CIF and FOB

The differences are the payment on the main transport and the Insurance.

3.d) In terms of delivery CIF, If any incident happened with the goods during transport
in the vessel, who would be the beneficiary of the insurance: the seller, who hired it, or
the buyer?

The buyer will be the benefiaciary.

3.e) Name all the Incoterms where the responsibility of the seller is to the destination
country.

CPT, CIP, DAP, DPU, DPP

3.f) Explain in 100 words, the meaning of CPT: responsibilities, costs and risks of the
seller and buyer.

Carriage Paid To. The seller pays for the carriage of the goods up to the named

place of destination. However, the goods are considered to be delivered when the

goods have been handed over to the first or main carrier, so that the risk transfers to

buyer upon handing goods over to that carrier at the place of shipment in the country

of Export.
 4. Prepare a new invoice, with the following changes:

− volume reflected in cubic meters

− weight reflected in Kg.
− Currency: EUR (exchange rate: 2.e)
− Delivery terms: FOB -
− Method of payment: letter of credit
− Payment period : 60 days of shipment date

Seller (Name, full address, country) Date 30/01/2015 Invoice No. 155-15

LOOK FOOTWEAR LTD.

9/F Lincoln House,976 King’s Road; Taikoo Place,

Island East HONG KONG

Tel: + 852-2828-2840

E-mail: hongkong@lookfootwear.com

Consignee (Name, full address, country) Country of Origin of Goods

SYNTHEFOAM S.A. China

C/Aragón,nº65
Terms and Conditions of Delivery and Payment
08005 BARCELONA -SPAIN
FOB Barcelona Port
Tel: +34 933221587
Nº order: 4500049589
E-mail: export@ synthefoam.es
Letter of Credit to 60 days shipment date
VAT NO:ES A-08252121
BIC CODE :

Account number: 12345654321

Port of Loading Country of Final Destination

Port of Hong Kong EU

Mode of Transportation and Other Transportation Information Currency of Sale

Ship: HYUNDAY BARON Euro EUR

Delivers 30/01/2012
Nationality: CYPRUS

Marks & Numbers Description of Goods Gross Weight (GW) Volume

Numbers: 1-20 Pallets HS code: 6402.99 3000,00 kg 24,59 m3

Mens’ Tennis Shoes

Marks: Tennis1212 LOT:10472 Style 1212

Upper- made of 100% synthetic

leather

Sole: made of rubber and plastics

No & Kind of Packages ( Detailed in Packing-List ) Net Weight QTY Unit Price Amount

(NW)

ISO CONTAINER 20’

20 pallets

Each pallet contains 30 Cartons- 180 pairs (6 pairs/ carton) 3,600 EUR 22,62 EUR 82.430,11

2500,00 Kg pairs FOB Hong Kong

3,600.00 pairs of Mens’ Tennis Shoes Style 1212 (various sizes)

OTHER COSTS (Specify)

IT IS HEREBY CERTIFIED that this invoice shows the actual price of the
FREIGHT- EUR 500,92
goods described, that no other invoice has been or will be issued and

that all particulars are true and correct.

Signature and Status of Authorized Person

INSURANCE: EUR 410,98

TOTAL INVOICE AMOUNT FOB Barcelona: EUR 82.430,11

The remaining conditions are the same.

You should edit your invoice customization option