Question 1

Answers – Common documents need for the transportation of goods.

1. Export Declaration - After the buyer and seller establish an agreement on sales and credit

conditions, the exporter submits an export declaration with exit port customs. A description of

the cargo, the shipping weight, a list of the markings and numbers on the containers, the

number and dates of any applicable export licence, the location and country of destination, and

the parties to the transaction are normally required.

2. Export licenses - A government document that approves or provides authority to perform a

certain export transaction is known as an export licence (including the export of technology).

3. Invoices - The commercial invoice, which is used by the seller to calculate the value of the

commodity minus freight and other expenses, is essentially the seller's invoice for the

commodities sold. The letter of credit and firms or agencies frequently require this invoice to

ascertain the right amount for insurance and calculate import taxes.

4. Carnet - When a seller ships a package in a sealed container, a certificate is sometimes used to

signify that the shipment was sealed from the origin and will not be opened until it arrives at its

destination. The cargo can then pass through intermediate customs posts without being

inspected. Carnets are extremely useful for intermodal shipments and containers traveling

across many national borders between origin and destination.

5. Bill of lading - The bill of lading is the starting point for each international cargo. There is only

one bill of lading. The export bill of lading may control the domestic component of the transfer

(from the factory to the port of exit), the intercountry section (by sea or air), and the foreign

portion (from the port of entry to the final destination in a foreign country try).

6. Liability - The major clauses of the bill of lading contract address the liabilities of the ocean

carrier. According to the Carriage of Goods by Sea Act of 1936, the ocean carrier is expected to
 use reasonable diligence to make its vessel seaworthy and is liable for losses caused by

negligence. The shipper is responsible for losses caused by hazards of the sea, acts of God, acts

of public adversaries, inherent cargo flaws, or shipper carelessness. As a result, the liability

placed on an ocean carrier is smaller than that imposed on a domestic carrier.

7. Dock receipt - After the carrier has brought the items to the port, the steamship agent produces

a dock receipt showing that the consignment has been handed to the steamship company by

the domestic carrier. This document can be used to demonstrate compliance with the payment

conditions of a letter of credit and to support damage claims.

8. Airway bill - The universal airway bill is another document that is becoming increasingly

significant. a standard document used by air carriers for all international air shipments

Question 2

Answer - The bill of lading is the starting point for every international shipment. There is only one bill of

lading. The export bill of lading might control the domestic component (from the factory to the port of

exit), the intercountry section (by ocean or aid), and the foreign portion (from the port of entry to the

destination in a foreign country try). Most shipments are shipped using a combination of domestic and

ocean or air bills of lading.

Different types of Bills of lading

1. Ocean Bill of lading - The ocean bill of lading is comparable to the domestic bill of lading that

was previously mentioned. The ocean bill of lading is the contract of transport between the

shipper and the carrier. It specifies the cargo terms and names the origin and destination ports.

It also provides cargo information such as the quantity and weight of the package, the freight

rates, and any special handling needs. The ocean bidding is not consistent. The carrier may add

restrictions to the bill of lading as long as the modifications are not illegal.
 2. Order bills of lading - Order bills of lading may serve as proof of ownership. These negotiable

agreements can be used by sellers to transfer ownership of commodities.

3. Clean bill of lading - When the cargo reaches onboard ship in good condition, the carrier gives a

clean bill of lading. If there is proof of damage to the cargo, the carrier will indicate it on the bill

of lading and will not give a clean B/L. In addition to processing all Jading bills, the carrier

generates a ship's manifest, which describes the cargo aboard the ship and is listed by port of

loading and destination.

Question 3

Answer - Incoterms are terminology used in international trade to outline the duties of the seller and

buyer as part of the sales contract. 

The seller is responsible in this group for delivering the items to the buyer's pre-agreed means of

transportation. Following that, the customer assumes full responsibility for all expenses and hazards.

The F category of incoterms has several sub-groups, including:

Free Carrier (FCA). The seller delivers items to the carrier, a specific person at the seller's facilities, or

another specified place. Any risks that are passed on to the customer must be properly mentioned.

Free Alongside Ship (FAS): This is when the supplier delivers items alongside a vessel that the buyer has

designated. Once the products are alongside the vessel, the buyer assumes accountability.

Free on Board (FOB): This is when the supplier delivers products aboard the buyer's designated vessel.

Once the commodities are on board the vessel, the buyer assumes accountability. FAS and FOB are both

incoterms for waterway shipping.

Incoterms Group C
Cost and Freight (CFR): CFR is synonymous with FOB. The vendor must pay for the charges and freight to

transport the items to their destination.

Cost, Insurance, and Freight (CIF): CIF is synonymous with CFR. The seller, on the other hand, provides

insurance coverage against the buyer's risk of loss or damage. Both of these phrases are used to

describe waterway cargo.

Carriage Paid To (CPT): In this instance, the seller is responsible for arranging carriage of the goods to a

specified location but is not liable for insuring them.

Carriage and Insurance Paid To (CIP): Like CPT, except the seller is also liable for insuring the goods.

Incoterms Group D

DAT (Delivered at Terminal): DAT is when the vendor delivers the items to a specified location after the

goods have been unloaded. The seller is fully responsible for the products until they arrive at their

designated destination.

DAP (Delivered at Place): DAP is when the vendor delivers the products ready for unloading at the

specified location. The seller is fully responsible for the products until they arrive at their designated

destination.

Delivered Duty Paid (DDP): This is used when the seller is liable for all expenses and hazards associated

with delivering items to the buyer's specified location. This comprises clearing products for export and

import, paying applicable duties, and completing customs formalities.

The vendor is responsible for all charges to the destination port in this category. The risks are shifted to

the customer once the products are put onto the conveyance. Incoterms from Group C include: