Visit an Organization of your choice and find out which business documents do they use and

for each document, explain what it is and its uses in that Organization.

Business documents are pieces of written, printed, or electronic matter that provides
information or evidence and then serves as an official record. Businesses use documents and
reports to share information, data and numbers to improve operations, management and sales,
among other reasons. The concept of "document" has been defined by S Briet (1951, 7) as
"any concrete or symbolic indication, preserved or recorded, for reconstructing or for proving
a phenomenon, whether physical or mental

Background:
This writer visited Zimflex, which is an international fresh produce exporter and export
promotion organization. Zimflex was established in 1996 as a unique quality driven and
complete logistical solutions organisation. The organisation is located at number 5 Arlington
Estate, Airport Road, Harare. With the aim of compiling this article, this writer approached
Zimflex public relations officer Mr A Kwangware, as well as the sales department manager
Mrs M Hungwe to gather in-depth information about documents they do use in their day to
day conduct of business.

Mr Kwangware indicated that trade is the backbone of the Zimbabwean economy with
exports spearheading the economic development agenda. Exports generate foreign exchange
earnings, create employment, alleviate poverty, facilitate transfer of technology, encourage
innovation and attract investment including Foreign Direct Investment. Zimflex is totally
committed to promoting Zimbabwe as a reliable and competitive outsourcing and
international supplier of freshly produced goods, horticultural products, and value added
services.

Mrs Hungwe said there are many business documents involved in local and international
trade which are in use at Zimflex, such as promotional documents, commercial documents,
financial documents, transport documents, insurance documents and other business
administration related documents. For example, when processing the export consignment,
Zimflex documentation may be executed in up to four contracts: that is the export sales
contract, the contract of carriage, the contract of finance and the contract of cargo insurance.
It is therefore imperative to understand the role of each document and its requirements in

1
international trade. For the purpose of this article, the writer has opted to dwell much on
documents precisely concerned with international export trade.

Promotional documents

Newsletters and Catalogues. Zimflex’s promotional activities are carefully designed and
implemented to stimulate exports to existing and new markets. The organisation provides the
assistance to established exporters as well as would-be exporters to understand and penetrate
developed and emerging markets. Through the use of newsletters and other media, Zimflex
undertakes a wide range of targeted export promotion activities which includes participation
in regional, international trade fairs and exhibitions. In addition to newsletters dedicated to
international audiences, Zimflex have internal catalogues for exporters. The catalogues
provide integrated interfaces for services to exporters. Along with a calendar of events, these
two documents provide news, a variety of studies and reports.

Commercial Documents

Quotation. A quotation is an offer to sell goods that clearly state the price, details of quality,
quantity, trade terms, delivery terms and payment terms. This document is prepared by
Zimflex for export consumers and would be customer. The offer for goods on sale is only
valid for a limited period in which if no sale has been achieved within a specified period, the
offer may be subject to change.

Sales Contract. A sales contract is an agreement between the buyer and the seller stipulating
every detail of a transaction. Since this is a legally binding document, it is therefore advisable
to seek legal advice before signing the contract. The names and address of the parties to
agreement are clearly indicated for the avoidance of doubt. The date of this contract is also
indicated as well. The sales contract also shows the description of goods, the payment
method, delivery method and other miscellaneous details. This document is prepared by
Zimflex and the importer with company lawyers as guarantors of the transaction, thus
providing a legal backing for the Zimbabwean exporting company.

Pro Forma Invoice. A pro forma invoice is a document provided by a supplier prior to the
shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent,
their value, and importation specifications (weight, size and similar characteristics). This is

2
not issued for demanding payment but may be used when applying for an import licence or
permit or arranging foreign currency or other funding purposes. This is prepared by Zimflex
prior to approaching the buyer for the export process to begin.

Commercial Invoice. A Commercial Invoice is a formal demand note for payment issued by
Zimflex to the importer (customer) for goods sold under a sales contract. It gives details and
the true value of goods sold, payment terms and trade terms. It is also used for the customs
clearance of goods and sometimes for foreign exchange purpose by the importer. The
document is prepared by Zimflex after all selling conditions having been met with the buyer.

Packing List. A Packing List is a document with detailed packing information of the goods
being shipped. Zimflex is required to create a compliant packing list document to be used by
all parties along the supply chain. Therefore, packing lists are required for all seafreight and
airfreight shipments.

Inspection Certificate. An Inspection Certificate is a report issued by an independent surveyor

(Inspection Company) or the exporter on the specifications of the shipment, including quality,
quantity, and / or price as required by certain buyers and countries. It is also called a pre-
shipment certificate of inspection. This document can be prepared by the Inspection
Company or Zimflex if the need be.

Insurance Policy. An export Insurance Policy is an insurance document and risky

management product offered by a private insurance company and governmental export credit
agencies to export companies wishing to protect their accounts receivable from loss due to
credit risk or bankruptcy. Full details of the insurance coverage, evidencing insurance has to
be taken out on the goods shipped. This document is prepared by an insurer or insurance
agent or insurance broker and the counter signed by Zimflex staff.

Insurance Certificate. An Insurance policy certifies that the shipment has been insured under
a given open policy and is to cover loss of or damage to the cargo while in transit. The
document is prepared by the insurer or insurance agent or insurance broker Zimflex retains a
copy for future references.

Product Testing Certificate. Product Testing Certificate certifies that the products are
conformed to a certain international technical standard, such as product quality, safety and

3
specifications. The aim is to avoid contaminants on exported goods that may be available as a
result of various stages in processing, packing and transportation of export products. This
document is prepared by accredited laboratories. Zimflex only needs to retain a copy of this
document as proof of conformity.

Health Certificate. Health Certificate is a document issued by the competent country when
agricultural or food products are being exported, to certify that they comply with the relevant
legislation in the exporter's country and were in good condition at time of inspection, prior to
shipment and fit for human consumption. This document is prepared by Zimflex together
with inspection authority of the country of origin, that is to say Zimbabwe.

Phytosanitary Certificate. Frequently an international requirement that any consignment of

plants or planting materials importing into a country shall be accompanied by a Phytosanitary
Certificate issued by the exporting country stating that the consignment is found substantially
free from diseases and pests and conforms with the current Phytosanitary regulations of the
importing country. Application of the certificate in Zimbabwe is made to the Agriculture and
Lands Department. With Zimflex as a major exporter of horticulture goods, it is mandatory
that all their products are fully certified to maintain market confidence.

Fumigation Certificate. A pest control certificate issued to certify that the concerned products
have been undergone the quarantine and pre-shipment fumigation by the approved
fumigation service providers. It is mainly required by the US, Canada, Australia, New
Zealand and UK's customs on solid wood and container packed materials of fresh products
from African countries. This document is prepared by Zimflex and Inspection Company
involved.

ATA Carnet. An Admission Temporaire Admission Carnet is an international customs

document used to obtain a duty-free temporary admission for goods such as exhibits for
international trade fairs, samples and professional equipment, into the countries that are
signatories to the ATA Convention. Zimbabwe is a signatory to this facility. As such
Zimbabwean companies largely benefit from this passport of merchandise facility. The
document is prepared by Zimflex for use on some international export markets.

Consular Invoice. A Consular Invoice is a document required by some foreign countries,

showing shipment information such as consignor, consignee, and value description, etc.

4
Certified by a consular official of the importing country stationed in the foreign country, it is
used by the country's customs officials to verify the value, quantity and nature of the
shipment. The document is prepared by Zimflex in liaison with the importing country’s’
consular official.

Transport Documents
Shipping Order. Shipping Order is a document with details of the cargo and the shipper's
requirements. It is the basic document for preparing other transport documents such as bill of
lading and air waybill. It is prepared by the shipper in the presence of Zimflex and is sent
with the goods so that the receiving person can verify that the document correctly reflects the
items that they actually received. Zimflex retains a copy of this document for the purpose of
goods tracking and future reference.

Dock Receipt. Dock Receipt is a receipt to confirm the receipt of cargo on warehouse
pending shipment. The dock receipt is used as documentation to prepare a bill of lading. It
has no legal role regarding processing financial settlement. It is prepared by the shipping
company and the Zimflex as the exporting company is reserved a copy the document for
filing and reference purposes.

Bill of Lading (B/L). A Bill of Lading is evidence of contract between the shipper of the
goods and the carrier. The customer usually needs the original as proof of ownership to take
possession of the goods. There are two types: a STRAIGHT bill of lading is non-negotiable
and a negotiable or shipper's ORDER bill of lading (also a title document) which can be
bought, sold or traded while goods are in transit and is used for many types of financing
transactions. After preparation the document by the shipping company, Zimflex then
forwards a copy of the document to the intended customer as proof of shipment. The
customer will use the sent copy for collection of goods.

House Bill of Lading. House Bill of Lading is a document of lading issued by a forwarder
and, in many cases, not a title document. Shippers choosing to use a house bill of lading,
should clarify with the bank whether it is acceptable for letter of credit purpose before the
credit is opened. Advantages include less packing, lower insurance premiums, quicker transit,
less risk of damage and lower rates than cargo as an individual parcel / consignment. It
prepared by forwarder and Zimflex have to honour by the payment for shipping provided.

5
Sea Waybill and Air Waybill (AWB). Sea Waybill is a receipt for cargo which incorporates
the contract of carriage between the shipper and the carrier but is non-negotiable and is
therefore not a title document. Then the airway bill is a kind of waybill used for the carriage
of goods by air. This serves as a receipt of goods for delivery and states the condition of
carriage but is not a title document or transferable / negotiable instrument. Both these bills are
prepared by the transport companies used by Zimflex that is when the goods are transported
by air or by sea.

Shipping Guarantee. Shipping Guarantee is usually a pre-printed form provided by a shipping

company or the bank, given by an importer's bank to the shipping company to replace the
original transport document. The consignee may then in advance take delivery of goods
against a shipping guarantee without producing the original bill of lading. The consignee and
the importer bank will be responsible for any loss or charges occurred to the shipping
company if fault is found in the collection. It is usually used with full margin or trust receipt
to protect the bank's control to the goods. The document prepared by importer's bank or
shipping company or consignee but another copy is send back to Zimflex for proof of safe
receipt of goods. Zimflex then files this document in their shipping documents file.

Financial Documents
There are also a number of financial document that are involved in Zimflex’s line of business.
These documents used to complete and facilitate service payments involved in Zimflex
business transactions. Some of which include the following;

Documentary Credit. Documentary Credit is a bank instrument (issuing or opening bank), at

the request of the buyer, evidencing the bank's undertaking to the seller to pay a certain sum
of money provided that specific requirements set out in the documentary credit are satisfied.
This document is prepared by the issuing bank upon an application made by the importer and
then forwarded to the exporter, who is our case is Zimflex. In the event that the buyer is
unable to make payment on the purchase, the bank will be required to cover the full or
remaining amount of the purchase.

Standby Credit. Standby Credit is an arrangement between a customer and his bank by which
the customer may enjoy the convenience of cashing cheques, up to a value. Or a credit set up
between the exporter and the importer guaranteeing the exporter will pay the importer a
certain amount of money if the contract is not fulfilled. It is also known as performance bond.

6
This is usually found in large which Zimflex usually get involved in during their line of
business. This document is prepared by Zimflex, the exporter and the issuing bank but also in
liaison with the importer.

Collection Instruction. Collection Instruction is an instruction given by an exporter to its

banker, which empowers the bank to collect the payment subject to the contract terms on
behalf of Zimflex, the exporter. This document is designed by the Zimflex as the exporter and
forwarded to the bank.

Bill of Exchange (B/E) or Draft. Bill of Exchange (B/E) or Draft is an unconditional written
order, in which the importer addressed to and required by Zimflex to pay on demand or at a
future date a certain amount of money to the order of a person or bearer.
The document is prepared by Zimflex and a copy is then forwarded to the importer.

Trust Receipt (T/R). Trust Receipt (T/R) is a document to release a merchandise by a bank to
a buyer (the bank still retains title to the merchandise), the buyer, who obtains the goods for
processing is obligated to maintain the goods distinct from the remainder of his / her assets
and to hold them ready for repossession by the bank. The document is prepared by the
importer and a copy of the agreement is forwarded to Zimflex as the supplying company for
information basis.

Promissory Note. Promissory Note is a financial instrument that is negotiable evidencing the
obligations of the foreign buyer to pay to the bearer. It is prepared by the importer as an
agreement with Zimflex.  The promissory note is basically an “I Owe You” with an official
tone. Making a promissory note legal requires inserting the right components into the
document.

Government Documents
Certificate of Origin (CO). Certificate of Origin (CO) is a document that certifies the place of
manufacture of the exported goods to meet the requirements of the importing authorities. It is
an important international trade document confirming that the goods in a particular shipment
have been wholly obtained, produced, manufactured or processed in a particular country. The
document is prepared by ministry of trade and commerce then certification is attached to all
Zimflex products meant for export. There is also an almost similar document called the
Certificate of Origin Generalized Systems of Preferences (GSP) Form A (or as Form A) A

7
CO to support the claim for preferential tariff entry (a reduced or zero rate) of the exporting
country's products into the GSP donors under the GSP they operate. In general, a Form A is
issued only when the goods concerned have met both the origin rules of the preference
receiving country as well as the origin criteria of the respective donor country's GSP. Again
these documents are prepared and released by the Ministry of Trade and Commerce for the
sole purpose of accompanying Zimflex products into international markets.

Export Declaration. Export Declaration is a statement made to the Director of Customs at

port of entry or exit, declaring full particulars of the shipment, for example the nature and the
destination or exporting country of the ship's cargo. Its primary use is for compiling trade
statistics. The document is prepared by Zimflex being exporter and submitted to the customs
officials

Export Licence. Export licence is a document issued by a relevant government department

authorising the imports and exports of certain controlled goods. Zimflex as an exporting
company is mandated to be in possession of this document in order to allow government
monitor goods and supervise goods allowed for export and those not allowed.
Prepared by: Trade and Industry Department, Customs & Excise Department

Customs Invoice. Customs Invoice is a document specified by the customs authorities of the
importing countries stating the selling price, costs for freight, insurance, packing and
payment terms, for the purpose of determining the customs value. Customs invoices are a
critical component of the export paperwork. The commercial invoice is the one single
document that describes the entire export transaction from start to finish. The basis for all
other export documents, the commercial invoice is a bill for the goods from the seller to the
buyer. It is also the primary shipping document used by customs worldwide for commodity
control and valuation.

Business documents as pieces of written, printed, or electronic matter, at Zimflex they

provide information, evidence of transactions and then serves as an official record for filing
purposes. Businesses use documents and reports to share information, data and numbers to
improve operations, management and sales, among other reasons. Zimflex uses documents to
transact business with its clients. To save time, these documents may be formatted as a form,
such as an order form, transmittal page, invoice or receipt. The types of transactional
documents used vary somewhat by the nature of a business. An insurance agent, for example,
generates insurance applications and policies, while a lender uses loan applications and

8
mortgage documents. In some fields, businesses enter into agreements and contracts with
others; these documents might be drafted by the company’s lawyer.

9
References

 Briet, S. (1951). Qu'est-ce que la documentation? Paris: Documentaires Industrielles et

Techniques.
 Mr A Kwangware 0716924125
 Mrs M Hungwe 0772769161

10