UNIT 2: TASKS

Commercial Documents (Chung tu thuong mai)

Name Definition Prepared
by
Pro Forma An invoice provided by a supplier prior to the shipment of Exporter
Invoice 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 not issued for
demanding payment but may be used when applying for an
import licence/permit or arranging foreign currency or other
funding purposes.
Commercial A formal demand note for payment issued by the exporter to the Exporter
Invoice importer for goods sold under a sales contract. It should give
details of the 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.

Parking List A list with detailed packing information of the goods shipped. Exporter

Inspection A report issued by an independent surveyor or the exporter on Inspection

Certificate the specifications of t shipment, including quality, quantity, company or
and/or price, required by certain buyers and countries. exporter

Insurance This certifies that the shipment has been insured under a given Insurer or
Certificate open policy and is to cover loss of or damage to the cargo while in insurance
transit. agent or
insurance
broker

Consular A document required by some foreign countries, showing

Invoice shipment information such as consignor, consignee, and value Exporter
description, etc. 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.
 Transport Documents (Chung tu van tai)
Name Definition Prepared
by
Dock Receipt A receipt to confirm the receipt of cargo on quay/warehouse Shipping
D/R or Mate's pending shipment. It is used as documentation to prepare a company
Receipt bill of lading. It has no legal role regarding processing
financial settlement.

Bill of Lading An evidence of contract between the shipper of the goods and Shipping
(B/L) the carrier. The customer usually needs the original as proof company
of ownership to take possession of the goods.

Air Waybill A kind of waybill used for the carriage of goods by air. This Airline
serves as a receipt of goods for delivery and states the
condition of carriage but is not a title document or
transferable/negotiable instrument.

Financial Documents (Chung tu tai chinh)

Name Definition Prepared
by
Documentar A bank instrument (issuing or opening bank), at the request of
y Credit D/C the buyer, evidericing the bank's undertaking to the seller to pay a
certain sum of money provided that specific requirements set out The bank
in this document are satisfied.

Bill of An unconditional written order, in which the importer addressed

Exchange to and required by the exporter to pay on demand or at a future Exporter
date a certain amount of money to the order of a person or bearer.

Government Documents
 Name Definition Prepared by

Certificate of This certifies the place of manufacture of the Trade and Industry
Origin exported goods to meet the requirements of Department and five
the importing authorities. Chambers of Commerce

Import Export A document issued by a relevant government Trade and Industry

Licence department authorising the imports and Department, Customs &
exports of certain controlled goods.. Excise Department, etc

Customs Invoice It states the selling price, costs for freight, Exporter
insurance, packing and payment terms, etc, for
the purpose of determining the customs value.

1. What are the three modes of transport for exporting products

overseas?
Air, ocean, land.

2. Which modes of transport are suitable for countries that share

a common boundary?
Inland water, land transport.

3. Which modes of transport are suitable for countries that do not

share a common boundary?
Air and oceans transport.

4. What helps exporters determine the mode of transportation?

Market location, speed and cost.

5. Where can importers get free import duties for the goods?
In a free-trade zone.

Definition:
1. Forwarder: a company that arranges for goods to be transported, especially
to another country.
 2. Consignee: the person something is sent to.
3. Consignor (nguoi gui hang): a person or company that sends goods to
someone.
4. Broker (nguoi moi gioi): a person who buys and sells things for other
people.
5. Carrier (nguoi van chuyen): a company that carries goods or passengers
from one place to another.
6. Integrator: a person who makes separate things become closely linked.
7. Consolidator.: a transport company that arranges for goods sent by different
companies to be stored and transported together.
8. Shipper (nguoi giao hang): a person or company that arranges for goods to
be sent from one place to another, especially by ship.
9. Distributor (nha phan phoi): a person or company that buys products from
a manufacturer and sells them for a profit to other businesses, stores, or
customers.

TRUE/FALSE
1. TRUE: The Warsaw Convention of 1929, the amended convention of 1955 and
1999 control the air transportation of goods.

2. FALSE: All versions of the convention are widely adopted by most countries.

3. TRUE: The convention applies when the points set out in the contract of carriage
are in two countries that subscribe to the original Warsaw Convention.

4. TRUE: The consignor must make out and hand over the air waybill with the goods
as required by the carrier.

5. FALSE: The carrier can be free from liability if they receive the goods from the
consignor without an air waybill.
6. FALSE: The carrier must give the air waybill to the consignor at destination place.

7. TRUE: The carrier can escape liability if the damage is caused by the negligence 7.
of the pilot or the handling of the aircraft.

8. FALSE: In the case of intermodal transport, all the carriers are liable to loss,
damage, or delay to cargo for the whole journey.

9. FALSE: The carrier gives a compensation of more than $9 per pound for loss or
damage to the goods, or delay in delivery if the consignor has declared a higher
value and paid a supplementary charge.

10. FALSE: The right to damages is valid after two years after the actual or supposed
delivery of cargo.

11. FALSE: Notice of complaint must be made within seven days from the date of
receipt of goods or within fourteen days from the date on which the goods have been
placed at the consignee's disposal in the case of delay and damage respectively.

These statements refer to Private fleets, Tramps or Conference

lines:
Private fleets:
 Ships owned and controlled by merchants and manufacturers.
 Ships ensuring the availability of carriage for their owner's goods.
Tramps:
 Ships charted to carry bulk cargo in large quantities.
 ships with no fixed routes or regular sailing schedules.
 Ships charted for a voyage for an agreed time period.
 The lowest transportation costs of the three types of ocean carriers.
Conference lines:
 Ships with fixed routes and regular sailing schedule.
  Includes ocean carriers of two or more countries.
 Established to stop price competition by setting uniform freight rates.
Freight Forwarder (FF)
 Arranging cargo movements for international destinations.
 Taking responsibility to dispatch shipments via common carriers.
 Arranging necessary space for the shipments via shippers.
 Processing and preparing documentation related to all shipment activities.
Non-Vessel Operating Common Carrier (NVOCC)
 Concluding international goods carrier contracts as carriers with the
shippers.
 Delivering and receiving cargo in the form of carriers.
 Issuing of various transport documents along with the house bill of lading.
 Handling booking space as well as the mainline carrier shipping.
 Arranging payments for transportation between port to port along wit other
essential charges.
 Consolidation as well as deconsolidation of containers using third-party
services.

The Certificate of Origin verifies the country, in which the goods were
mamufactured. Some nations restrict imports from certain countries; many
countries limit the quantity of goods that are allowed to be imported. Millions of COs
are issued every year facilitating trade around the world. Almost every country in
the world considers the origin of imported goods when determining the tariff that
will be applied to the goods or if the goods may be legally imported at all. In
addition, eomply COs may be needed to comply with letters of credit, foreign
customs requirements or a buyer's request. Determining the origin of a product is
important because it is essential for applying import tariffs. The main CO is the 'non-
preferential type', which certifies that the country a particular product originates
from does not qualify for any preferential treatment. A 'preferential' certificate
enables products to benefit from duty reductions, when they are exported to
countries that extend these privileges. The Certificate of Origin is completed by the
importer or its agent and certified by a chamber of commerce, trade organization,
and/or consular office.
UNIT 3

Procedure of Documents against Payment

1. The exporter ships the goods and then gives the documents to the remitting
bank.
2. The remitting bank will forward the documents to the importer's collecting
bank.
3. The collecting bank releases the documents to the importer only on payment
of the goods.
4. The collecting bank transmits the funds to the remitting bank for payment to
the exporter.

Procedure of Documents against Acceptance

1. The exporter ships the goods and extends credit to the importer by using a
time draft.
2. The documents are released to the importer to claim the goods upon his
signed acceptance of the time draft.
3. At maturity, the collecting bank contacts the importer for payment.
4. Upon receipt of payment, the collecting bank transmits the funds to the
remitting bank for payment to the exporter.

Procedure of Letter of Credit

1. Exporter and Importer sign a sales contract.
2. Importer applies for L/C to Issuing Bank.
3. Issuing Bank issues the L/C.
4. Advising Bank advises the L/C to the exporter.
5. The exporter ships the goods to the importer.
6. The exporter summits the documents to the Advising Bank.
7. Advising Bank sends the documents to the Issuing Bank.
8. Advising Bank makes payment to the exporter.
9. Issuing Bank makes payment or accept payment with Advising Bank.
10.Importer makes payment to the Issuing Bank.