Document preparation refers to the preparation of documents based on sales contracts, letters of credit, original materials of relevant commodities, relevant international practices, relevant domestic management regulations, and relevant foreign customer requirements.
(1) Letter of Credit
(Letter of Credit.Lc) is a written document by which a bank (issuing bank) pays a third party (beneficiary) or its designated party based on the specified documents in accordance with the requirements of the applicant and in compliance with the terms of the letter of credit. That is, a letter of credit is a written document issued by a bank that conditionally promises to pay.
(2) Commercial Invoice
A commercial invoice is a shipping price list issued by the exporter to the importer. It is the basis for the accounting of both buyers and sellers, and is also a general description of import and export declarations and tax payments. A commercial invoice is a comprehensive reflection of a business transaction, including the name, specifications, price, quantity, amount, packaging, etc. of the commodity. It is also an indispensable document for importers to handle import declarations. Therefore, a commercial invoice is the core of a full set of export documents. In the process of document preparation, other documents must be prepared in accordance with the commercial invoice. The content of the invoice must comply with the provisions of the transaction contract and the letter of credit and there must be no discrepancies.
(3) Ocean Bill of Lading
An ocean bill of lading is a receipt for goods issued by the carrier after receiving the goods. It is also a certificate of the transportation contract signed by the carrier. The bill of lading also represents the ownership of the goods carried and is a certificate with the characteristics of property rights.
(4) Insurance Policy
An insurance policy (Insurance Policy) is referred to as an insurance policy. It is a formal written proof of the insurance contract between the insurer and the insured. The insurance policy must fully record the rights, obligations and responsibilities of both parties to the insurance contract. The content recorded in the insurance policy is the basis for the performance of the contract by both parties. The insurance policy is the proof of the establishment of the insurance contract. The insurance policy is a settlement document that the seller must submit under CIF terms.
(5) Certificate of Origin
A certificate of origin is a document issued by a notary agency, government or exporter to prove the origin or place of manufacture of goods, provided by the exporter at the request of the importer. The certificate of origin is the most effective certificate for the trade parties to hand over goods, settle payments, claim compensation, customs clearance and acceptance by the importing country, and collect tariffs. It is also the certificate for the exporting country to enjoy quota treatment and for the importing country to implement different trade policies for different exporting countries.
(6) Commodity Inspection Certificate
A commodity inspection certificate is a certificate used to prove the quality, quantity, weight, hygiene and other conditions of export commodities. It is a certificate issued by the inspection agency after the inspection and appraisal of imported and exported commodities. It is one of the documents for the seller to negotiate with the bank, and it is the evidence of whether the goods delivered by the seller are in compliance with the contract provisions. It is also one of the necessary documents for claims and compensation. Inspection certificates are generally issued by inspection agencies specified by the state, such as the China Import and Export Commodity Inspection and Quarantine Bureau.
(7) Bill of Exchange
A bill of exchange is a note issued by the drawee, requiring the payee to unconditionally pay a certain amount of money to the payee or holder upon sight of the bill or within a certain period of time. A bill of exchange is the most widely used credit instrument in international settlements and is an important document required for payment under the collection method.
Gather various documents required by the letter of credit and issued by other issuers, such as ocean bills of lading, insurance policies, inspection and quarantine certificates, certificates of origin, etc. Finally, prepare a bill of exchange according to the requirements of 42C and 42A in the letter of credit.
The above are some of the commonly used trade documents. Some other documents are prepared by the exporter himself, and some are issued by other units at the request of the exporter. But in any case, the content and the issuer must comply with the relevant provisions of the letter of credit.