If the goods of cross-border e-commerce sellers are small quantities, they are generally delivered to foreign countries by express or parcel post. At this time, it is only necessary to provide a commercial invoice according to the requirements of the express company or China Post, and overseas buyers do not need to declare customs for these goods separately.
If the goods of the seller are large quantities, they are usually declared for export as general trade. In this way, it is necessary to prepare a full set of commercial documents such as commercial invoices and packing lists, and send them to overseas banks together with bills of exchange and bills of lading through domestic banks, and then the bank will hand them over to the buyer after receiving the buyer’s payment. Under the remittance method, the seller directly sends the full set of documents to the overseas buyer, and the overseas buyer declares and picks up the goods after receiving the documents.
1 Invoice
A commercial invoice is a shipping price list issued by the exporter and a general description of the goods. The main function of the invoice is to provide importers with evidence of receipt of goods, payment of goods, and accounting, customs declaration and tax payment for importers and exporters.
The invoice is prepared by the exporter according to the contract content. There is no unified format. When settling by letter of credit, it should also strictly comply with the provisions of the letter of credit. The commercial invoice is the core of all documents, and other documents must be prepared based on the invoice data.
2 Packing Documents
Packing Documents refer to all documents that record or describe the types and specifications of commodity packaging, and are supplementary instructions for commercial invoices. They mainly include packing lists, weight lists, and measurement lists. Packing documents are prepared by exporters.
The content of the packing list is generally similar to that of the invoice. The main difference is that the invoice has an explanation of the amount, while the packing list has an explanation of the weight and number of packages.
3 Consignment Letter
Cross-border e-commerce sellers generally entrust freight forwarding companies (freight forwarders) to book cargo space offline. When exporters handle consignment with freight forwarders, they should fill out a consignment letter. After receiving the consignment letter, the freight forwarder will make a consignment note to book the space for the carrier (shipping company, airline, etc.).
4. Bill of Exchange
When the payment method is letter of credit and collection, the exporter needs to make a bill of exchange. A bill of exchange is equivalent to a written notice issued by the seller requiring the payee specified on the bill of exchange to pay within the prescribed period. The payee may refuse to pay after receiving the bill of exchange, or he may pay according to the regulations.
5. Certificate of Origin
The Certificate of Origin is a document that proves the origin of the goods. It is one of the main bases for the importing country to determine the tax rate treatment, trade statistics, quantity restrictions (such as quotas, licenses, etc.) and control imports from specific countries (such as anti-dumping duties).
6 Other documents
When the price terms are CIF/CIP, etc., the seller also needs to apply for insurance from the insurance company, but generally the exporter will sign a phased (for example, one year) reservation insurance contract with the insurance company. After each batch of goods is exported, as long as the invoice is handed over to the insurance company, it will be automatically insured. If the exporter only insures one batch of goods, it is necessary to fill in the insurance application form.
Other documents are stipulated by the contract or letter of credit according to different transaction situations, mainly including: Beneficiary’s Certificate, Shipping Advice, etc.