After understanding the knowledge of documents, you will have a clear concept of the process of foreign trade:
1. In the early stage of foreign trade negotiation, make a pro forma invoice for quotation, transaction reference or customer application for import license, etc.
2. After the transaction is confirmed, make a foreign trade contract.
3. When preparing for delivery, make commercial invoice, packing list, verification form, customs declaration form, apply for commodity inspection release form and other customs declarations for export.
4. After customs declaration, the customs returns the verification form, the collection and verification copy of the customs declaration form, etc.
5. After delivery and shipment, get three certificates and three copies of bills of lading.
6. Make, apply for and organize the full set of documents required by customers, such as invoices, packing lists, commodity inspection certificates, certificates of origin, beneficiary certificates, etc. to collect payment.
7. Handle verification and tax refund with the bank receipt, verification form, customs declaration verification copy, etc.
Whether or not a letter of credit is being operated, documents are important. Foreign trade documents are usually in sets, that is, the relevant documents are used as a set according to the customer’s requirements for delivery, resale and payment of goods. The basic principle of document production is “document consistency, single consistency”, that is, the production of documents meets the requirements of the letter of credit (when operating a letter of credit), and the contents of the same column of the same set of documents are consistent. For example, the quantity of goods, whether in the quantity column of the invoice, packing list or other documents, should be filled in consistently, including the unit of measurement; if the bill of lading shows a mark (a symbol for identification printed on the outer packaging of the goods), the invoice cannot show “N/M” (no mark).
In addition, each document will indicate the date of issuance, and there are corresponding regulations on the dates of various documents in foreign trade operations, requiring that the issuance date should be logical and in line with international practice. Generally, as a complete set of documents for collection, the date is based on the ON BOARD DATE on the bill of lading to determine the date of each document:
The date of the invoice (INVOICE) is generally earlier than all documents;
The packing list (PACKING LIST) is generally on the same date as the invoice and must be before the bill of lading date;
The bill of lading date (ON BOARD DATE) cannot exceed the shipment period specified in the L/C;
The issuance date of the insurance policy (INSURANCE POLICY) should be earlier than or equal to the bill of lading date, and cannot be earlier than the invoice;
The certificate of origin (C/O, FORMA) shall not be earlier than the invoice date and no later than the bill of lading date;
The date of the INSPECTION CERTIFICATION shall not be later than the bill of lading date, but it cannot be too early than the bill of lading date;
The beneficiary’s certificate (BENEFICIARY CERTIFICATION): equal to or later than the bill of lading date;
The shipping company’s certificate (FORWARDER CERTIFICATION): equal to or later than the bill of lading date;
The shipping company’s certificate (FORWARDER CERTIFICATION): equal to or later than the bill of lading date.
CERTIFICATION): equal to or earlier than the bill of lading date;
The date of the draft (DRAFT) should be later than the bill of lading, invoice and other documents, but not later than the validity period of the L/C.
Documents are the core of the entire foreign trade transaction. A simple document error is likely to cause significant losses, especially when encountering market fluctuations or involving commercial disputes. Document errors can easily become a “handle” in the hands of the other party. Many salesmen have had painful lessons. Of course, under normal circumstances, not every mistake is fatal. Salesmen must learn to assess the situation and grasp the degree. Don’t take it lightly, and don’t make a fuss about everything.