C. Export documents

Exporters have to prepare fi number of documents to go with the shipment or transportation of goods.

§ The commercial invoice contains details of the goods: quantity, weight, number of packages, price, terms of delivery, terms of payment, and information about the transportation.

§ The bill of lading is a document signed by the carrier or transporter (e.g. the ship’s master) confirming that the goods have been received for shipment; it contains a brief description of the goods and details of where they are going.

§ The insurance certificate also describes the goods and contains details of how to claim if they are lost or damaged in transit - while being transported.

§ The certificate of origin states where the goods come from.

§ Quality and weight certificates, issued by private inspection and testing companies, may be necessary, confirming that these are the correct goods in the right quantity.

§ An export licence giving the right to sell particular goods abroad is necessary in some cases.

1.Are the following statements true or false? Find reasons for your answers in A, B and C opposite.

1. With a letter of credit, the buyer tells the bank when to pay the seller.

2. Letters of credit are only valid for a certain length of time.

3. An exporter usually has the right to change a letter of credit.

4. The bill of lading confirms that the goods have been delivered to the buyer.

5. With a bill of exchange, the seller can get most of the money before the buyer pays.

6. Bills of exchange are sold at less than 100%, but redeemed at 100% at maturity.