Trade Document Creation

Trade Document Creation

Simply put, trade document creation is the creation of the necessary documentation to satisfy import, export, customs, security, safety, port, and carrier requirements. Numerous documents are required by government bodies, customs, ports, and carriers, just to name a few, to move your products internationally. One industry estimate has noted that a single global shipment can require approximately 35 documents consisting of over 200 data elements to be created for up to 15 different parties.
Trade documentation is not something that should be taken lightly. Considering that a Purdue University Study concluded that the average cost per day of shipping time is approximately 0.5 percent ad-valorem and that a single error in documentation can cause a multi-day delay, it's easy to see how critical trade documentation can be.
This section overviews over five dozen different types of documents and variants that might be required when trading globally. The specific documents will depend upon the country being exported from, the country being imported o, the goods being shipped, the carriers shipping the goods, the ports and free trade zones being used, and other parties that the goods will come in contact with on their journey. In order to determine which specific documents are required, consult the affected customs agencies, ports, carriers, third parties, and a good lawyer versed in international law.
For more information on some customs and security regulations that mandate strict documentary requirements, please see the wiki-paper on Customs and Security Regulations.

• Airway Bill / Air Transport Documents
  A document made out by, or on behalf of, the shipper which evidences the contract between the shipper and the carrier(s) for carriage of goods.
• Application for Foreign-Trade Zone Admission and/or Status Designation
  An application made to a government authority to allow goods to enter a foreign trade or special economic zone with appropriate status to take advantage of the special regulations and reduced taxes that the zone offers.
• Application for Permit
  An application made to a government agency for an import permit.
• BCL: Bank Comfort Letter
  A document from the buyer's bank to inform the seller that the buyer has the financial capacity to issue a Letter of Credit, subject to bank formalities, should the buyer contract with the seller.
• Bill of exchange
  An unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date.
• Bill of lading
  A contract between an exporter and an international carrier for transport of merchandise to a foreign market.
• CCD: Cargo Control Document / Cargo Declaration
  An itemized list of shipment contents, also known as a manifest.
• Certified Invoice
  A signed invoice, usually witnessed by a third party, issued by an exporter to certify a statement required by the importer.
• Certificate of Analysis
  A certificate that contains an analysis of the goods in question. Often required to demonstrate compliance with regulations.
• Certificate of Authenticity
  A certificate is a document from a seller verifying that the goods being sold are indeed authentic.
• Certificate of Compliance
  A certificate that states the goods have been inspected by an appropriate third party and found to be in compliance with the appropriate regulation(s).
• Certificate of Damaged Goods
  A certificate that indicates the goods are damaged. This is often required if a shipper wants to avoid certain import duties on goods that are not going to be sold (as-is).
• Certificate of Importation
  A certificate that states the goods in questions were imported.
• Certificate of Origin
  A certificate used to authenticate the country of origin of the indicated goods.
• Certificate of Ownership
  A certificate used to specify the owner of the indicated goods.
• Certificate of Registration
  Usually used to specify the designated entity is registered to act in a certain authority with one or more government agencies.
• Charter Party
  A contract between a merchant and a ship owner by which a ship is hired for the conveyance of goods on a specified voyage.
• CI: Commercial Invoice
  A common document used for clearing a shipment through customs that is used by customs officials to classify merchandise for proper assessment of duties and taxes.
• Consular Invoice
  A document certified by a consular official of a foreign country that describes a shipment of goods and is used by customs officials to verify the value, quantity, and nature of the shipment.
• Courier receipt
  A receipt by a courier used to indicate that goods have been received and shipped by the courier.
• Custom Clearance Document(s)
  Generally used for goods which are the property of, or destined to be used by, the US Armed Forces.
• Customs (Pro Forma) Invoice
  A basic entry document accepted by customs brokers and officers that is used to declare returned goods.
• Customs Value Declaration
  A document used to declare the value of the goods in the shipment.
• Declaration of Consignee
  A declaration made by an agent on behalf of a buyer or seller when goods enter or leave a country.
• Declaration of Owner
  A declaration made by an owner of goods when they enter or leave a country.
• Deed of Assignment
  Banking arrangement, under a letter of credit, whereby the Beneficiary of a letter of credit assigns part of the proceeds to a third party.
• Delivery Certificate for Purposes of Drawback
  A certificate indicating goods that are to be drawn-back have been delivered. Goods that are to be drawn-back are to be exported or destroyed without having been used in the country of importation.
• Delivery Ticket
  A document meant to signify delivery of a shipment.
• Drawback Entry
  The document containing a description of the exported or destroyed article on which a drawback is claimed.
• Drawback Notice
  An official notice that a drawback is about to be claimed.
• Entry/Immediate Delivery or Summary
  Used when the immediate release of imported goods to an importer or customs broker is required.
• (EIS) Export Information Sheet
  A document that specifies all of the relevant information about the items being exported.
• Export Permit
  A document that allows a corporation or individual to export goods.
• FCR: Forwarder Cargo Receipt
  Used to provide validation that a vendor has delivered the specified cargo and all related documents to the designated receiver.
• FCO: Full Corporate Offer
  A document prepared by the seller in response to an ICPO (Irrevocable Corporate Purchase Order) from a buyer indicating receipt and acceptance of the ICPO.
• Facilitated Transit Document
  An authorization for facilitated transport across land.
• Foreign Assembler's Declaration
  A declaration by the foreign party that manufactured the goods that accurately describes the goods, their unit value, and the contact information of the foreign party.
• Health certificate
  A certificate that indicates the goods are compliant with any relevant health codes.
• ICPO: Irrevocable Corporate Purchase Order
  A purchase order that states the full details of an order, including the details that will appear on the (pro-forma) invoice, that cannot be revoked.
• Import Declaration
  Used to declare goods being imported to a customs agency.
• Import Permit
  A document that allows a corporation or individual to import goods.
• Insurance document
  A document that specifies the type of, and conditions for, insurance on the corresponding goods.
• Inward Cargo Manifest
  A document that must be prepared by a carrier and presented to customs before the goods can be imported.
• Letter of Instructions
  Usually a document prepared by a seller or a buyer for a third party handling import and export of goods that contains instructions for the third party on the transport of such goods.
• LC: DL/C Documentary Letter of Credit
      SL/C Standby Letter of Credit
      RL/C Revolving Letter of Credit
  A (documentary) letter of credit is a legal document issued by a buyer's bank that indicates payment will be made upon presentation of required documents. A revolving letter of credit is used for regular shipments of the same commodity between the same exporter and importer in place of a documentary letter of credit. A standby letter of credit allows for the pledge of securities in an eligible account as collateral in lieu of traditional cash or bond down payment.
• LOI: Letter of Intention
  A document that acknowledges a willingness and ability of the parties to do business together.
• Manifest of Goods / Merchandise
  A list of goods being shipped.
• Multimodal transport document
  A document that contains instructions and information for two ore more different modes of transport.
• Non-negotiable sea waybill
  A waybill that allows goods to be delivered to the consignee without transfer of the waybill as soon as the bill of lading is processed.
• Notice of Intent
  An informational document generally filed to specify an upcoming import or export activity.
• Post receipts
  Documents generally used to confirm payments.
• Packing list (Export)
  Another term for a manifest.
• Power of Attorney
  A legal instrument used to designate legal authority to another person or entity.
• Pro-forma Invoice
  A document that states a commitment from the seller to sell goods to the buyer at specified prices and terms.
• Quality Certificate
  A certificate, usually issued by a third party, that indicates the goods meet a certain recognized quality rating.
• Returned Goods
  A document that indicates the goods are goods that are being returned.
• Road / Rail transport documents
  A document used to transport goods by road and rail, commonly used in the European Union.
• SAD: Single Administrative Document
  A standardized document that has replaced most of the customs declarations forms existing in the European Union member states.
• SED: Shipper's Export Declaration
  A declaration made by an exporter of the goods being exported and their associated value.
• SLI: Shipper's Letter of Instruction
  A document that provides shipping instructions to the shipper's freight forwarder.
• SSE: Shipper's Security Endorsement
  Generally speaking, a certification that the cargo does not contain any unauthorized explosives, incendiaries, or hazardous materials.
• Temporary Import License
  A license to temporarily import goods from a first country into a second country for the purpose of exporting them to a third country.
• Third party inspection certificate
  A certificate that confirms the goods have been inspected by a third party and found to be in compliance.
• Weight certificate
  A certificate that verifies the weight of a shipment.