CHAPTER 2
Issues Concerning Trade Documentation WITH SO MANY DOCUMENTS,
issuers of documents, documentary requirements, different countries, different languages, unique laws, and the involvement of money, there are bound to be a number of issues that relate to the content, form, and presentation of documentation in international trade. Most of these can be described in broad categories, others are very specific and relate only to specialized transactions. Fortunately, few traders will be faced with all the issues described in this chapter. However, being an informed trader will have a significant impact upon your ability to deal with issues as they come up. R E C O M M E N D A T I O N : Read this chapter now and then again after reading the whole
book. Some concepts cannot be fully integrated without reading the chapters that follow.
Country of Export Document Requirements Most countries require at least basic documentation for all export transactions. For simple transactions with non-regulated commodities and goods, this may only include a commercial invoice, bill of lading and export declaration. At the other extreme, extensive documentary requirements may be required for certain goods including export licenses, export permits, authorization from other governmental agencies, and pre-shipment inspections. In extreme cases, export approval may require a vote of the country’s national legislature or executive power. In certain countries, proof of pre-shipment payment or foreign exchange documentation may also be required. E X C E P T I O N : Export from and import to member nations of a regional trade pact
(such as the European Union) may require little or no documentation whatsoever.
See “Introducing the Export Authority” on page 21.
Country of Import Document Requirements Most countries require at least basic documentation for all import transactions. For simple transactions with non-regulated commodities and goods from nonregulated countries of export, this may only include a commercial invoice, bill of lading and import declaration. At the other extreme, extensive documentary requirements for the import of certain goods may require import licenses, import permits, authorization from other governmental agencies, and pre-shipment inspections. In certain countries, extensive regulations concerning payment in hard currencies add an additional set of restrictions and require extra documentation.
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