Explain the following documents used in... | WAEC SSCE - Commerce - 2012 (Essay)

Question 1 Report

Explain the following documents used in international trade:

(a) Indent;

(b) Bill of lading

(d) Certjficate of origin

(e) Bill of exchange.

Answer

Documents used in international trade

(a) Indent: This is an order for goods sent by an importer to an agent or exporter abroad, giving details of the goods required. An open indent leaves the agent free to buy from any supplier, while a closed indent names the particular supplier from whom the goods must be bought.
(b) Bill of lading: This is a document issued by a shipping company acknowledging that the goods have been received on board for shipment. It serves as a receipt for the goods, evidence of the contract of carriage, and a document of title which the holder can use to claim the goods at the port of destination.
(c) Consular invoice: This is an invoice certified and stamped by the consul of the importing country stationed in the exporting country. It confirms the value, quantity and origin of the goods and helps the importing country to assess the correct import duty and prevent dumping.
(d) Certificate of origin: This is a document stating the country in which the goods were produced or manufactured. It is used by the importing country to determine the rate of duty to charge and to enforce trade agreements or restrictions on goods from particular countries.
(e) Bill of exchange: This is an unconditional order in writing, drawn by the exporter (drawer) on the importer (drawee), requiring the importer to pay a certain sum of money on demand or at a fixed future date to the drawer or a named person. It is a means of demanding and obtaining payment in international trade.

Answer Details

Documents used in international trade

(a) Indent: This is an order for goods sent by an importer to an agent or exporter abroad, giving details of the goods required. An open indent leaves the agent free to buy from any supplier, while a closed indent names the particular supplier from whom the goods must be bought.
(b) Bill of lading: This is a document issued by a shipping company acknowledging that the goods have been received on board for shipment. It serves as a receipt for the goods, evidence of the contract of carriage, and a document of title which the holder can use to claim the goods at the port of destination.
(c) Consular invoice: This is an invoice certified and stamped by the consul of the importing country stationed in the exporting country. It confirms the value, quantity and origin of the goods and helps the importing country to assess the correct import duty and prevent dumping.
(d) Certificate of origin: This is a document stating the country in which the goods were produced or manufactured. It is used by the importing country to determine the rate of duty to charge and to enforce trade agreements or restrictions on goods from particular countries.
(e) Bill of exchange: This is an unconditional order in writing, drawn by the exporter (drawer) on the importer (drawee), requiring the importer to pay a certain sum of money on demand or at a fixed future date to the drawer or a named person. It is a means of demanding and obtaining payment in international trade.

Explain the following documents used in international trade: (a) Indent; (b) Bill of lading (c) Consular invoice (d) Certjficate of origin (e) Bill of excha...