Describe each of the following documents and state one use of each: (a) consular invoice (b) bill of lading (c) certificate of origin (d) bill of sight

Answer Details

Documents used in international trade and their uses

• (a) Consular invoice: This is an invoice certified and stamped by the consul of the importing country resident in the exporting country, showing the true value, quantity and description of the goods. Use: It enables the importing country to assess the correct import duty and to guard against under-invoicing and dumping.
• (b) Bill of lading: This is a document issued by a shipping company acknowledging the receipt of goods on board a ship for carriage, and it is a document of title to the goods. Use: It is used by the holder to claim the goods at the port of destination, and it serves as a receipt and evidence of the contract of carriage.
• (c) Certificate of origin: This is a document that states the country in which the goods were produced or manufactured. Use: It is used by the importing country to determine the rate of import duty to charge and to enforce trade agreements or restrictions on goods from certain countries.
• (d) Bill of sight: This is a document that an importer presents to the customs authorities when he does not have full particulars of the goods and cannot make a complete declaration. Use: It allows the importer to inspect the goods in the presence of a customs officer so as to obtain the details needed to complete the proper entry and pay the correct duty.