What are the document used in foreign trade?

The document used in foreign trade.

Foreign trade involves the usage of various document. Some of the important document used in foreign trade are as follows:

I. Bill of Lading:

A bill of lading denotes an evidence of contract where the ship-owner acknowledges the receipt of the goods on board the ship and undertakes to carry the goods as per stated terms and conditions to the place of destination.

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A bill of lading states the name of the ship, nature of cargo, place of loading, name of the importer and the destination. A bill of lading acknowledges the receipt of the goods and serves as a title-to-goods. The bill of lading may be marked “Freight paid” or ” freight to pay”. The former denotes freight has been paid by the importer. There are two types of bill of lading called a clean bill of lading and a foul bill of lading. When the cargoes are free from defects, a clean bill of lading is issued and when the cargoes are defective, a foul bill of lading is issued.

II. Mate Receipt:

When goods are delivered to the captain of the ship, a Mate’s Receipt is issued by the captain to the exporter. The Mate’s Receipt acknowledges the receipt of the goods on board the ship. The obtaining of mate’s receipt enables the exporter to obtain bill of lading from the shipping company. Mate’s receipt is prepared in triplicate where one copy is given to the exporter, the other to shipping company and the third copy is retained by the captain of the ship.


III. Dock Receipt:

Sometimes cargoes are put in the dock for loading in the ship. On receipt of goods, dock receipt is issued by the dock authorities. It is generally issued after getting clearance from the custom authorities and the payment of jetty charges.

IV. Export Pass:

The shipping bill and the application to export are presented before the custom office for the sake of getting an export pass. Export pass is a permission to ship the cargo and it is issued by the custom authorities. The port authority will not allow to load cargoes in the ship unless export pass is obtained from the custom office.


V. Export License:

Export license is issued by the Ministry of Commerce, Government of India. It is issued to the exporter to export cargoes. Depending on nature of cargo, various types of licenses are issued.

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