–
Chapter 4 Documents in International Settlements

Commercial invoice – Definition A commercial invoice is the key accounting document describing the commercial transaction between the buyer and the seller, which gives details of the goods, service, price, quantity, settlement terms and shipment. functions ⅠIt is evidence for the importer to check goods and make payment.

Chapter 4 Documents in International Settlements
FCA, Free Carrier (…named place), title and risk pass to the buyer including transportations and insurance costs when the seller delivers goods cleared for export to the carrier nominated by the buyer at the named place. FAS, Free Alongside Ship (…named port of shipment), title and risk pass to the buyer including payment of all transportation and insurance cost when the goods are placed alongside the vessel at the named port of shipment by the seller;
Chapter 4 Documents in International Settlements
–
functions
Evidence for the exporter to fulfill the sale contract; representation of the goods; financing means. – Requirements: accurate, complete, timely, tidy requirements for making documents (Article20b); requirements for signatures in documents; requirements for the number of original documents and copies (article20c); Requirements for authentication (article20d) requirements for issuance date (article22).
Chapter 4 Documents in International Settlements
packing list – Definition: Packing list (P/L) is an extension of
commercial invoice, which provides the complete packing details of goods.
Chapter 4 Documents in International Settlements
Framework Group E: EXW, or EX Works means that the seller makes the goods available to the buyer at the seller’s own premises. Group F: main carriage unpaid, including:
–
Functions


–
the evidence for importers to check and accept the goods; The evidence for the importer’s customs to check particular packages. Classification: packing list, weight memo (list), and size memo (list).
Chapter 4 Documents in International Settlements
ⅡThe commercial invoice is the basis for the importer’s Customs' identification, classification, duty/tax assessment, and final approval of entry of the goods. Ⅲ In the absence of a separate contract of sale , the invoice will take on added importance as the confirmation of the terms of the arrangements between the parties. ⅣIn the absence of a separate bill, the importers or the issuing bank will make payments according to the invoice.
Chapter 4 Documents in International Settlements
transport documents – Commercial terms International Rules for the Interpretation of Commercial Terms, INCOTERMS,1936, 1967, 1976, 1980, 1990, 2000. functions: the division of transport cost; the division of transport risks; the handling liabilities: furnishing of documents, export and import clearance, and notifications to the parities concerned.
Chapter 4 Documents in International Settlements
Classifications basic documents: commercial invoice, bill of lading, insurance policy or certificate additional documents: packing list, certificate of origin, inspection certificate, cable copy, and so on.

Chapter 4 Documents in International Settlements
Incoterms do not deal with:
transfer of property/legal title; breach of contract/deficiency in the merchandise; terms of payment; place of jurisdiction.
Chapter 4 Documents in International Settlements
other types of invoice customs invoice: prepared by exporter for the importing customs to ascertain the original price and place of imported goods to avoid dumping. consular invoice: an invoice covering a shipment of goods certified in the country of export by a local consul of the country for which the merchandise is destined. legalized invoice: similar to consular invoice. pro forma invoice: a predecessor of commercial invoice. sample invoice: for the importer to apply for tax reduction or exemption when importing samples of goods.
Chapter 4 Documents in International Settlements
Ⅴ The commercial invoice is the basis for exporters to collect and record. ⅥThe commercial invoice is the basis for the exporter’s foreign Customs' identification, classification, duty/tax assessment, and final approval of delivery of the goods.
Chapter 4 Documents in International Settlements