EXPORT-IMPORT DOCUMENTS THE BROKERS Alba Mas Andrea Olmos

EXPORT-IMPORT DOCUMENTS THE BROKERS Alba Mas Andrea Olmos Ana Hernández María José Fernández

Index 1 Introduction: 1. 1 Documentary Collection 2 Payment documents 3 Transport documents 4 Other documents

Documentary collection – Remesa documentaria 2) Documentary collection • Instruction from an exporter to a remitting bank to collect payment immediately, or at a future date, from an importer against delivery of the relevant commercial documents • • All the documents that endorse the goods, mainly: - Payment documents -Insurance documents -Transport documents

Documentary collection – Remesa documentaria documents 2. documents 3. goods 1. contract of sale

Documentary collection- payment Documentary collections can be drawn by the importer in two different ways: • D/P Documents against payment (at sight) • D/A Documents against acceptance Once the payment is done, the importer receives the necessary documents in order to collect the goods.

Documentary collection • Governing rules: Uniform Rules for Collection (URC 522) by the ICC • Types of documentary collections: -Clean collections (Remesas simples) -Documentary collections

Documentary collection • Benefits: -Simplicity -Convenience -Security -Guarantee payment -Versatility

Documentary collection • Case of dishonour: - The importer has sound reasons for not paying: noncompliance, errors, fraud. - The drawee cannot be found. - The drawee has no money. Then, the exporter may: -resell the goods -re-export them -repatriate them

Documentary collection • Discounting: - Banks deal with financial and commercial documents and not in goods. - The bank is not liable for any break of the terms of the contract of sale, errors, omissions or delays.

Banking documents concerned with the payment • Bill of exchange • Letter of credit

What is a bill of exchange? • Unconditional order in writing, signed and addressed by the drawer to the drawee requiring the drawee to pay the drawer a certain sum of money at sight or at a fixed or determinable future time. • International trade: most frequently in the payment against a letter of credit (L/C)

Parties to a bill of exchange Drawer Drawee Company who issues the draft and to whom the payment is made. Exporter (seller) + payee of the draft. Company who agrees to make the payment and to whom the draft is addressed. Importer (buyer) + payer of the draft. Payee Company to whom the payment is made. Usually the same as the drawer.

Bill of exchange Remember! • Until the buyer (importer) accepts the bill of exchange, this is called a DRAFT. • Not entirely safe : importer can refuse to pay

Letter of credit • Binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. • Used in international trade to eliminate risks.

Parties in the documentary credit • Exporter/seller Company who wants to sell the goods. Advising bank Exporter’s bank The bank to whom the exporter sends the draft. Confirming bank

Parties in the documentary credit Buyer/Importer Issuing bank Company who wants to buy the goods. The importer’s bank which presents the draft to the importer for payment. It releases the shipping documents to the importer

How does the L/C work? Exporter/seller 1. Sales contract 4. Advice/Guarante e of documentary credit Exporter’s bank (Advising/confirming bank) Importer/buyer 2. Documentary credit application 3. Documentary credit Importer’s bank (Issuing bank)

Documents requested in a L/C • Commercial invoice • Transport document (Bill of lading, Airway bill…) • Insurance document • Inspection Certificate • Certificate of Origin • Others (chosen by importer)

Important concepts • Irrevocable v revocable • Restricted negotiable v freely negotiable • Payment at sight • Payment against acceptance

What is a transport document? • Part of a Documentary Collection: Contract evidence of: Acceptance of goods Receipt of goods (Document of title)

Transport Documents • Mate’s receipt. • Charter Party SEA/OCEAN • Maritime Bill of Lading, B/L • Air Consignment note or Airway Bill • Charter Party AIR • Railway consignment note or Railway Bill • Road consignment note or Road waybill • Combined Transport Document: Multimodal Bill of Lading LAND COMBINATION

Sea/Ocean • Mate’s receipt/Recibo de abordo: Document signed by an officer of a vessel evidencing receipt of a shipment onboard the vessel. • Not doc of title* • interim measure until a proper bill of lading can be issued

Sea/Ocean • Charter Part/Carta partita: Hire or lease contract between the owner of a vessel (aircraft or ship), and the hirer or lessee (charterer). • Maritime Bill of Lading/ Conocimiento de embarque: issued by a carrier, or its agent and it serves as a - receipt for goods - evidence of the contract of carriage -document of title of the goods*

Air • Air way bill/Conocimiento de embarque aéreo: type of BOL. Serves as: -receipt of goods by an airline (carrier) -contract of carriage (shipper and carrier)

Land • Road way bill/ Carta de porte por carretera : -CMR Standardized document for cross-border transport of Cargo by road (truck), based on UN recommendations for uniform international rules and in force in the EU -receipt for goods -evidence of the contract of carriage

Land • Rail way bill/ Carta de porte por ferrocarril: - CIM: Contract of carriage Receipt for goods

Combination • Multimodal Bill of Lading/Conocimiento de embarque multimodal: When goods are transported using more than one mode of transport, the issuer of the Collection takes responsibility for the whole of the journey through a combined transport document

OTHER DOCUMENTS • Customs documents: – Single Customs Declaration (SCD) – Import License – Consular Invoice • Documents related to the goods: – Certificate of Origin (CO or COO) – Dangerous goods declaration – Certificate of Quality – Health and Sanitary Certificates – Packing List

CUSTOMS DOCUMENTS

Customs Documents • Single Customs Document (SCD) → Documento Único Administrativo (DUA) -Required for import-export transactions between two European countries. -Required for import-export transactions between and European country and a non European country. -Includes all the info about the goods. -Used by the Tax Management to make the importexport statistics.

Customs Documents • Import Lisence → Licencia de importación • What is an import lisence? -It can be exclusive -Issued by a national government -Kind of goods imported -Quantity of goods imported -Time the importer can be importing this goods. • What is it for? - To control the import transactions flow

Customs Documents • Consular Invoice → Factura Consular -Visaed invoice (sighted, signed and stamped) by the consul of the importing country. -It prevents over-invoicing and under-invoicing.

DOCUMENTS RELATED TO THE GOODS

Documents related to the goods • Certificate of Origin → Certificado de Origen -Also called CO or COO -Certifies the production country -Required to establish customs duties -Info: weight, goods description or name of the exporter.

Documents related to the goods • Dangerous goods declaration → Declaración de mercancías peligrosas -Five international regulations: -ADR (European Agreement concerning the International Carriage of Dangerous Goods by Road) -ADN (European Agreement concerning the International Carriage of Dangerous Goods by Inland Waterways) -RID (European Agreement concerning the International Carriage of Dangerous Goods by railway) -IMDG (International Maritime Dangerous Goods Code) -IATA (International Air Transport Association) Regulations

Dangerous goods declaration • Shipment under international regulations • Description of the goods with the generic names (not brands)

Documents related to the goods • Certificate of Quality → Certificado de Calidad • What is this certificate for? -To guarantee that the goods will satisfy the customer -Offers additional info about the goods and additional rely on the product

Documents related to the goods • Health and Sanitary Certificates: 1. Phytosanitary certificate -Used in vegetables and plants prone to plagues 2. Sanitary certificate -Animals and food products without diseases or contamination -More important since the avian flu and the “mad-cow disease” appeared.

Document related to the goods • Packing List → Lista de empaque -Attached to the invoice -Adds info about goods: package, wheight, volume, number of boxes or containers and content (check-list)

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