David Chapter 09 mod

David Chapter 09 mod - Chapter 9 INTERNATIONAL COMMERCIAL...

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Chapter 9 I NTERNATIONAL C OMMERCIAL D OCUMENTS LEARNING OBJECTIVES At the end of this chapter the student should be able to: 1 Identify the basic functions of commercial invoices in international trade. 2 Identify the basic functions of export documents in international trade. 3 Identify the basic functions of import documents in international trade. 4 Identify the basic functions of transportation documents in international trade. 5 Identify the basic functions of electronic data interchange (EDI) in international trade. 6 Understand the strategic advantages for an exporter of having good document preparation. PREVIEW A sure thing about international commerce: it requires large amounts of paperwork. This chapter examines invoices, export documents, and export controls.
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9-2 Chapter 9 International Commercial Documents CHAPTER OUTLINE International Commercial Documents 9-1 Documentation Requirements 9-2 Invoices 9-2a Commercial Invoice I. The invoice that accompanies the shipment is called the Commercial Invoice II. This invoice should present precisely what the importer is being billed for. a. A very precise description of the product should be given. b. The tariff paid is a function of the classification (type) of the product imported. c. Tariff rates are determined using a multiplicity of criteria. i. Number of units in shipment ii. Dimensions iii. Weight iv. Total value d. Terms of trade (Incoterms) e. Detailed list of items exporter has pre-paid for importer f. Terms of payment g. Currency of payment h. Shipping information i. Customary information—names, addresses, etc 9-2b Pro-forma Invoice I. Not an invoice but a quote II. Must be written with extreme care to avoid discrepancies with letter of credit which can result in complexities surrounding amendments III. Should include an expiration date a. Under Uniform Commercial Code of the United States [UCC] and under the domestic laws of many other countries, the offer can be withdrawn at any time, without prejudice, for almost whatever reason. b. In international transaction conducted under the United Nations’ Convention on the International Sales of Goods [CISG] the offer cannot be withdrawn by the seller (or the buyer) before its expiration date. Most countries have now adopted this Convention.
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Chapter 9 International Commercial Documents 9-3 9-2c Consular Invoice I. Necessary for exports to decreasing number of Latin American countries II. Commercial invoice printed on stationery of importing country’s consulate and stamped by the consulate III. Time consuming IV. Favored by countries attempting to accurately forecast needs for foreign currency V. Also generates revenues as fees are expensive VI. Considered to be a trade barrier 9-2d Specialized Commercial Invoices I. Some countries require that all commercial invoices be printed on a standard form. II.
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This note was uploaded on 04/15/2011 for the course LSCM 4360 taught by Professor Staff during the Spring '08 term at North Texas.

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David Chapter 09 mod - Chapter 9 INTERNATIONAL COMMERCIAL...

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