Different types of documents used in trade

 1.Bill of exchange or Draft :Its an unconditional order in writing, addressed by one person to another, signed by the person giving it requiring the person to whom it is addressed to pay on demand

And these documents or non-negotiable instruments where we use in court of law if any dispute arises

2.Commercial invoice : It’s a document here seller address to buyer and represents the purchase details like PO no ,name and address of seller and buyer, order numbers, value of goods, incoterms, shipping marks, weight and quality of goods as per requirement

Example: Its an document given by seller when we purchase some grocery in grocery store

3.Consular invoice: This type of invoice is prepared by seller and certified in country of origin by consultant of importing country. Some countries requires this type of invoice for customs purpose

4.Tax invoice: There will be additional tax details for this type of invoice and its used to clear customs in importing or exporter country

5.Bill of lading : This document is issued by shipping company or their agent for the goods being shipped via their carrier

These document will carry title of goods shipped, Consignee details, notify party details etc

There are multiple types of transport documents as below

a.       On board bill of lading

b.       Shipped bill of lading

c.       Received bill of lading

 Non Negotiable Sea way bill

Multimodal transport document

Charter party bill of lading

6.Air transport document: when goods are shipped via air we will getting Air transport document or Air consignment notes and these documents are issued in multiple originals and each original issued is for different party

7.Road Rail Transport document: It’s a receipt given by Road transport company or Railway authorities respectively as an acceptance of carriage of goods to named consignee

Like airway bill and bill of lading this is not negotiable instrument

8.Insurance Documents :

Insurance policy: Its document issued by insurance company or underwriters to cover the risk of loss or damage for goods in transit

Policies are further classified in to 2 types

Specific voyage insurance policy: This type of policy is used to cover specific voyage once its done policy gets void

Open cover policies: These policies are made for seller to protect his shipment in specific period of time

9.Insurance certificate: When seller is having open cover policy seller is bound to provide insurance certificates with pre signed having terms and conditions of open cover policy

Original insurance certificate will be sent to buyer via banks . Insurance certificates are not acceptable under letter of credit unless its allowed

10.Inspection certificate: This document provide Inspection of goods details before loading in port of loading

11.Certificate of origin: this certificate provide country of origin of goods and some cases it can be assisted by chamber of commerce as per requirement

12.Packing lists: This document provides packing conditions of goods before shipment

13.Certificates regarding to quality,quantity,weight and health etc :These document provides Quality, Quantity, weight and health of goods i.e here are any foreign objects in goods etc