Project part-financed by the European Union
The Commercial Invoice is the final invoice issued for the goods and covers the total value that the exporter is claiming from the buyer. It should show the nature and value (including shipping, insurance and any additional costs included (See Incoterms)) of the goods, the terms under which they are being sent i.e. order/contract no. and any additional clauses and statements that may be required. All other documents should clearly relate to the Commercial Invoice.
This informs the reader of the packing details of the goods. These details can include such things as: the Shipping marks quoted on the packing units; the distribution of the items amongst the packing units; the type of packing unit used. A well done Packing List is an invaluable aid to finding where each item of the goods is located and assists carriers, customs authorities and the buyer by helping them to quickly locate any item that they wish and, therefore, saves time and delays.
These provide evidence that the goods have been insured. If the exporter is required to insure the goods, then the buyer will require the insurance document, in order that they may recover the funds paid, in the event of loss or damage to the goods. Insurance Policies are the actual insurance contract issued by the Insurers; Insurance Certificates are issued on forms provided by the insurers to the exporter, up to a certain value/overall limit. The limit and the terms under which the Insurance Certificates may be issued are covered under an ‘Open Policy’ provided by the insurers. The certificates issued will refer to the Open Policy and are covered under that policy. As with Bills of Exchange and Bills of Lading, Insurance Policies and certificates can be made out to the order of a named party, or to bearer. They can also be endorsed, either to a named party, or ‘in blank’. It is standard to insure the goods for 110% of the total invoice value in order to cover the buyer for any costs involved, should the goods be lost or damaged.
Certificates of Origin are provided by 'Issuing Bodies' and are used as a verification of the origin of the goods covered by the certificate. In the U.K. these are Chambers of Commerce. There are two forms of Certificates of Origin issued in this country. European Community Certificates are issued by local Chambers of Commerce; these certificates are used for goods that are being exported to all countries except those countries of the Arab League. Exports to Arab League countries are covered by Certificates of Origin issued by the Arab British Chamber of Commerce (A-BCC) and are provided via a network of local Chambers of Commerce who act as agents for the A-BCC, checking that the documentation is correct and then forwarding the forms for processing by the A-BCC and the relative Embassies.
E-Cert & A-Cert is an On-line, internet based, service developed by the British Chambers of Commerce which allows the user to apply for European Community and Arab British Chamber of Commerce certification and legalisation requirements electronically. Using the system, registered users can set up product and customer databases; templates and produce SITPRO format invoices (either for certification or 'back-up' purposes). Users own format invoices and documentation can be transmitted utilising the system.
Unlike the earlier version of this facility, the current version allows users to use scanned signatures instead of requiring digital signatures. For further information on Certificates of Origin and the E-Cert A-Cert facility, contact your local Chamber of Commerce.
These are any certificate that attests to the inspection of the goods and can be issued by anybody. However, most Inspection Certificates are required to be issued by a specific body. Various countries throughout the world require all goods being exported to them to undergo 'Pre-Shipment Inspection' in order to ensure that the goods ordered are of a certain standard and the price is 'fair'. In these cases the Exporter has to use a nominated inspection service that will inspect the goods, prior to shipment. If the goods are found to be satisfactory the inspection service will issue a 'Clean Report of Findings' which enables the goods to be imported into the buyer’s country and is, usually, required as part of the payment process.
These are used where it is required to show that the goods are not c ontaminated by disease or chemicals. They are usually required for agricultural and livestock products and foodstuffs. They may be required to be issued by a specific body or, in the case of livestock products, be certified by a vet.
