Export Documentation Requirements

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

297

Pages:

1
Author:

JJIssac

EXPORT DOCUMENTATION REQUIREMENTS When shipping goods overseas, businesses must follow applicable laws and fill out an array of documents. A bill of lading, much like a receipt, accompanies the physical transport and allows claims to the cargo. Air waybills and road/rail consignment notes serve similar functions for other modes. Producing multiple copies of a commercial invoice enables payment claims and customs processing at both ends. Packing lists itemize each package's contents for inspection purposes. Some countries additionally require consular invoices to determine import duties according to their revenue rules. Certificates of origin declare the goods' source of manufacture. And certificates of insurance cover liabilities throughout transportation. Letters of credit issued between importing banks and sellers represent a promise to honor payment terms. Together, completing and presenting these shipping papers legally facilitates cross-border trade while protecting rights of involved parties. Common Practices International Business Once documents are in order, trade itself can commence. Direct exports and imports of merchandise represent basic cross-border exchanges. But service exports and imports also contribute significantly in industries like travel, insurance and consulting. Licensing agreements allow foreign companies to leverage local trademarks, patents or production know-how for an ongoing royalty. Management contracts similarly monetize expertise over a defined contract period. Franchising extends well-known brands by training and sometimes financing third parties to independently operate under the franchise model. Contract manufacturing has overseas firms make goods to another company's specifications. Multinational corporations set up their own foreign operations as well. And turnkey projects fully establish businesses abroad before eventually transitioning control to local staff. Selecting the right business structure depends on needs and opportunities in different markets.