Question 2
Explain the following documents as used in international trade, stating one use of each:
- Consular invoice;
- indent;
- ship’s manifest;
- bill of sight;
- dock warrant.
Observation
Most candidates attempted this question and the performance was good.
The expected responses to the question include:
Explanation of documents used in international trade
i. Consular invoice
It is a document that is signed and certified by the consul of the importer’s country stating that the prices indicated on the invoice are correct.
Uses:
- The document is used to ensure correct payment of duties to customs at the importing country.
- It is used to prevent falsification of prices by importers.
ii. Indent
It is an order to buy goods in international trade.
Uses:
- It gives details of goods required and date of delivery.
iii. Ship’s manifest
It is a document prepared by the captain of a ship and lodged with the customs authorities before the ship can leave the port.
Uses:
It shows particulars of the ship, its cargo and destination.
iv. Bill of sight
It is a document submitted to the customs authority if the full description of the cargo cannot be provided by the importer.
Uses
- It is used as a temporary document which enables goods to be examined by the customs officials before the arrival of the shipping documents.
- Where a full description of the imported goods as contained in the bill of exchange is not available, a bill of sight is used. Through a bill of sight, the inspection of such goods is authorized by the customs’ authorities.
v. Dock warrant
This document is a receipt for goods delivered and stored in the warehouse either by the exporter or importer.
Uses
- It is used as a document of title which enables the person who presents it to claim the goods.
- It is used to indicate safekeeping of the goods in the warehouse awaiting clearance.