The learning agenda of this presentation will able to understand the uniform documentation process while dealing with international trade

1. Documentation Process In International
Trade & Transport
BY Keshar Khadka
ADVANCE DIPLOMA IN LOGISTICS & SUPPLY CHAIN

2. Course Outline
By at the end of this learning , we will be able to
 Explain the basic shipping terms
 Define various trade partners in shipping
process
 Familiar with shipping process and
Documentation
 Know various shipping documents and its
application.

3. Introduction
• International shipping is the dynamic process of supply chain that
allow the physical movement of goods or cargo across the
country border for the purpose of supply Customer order by using
basic modes of transportation.
• International shipment process plays key role in fast spaced change of
supply chain that provides the time and place utility.
• International shipping Process is not a simple task which takes various
activities and docuentation process as per international law and
obligation.

4. Various Shipping Terms
• Shipper :An individual or firm that sends freight.
• Clearing And Freight Forwarding Agent: Freight Forwarder
A person whose business is to act as an agent on behalf of
the shipper to process all shipments throughout the country .
• Shipping Lines/Carrier :A firm that provides transportation
services, own and operating transportation equipment include:
truck company, railroad, airline, ocean ship.
• Customs And Port Authority: Government agency charged
with enforcing the rules passed to protect the country’s import
and export revenues

5. Various Shipping Terms
• Advising bank: is a bank from the exporter country ,
who advises to the exporter that a letter of credit (L/C)
is valid or confirm for future payment from importer in
certain terms.
• Issuing Bank: A Bank from importer bank that opens
the LC and assume the obligation to pay the bank or
exporter, if the documents are presented in
accordance with the terms of the letter of credit
• Buyer: Party which acquires, or purchase goods or
service in exchange of certain monetary value under
certain terms of contracts.

6. Various Trade Partners In International
Shipping Process
Shipper
Clearing &
Freight
forwarding agent
Shipping lines
Customs & Port
Authority
Buyer
Flow Of Goods
Banking
Alliance
Information Flow

7. International Shipping Process Flow
1. Order Enquiry
2. Performa
Generation
3. Order
Placement
4. Order
Acceptance
5. Goods
Readiness &
Dcumentatin
6. Goods
Dispatch From
Woks
7. Documents For
C&F Agent
8. Customs
Clearance
9. Documents
Forwarding To
Bank
1o. Bills
Negotiation
11. Bank To Bank
Document
Forwarding
12. Customs
Obligation &
Discharge
13. Receipt Of
Bank Certificate
& Process
Complete

8. International Shipping Process
 Order Enquiry : International shipping process begins
with order enquiry, where buyer search competative
supplier with the product description, specification ,
price, grade, quantity, delivery & payment terms etc.
 Performa Generation : Exporter/shipper review the
order enquiry and sends their Performa invoice with
competative offer to buyer as per buyer requirement.
 Order Placement : once the meeting of maximum
requirement of offer in terms of price, quality, delivery,
shipping and payment term the buyer awards the
contract with purchase order to the shipper. .

9. International Shipping Process
1. Order Acceptance : the shipper accept an order once the
buyer sends his legal purchase order by validating his
authonication .
2. Goods Readiness And Documentations :Shipper prepares
the all necessary product readiness and documentation
including ,Production, Inspection packaging ,selection of C& F
agent. documentation process includes commercial invoice ,
shipping manifest, packing list , inspecting report, certificate for
country of origin , consular invoice, local and central taxes
duties etc.
3. Goods Removal From Works: seller moves the goods to the
port of loading after vessel booked on ship by appointed
fowrading Agent.

10. International Shipping Process
• Documents For C&F Agent: The shipper handover
all export documents to the C&F agent...including
commercial invoice, packing list , inspection report,
customs and duties declaration form ,country of origin
letter ,insurance copy letter of credit etc.
• Customs Clearance: C& F Agent file a shipping bill
with customs departments where, customs authority
takes goods under customs assessment and cargo
inspection to validate the exports as per customs law,
where shipping bill is created by customs through EDI
system and finally cargos allow to go on vessel for
export.
• Documents Forwarding : C&F agent Load the
cargos into the vessel, forwards the all commercial
documents to the shipper including shipping bills,
cargos manifest, packing list, commercial invoice, bill
of lading, or any other documents required.
invoice
-

11. International Shipping Process
• Bills Negotiating: Shipper forwards the shipping documents
including bill of lading , letter of credit and other relevant
shipping documents to advising bank for realization of
payments .
• Bank To Bank Documents Forwarding :The advising bank
validate the all shipping documents forward them to issuing
bank of the importer country to clear the cargos from the port of
discharge and get clear of payment from issuing bank of
importer at the same time.
• Customs Obligation & Discharge : the shipper shall provides
the proof of export to get various export benefits under different
export goods promotion and scheme.
• Receipt Of Bank Certificate & Contract Closer: The advising
bank provides the certificate of receipt payment to the shipper
once the payment is received from issuing bank of importer
country and order is complete.

12. International Shipping Documents
• An invoice provided by a supplier prior to the shipment of merchandise, informing the
buyer of the kinds and quantities of goods to be sent, their value, and specifications
(weight, size, etc.).
Performa invoice
• A document that establishes the terms of a contract between a shipper and a
transportation company. It serves as a document of title, a contract of carriage and a
receipt for goods
Bill of lading
• Its is the statement of packing details of goods within prescribed format, it is very
useful while exporting goods through customs prcesss,Itemized list of commodities
with marks/numbers but no cost values indicated
Packing List
• It is the foundation of all other documents and is the first international shipping
document that should be completed. The Commercial Invoice is prepared by the
exporter and is required by the foreign buyer to prove ownership and arrange for
payment
Commercial Invoice

13. International Shipping Documents
• A certified document showing the origin of goods; used in
international commerce
Certificate of origin
• A document, certified by a consular official, is required by
some countries to describe a shipment. Used by Customs of
the foreign country, to verify the value, quantity and nature of
the cargo
Consular Invoice
• A certificate issued by an independent agent or firm attesting
to the quality and/or quantity of the merchandise being
shipped. Such a certificate is usually required in a letter of
credit for commodity shipments
Inspection Certificate

14. International Shipping Documents
• A certificate issued by the insurance underwriter giving details of
a particular transaction which is held insured under an insurance
policy.
Certificate of Insurance
• A document, issued by a bank per instructions by a buyer of
goods, authorizing the seller to draw a specified sum of money
under specified terms, usually the receipt by the bank of certain
documents within a given time
Letter of Credit (LC):
• A commercial document and first official offer issued by a buyer to
a seller, indicating types, quantities, and agreed prices for
products or services
Purchase order
• Documents issued by shipping line to shipper as proof of cargo
receipt in good conditions ,quality and quantity.
Mat’s receipt

15. Snapshot
The shorter Lead time, reliability ,consistency in delivery,
cost effectiveness are major key drivers for over all logistic
profitability and competative advantages.
Therefore ,Smooth and accurate Documentation Process
NOT only provide the timely and reliable information ,
But also ensure the contract of carriage ,evidence of goods
delivery ,transfer of ownership of goods to comply with
international shipping regulation.