1. Chapter seven Documents under the Credit

2. Importance of documents in international settlements In international settlements, banks deal solely with documents; Banker Documents Importer Documents Exporter Goods Carrier Goods I know nothing about goods ! Documents are at the heart of international settlement Different kind of transaction calls for different kind of Documents.

3. Originals (1) L/C transaction requires original documents. If documents are marked - “original”, or -printed on issuer’s original stationary,( 印在出单人信纸上的） -- hand-signed (whether or not some or all other constituents of the document are preprinted, carbon copied, or produced by reprographic, automated,or computerized system), or - appear to be written ， typed perforated 穿孔签名, or stamped by the document issuer’s hand, they are regarded as original documents. Original ……………… Original ………………

4. Originals (2) - facsimile-signed 签样印制的 documents = hand-signed doc. Non-original - produced on a telefax machine; - a photocopy of another document not signed by hand marking or not on original stationery; - marked “copy” copy ………………

5. “Facsimile signature” 的确切含义只能包 括电子计算装置或激光打印机或通过机 械装置处理的签字。

6. Authentication( 证实） and signature Whether a commercial document should be signed is a commercial practice, banks are not concerned with this. Signature can be ： facsimile 签样印制, perforated 穿孔签字, signature, stamp, symbol, or any other mechanical or electronic method. So, unless LC requires signature, banks would accept documents without signature. But, “Certificate” must be signed. Certificate of…… ……………………………. …………………………… ……………………………. Linsen, Zhang Certificate of…… ……………………………. …………………………… ……………………………. Linsen, Zhang

7. Issuance date of documents Documents must be dated, and ante dated doc. can be accepted unless LC stipulated otherwise. In fact, some documents have period of validity, e.g. Inspection Certificate has a validity of about 60 days or less, Insurance Policy 60 days after discharging and warehousing goods at destination harbor, etc.

8. Documents List Financial document Draft = bill of exchange Promissory note Check Shipping documents Marine /Ocean bill of lading Non-negotiable ocean waybill Rail-way billRoad waybillAir waybill Post parcel receipt Combined / multi-modal transport document Insurance document Insurance policy Insurance certificate Cover note 暂保单 Insurance declaration Combined certificate Official documents Certificate of origin Health certificate Certificate of inspection Export /import license Commercial document Commercial invoice Proforma 形式 invoice Receipt invoice Sample invoice Consular invoice Customs invoice Legalized or visaed invoice Packing / weight list etc.

9. What is a commercial invoice ? Stanley International Trading Co., Ltd Commercial Building Manila, the Philipines Tel  652210001 Tele-fax: (65)2210425 Commercial Invoice Date: 10 th August, 2001 Invoice No （发票编号） : 01-12345 Consignee （收货人 / 抬头） (name / address):Messrs Powell International Trading Co., Ltd.,Maylaysia Shipped by （托运人 / 发货人） : Stanley International Trading Co., Ltd. Shipment per （承运人） : Medaley Container Co. Port of shipment （装货港） : Manila, the Philippines Destination （目的地） : Malaysia Order / Contract No （合同 / 定单 编号） : 01-45678 L/C No. （信用证编号） : MS01-1821 20,000 30,000 50,000 F.O.B Malaysia USD2,000 USD3,000 USD5,000 10 SETS (10 套） 1. Spare Parts HTE - TYPE Ⅰ 2. Spare Parts HTE – TYPE Ⅱ 3. Spare Parts HTE – TYPE Ⅲ ▼ MP 1821 Malaysia 1/30 ( 唛头） Total value （总价） Unit Price （单价） Quantity （数量） Description of merchandise （商品名称） Mark & Numbers Say （大写） : One Hundred Thousand US dollar Only Drawn under （出票条件） : LC NO. :MS-1821 issued by Commercial Bank of Malaysia Dated 10 th May, 2001 Insurance: Insurance to be effected by the Buyer( 由买方实施保险） Stanley International Trading Co., Ltd Manila, the Philippines Linsen, Zhang （签字） Must be the same word by word as it is in LC Other documents can use general description not in contradiction with this. (Art.37c,p.361) Whether there is tolerance （容限） in LC ， they can not exceed LC amount

10. Some points to remember: 1. All the documents under LC must be marked with LC No., which is composted of : LC number,Issuing Bank’s name,Issuing date. LC NO. :MS-1821 issued by Commercial Bank of Malaysia Dated 10 th May, 2001 2. Marks and number is printed on the surface of package & must be composed in accordance with following rule : It can be anything,e.g. contract number, etc. ▼ MP 1821 Major symbol F FM20045 Malaysia Destination or port of discharge 1/30 or 1 - 30 Number of transport packages so that carrier can identify how many should be discharged at the destination port. Made in China ▼ MP 1821 Malaysia 1 - 30 Made in China

11. Customs Invoice The form of customs invoice is provided by importing countries. Exporters can get it at customs of exporting country, filling in it & present it as per LC requirement to banks. can be taken as proof of dumping or anti-dump. I declare: (A) □ If there any are rebate （回扣） Drawbacks （退税） or bounties （惠赠） allowed upon the exportation of goods, I have checked box (A) and itemized separately below. for customs of importing country to analyze the price. (B) If the goods were not sold or agreed to be sold, I have indicated in column 19 the price I would be willing to receive. When returned, the price to be marked by seller. (C) SIGNATURE OF SELLER /SHIPPER (OR AGENT) Exporter fills in and signs it.

12. Manufacturer’s invoice Trader /exporter Manufacturer contract invoice Importer I want invoice of manufacturer. Invoice of manufacturer P.208 Manufacturer’s Affidavit( 书面陈述） IRS#( 美国国税局编号） : Entry Number( 编目流水号 ) : …………………………………………………………………………………… Dear Sir, We (name of person making the declaration), do hereby declare that we are the manufacturers of the article( 商品） covered by the above captioned ( 上述） entry………………………………………………………… …………………………………………………………………………………….. Get to the headstream when purchasing

13. Consular invoice Some small countries, e.g. Jordan demand that all imports must have Consular invoice Importer Get me a consular invoice ! Exporter in China Pay about 1.5% of commercial invoice value for consular invoice. Embassy of Jordan in China Go & buy the invoice Consular invoice Dispatch goods If there is no consular invoice, 100% duty ! Jordan customs Get the goods cleared with consular invoice. P.209 Consular Invoice ……………………………………………………………………………………… For Consul General Authorized Signature of the shipper 总领事签字 Joseff, Mohammed Linsen, Zhang 出口商签字 (Beijing) Seal Embassy of Jordan Bank would check if it is the stamp of right country’s embassy.

14. Stanley International Trading Co., Ltd Commercial Building Manila, the Philipines Tel  652210001 Tele-fax: (65)2210425 Commercial Invoice Date: 10 th August, 2001 Invoice No （发票编号） : 01-12345 Consignee （收货人 / 抬头） (name / address):Messrs Powell International Trading Co., Ltd.,Maylaysia Shipped by （托运人 / 发货人） : Stanley International Trading Co., Ltd. ……………………………………………………………………………………………………………………………. 20,000 30,000 50,000 F.O.B Malaysia USD2,000 USD3,000 USD5,000 10 SETS (10 套） 1. Spare Parts HTE - TYPE Ⅰ 2. Spare Parts HTE – TYPE Ⅱ 3. Spare Parts HTE – TYPE Ⅲ ▼ MP 1821 Malaysia 1/30( 唛头） Total value （总价） Unit Price （单价） Quantity （数量） Description of merchandise （商品名称） Mark & Numbers Say （大写） : One Hundred Thousand US dollar Only Drawn under （出票条件） : LC NO. :MS-1821 issued by Commercial Bank of Malaysia Dated 10 th May, 2001 Insurance: Insurance to be effected by the Buyer( 由买方实施保险） Stanley International Trading Co., Ltd Manila, the Philippines Linsen, Zhang （签字） The undersigned certified that the contents and value of this Invoice are true and correct in every respect. For Consul General of the Philippines Linsen, Zhang Seal Embassy of Philippines Use exporter’s commercial invoice to issue consular invoice. Embassy of Germany also issues consular invoice in this way, but only charge RMB60, a developed country !

15. 形式发票 (Proforma Invoice) 形式发票是在没有正式合同之时，经双方 签字或盖章之后发生法律效力的充当合 同的文件，它包括产品名称，单价，数 量，总额以及报价方式，汇款方式和交 货期等，它本来只是在客户确认了价格 并下了定单之后卖方所做的使对方再次 确认的发票。

16. 形式发票最主要的要列清楚以下几个要约： 1 、货物品名 2 、数量 3 、成交价格方式，是 FOB 、 CFR 、还是 CIF 等， 这一点很重要！关系到费用及风险分担的问题. 4 、装运期 5 、运输方式 6 、付款方式 7 、公司的详细的银行资料

17. 形式发票不是一种正式发票，不能用 于托收和议付，它所列的单价等，也仅 仅是进口商根据当时情况所作的估计， 对双方都无最终的约束力，所以说形式 发票只是一种估价单，正式成交发货后 还要另外重新缮制商业发票。商业发票

18. 注意几点： 1 、除非要求 signed invoice, 否则发票无需 签字或标注日期。 2 、发票中的货描必须与信用证规定的一致。 反映实际装运货物、单价和货币与信用证 一致；弱贸易术语是货描一部分，发票 必须显示贸易术语。

19. 3 、溢短装条款 5% 的幅度； 以包装单位或个数计算时，没有增减幅度； 明确规定不可的，不能使用此条款

20. 中国人民保险公司天津分公司 The People’s Insurance Company of China, TIANJIN BRANCH HEAD OFFICE: BEIJING ESTABLISHED IN 1949 Insurance Building, Qu Fu Road Heping District, Tianjin, China CABLE: 42001 TIAJIN TEL: 315366 315367 TLX: 23262 PICC CN FAX: (86)(22)30129 INVOICE NUMBER TES/203023098 INSURANCE POLICY 保险单 POLICY NO ： TT03/121071193302512 保险单号次 THIS POLICY OF INSURANCE WITNESSES THAT THE PEOPLE’S INSURANCE COMPANY OF CHINA （ HEREINAFTER CALLED “THE COMPANY” 中国人民保险公司（以下简称本公司） AT THE REQUEST OF TIANJIN TEXTILE I/E CORP. （ HEREIN CALLED “THE INSURED” ） TO INSURE THE 根据被保险人的要求（以下称为 被保险人 as stipulated in LC ）由被保险人向本公司缴付约定的保险费， UNDERMENTIONED GOODS IN TRANSPORTATION SUBJECT TO THE CONDITIONS OF THIS POLICY 按照本保险单承保险别和背面所载条款与下列特款承保下述货物运输保险，特立本保险单。 AS PER CLAUSES PRINTED OVERLEAF AND OTHER SPECIAL CLAUSES ATTACHED HEREON 。 USD1,769.0085%P, 35%V GABARDINE ( 华达呢） 4 CTNS （ 4 箱） As per Invoice No. TES/203023098 按照发票号 …… AMOUNT INSURED 保险金额 DESCRIPTION OF GOODS 保险货物项目 QUANTITY 数量 MARK AND NOS 标记 p.359,Art.34, c,d,p 请结合有关条款了解其规定

21. TOTAL AMOUNT INSURED: U.S.Dollars One Thousand Seven Hundred and Sixty Nine Only. 总保险金额 Art. 34, f, ⅱ, p.360 PREMIUM: AS PER ARRANGED 保费 RATE: AS ARRANGED 费率 PER CONVEYANCE: S.S. TIAN Yan No.731 运载工具 SAILING ON OR ABOUT: AS PER B/L SLG. ON OR ABT: 开航日期 Art. 46, c,p.364 FROM 自 : XINGANG TO 至： HONGKONG CONDITIONS: Covering All risks (Art.36, p.360) as per Institute Cargo Clauses (1.1.1963) 承保险别 and Risk of War as per Institute War Clauses (11.3.80). (Warehouse to Art. 35, p.360 Warehouse is included) 投保 1963 年 1 月 1 日协会货物条款的一切险和 1980 年 11 月 3 日 的战争险（包括仓至仓条款） CLAIMS IF ANY ， PAYABLE ON SURRENDER OF THIS POLICY TOGETHER WITH OTHER RELEVANT 所保货物如遇出险，本公司凭本保险单及其它有关证件 给付赔款。所保货物如发生本保险单项下负责赔偿的损失 DOCUMENTSS IN THE EVENT OF ACCIDENT WHEREBY LOSS OR DAMAGE MAY RESULT IN A CLAIM 或事故，应立即通知本公司下述代理人勘察。 UNDER THIS POLICY IMMEDIATE NOTICE APPLYING FOR SURVEY MUST BE GIVEN TO THE COMPANY’S AGENT AS MENTIONED HEREUNDER 。 THE MING AN INSURANCE CO.(H.K.) LTD. INTERNATIONAL BUILDING 14 TH FLOOR 141, DES VOEUX ROAD, CENTRAL HONGKONG. 中国人民保险公司天津分公司国外业务部 THE PEOPLE’S INSURANCE CO. OF CHINA TIANJIN BRANCH FOREIGN BUSINESS DEPT. 冯念贤 Deputy Manager Feng Nian – Xian CLAIM PAYBALBE AT: Hongkong in USD 赔款偿付地点 DATE: 28 TH JUN. 1999 TIAJIN 单据签发日期 Art. 34, e, p.360 签发地点 Art.34,a, p.350 请结合有关条款了解其规定

22. Points to remember cover note 暂保单 Insurance policyInsurance certificate noneInsurance policy Can not be replaced byCan be replaced byLC requirements Cover note is not issued by insurance company or its agent. Cover note Insurance policy Insurance company Insurance broker representing customer Customer This is not formal insurance document. This is formal insurance document

23. Points to remember Import / Export company Long term contract e.g. 1 year contract Insurance company Discounted insurance premium = less cost Pre-signed insurance certificate or insurance declaration Despatch goods to foreign country Foreign Buyer Fill in and sign Insurance certificate or Insurance declaration On the back of insurance policy, there is insurance contract There is no words on the reverse side of … Because there is a open policy 预约保单

24. Points to remember Certificate of Insurance ………………………………………………………………………. ……….. This is to certify that (name of the insured) have been issued with an Open Policy and this certificate conveys all rights of the policy (for the purpose of collecting any loss or claim) as fully as if the property were conveyed by a special policy direct to the holder of this certificate 本保险凭证 是（保险人名字）根据预约保单签发。本保险凭证具有保险单的所有 权益（用于获得任何损失索赔） ………… ……………………………………………………………………………………………… ………………………………………………………………………………….……………. …………………………………………………………………….………………………… …………………………………………………….………………………………………… …………………………………….………………………………………………………… …………………….………………………………………………………………………… For ARTHENO FREIGHT SERVICES LTD. By: (pre -signature of insurance ………(Signature of exporter) company) This certificate is not valid unless countersigned

25. Endorsement of insurance document Insurance Policy …………………………….……………… The insured: to the order of XXX bank or in the favour of XXX bank or to our order / favor or to whom it is concerned (if so, no need to endorse when transfer)…… ……………………………………………… Insurance Policy …………………………….……………… The insured: to the order of XXX bank or in the favour of XXX bank or to our order / favor or to whom it is concerned (if so, no need to endorse when transfer)…… ……………………………………………… Importer Applicant Exporter Beneficiary Advising bank acting as nominated bank E ndorsed to Issuing Bank Issuing Bank Endorsed to Applicant after payment Endorsed to Nominated Bank Endorsement: To the order of (name of Nominated Bank) For (name of exporter) Linsen, Zhang Endorsement: To the order of (name of Nominated Bank) For (name of exporter) Linsen, Zhang Endorsement: To the order and benefit of (name of Issuing Bank) For (name of Nominated Bank) Linsen, Zhang Endorsement: To the order and benefit of (name of Issuing Bank) For (name of Nominated Bank) Linsen, Zhang Blank endorsement: For (name of Issuing Bank) Linsen, Zhang Blank endorsement: For (name of Issuing Bank) Linsen, Zhang Transferring right to insurance doc.

26. Certificate of origin (1) GENERALIZED SYSTEM OF PREFERENCES CERTIFICATE OF ORIGIN (Combined declaration and certificate) FORM A …………………………………………………………….. 11. Certification: It is hereby certified, on the basis of control carried out, that the declaration by the exporter is correct. 12. Declaration by the exporter: The undersigned hereby declares that the above detail and state- ments are correct; that all the goods were produced in P.R. CHINA, and they comply with the origin requirements specified for those goods in the GSP for goods exported to Germany For Light products I/E Co. Tianjin Branch Place: ……………………………………….. Linsen, Zhang Tianjin Commodity Inspection Bureau 它是发达国家进口发展中国家商品时 提供的税收优惠待遇制度。其基本原 则是：发达国家应对发展中国家或地 区出口制成品和半制成品给予普遍优 惠待遇。目前，世界上有 32 个给惠国 家。除美国、匈牙利和保加利亚外， 其余 29 个国家都给予中国出口的制成 品、半制成品普惠制待遇。这些国家 进口中国商品时会要求提供 “ 普惠制 产地证书 ” 。中方应尽力满足对方的 这一要求，因为对方可凭此获得优惠 进口关税，降低了进口成本。此证书 可在商品检验局那里购买到，并可得 到如何填写证书的指导。

27. Certificate of origin (2) Certificate of Origin can be issued by or in the form of ; Certificate of Origin ……………………………… Issued by Chamber of Commerce, Tianjin Branch Certificate of Origin ……………………………… Issued by China ‘s Int’l Trade Promotion Committee, Tianjin Branch Certificate of Origin ……………………………… Issued by (exporter itself) Combined Form Commercial Invoice ……………………………………. We hereby certify that the goods shipped are of Chinese Origin. Chamber of Commerce, Tianjin Branch The issuing date must not be later than the date of B/L, otherwise it would be regarded as a discrepancy under LC transaction. The L/C stipulates the issuer, if not, any one will do.

28. Inspection Certificate (IC) or Certificate of Analysis (1) It should be issued by a neutral testing organizations, e.g. Inspection Certificate ……………………………………… Issued by: China I/E Commodity Bureau, Tianjin Branch, or Tianjin Metrology Institute, or Propagation Quarantine, or Chemistry Institute, etc. ………………………………………. depending on the requirements in L/C. If no requirement, any one will do, including beneficiary Itself. The issuing date of inspection certificate can be earlier than or on the same date as B/L date, but never be later than the date of B/L date. As the validity of IC is not without date, e.g. for erratic chemicals, only 15 days or shorter, for general commodities, about 30 ~ 60 days, “certificate should indicate that inspection has been carried out just before loading. What is a “clean report findings” stipulated in L/C ?

29. Inspection Certificate (IC) or Certificate of Analysis (2) Inspection Certificate ……………………………………………………… Consignor: (name and place of beneficiary) Consignee: (can be unfilled or To whom it is concerned ) Date of Manufacture: …………………………… Statement of a sample, or Samples of merchandise:……………………… (unless L/C stipulates otherwise) ……………………………………………………… Contents: ≤3%…..(must be the same as stipulated in L/C)………………………………… ………………………………………………………

30. Apply Applicant Issuing Bank Documentary credit Advising/ Nominated Bank Advise Beneficiary Mini case: 12yrs old wine is no better than 10 yrs old wine ? 1. LC stipulated whisky 10 years old Doc. 2.Invoice showed whisky 10 years old 3. Age Certificate showed whisky 12 yrs old 4. Nominated Bank accepted Age Certificate on the basis that 12-year-old whisky is better than 10-year-old whisky. Send documents Rejected documents ★ Who was right ? ? ?

31. Apply Applicant Issuing Bank Documentary credit Advising Nominated Bank Advise Beneficiary 1. LC stipulated that Inspection Certificate be handed in docs 2. Inspection Certificate showed that the fridges were rusty 3. Nominated Bank refused the Inspection Certificate Notify Issuing bank Rejected the discrepancy ★ Who was right ? ? ? 4. The stipulation in LC did not call for Clean inspection certificate but for an inspection certificate. Mini case: Unclean Report Findings ?

32. Packing List /Weight List / Weight Memorandum (Combined) Commercial Invoice or Packing List ……………………………….. ………………………………. Issued by (name & place of beneficiary) (Separately) Weigh List (Certificate) Weight Memorandum Weight Note ……………………………….. Issued by (name & place of beneficiary) Separately Packing List ……………………………….. ………………………………. Issued by (name & place of beneficiary) Whether they are combined or separate depends upon L/C stipulations 每箱尺寸每箱净 重量 每箱总重 量 P.233 M立方米M立方米 MEASURE- MENT PER CTN （ KGS ） NET WT PER CTN （ KGS ） GR. WT PER CTN （ KGS ） TOTAL PCS/SETS 总件 / 套数 PCS/SETS 件 / 套 PER CTN 每箱 SIZE 尺寸 ASSORTMENT FOR CTN 纸箱种 类 DESIGNS COLORS 设计 颜色 QTY 数量 PER 每 CTN 纸箱 CARTON NO. 纸箱 编号

33. Dispatch goods Importer Applicant Exporter Beneficiary Advising bank acting as nominated bank Forward docs to and claim on Issuing Bank documents B/L Carrier B/L Deliver goods Documents including copy of the advice & statement Beneficiary’s Statement and Cable advice Cable advice on shipment: 1.Time of shipment 2.Expected time of arrival (ETA) 3.Styles and quantity 4.Packing and numbers 5.etc.

34. End of the lecture Thank you for attending