1. Documents in International Logistics
Ondrej Castek

2. The role of documentation
Control and liability
Purposes of documentation:
Fulfill regulations
Manage risk
Common understanding
Record keeping
The basic principle of documentation in trade is control and liability: who is in control of goods should be liable for it.
customs, duties, export permit, import license etc.
States, who is responsible for what
Different languages and different cultures mean different understanding of terms. Written documentation should express common understanding of these terms.
Such as for book keeping etc.

3. Example
The basic principle of documentation in trade is control and liability: who is in control of goods should be liable for it.
customs, duties, export permit, import license etc.
States, who is responsible for what
Different languages and different cultures mean different understanding of terms. Written documentation should express common understanding of these terms.
Such as for book keeping etc.

4. Business-related and Law-related
Types of documents
Transportation
Banking
Commercial
Government Or
Business-related and Law-related
For the physical movement of the cargo
For financing of the shipment
For the purchase of the goods
To fulfill government regulations

5. IT and documentation Time and costs
Time – to deliver documentation and to collect information
Costs – Pocuca et. al found in 2000, that for a set of 103 documents in one shipment the electronic handling:
decreases costs by 39 %
decreases government importance by 73 %
The government is represented by consulate, export and import licensing, health control, chamber of commerce, export and import customs, port authority and police.
Usually about 10 documents
Can be over 103 documents, as in this example
I US foreing trade in 1982 avg costs of documentation was 395 USD per one set of documents
In UK 3 – 4 % of costs of SME import and export companies spent on trade facilitation.
In 1990 air cargo: it takes 36 separate handling functions generating 16 documents as same as 26 years ago.

6. Pocuca et al research model
Difference in time: 33 hours!!!
Costs of documents 4 – 7 % of the value of the goods

7. IT and documentation - example
One piece of information, port of discharge (POD). POD is used by the:
exporter,
the port terminal operator (to know where to load the freight on the ship or airplane), the carrier,
the insurance company,
the bank (particularly in letters of credit),
the customer’s customs broker,
customs,
the customer.
produce, send, read and key manual documents

8. Documentation as a non tariff trade barrier
import license (quantity, value, other)
consular legalization
2. has to be processed by consular offices located in exporters country or near (closest Australian embassy is located in Vienna)

9. more information than domestic invoice
Commercial invoice
more information than domestic invoice
not only a collection document, but also
used by governmental authorities:
duties
admission under quota

10. Consular invoice
special form and data or just a copy of commercial invoice
language of importing country
might require legalization or approvement by consul

11. Ocean Bill of Lading
contract of carriage
documentary evidence of title
receipt for goods

13. delivery instructions export license hazmat bill of lading
Other documents
carnets
dock receipts
certificate of origin
air waybill
collection letter
customs invoice
delivery instructions
export license
hazmat bill of lading
import license
1. sample goods carried by salespeople – duty free, usually has to return without change within a period given to the country of origin
2. proof of delivery in ocean transport
3. Might be required by importing country government or by importer. Might need to be signed by shipper, chamber of commerce, consulate or notarized
4. non negotiable bill of lading in air traffic. Receipt for cargo and trasportation contract. No „to order“ allowed.
5. says what, when and with what information to collect. eg. for LoC purposes
6. bears information needed for customs
7. from exporter to the shipper or from the shipper to the carrier – specific port, pier, terminal, airport, connection, route
8. individual, general etc.
9. for hazardous material

14. inspection certificate packing list
Other documents
inland bill of lading
inspection certificate
packing list
phytosanitary inspection certificate
pro forma invoice
11. non negotiable
12. by third parties – independent companies – to protect the one, who is handing the cargo over to another chain member
13. describes items in box, crate, pallet, container – dimensions, pieces, weight – usually not a price
14. plants and plant products – to comply quarantine import regulation (Austrálie)
15. not for payment purposes, but for all other – customs, duties, licenses etc.

15. „Clean“ documents
Document, which has been processed and no objection were raised.
Objection might be breakage, leaking, shortage.
Used with dock receipts, bills of lading and other.

16. Insurance

17. Insurance
Package for domestic trade is not good enough for long and rough transportation in international trade.

18. Sea transport
Condensation (falling like rain)
Waves
Corrosive salt water
Rain, sun, frost

19. US is 3x mor risky than Japanese US repairs are more expensive
Hull insurance
Japanese 1.00
Norwegian 1.10
American 1.25
Greek 1.50
US is 3x mor risky than Japanese
US repairs are more expensive
US crew is more expensive
Insurance of the vessel itself

20. War risk and pirates
Standard 0.1 % of hull value and % of cargo value
Might climb to 7.5 % and 3 % (Persian gulf in 1984)
Pirate attacks in 1990: 100, 2000: 450, 2009: 406.

21. Study material: Chapter 12
International Logistics (2nd Edition) Wood, Donald F. Barone, Anthony Murphy, Paul Pages: 456, Publisher: AMACOM Books ISBN:
Available at:
Risk and costs, sellers’ and buyer’s view
LoC fees: 0,5% - 2% or more, minimum fees, amendment fees (50 – 100 USD per amendment)