One of the major differences between domestic trade and foreign trade is documentation'. Every shipment must be accompanied by a number of correct documents. If they are not the correct ones, the importer will have difficulties in taking delivery of the goods, and delays caused by incorrect documentation may affect future business relations between the trading partners. In the case of documentary letter of credit, any discrepancy, even in minor details, between the documents presented and those specified in the credit may lead to refusal by the bank to make payment. Different documents are required for different transactions, depending on the nature of the deal, the term of delivery, the type of commodity, stipulations of credit, regulations and practices3 in different countries, etc. However, most transactions require the following major documents:



The commercial invoice'; Generally called "the invoice" for short, this document is the general description of the quality and quantity of the goods and the unit and total price. It constitutes the basis on which other documents are to be prepared5, and the banks check the conformity between credit terms and documents and the conformity between the documents. A6 commercial invoice normally include the following contents: Invoice number and the date;name and address of the buyer and the seller; contract number and credit number; description of the goods including name of the commodify, quantity, specifications, etc.; unit price, total price, price terms, and commission and discount if any; terms of delivery and terms of payment; packing, shipping marks, etc. ; and seal or signature of the exporter. It should be noted that the description of the goods in the invoice must comply with the credit while in other documents the goods can be described in general terms, and that the total invoice value should not exceed the total amount of the covering L/C.



The packing list gives information such as the number, date, name and description of the goods, shipping marks, packing, number of packages, specific contents of each package and its net weight and gross weight etc. Sometimes the credit stipulates for specification list which is similar to the packing list but emphasizes the description of [he specifications of the goods. The weight list, weight note, or weight memo8 are also similar lo the packing list in content and function but put emphasis on the weight of the goods and are generally used for goods which are based on the weight for price calculation.



The Bill of Lading is one of the most important documents and has three major functions: 1. It serves as a cargo receipt signed by the carrier and issued to the shipper or consignor; 2. It constitutes a contract of carriage10 between the carrier and the consignor; 3. It is a document of title to the goods, and the legal holder" of the bill of lading is the owner of the goods it covers.



The major contents of the bill of lading include: 1. the carrier i. e. the shipping company; 2. the shipper or consignor, it is normally the exporter; 3. the consignee, it is generally either the importer or made out "to order"; 4. the notify party, i. e. the party to be advised after arrival of the goods at the port of destination. It is often the agent of the consignee or the consignee himself. 5. a general description of the goods including the name number of packages, weight, measurement etc. 6. shipping mark;;'', 7. the port of shipment14 and the port of destination; 8. the freight, for CIF and CF'R it should be "freight prepaid", or "freight paid", for FOB it should be "freight to collect", or "freight to be paid", or "freight payable at destination". 9. the place ".here the bill of lading is issued; 10. the date when the bill of lading is issued which is regarded as the time of shipment and can by no means be later than that stipulated in the credit,



There are quite a few types of bills of lading classified in several ways. However, most letters of credit stipulate for "clean, on board bill of lading". A clean bill of lading is one which states that the goods have been shipped in apparent15 good order and condition. It is meant that the document is devoid of any qualifying remarks16 concerning the packing and the outer appearance of the goods. And the carrier admits full liability for the goods described in the bill of lading and is bound to'7 carry the goods and deliver them in like'8 condition in which he has received them. An on board bill of lading indicates that the shipment has been actually loaded on the carrying vessel bound for the port of destination.



Traditionally, this has been the only acceptable type to be presented by the seller under the term CFR and CIF.