Page 102 - International Marketing

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104 International Marketing BRILLIANT'S

transported by more than one means of transport, particularly since the
advent of container transport. The combined transport document or through
container allows for this covering the movement of goods from start to end.
10. Consular Invoice: It is also known as Certified Invoice. The
Importer might require the invoice to be certified by the consulate of his
country stationed in the exporter's country. Consular Invoice facilitates
clearing of the goods through the customs at their destination and also
serves as authentication of the particulars it sets out. Charges of certification
may vary from country to country.
11. Certificate of Origin: This certificate certifies the place of origin
of merchandize. Certificates of origin are issued by chambers of commerce
on their own printed forms differing in sizes and layout. The standard
document in respect of the certificate of origin included in the series of
aligned documents is prepared after taking into consideration the
requirements of the different certificates of origin issued by the different
Chambers of Commerce in the country. The exporter will complete the
"Declaration" after shipment as given at the bottom (right hand) of the
document and present it for certification at the office of the Chamber of
Commerce. 

Q.15. What are the drawbacks of documentation?
OR
Discuss the common defects in documentation.
Common Defects in Documentation
The bank making payment on behalf of its foreign correspondent must
verify that all documents and drafts conform precisely to the terms and
conditions of the L/C. The requirements of credit cannot be waived or
altered by the paying bank without specific authority from the issuing
bank. To avoid payment delays, the beneficiary should prepare and examine
all documents carefully before presenting them to the paying bank.
Paying banks find that following discrepancies between the documents
and the letter of credit occur most frequently:
1. Drafts presented after letter of credit has expired or after time for
shipment has expired.
2. Invoice value or draft exceeds amount available under letter of credit.
3. Charges included in the invoice are not authorized under Letter
of Credit.
4. Insurance document is not endorsed and/or counter signed.
5. Amount of insurance coverage is inadequate or coverage does
not include risks required by Letter of Credit.