Overview
Trade finance documentation is crucial for facilitating international trade by ensuring that all parties involved meet their obligations. Key documents such as Letters of Credit, Bills of Lading, and Commercial Invoices play significant roles in minimizing risks and ensuring smooth transactions. Und...
Key Terms
Example: A buyer uses a Letter of Credit to ensure the seller receives payment after shipping goods.
Example: The Bill of Lading serves as a receipt for the goods shipped.
Example: The commercial invoice is used for customs clearance.
Example: An insurance certificate protects against loss or damage during shipping.
Example: Common trade terms include FOB (Free on Board) and CIF (Cost, Insurance, and Freight).
Example: An export declaration is necessary for customs clearance.