International Payments
Documentary Collections & Documentary Letters of Credit

Overview of Payment Methods
There are four common methods of international payment, each providing the buyer and the seller with varying degrees of protection for getting paid and for guaranteeing shipment of the goods.
Ranked in order of most security for the seller to most security for the buyer, they are:
1. Cash in Advance
2. Documentary Letters of Credit (L/C)
3. Documentary Collections (D/P and D/A)
4. Open Account

Cash in Advance
v Greatest security for seller
v Greatest risk for buyer
In cash in advance terms, the buyer simply prepays the seller prior to shipment of goods. Cash in advance terms are generally used in new relationships where transactions are small and the buyer has no choice but to prepay. These terms give maximum security to the seller but leave the buyer at great risk. Because the buyer has no guarantee that the goods will be shipped, there must be a high degree of trust in the seller's ability and willingness to follow through. The buyer must also consider the economic, political, and social stability of the seller's country, as these conditions may make it impossible for the seller to ship as promised.

Documentary Letters of Credit (L/C)
v Excellent security and equal: risk for both buyer and seller
v Added costs to buyer
v More involved than a Documentary Collection

A letter of credit is a bank's promise to pay a seller on behalf of the buyer so long as the seller meets certain terms and conditions stated in the credit. Documents are the key issue in letter of credit transactions. Banks act as intermediaries and have nothing to do with the goods themselves.
Letters of credit are the most common form of international payment because they provide a high degree of protection for both the buyer and the seller. The buyer specifies the documentation required from the seller before the bank is to make payment, and the seller is given assurance that payment will be received after shipping the goods so long as the documentation is in order.
Letters of Credit: Tips for Sellers

1. Before signing a contract, the seller should make inquiries about the buyer's creditworthiness and business practices. The seller's bank will generally assist in this investigation.
2. The seller should confirm the good standing of the buyer's bank if the credit is unconfirmed.
3. For confirmed credit, it should be determined that the seller's local bank is willing to confirm credits from the buyer and the buyer's bank.
4. The seller should carefully review the L/C to make sure its conditions can be met: specified schedules of shipment, type of goods to be sent, packaging, and documentation. All aspects of the L/C must be in conformance with the terms agreed upon, including the seller's address, the amount to be paid, and the prescribed transport route.
5. The seller must comply with every detail of the L/C specifications; otherwise the security given by the credit is lost.
6. The seller should ensure that the L/C is irrevocable.
7. If conditions of the credit have to be modified, the seller should contact the buyer immediately so that the buyer can instruct the issuing bank to make the necessary amendments.
8. The seller should confirm with the insurance company that it can provide the coverage specified in the credit and that insurance charges in the L/C are correct. Typical insurance coverage is for CIF (cost, insurance, freight) often the value of the goods plus about 10 percent.
9. The seller must ensure that the details of goods being sent comply with the description in the L/C and that the description on the invoice matches that on the L/C.
10. The seller should be familiar with foreign exchange limitations in the buyer's country that could hinder payment procedures.
Letters of Credit: Tips for Buyers

1. Before opening a letter of credit, the buyer should reach agreement with the seller on all particulars of payment procedures, schedules of shipment, type of goods to be sent, and documents to be supplied by the supplier.
2. When choosing the type of L/C to be used, the buyer should take into account standard payment methods in the country of the seller.
3. When opening a letter of credit, the buyer should keep the details of the purchase short and concise.
4. The buyer should be prepared to amend or renegotiate terms of the L/C with the seller. This is a common procedure in international trade. On irrevocable L/Cs, the most common type, amendments may be made only if all parties involved in the L/C agree.
5. The buyer can eliminate exchange risk involved with import credits in foreign currencies by purchasing foreign exchange on the forward markets.
6. The buyer should use a bank experienced in foreign trade as the L/C issuing bank.
7. The validation time stated on the L/C should give the seller ample time to produce the goods or to pull them out of stock.
8. The buyer should be aware that an L/C is not fail-safe. Banks are only responsible for the documents exchanged and not the goods shipped. Documents in conformity with L/C specifications cannot be rejected on grounds that the goods were not delivered as specified in the contract. The goods shipped may not in fact be the goods ordered and paid for.
9. Purchase contracts and other agreements pertaining to the sale between the buyer and seller are not the concern of the issuing bank. Only the terms of the L/C are binding on the bank.
10. Documents specified in the L/C should include those the buyer requires for customs clearance.

Types of Letters of Credit
Basic Letters of Credit
There are two basic forms of letters of credit: the Revocable Credit and the Irrevocable Credit. There are also two types of Irrevocable Credit: the Irrevocable Credit Not Confirmed and the Irrevocable Confirmed Credit. Each type of credit has advantages and disadvantages for the buyer and for the seller. Also note that the more the banks assume risk by guaranteeing payment, the more they will charge for providing the service.

Revocable Credit
Revocable credits may be modified or even canceled by the buyer without notice to the seller. As a result, they are generally unacceptable to the seller.
Irrevocable Credit
Irrevocable credits may not be modified or canceled by the buyer. The buyer's (issuing) bank must follow through with payment to the seller so long as the seller complies with the conditions listed in the credit. Changes in the credit must be approved by both the buyer and the seller. This is the most common form of credit used in international trade. There are two forms of irrevocable credits:
Unconfirmed credit (the irrevocable credit not confirmed by the advising bank)
In an unconfirmed credit the buyer's bank issuing the credit is the only party responsible for payment to the seller. The seller's bank is obliged to pay only after the payment from the buyer's bank is received. The seller's bank merely acts on behalf of the issuing bank and therefore incurs no risk.
Confirmed credit (the irrevocable, confirmed credit)
In a confirmed credit, the advising bank adds its guarantee to pay the seller to that of the buyer's (issuing) bank. If the buyer's bank fails to make payment, the seller's bank will pay. If a seller is unfamiliar with the buyer's bank issuing the letter of credit, an irrevocable, confirmed credit may be insisted upon. These credits may be used when trade is conducted in a high-risk area where there are fears of war or social, political, or financial instability. Confirmed credits may also be used by the seller to enlist the aid of a local bank to extend financing to help an order be filled. A confirmed credit costs more because the bank has added liability.
Special Letters of Credit
The following is a brief description of some special letters of credit.

Back-to-Back Letter of Credit
This is a new credit opened on the basis of an already existing, nontransferable credit. It is used by traders (middlemen) to make payment to the ultimate supplier. A trader receives a letter of credit from the buyer and then opens another letter of credit in favor of the supplier. The first letter of credit is used as collateral for the second credit. The second credit makes price adjustments from which come the trader's profit.
Deferred Payment (Usance) Letter of Credit
In Deferred Payment Letters of Credit, the buyer accepts the documents and agrees to pay the issuing bank after a fixed period of time. This credit gives the buyer a grace period for payment.
Red Clause Letter of Credit
Red Clause Letters of Credit are used to provide the seller with some funds prior to shipment to finance production of the goods. The credit may be advanced in part or in full, and the buyer's bank finances the advance payment. The buyer, in essence, extends financing to the seller and incurs ultimate risk for all advanced credits.
Revolving Letter of Credit
With a Revolving Letter of Credit, the issuing bank commits to restore the credit to the original amount once it has been used or drawn down. The credit also states the number of times it can be used and the period of validity. The credit can be cumulative, meaning sums can be added to the next installment, or non-cumulative, meaning partial amounts expire if not used in the time stated.
Standby Letter of Credit
This credit is basically a payment or performance guarantee used primarily in the United States. They are often called non-performing letters of credit because they are only used as a backup payment if the collection on a primary payment method is past due. Standby letters of credit can be used, for example, to guarantee repayment of loans, fulfillment by subcontractors, and securing the payment for goods delivered by third parties. The beneficiary to a standby letter of credit can draw from it on demand, so the buyer assumes added risk.
Transferable Letter of Credit
This type of credit allows the seller to transfer all or part of the proceeds of the original letter of credit to a second beneficiary, usually the ultimate supplier of the goods. This is a common financing tactic for middlemen and is used extensively in East Asia.

Basic Letters of Credit Procedure
A letter of credit is a document issued by a bank stating its commitment to pay someone (seller/exporter) a stated amount of money on behalf of a buyer (importer) so long as the seller meets very specific terms and conditions. Letters of credit are the most common method of making international payments because the risks of the transaction are shared by both the buyer and the seller.
The letter of credit process has been standardized by a set of rules published by the International Chamber of Commerce (ICC). These rules are called the Uniform Customs and Practice for Documentary Credits (UCP) and are contained in ICC Publication No. 500. The following is the basic set of steps used in a letter of credit transaction. Specific letter of credit transactions follow somewhat different procedures.
1. After the buyer and seller agree on the terms of a sale, the buyer arranges for his bank to open a letter of credit in favor of the seller. Note: The buyer will need to have a line of credit established at the bank or provide cash collateral for the amount of the L/C.
2. The buyer's bank (issuing bank) prepares the letter of credit, including all of the buyer's instructions to the seller concerning shipment and required documentation.
3. The buyer's bank sends the letter of credit to a correspondent bank (advising bank) in the seller's country. The seller may request that a particular bank be the advising bank, or the buyer's bank may select one of its correspondent banks in the seller's country. (Note: For the sake of simplicity in this example we will call this the seller's bank.)
4. The seller's bank forwards the letter of credit to the seller.
5. The seller carefully reviews all conditions the buyer has stipulated in the letter of credit. If the seller cannot comply with one or more of the provisions, the buyer is immediately notified and asked to make an amendment to the letter of credit.
6. After final terms are agreed upon, the seller prepares the goods and arranges for shipment to the appropriate port.
7. The seller ships the goods, and obtains a bill of lading and other documents as required by the buyer in the letter of credit. Some of these documents may need to be obtained prior to shipment.
8. The seller presents the documents to his (seller's) bank, indicating full compliance with the terms of the letter of credit. Required documents usually include a bill of lading, commercial invoice, certificate of origin, and possibly an inspection certificate.
9. The seller's bank reviews the documents. If they are in order, they are forwarded to the buyer's bank. If it is an irrevocable, confirmed letter of credit, the seller is guaranteed payment and may be paid immediately by his or her bank.
10. Once the buyer's bank receives the documents it notifies the buyer who then reviews them. If they are in order the buyer signs off, makes payment to the bank, and receives the documents which enable the holder to take possession of the shipment.
11. The buyer's bank initiates payment to the seller's bank, which pays the seller.
The transfer of funds from the buyer to the bank, from the buyer's bank to the seller's bank, and from the seller's bank to the seller may be handled at the same time as the exchange of documents, or under terms agreed upon in advance.

Issuance of a Letter of Credit
1. Buyer and seller agree on a purchase contract.
2. Buyer applies for and opens a letter of credit with his or her (issuing) bank.
3. Buyer's bank issues the letter of credit, forwarding it to advising (seller's) bank.
4. Seller's bank notifies seller of the letter of credit.

Amendment of a Letter of Credit

1. Seller requests a modification or amendment of any questionable terms in the letter of credit. If the terms are agreed upon.
2. Buyer issues order to his or her (buyer's) bank to make an amendment to the terms of the letter of credit.
3. Buyer's bank notifies seller's bank of amendment.
4. Seller's bank notifies seller of amendment.

Utilization of a Letter of Credit (Irrevocable, Confirmed)
Once the buyer opens a letter of credit at his bank and the seller receives notification of credit issuance, the following steps take place:

1. Seller ships goods to the buyer.
2. Seller forwards all documents (as stipulated in the letter of credit) to his bank. Once the documents are reviewed and accepted, buyer's bank pays seller for the goods.
3. Seller's bank forwards documents to buyer's bank. Once the documents are reviewed and accepted, buyer's bank pays seller's bank.
4. Buyer's bank forwards documents to buyer. Buyer makes payment or his or her account is debited.

Utilization


Opening a Letter of Credit
(Guidelines for the Buyer)
Level of Detail
The wording in a letter of credit should be simple, but specific. The more detailed an L/C is, the more likely the seller will reject it as too difficult to fulfill. At the same time, the buyer will wish to define in detail what is being paid for.
Although the L/C process is designed to ensure the satisfaction of all parties in the transaction, it cannot be considered a substitute for face-to-face agreements to do business in good faith. It should therefore contain only those stipulations required concerning the bank's involvement in the documentary process.
Type of Credit
L/Cs used in trade are usually either irrevocable, unconfirmed credits or irrevocable, confirmed credits. In choosing the type of L/C to open in favor of the seller, the buyer should take into consideration generally accepted payment processes in the seller's country, the value and demand for the goods to be shipped and the reputation of the seller.
Documents
In specifying documents required of the seller, it is very important to stipulate those that are required for customs clearance and those that reflect the agreement reached between the buyer and the seller. Required documents usually include the bill of lading, a commercial and/or consular invoice, the bill of exchange, the certificate of origin, and the insurance document. Other documents required may be an inspection certificate, copies of a cable sent to the buyer with shipping information, a confirmation from the shipping company of the state of its ship and a confirmation from the forwarder that the goods are accompanied by a certificate of origin. Prices should be stated in the currency of the L/C, and documents should be supplied in the language of the L/C.
Electronic Applications
It is becoming more and more common to apply for letters of credit electronically. Firms that open five or more letters of credit per month will find this to be a real time saver.
The process is rather simple. Your bank gives you a computer disk containing a software program. You open a new document (application), follow the prompts asking for information, and then send it to the bank via modem. You save courier costs and transit time. The program also saves you from having to re-enter repetitive transaction data.

The Letter of Credit Application
The following information should be included on an application form for opening an L/C:
1. Beneficiary
Always write the seller's company name and address completely and correctly. A simple mistake here may translate to inconsistent or improper documentation at the other end.
2. Amount
State the actual amount of the credit. You may state a maximum amount in a situation where actual count or quantity is in question. You also may use the words "approximate", "circa", or "about" to indicate an acceptable 10 percent plus or minus from the stated amount. If you use such wording you will need to be consistent and use it also in connection with the quantity.
3. Validity
The exporter will require time to prepare the shipment as well as the necessary documents. Make sure that the validity and period for document presentation following shipment of the goods is sufficiently long.
4. Beneficiary's Bank
Either name the seller's bank or leave blank to indicate that the issuing bank may freely select the correspondent bank.
5. Type of Payment Availability
Sight drafts, time drafts, or deferred payment may be used, as previously agreed to by the seller and buyer.
6. Desired Documents
The buyer specifies which documents are needed. Buyers can list, for example, a bill of lading, a commercial invoice, a certificate of origin, certificates of analysis, etc.
7. Notify Address
This is the address to notify upon the imminent arrival of goods at the port or airport of destination. Notification can also be used for damage of goods in shipment. An agent representing the buyer may be used.
8. Description of Goods
A short, precise description of the goods is given, along with quantity. Note the comments in #2 above concerning approximate amounts.
9. Confirmation Order
Foreign beneficiaries may insist on confirming the credit with the bank in their country.

Sample Letter of Credit Application
Common Problems in Letter of Credit Transactions
Most problems with letter of credit transactions have to do with the ability of the seller to fulfill obligations the buyer establishes in the original letter of credit. The seller may find the terms of the credit difficult or impossible to fulfill and either tries to fulfill them and fails, or asks the buyer for an amendment to the letter of credit. Since most letters of credit are irrevocable, amendments to the original letter of credit can only be made after further negotiations and agreement between the buyer and the seller. Sellers may have one or more of the following problems:
v Shipment schedule stipulated in the letter of credit cannot be met.
v Stipulations concerning freight costs are deemed unacceptable.
v Price is insufficient due to changes in exchange rates.
v Quantity of product ordered is not the expected amount.
v Description of product to be shipped is either insufficient or too detailed.
v Documents stipulated in the letter of credit are difficult or impossible to obtain.
Even when sellers accept the terms of a letter of credit, problems often arise at the stage in which banks review, or negotiate, the documents provided by the seller against the requirements specified in the letter of credit. If the documents are found not to be in accord with those specified in the letter of credit, the bank's commitment to pay is invalidated. In some cases the seller can correct the documents and present them within the time specified in the letter of credit. Or the advising bank may ask the issuing bank for authorization to accept the documents despite the discrepancies found.
Limits On Legal Obligations of Banks
It is important to note once again that banks deal in documents and not in goods. Only the wording of the credit is binding on the bank. Banks are not responsible for verifying the authenticity of the documents, nor for the quality or quantity of the goods being shipped. As long as the documents comply with the terms specified in the letter of credit, banks may accept them and initiate the payment process as stipulated in the letter of credit. Banks are free from liability for delays in sending messages caused by another party, consequences of Acts of God, or the acts of third parties whom they have instructed to carry out transactions.

Documentary Collections
v Good security and almost: equal risk for buyer and seller
v Less costly than a L/C
v Easier to use than a L/C
A documentary collection is like an international cash on delivery (COD), but with a few twists. The exporter ships goods to the importer, but forwards shipping documents (including title document) to the remitting bank for transmission to the buyer's bank. The buyer's bank is instructed not to transfer the documents to the buyer until payment is made (Documents against Payment, D/P) or upon guarantee that payment will be made within a specified period of time (Documents against Acceptance, D/A). Once in possession of the documentation, the buyer may take ownership of the shipment.
D/P and D/A terms are commonly used in ongoing business relationships and provide a measure of protection for both parties. The buyer and seller both assume risk in the transaction, however, ranging from refusal on the part of the buyer to pay for the documents to the seller's shipping of unacceptable goods.
In a documentary collection banks act as intermediaries to collect payment from the buyer in exchange for the transfer of documents which enable the holder to take possession of the goods. The procedure is easier than a letter of credit and bank charges are lower.
Basic Documentary Collection Procedure
The documentary collection procedure has been standardized by a set of rules published by the International Chamber of Commerce (ICC). These are called the Uniform Rules for Collections (URC). The basic procedure involves the step-by-step exchanging of documents giving title to the goods for either cash or a contracted promise to pay at a later time.
The seller (also called the remitter) ships the goods and presents the documents (such as the bill of lading, invoices, and certificate of origin) to his bank (also called the remitting bank), which then forwards them to the buyer's bank (also called the collecting bank). The buyer then pays his bank the sum due, receives the documents and takes possession of the goods.
Types of Collections
There are three types of documentary collections. The basic procedure is the same for all except that the buyer has different payment options which the seller must agree to before shipment. In each case the buyer may take possession of the goods only by presenting the documentation including the bill of lading to customs and shipping authorities.


Documents against Payment (D/P)
In D/P terms the buyer receives the title documents only after making payment at the bank.
Documents against Acceptance (D/A)
In D/A terms the buyer receives the title and other documents after signing a time draft at the bank promising to pay at a later date.
Acceptance Documents Against Payment (Acceptance D/P)
In Acceptance D/P terms the buyer signs a time draft for payment at a later date. However, the documents are transferred only after the time draft reaches maturity. In essence, the goods remain in escrow until payment has been made.
Risks for Buyers
The main risk for buyers is that the goods shipped might not conform to the goods specified. In such a case the buyer will have to seek recourse with the seller, because banks deal only in documents and not in goods.
Risks for Sellers
Risks to the seller center around the fact that payment is not made until after the goods are shipped. Specific risks are as follows:
1. The seller assumes insurance and storage liability while the goods are in transit until payment/acceptance takes place.
2. The buyer may not pay for the documents. While the goods remain in the legal possession of the seller, he may be stuck with them in an unfavorable situation. Also, the seller has no legal basis to file claim against the buyer. At this point the seller may have the goods returned or try to sell the goods to another buyer. If no action is taken, the goods will be auctioned or otherwise disposed of by customs.
A seller should only agree to payment by documentary collection if:
1. The seller does not doubt the buyer's ability and willingness to pay for the goods;
2. The buyer's country is politically, economically, and legally stable;
3. There are no foreign exchange restrictions in the buyer's country, or all licenses for foreign exchange have already been obtained; and
5. The shipped goods are easily marketable.

Documentary Collection: Tips for Sellers
1. The seller assumes risk because the goods are shipped before receipt of payment. Buyer has no legal obligation to pay for or to accept the goods.
2. Before agreeing to a documentary collection, the seller should check on the buyer's creditworthiness and business reputation.
3. The seller should make sure the buyer's country is politically and financially stable.
4. The seller should find out from the buyer what documents are required for customs clearance in the buyer's country.
5. The seller should assemble the documents carefully and make sure they are in the required form and endorsed as necessary.
6. As a rule, the seller's bank will not review the documents before forwarding them to the buyer's bank. This is the responsibility of the seller.
7. The goods travel and are stored at the risk of the seller until payment or acceptance.
8. If the buyer refuses acceptance or payment for the documents, the seller retains ownership. The seller may have the goods shipped back or try to sell them to another buyer in the region.
9. If the buyer takes no action, customs authorities may seize the goods and auction them off or otherwise dispose of them.
10. Because goods may be refused, the seller should only ship goods which are readily marketable to other sources.

Documentary Collection: Tips for Buyers
1. The buyer is generally in a secure position because ownership or responsibility for goods do not have to assumed until documents have been paid or a time draft signed.
2. The buyer may specify a certificate of inspection as part of the required documentation. The buyer may not sample or inspect the goods before accepting and paying for the documents without authorization from the seller.
3. As a special favor, the collecting bank can allow buyers to inspect the documents before payment. The collecting bank assumes responsibility for the documents until redemption.
4. In the above case, the buyer should immediately return the entire set of documents to the collecting bank if the buyer cannot meet the agreed upon payment procedure.
5. The buyer assumes no liability for goods if there is a refusal to take possession of the documents.
6. Partial payment in exchange for the documents is not allowed unless authorized in the collection order.
7. With documents against acceptance, the buyer may receive the goods and resell them for profit before the time draft matures, thereby using the proceeds of the sale to pay for the goods. The buyer is responsible for payment, however, even if the goods cannot be sold.

Open Account
v Least risk for buyer
v Greatest risk for seller
This is an agreement by the buyer to pay for goods within a designated time after the shipment, usually in 30, 60, or 90 days. Open account terms give maximum security to the buyer and greatest risk to the seller. This form of payment is used only when the seller has significant trust and faith in the buyer's ability and willingness to pay once the goods have been shipped. The seller must also consider the economic, political, and social stability of the buyer's country as these conditions may make it impossible for the buyer to pay as promised.

International Payments Glossary
Documents in International Trade
The following is a list and description of some of the more common documents importers and exporters encounter in the course of international trade. For the importer/buyer this serves as a checklist of documents to consider requiring of the seller/exporter in a letter of credit or documentary collections transaction.
air waybill: A bill of lading issued for air shipment of goods, which is always made out in straight, non-negotiable form. It serves as a receipt for the shipper and needs to be made out to someone who can take possession of the goods upon arrival--without waiting for other documents to arrive. See bill of lading.
bill of lading: A document issued by a transportation company (such as a shipping line) to the shipper (consignor) that serves as a receipt for goods shipped and a contract for delivery. A bill of lading may also serve as a title document. A bill of lading, therefore, is both a receipt for merchandise-shipped and a contract to deliver it as freight to the consignee. The major types are: straight (non-negotiable) bill of lading, order (negotiable or "shippers order") bill of lading, air waybill and overland/inland bill of lading.
certificate of origin: A document certifying the country of origin of the goods. Because a certificate of origin is often required by customs for entry, a buyer will often stipulate in the letter of credit that a certificate of origin is a required document. The Certificate of Origin Form A is the official certificate of origin required for imports of products under the GSP (Generalized System of Preferences) and other tariff reduction programs.
certificate of manufacture: A document in which the producer of goods certifies that production has been completed and that the goods are at the disposal of the buyer.
consular invoice: An invoice prepared on a special form supplied by the consul of an importing country, in the language of the importing country, and certified by a consular official of the foreign country of origin.
dock receipt: A document/receipt issued by an ocean carrier when the seller/exporter is not responsible for moving the goods to the final destination, but only to a dock in the exporting country. The document/receipt indicates that the goods were, in fact, delivered and received at the specified dock.
export license: A document, issued by a government agency, giving authorization to export certain commodities to specified countries.
import license: A document, issued by a government agency, giving authorization to import certain commodities.
inspection certificate: An affidavit signed by the seller/exporter or an independent inspection firm (as required by the buyer/importer), confirming that merchandise meets certain specifications.
insurance document: A document certifying that goods are insured for shipment.
invoice/commercial invoice: A document identifying the seller and buyer of goods or services, identifying items such as: invoice number, date, shipping date, mode of transport, delivery and payment terms, and a complete listing and description of the goods or services being sold including prices, discounts, and quantities. The commercial invoice is usually used by customs to determine the true cost of goods when assessing duty.
order (negotiable or "shippers order") bill of lading: This is a title document which must be in the possession of the consignee (buyer/ importer) in order to take possession of the shipped goods. Because this bill of lading is negotiable, it is usually made out "to the order of" the consignor (seller/exporter). See bill of lading.
overland/inland bill of lading: Similar to an air waybill, except that it covers ground or water transport. See bill of lading.
packing list: A document listing the merchandise contained in a particular box, crate, or container, plus type, dimensions, and weight of the container.
phytosanitary (plant health) inspection certificate: A document certifying that an export shipment has been inspected and is free from pests and plant diseases considered harmful by the importing country.
shipper's export declaration: A form prepared by a shipper/exporter indicating the value, weight, destination and other information about an export shipment.
straight (non-negotiable) bill of lading: Indicates that the shipper will deliver the goods to the consignee. The document itself does not give title to the goods. The consignee need only to provide identification to claim the goods. A straight bill of lading is often used when the goods have been paid for in advance. See bill of lading.