Answered Essay: What are the important documents that used in import-export activity? Briefly explain each (at least

What are the important documents that used in import-export activity? Briefly explain each (at least two documents).

Expert Answer

Some of the important documents related to import-export activity are as follows:

1.   Letter of credit
2.   Document of sales contract
3.   Inspection certificate
4.   Insurance certificate
5.   Commercial invoice
6.   Product testing certificate

Letter of credit is the document issued by the bank that gives guarantees on behalf of the buyer that payment will be done on time when product received by the buyer will meet all the specification upon that the trade is agreed. It is a very important document that facilitates trade between two parties, unknown to each other.

A document of the sales contract shows the agreement upon the contract of sales will all stipulated terms and conditions of the trade. It is a legally binding and a contract in writing. Hence, it is also very important from the perspective of import-export activities.

Product testing certificate shows that the product being sold or shipped is according to the quality specifications, other international quality standards and in the best condition for the sale and or shipment. It is done by the reputed third party labs with high level of accreditations.

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