WAEC Commerce 2012 Theory question 108

Theory question 108

Foreign Trade Documents

Commerce 2 (essay)
Explain the following documents used in international trade:
(a) Indent;
(b) Bill of lading;
(c) Consular invoice;
(d) Certificate of origin;
(e) Bill of exchange.

Show the model answer
Model answer

(a) Indent – an order sent by an importer to a foreign supplier or indent agent; it may be open (agent chooses supplier) or closed (supplier named).
(b) Bill of lading – issued by the shipowner; a receipt for goods shipped, evidence of the contract of carriage and a document of title.
(c) Consular invoice – invoice certified by the importing country's consul in the exporting country, confirming the value of goods for customs duty.
(d) Certificate of origin – document stating the country where the goods were produced, used to fix duty/preferential tariffs.
(e) Bill of exchange – an unconditional written order by one person (drawer) to another (drawee) to pay a sum to a named person at a fixed or future date; used to settle foreign trade debts.

Explanation

Say who issues each document and what it is for.