Abstract
Documentation plays a very important role in international trade. Information technology has changed practises in international trade as well. In this chapter, international rules of electronic presentation of documents under documentary credit are defined to guide importers and exporters. This will enable them to speed up transactions to conduct their business as per these rules. Paperback presentation and electronic presentation international rules differences are explained. Electronic presentation will help import export management to facilitate transactions which will increase international trade volume. It is recommended that electronic presentation will help them to speed up their transactions. In the long run, electronic presentation will be cheaper compared to paper presentation and much safer.
TopDocuments Role In Internationel Trade
Documents play a very important role in international trade. International trade is trade between different countries, cross borders, which means importer and exporter most probably have never met, do not know each other, do not trust each other, do not know other country and their rules, traditions etc. Documentation is vital in customs clearance as well, clearance of goods require specific documentation, as all countries want to protect their borders, want to control not only people leaving and entering country, governments follow goods import and export as well. All is done via documentation in customs clearance. Not only for customs for international trade payments, the most important document is the unique, original bill of lading/transport document because original bill of lading/transport document is a negotiable document, representing ownership/title of the goods.
Key Terms in this Chapter
ICC: (International Chamber of Commerce): A non-governmental organisation, located in Paris, sets international trade rules, worldwide voluntarily accepted.
Documentary Credit: (Letter of Credit) Payment Method: International Trade payment method, where importer’s bank sends exporter a conditional payment order, when exporter complies with documentary credit and presents documentary credit complaince documents, bank pays exporter independent from importer.
Bill of lading: An original, unique, signed, paper negotiable document, showing title/ownership of goods
Paper-Based Presentation: Presentation of documents, which are original, paper, signed, usually negotiable issued to the order to the bank nominated by issuing bank.
Electronic Bills of Lading (eB/Ls, Bolero): With Bolero-SWIFT integration, expected to be used more in international trade, but due to lack of system investments, not used as expected.
Electronic Presentation: Electronic presentation of electronic / digital documents via system or e-mail given in documentary credit.
Documents: Documents used in international trade for customs clearance, required by importer. There are approximately more than 3000 documents in international trade.
Commercial Documentary Credit: Documentary credit used usually for goods import and export.
Standby Documentary Credit: Documentary credit used for letter of guarantee purposes, like standby documentary credit for performance, for advance payment, for bid etc.