Importance of Documents in Exports

4259 Words Mar 3rd, 2013 18 Pages
INTERNATIONAL TRADE PROCEDURE AND DOCUMENTATION
ASSIGNMENT NO. – 1
SUBMITTED BY – TARUNJEET SINGH ROLL NO. - 063058

Importance of Export Documents in International Business
Export documentation plays a vital role in international marketing as it facilitates the smooth flow of goods and payments thereof across national frontiers. It is widely considered as the heart and soul of international business as no form of international business can be done without the presence of proper documentation. A number of documents accompany every shipment. These documents must be properly and correctly filled. Export documentation is, however, complex as the number of documents to be filled in is large, so also is the number
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In actual practice, the exporter to the importer through the banking channel sends a set of documents giving proof of shipment and cargo insurance coverage along with a bill for payment.
Legal Aspect - Besides commercial necessity, documents for exports have a legal perspective. All over the world, laws regulating export-import trade as well as movement of foreign exchange have been enacted. In some countries, the regulations are few, which are enforced through simple procedural and documentation formalities. In other countries, the regulations are many and the enforcement procedures are complex. There is perhaps no country in the world where movement of goods and money is absolutely free. The minimum regulations that one can think of are the one to record the movement of goods from and into a country. For this purpose, the exporter has to declare on a document the details of goods being exported by him. Other than these basic minimum requirements, the governments all over the world regulate movement of goods to protect political, economic, cultural and other interests and for implementing trade agreements with other countries. Some countries do not have political relations with the others. As a result, goods originating from such a country are not allowed to be imported. Documents are needed for protecting the economic and social interests of the trading countries. For example, under the Indian Foreign Trade Policy, the government has
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