| <1> Summary |
- The documents to be prepared by a exporter personally which carry out some
essential role as a chart for goods' shipment guidance, price computation, tax related data when conducting customs, which is considered as the requirements for L/C transactions.
- The documents indicated the important lists of transaction goods which act as a
payment request for a exporter and act as detail purchase statement for an importer.
- Commercial invoice is to be issue by a beneficiary of L/B except for the
transferable L/C. |
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<2> Items to indicate |
- Details of the said party--A shipper (Name of exporter), Consigner, notify party. - About dates--Expected shipping date, invoice preparing date, L/C opening date, - About related documents--L/C number.
- About location --shipping location, arrival location, bill of change paying location.
- About products -- Shipping mark, name of items, standards, unit price, quantity,
amount.
- Others--Name of vessel, price term |
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<3> Items to be cautious when preparing |
| 1 To be prepared for an applicant. (The Sub-Article No. 37-a-ii of UCP) |
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| - If L/C separately nominated the recipient of invoice, the instruction
has to be followed. |
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2 Face value should not exceed L/C amount.(The Sub-Article No. 37-b of UCP)
3 Goods details should be correspond to the L/C.(The Sub-Article No. 37-c of UCP)
4 For L/C exporting to the U.S. : MID code is to be indicated on the top of right
side next to the Seller.
5 The other documents required by L/C and the indicated contents of L/C
should have no conflicts to one another.
6 If several sets of documents have been requested : 1 set of original and
duplicates for the rest is acceptable and there is no signatured needed for a set of bills.(The Sub-Article No. 37-a-iii of UCP)
7 L/C number, beneficiary, consignee, name of vessel, destination,
name of a drafter.
8 Exports to Lebanon and Canada : The documents that requires a consular's
confirmation must be signed by the representative in his/her handwriting. |
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<4> Accepting condition for the invoices that exceeds L/C amount |
| 1 Examples of exceed invoice |
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- Although an importer agree to pay preparing fee incidental shipping documents
such as certificate of inspection, factura consular, an exporter prepaid the
amount and wish to add the amount on L/C.
- With FOB terms, an exporter prepays shipping expenses and add this
condition on L/C. |
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| 2 Deciding accepting condition of banks |
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- For payment, deferred payment and accepting L/C : Although an authorized
nominated bank from the exporting location can not accept amount exceed
invoice, an opening bank can not institute a different opinion.
- A bank that accepted exceeded bank should be pay the exceed amount to an
exporter for real, and if did(The Sub-Article No. 37-b of UCP), an opening
bank may refuse reimbursement for the exceeded payment. |
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<5> The must wording needed for commercial invoices |
| 1 For exporting middle east area |
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| - We hereby certify that the goods are neither of Israeli origin nor do they contain any sraeli material. We are not dealing with Israeli. |
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| 2 For exporting Ethiopia area |
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| - We certify that origin of the goods and content are true and correct |
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<6> Preparing method |
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- The name and address of an individual or a corporation that are seeling goods
to a Buyer. On the Commercial invoice for america, it should indicate
Manufacture's I.D. Code.
- MID(Manufacturer's ID) Code |
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- To effectively observe import movement on the foreign goods, the U.S.
government too action to indicate MID Code on a Commercial invoice of the
imported goods effective from February 2nd. 1987.
- If the code is not inserted and not clearly stated: It might delay the customs
clearance or rejection for customs clearance.
- Preparing method for MID Code |
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1. Place to indicate and the method --On the op of the Seller section of a
invoice, write in capital letter without space.
2. Name of country (At least 2 words)--Indicate as ISO revised standard.
3. Name of manufacturer (At least 6 words)--The first 2 words from the
company name (English) and quote the first 3 letters. If a company name is in 1 word, repared in 3 letter. |
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| - DONG YANG TRADING CO. = DONTRA, YOUNG CO. = YOU |
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| 4. Address (At least 4 words)--Of the address that has a street name or PO box number, locate the largest number and quote them using arabian number of the first 4 digits. |
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| - 1145 MIAN STREET SUITE 9999--1145, CHONGRO GU 249--249, If there is no number for address then it doesn't needed. |
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5. Name of city (At least 3 words)--Quoe the first 3 letter of the city name.
6. Other things to be cautious |
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- Indicate the MID Code of a main office. For an agency exporting, the MID code of the agency exporting should be indicated.
- When preparing MID Code, all the punctuation marks should be omitted and no space and all the prefixed one word in English including the definite article, the indefinite article, preposition, a conjunction should be omit.
- The arranged code number should not exceed 15 word/number. |
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b. Consignee-- Indicate name and address of a corporation or an individual who
are to receive export goods. Should be same as the buyer to be indicated in B/L.
c. Departure date-- Indicate year, month and date of the vessel or an
airplane that is loaded with cargo for the departure date. They should be generally same as B/L or Airway bill's shipping date but sine the date of shipping date is unknown at the time of invoice preparation before/after 7 days of shipping date is reasonable.
d. Vessel / flight-- Indicate the name of the vessel/airplane that would be used for
transportation and if using various kinds of transportation means, indicate the main transportation means for usage.
e. From-- The name of an airport or the port that is schedule for depart should be
indicated and it should be same as to L/C or as the place of load as of contract.
f. To-- The name of the final port destination and airport should be indicated and
they should be same to the L/C, and the place of arrival of contract.
g. Invoice No. and date-- The reference no and the date of invoice issuance date
by a Seller(Seller) should be indicated.
h. L/C No. and date-- Indicate L/C number and the issuance date.
i. Buyer(if other than consignee-- The name and the address of the corporation
or a individual who will purchase should be indicated.
j. Other references |
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- All other requiring information that are separately request in the other
reference section from the contract.
- In the process of preparing invoice for the U.S. trade between a Seller
delivering the goods to a Buyer, the country name should be made after the
country of origin is written. |
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k. Terms of delivery and Payment-- Use standardized terms such as INCOTERMS
and specifically describe and using currency should be also specified as US$.
l. Shipping marks-- A shipping mark facilitate contrast investigation of packing
goods and the related documents so it should be marked simply to assist safe and rapid ransportation of the goods.
m. No. & Kind of pkgs-- Indicate the quantity of packing cargo per the kinds of
packing as a drum, bale, box , case and bundle.
n. Goods description-- Specify specification, Quality, Grade of the said goods. They must be completely identical as to a commercial invoice and L/C.
o. Quantity |
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- Indicate quantity of minimum unit that would be basic to compute the
remitting amount.
- Quantity |
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- Number of goods : Piece, Set, Dozen etc.
- Number of package : Case, Bale, Bag etc. |
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- Weight : ton, LB, libra, kg etc.
- Capacity : Cft(Cubic feet, M/T(Measurement Ton) etc.
- Length: Yard, Meter etc
- Dimension: SF(Square Feet, SM(Square Meter) etc. |
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| - For the quantity decision period (shipping quantity term and discharging
quantity term) and More or Less Clause), be specific to use a the clear wording. |
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p. Unit Price-- Indicate price per unit quantity Ex)-@US$3,50/kg
q. Amount-- Multiply quantity per unit price to compute the total amount.
The amount that is on L/C is the amount that an importer must shoulder.
r. Signed by-- The person arranging invoice should sign on Signed by section. |
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L/C(Letter of Credit)
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