Explain the following documents used in International Trade:
(i) Mate’s Receipt
(ii) Letter of credit
(iii) Certificate of origin
Explain the following documents used in International Trade:
(i) Mate’s Receipt
(ii) Letter of credit
(iii) Certificate of origin
(i) Mate’s Receipt: A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board; it contains the information about the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at the time of receipt on board the ship, etc. The port superintendent, on receipt of port dues, hands over the mate’s receipt to the C&F agent.
(ii) Letter of credit: A letter of credit is a guarantee issued by the importer’s bank that it will honour payment up to a certain amount of export bills to the bank of the exporter. To minimise such risks, most exporters demand a letter of credit from the importer.
(iii) Certificate of origin: The certificate of origin acts as proof that the goods have been manufactured in the country from where the export is taking place. This certificate can be obtained from the trade consulate located in the exporter’s country. For availing trade concessions and other benefits, the importer may ask the exporter to send a certificate of origin.
(i) Mate’s Receipt: A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board; it contains the information about the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo at the time of receipt on board the ship, etc. The port superintendent, on receipt of port dues, hands over the mate’s receipt to the C&F agent.
(ii) Letter of credit: A letter of credit is a guarantee issued by the importer’s bank that it will honour payment up to a certain amount of export bills to the bank of the exporter. To minimise such risks, most exporters demand a letter of credit from the importer.
(iii) Certificate of origin: The certificate of origin acts as proof that the goods have been manufactured in the country from where the export is taking place. This certificate can be obtained from the trade consulate located in the exporter’s country. For availing trade concessions and other benefits, the importer may ask the exporter to send a certificate of origin.
