Identify the documents highlighted in the following statements:
(i) The commanding officer of the ship issues this document to the exporter after cargo is loaded on the ship.
(ii) This document is prepared by the shipping company to acknowledge the receipt of goods on a ship and gives the undertaking to carry them to the port of destination.
(iii) This document is the most appropriate and secure method of payment to settle international transactions.
Identify the documents highlighted in the following statements:
(i) The commanding officer of the ship issues this document to the exporter after cargo is loaded on the ship.
(ii) This document is prepared by the shipping company to acknowledge the receipt of goods on a ship and gives the undertaking to carry them to the port of destination.
(iii) This document is the most appropriate and secure method of payment to settle international transactions.
i) The commanding officer of the ship issues this document to the exporter after cargo is loaded on the ship- the Mate’s Receipt. A mate's receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board, and 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.
(ii) This document is prepared by the shipping company to acknowledge the receipt of goods on a ship and gives the undertaking to carry them to the port of destination- a Bill of lading. After receipt of the freight, the shipping company issues a bill of lading which serves as evidence that the shipping company has accepted the goods for carrying to the designated destination.
(iii) This document is the most appropriate and secure method of payment to settle international transactions: a Bill of exchange. On receiving the bill of exchange, the importer releases the payment in case of sight draft or accepts the usance draft for making payment on maturity of the bill of exchange. The exporter’s bank receives the payment through the importer’s bank and is credited to the exporter’s account. The exporter can get immediate payment from his/ her bank on the submission of documents by signing a letter of indemnity.
i) The commanding officer of the ship issues this document to the exporter after cargo is loaded on the ship- the Mate’s Receipt. A mate's receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board, and 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.
(ii) This document is prepared by the shipping company to acknowledge the receipt of goods on a ship and gives the undertaking to carry them to the port of destination- a Bill of lading. After receipt of the freight, the shipping company issues a bill of lading which serves as evidence that the shipping company has accepted the goods for carrying to the designated destination.
(iii) This document is the most appropriate and secure method of payment to settle international transactions: a Bill of exchange. On receiving the bill of exchange, the importer releases the payment in case of sight draft or accepts the usance draft for making payment on maturity of the bill of exchange. The exporter’s bank receives the payment through the importer’s bank and is credited to the exporter’s account. The exporter can get immediate payment from his/ her bank on the submission of documents by signing a letter of indemnity.
