Describe each of the following documents and state one use of each:
(a) consular invoice
(b) bill of lading
(c) certificate of origin
(d) bill of sight
Explanation
Description of documents and their uses:
(a) Consular invoice: This is an invoice issued in the embassy of the importing country showing the original price of the goods in the country of origin. This is to avoid under-involving for correct import duties to be paid.
Uses:
(i) It is used by the Customs Authority to ascertain duty payable on goods.
(ii) It prevents falsification of prices of goods.
(b) Bill of lading: This document contains the details of the goods been sent. It is the document of title to goods which are sent across two countries. It is an evidence of shipment and a document of title to claim goods.
Uses:
(i) It is used as evidence of shipment contract.
(ii) It is used as proof of ownership.
(iii) It shows details of all parties to the goods.
(iv) It shows details of the goods.
(c) Certificate of origin: This is an international trade document which states the place where the goods are produced for preferential treatment purposes.
Uses:
(i) This is used by Customs to separate dutiable goods or special duty items from each other.
(ii) It prevents possible importation of goods from enemy country.
(d) Bill of sight: This is a document used in the import trade where importers are required to complete the appropriate “entry” document if there is insufficient information about the cargo to determine the correct duty in advance.
Uses:
(I) It is used to determine the duty on the cargo.
(ii) It is very important when there is insufficient information about the cargo.