CASH AGAINST DOCUMENTS (Against Documents) Sometimes the exporting companies are showing during their export shipments consignee’s bank as the consignee and are shipping their goods on behalf of he bank. For such shipments the original ATR, invoice and all other documents required by the consignee are issued and sent through the bank, they do not accompany the goods. Such shipments are so-called cash against documents shipments. When the goods are shipped abroad, they will definitively not be delivered without obtaining a letter from the bank, showing that the payment is guaranteed.
CUSTOMS EXIT DECLARATIONThis is the documents including any information regarding the products, to be transported to any country, and which is certified by the relevant customs of exit.
POSITION FILE This is the file bearing the position number and which includes the goods’ invoice, Bill of Lading, Delivery Voucher, ATR/ Certificate of Origin etc. documents containing the details regarding the consignor, consignee and goods.
BILL OF LADING (CMR) INSTRUCTION Contains information like the name and address of the exporting company, the name and address of the importing company, place where the goods have to be delivered, place of loading, date of loading, goods’ description, packing kind and quantity, gross weight, terms of delivery and vehicles’ plate numbers.The terms of delivery are arranged in accordance with the agreement concluded between the consignor and consignee. It is prepared by the exporting company, the customs broker of the exporting company or by the manufacturing companies and furnished to the transporter.
BILL OF LADING The Bill of Lading is the document showing that the goods have to hand over to the transporter in order to be transported. By means of this document the obligations and responsibilities born by the transport services regarding the goods are passing over to the transporter. Thus, the Bill of Lading contains the conditions of transport, taking deliver and terms of delivery. This contract in qualification of a legal document is presented to the seller after being certified by the buyer.
FREIGHT PREPAID A term showing that the freight payment has to be made by the exporting company.
FREIGHTInternational transport charge.
MOVEMENT CERTIFICATES (Movement Certificates)
ATR-Movement Certificate (Movement Certificate, ATR) As a requirement of the cooperation pact/agreement between Turkey and EC, the products having the free movement right in Turkey have also the free movement right in the EC. In case such industrial products are imported from Turkey to EC countries, they are not subject to any tax payment, but VAT (excluding the anti-damping tax came into question recently.) Further, agricultural and processed agricultural products in free movement in Turkey are benefiting from various compensations when entering in the EC countries. Documents ensuring industrial products, which are in free movement in Turkey, a free movement in the EC countries or ensuring that products of Turkish origin benefit from certain compensations, when imported to the EC countries, are called ATR certificate. ATR certificates are issued by the companies, certified by the Chamber of Commerce and are subjected to a visa process by the export Customs administrations. Companies possessing the “authorized exporter statues” under the extent of the simplified process are entitled to visa their own ATR certificates by themselves. When industrial products, which are in free movement in the EC countries, or products, which are benefiting from various compensations, are imported to Turkey, such goods will be not subjected to any tax collection at the Turkish customs, but VAT, or necessary compensations will be granted, if such products are imported under an ATR certificate obtained from any of the EC countries.
EUR-1 Movement Certificate (Movement Certificate, EUR-1) The function of EUR-1 Movement certificates is the same as the function of the ATR certificates. EUR-1 certificates are used for following commercial transactions:
- Trades made between EFTA countries and Turkey,
- Trade of products regarding the Free Trade Agreement covering the AKCT (European Coal Steel Community) products between Turkey and the EC countries,
- Trades made with countries having concluded a Free Trade Agreement
INF-2 Certificate (INF-2 Certificate)In cases where the inputs having free movement within Turkey are first shipped to a third country and are subjected there to a workmanship, this document ensures that the Turkish input, which is in free movement and is included in the final export product, is exempted from the Customs tax, when the processed products are exported to the AT countries. These documents are prepared and subjected to a visa by the customs authorities of Turkey. When the importation of a processed product to Turkey is desired, after exportation of a product with free movement in the EC Customs Area to a third country in order to be subjected to an abroad processing, and these products are in movement accompanied by INF-2 documents issued and certified by EC countries, no customs taxes are levied for the products of EC origine included within the structure of the processed products; this means only the the Customs Tax for the VAT born in the third country will be collected.
CERTIFICATE OF ORIGIN (Certificate of Origin) Under the extent of the principles set forth by GATT, the member countries of the World Trade Organization have in general similar origin rules. The countries want to know the country of origin of the imported products when they are making importation from each other, because the goods need to be subjected to procedures in accordance with their countries of origin during the import transactions. Documents mentioning the origin of goods subjects of international trade are called Certificate of Origin. For goods being exported from Turkey these documents are issued by the companies and certified by the Chambers of Commerce. Some countries may request that the Certificates of Origin are certified by their own local consulates. If goods to be imported to Turkey should be loaded from a port or free zone of any third country, the certification of the Certificate of Origin by the local Turkish Consulate is mandatory. Data to be included in the Certificate of Origin:
- Consignor – Consignee – Goods’ Description, properties – Packing type – Box number – Box remark and numbers
- Net and gross weight of the goods – Unit price of the goods – Value of the goods (FOB, CF, CFR, etc.) –Name/plate and date of departure of the vehicle on which the goods are loaded
- Port of loading or place of loading – if the goods are considered as being of Turkish origin due to the amendments they are subjected in Turkey, the relevant explanation.
TYPES OF CERTIFICATES OF ORIGIN
Special Certificate of Origin (FORM-a ) This is a certificate of origin type, which is necessary in order ensure that some countries (particularly industrialized countries) may grant some preferences during the import of industrial goods from countries in development, in order to contribute to the industrialization of such countries under the extent of the GATT principles. Countries granting preference to countries in development in this meaning are: USA, Japan, New Zealand, Norway, Switzerland, Canada, Australia, Russia, Poland, Czech and Slovak Republics. Special Certificates of Origin required for products exported from Turkey are issued by the companies and certified by the Chambers of Commerce and the province authorities bound to the Undersecretaryship of Foreign Trade.
ABC Form This is a type of Certificates of Origin certified only by the Chambers of Commerce and used for the export of any products from various countries.
GATT Certificate of Origin Origin Is a Certificate of Origin type issued under the extent of the Protocol about the Negotiations of Trade between Countries in development.
CONTROL CERTIFICATE – 1 (Inspection Certificate-1) This is a documents used for the export of agricultural products determined in accordance with the Technical Regulations and Standardization Regime Decisions and Regulations in Foreign Trade under said legislation. In case of export of such products, it is necessary to document that these are in conformity with the standards set forth by the TSE (Turkish Standards Institution). This documentation transaction is made by the Inspectorates of Standardization in Foreign Trade of the Standardization General Directorate of the Undersecretaryship of Foreign Trade.
CONTROL CERTIFICATE - 2 (Inspection Certificate-2) This is a control/inspections certificate applied for the import of some agricultural products determined in the legislations about Technical Regulations and Standardization in Foreign Trade. Companies desiring to import products under this extent are obliged to apply to the Inspectorates of Standardization in Foreign Trade with a sample of the product to be imported and obtain a Control Certificate prior to the actual import of said goods. And this control certificate serves to determine whether the products to be imported are complying or not with the standards set forth by the TSE. The import of goods not complying with the standards set forth by the TSE will not be permitted.
QUALITY CERTIFICATE With the validation of the Legislation regarding the Technical Regulations and Standardization in Foreign Trade it was started to perform inspection on many industrial products during their import to Turkey in respect of their conformity. Companies desiring to import goods subject to a conformity inspection are obliged to document the conformity of the goods with the standards set forth by the TSE. These certificates of conformity are granted after samples are taken prior to the actual importation of the goods and tested/analyzed by the TSE. The testing and documentation application is purposing to evidence that the goods to be imported are free from agents harmful in respect of human, plant and animal health, that they are not harmful for the environment and that no affects regarding safety and public security are present. Further it is believed that this certificate is necessary for the protection of the consumer. The importation of goods not complying with the standards is not permitted. During the import of many industrial products the certificate of conformity is required. These are published in form of a list as Annex to the Notification about Technical Regulations and Standardization in Foreign Trade and are mentioned as goods, which importation is subject to mandatory standards. Under these products, the import of few textile and ready-made garments are subject to mandatory standards. Cotton yarns, cottony corded velvet, women hosieries, electrical blankets are some of the most important items. Further the import of many dyes and chemical materials used as input in the textile industry are subject to the standard. TS-ISO-9000, AQAP, GMP (Good Manufacturing Practises) belgesi veya İmalat Yeterlilik Belgesi sahibi firmaların yapacağı ithalatlarda uygunluk belgesi aranmamaktadır. Ayrıca dahilde işleme izin belgeleri kapsamında Türkiye'ye geçici olarak ithal edilen ve işlendikten sonra tekrar ihraç edilecek olan mallar için uygunluk belgesi gerekmemektedir.Herhangi bir ürünü ithal etmeyi düşünen firmaların, ithalat konusu olacak ürünün zorunlu standart denetimine tabi olup olmadığını tespit etmeleri, eğer, zorunlu standarda tabi ise TSE'nin ithalat konusu malla ilgili olan standardını inceleyerek, ithalat esnasında bir sorunla karşılaşıp karşılaşmayacakların önceden bilmeleri kendileri açısından yararlı olacaktır.
HEALTH CERTIFICATE (Phytosanitary Certificate) This is a certificate used for the export of plants and plant products, and a certificate with international validity used both in order to perform the exit transactions of the goods from the Turkish customs and the entrance transactions at the customs of the importing countries. This certificate is used in order to evidence that the products to be exported are free from any diseases and pests and suitable for consumption. Phytosanitary Certificates are issued by the Agricultural Quarantine Organization or the Province Directorates of the Ministry of Agriculture and Rural Affairs based on the samples presented to them.
- Veterinary Certificate
- Halal Certificate (Helal Certificate)
- Radiation Certificate
- Boycott/Black List Certificate
CONSULATE INVOICE (Consular Invoice) These are the invoices in which goods’ origin, unit price and value are certified by the consulate of the country of arrival. Invoices subject to certification are available from the consulates of the importing country. The reason for such an application in order to prevent tax evasions of the importing country by means of showing a less good’s value on the invoices.
CERTIFIED INVOICE (Legalized/Certified Invoice) The certified invoice is obtained in result of ensuring the legislation/certification of the commercial invoice by the consulate of the importing company, which issued by the exporting company to the foreign consignee. The principal aim of such an application is to remove the concerns of the importing company regarding tax collection.
TRANSPORT DOCUMENTS In the international trade goods are transported from one country to another. During these shipments it is necessary to determine the responsibilities and obligations of the shipper and carrier. This determination is made by means of the transport documents. Therefore transport documents have to include following properties.
- They have to be issued and signed by the transporting company or its agency.
- The date of shipment of the goods has to be determined. This date is important in respect of presentation of the collection documents to the bank, the beginning date of the policy term and the determination whether the risk of damage or loss of the goods has to be born by the seller or buyer.
- The transport documents have to be neatly, this means they should not include expressions showing that the package of the goods being loaded on the vehicle are damages, that the goods are leaking and fluxing etc. Transport documents including such expressions are deemed as "unclean".
- Transport documents should not be dated, this means
- they shall receive the consignee timely
- The shall be presented in due time to the bank
- Transport documents should bear a notification record, this mean
- the consignee or the party acting on behalf him should be mentioned in the "notify" field.
- Marine Bill of Ladings shall not include the expression showing that the goods are loaded on board.
- Some transport documents are issued in more than one original set. In this case it has to be mentioned how manyth the present copy is. (such as 1/3, 2/3, 3/3) -It should be mentioned on the documents whether the freight is prepaid or not.
TYPES OF TRANSPORT DOCUMENTS 1 Marine Bill of Lading (Marine Bill of Lading, Ocean Bill of Lading, Bill of Lading) is separated into 3 in respect of circulation.
- straight B/L
- order B/L
- bearer B/L, is separated into 2 in respect of being mentioned whether loaded on the vessel or not,
- Received for shipment B/L
- On board B/L Specific Bill of Ladings
- Through B/L
- The transportation in manner of Road + Sea, Sea + Road, Road + Sea + Road are collected in one single Bill of Lading
- Combined Transport B/L
- Container B/L
- Liner B/L
- Short from, Blank back B/L
- Tanker B/L
- Non-Negotiable B/L
- Charter Party B/L
- Mate's receipt
2 - Air-Waybill-Aws
3 - Rail Consignment Note
4 - Road-Waybill/CMR Consignment Note
INSURANCE DOCUMENTS Insurance Policy This is a document protecting the beneficiary against risks which may occur during the shipment, when the goods are consigned from place to another There are to main parties to an insurance policy; the underwriter (insurance company) and the insured (the party ensuring the insurance or possessing the insurance policy by way of endorsement). In order to deem an insurance policy as secure it has to include following points.
- the insurance company/agency (underwriter),
- party ensuring the insurance,
- beneficiary of the insurance,
- subject of insurance,
- transport company,
- carrying vehicle,
- duration of transport,
- Place of delivery of the goods to the transporter and place where the goods have to be delivered to the consignee
- Covered risks and date of commencement and expiration of the risk,
- Insured object, value of the goods to be transported,
- Amount, place and date of payment of the insurance premium
- Date of issue of the insurance policy, insurance policy types
1) Valued Policy: the type of policy, where the value of the insured good is mentioned on the policy.
2) Unvalued Policy/Open Policy
3) Voyage Policy
4) Floating Policy
FINANCING DOCUMENTS Policy An unrecorded payment order/instruction issued by the seller and given to the consignee containing consignee’s or bank’s acceptance, sometimes the endorsement of consignee’s bank. A payment order/instruction may both include the payment of a certain amount on a certain day or its payment at sight. There three parties to the policies.
1- Drawer: Party issuing the policy (seller)
2- Drawee: Party on whom the policy is send (purchaser)
3- Beneficiary: The person to whom the amount mentioned on the policy shall be paid. Policies have to comply with following form-conditions.
1- Contain the word “policy” in the language of issue
2- Unconditionally pay-order (pay, etc.)
3- Beneficiary (the private person or corporate body to whom the payment shall be made) has to be mentioned,
4- Place and date of issue,
5- Foreign currency and amount, 6- Name, surname, title/corporate title and signature of the drawer 7- Name, surname and title/corporate title of the drawee 8- Maturity date 9- Records to be mentioned in accordance with the L/C provisions, policy’s copies: All copies have to be identical and provided that every copy is bearing an expression how manyth copy is the present one, multi-copy policies may be issued. Advantages provided by a policy:
1- Authentication of the receivable/claim,
2- A credit means,
3- Discount,
4- Assignation/transfer of property,
5- Pledge.
Some policy relevant terms:
- Full endorsement
- Blank endorsement
- Assignment endorsement
- Collection endorsement
- Pledge endorsement
- Policy acceptance (customer’s acceptance-bank acceptance)
- Policy endorsement
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