»  Documents Used in Foreign Trade

A) Customs Declaration Form

It is a document which is presented to customs office after its approval by the related export union by filling it according to in export customs legislation. After entering into Customs Union, in the frame of harmonizing the legislation and documents, use of “Monotype Customs Declaration Form” is adopted.

   • Customs Declaration Form is made out directly by the proprietor, his/her legal representatives or their proxies.

   * No scraping or erasure can be made on customs declaration forms.

   * For the registration of customs declaration forms, no correction can be made in terms of type, sort, quality and unit price of the declared goods after its submission.

   * The registration of customs declaration forms is completed through entering it in the book kept in the customs in due form and through adding a record sequence number, the date and an official seal on it.

B) The Commercial Invoice

The Commercial Invoice is one of the most basic documents used in international trade and made out by the exporter. An invoice is a document given in exchange for an item produced or for a service presented. It must be paid attention to that the invoices showing the quality, quantity, unit price and total price of an item should be comprehensive, include clear information, and be at a level that even a person with a limited foreign language can understand.

Invoices used in foreign trade: Domestic Invoice-Internal Invoice, Proforma Invoice, Original Invoice-Commercial Invoice-Sales Invoice, Freight Invoice, Consular Invoice, Legalized Invoice

The conditions that a Commercial Invoice must have are explained below:

   • Date of the Invoice,

   • Product/Service Type,

   • Name/Title Addresses of the Seller,

   • Method of Payment,

   • Origins of the Items,

   • Method of Delivery,

   • Unit Price/Quantity/Total Amount of the Goods & Services,

   • Weight, Dimensions, Quantity of the Goods,

   • Method of Shipment,

   • Package Properties, Details Such as Number etc. about the Goods,

   • Signature of the Issuer. It is not obligatory for an invoice to have a signature as per the Article 37 of UCP- 500; however, the documents in question must have an original signature (signed with hand/wet signature) as per our country’s regulations.

   • Freight and insurance amounts,

   • Loading and unloading points are the important parts that must be included in Commercial Invoices.

Special information that is obligatory in the country of the seller and the buyer, total amount of the invoice in hand writing, the bank of the exporter and SWIFT number of this Bank, information such as FAS Invoice (Costs will the goods are placed at the direction of the ship and the sales price are included in the sale price) and FOB Invoice (costs till the goods are loaded on the ship is included to sale price) must be written. Additionally, if any, Order No and Credit No must be written on the Original Invoice.

C) Proforma Invoice::

It is the invoice made out by the exporter to serve as basis for a letter of credit to be opened as a result of the offer given to the importer or as a result of the agreement between the exporter and the importer. If the importer accepts the proposal of the exporter and has to place an order, the Proforma Invoice should transform into a Commercial Invoice. At this stage, it is necessary for the importer to assert that s/he accepts conditions of Proforma Invoice conditions (Option of delivery date/quantity/price option on the Proforma) within the period indicated on the Proforma Invoice. In this case, Proforma Invoice details must exactly be transferred to the Commercial Invoice.

Commercial Invoices: It is a document indicating the sale of a good or service prepared by the seller based on the proforma invoice, offer, contract or agreement. A Commercial Invoice is the final invoice which is received basing mainly on customs transactions, exchange transfer and commitments. In the event that the sales conditions on the proforma invoice are found suitable by the buyer, the proforma invoice is transformed into a final invoice according to the offer requested by the buyer. After the sales transaction is executed, the invoice which is made out is also called original invoice.

D) Freight Invoice:

It is the necessary invoice made out to write 'freight prepaid' on the bill of lading and which must be attached to the bill of lading, on conditions that the exporter undertakes freight payment (CFR-CIF deliveries). As this invoice demanded by the importer’s bank, it is an obligatory document to be made out for these delivery types. Moreover, it must be sent attached to the bill of lading just like an export invoice.

If the letter of credit includes cost and freight, the record of “freight prepaid” must take place on the bill of lading and the other shipment document.

For the goods which may be subject to change during shipment, the invoice made out during the time period which will pass till the invoice that will be made out according to its final situation at the delivery is called “provisional invoice” or “interim invoice”.

E) Certified Invoice/Consular Invoice

They are the invoices that an exporter makes out after taking it from the consulate of the importer country and through which s/he executes its actual export after having it approved by the importer country’s consulate. The approval in question is required especially for the origin country of the goods and commercial invoice originals. The countries requiring invoice approval: Algeria, Morocco, Egypt, Syria, Jordon, Lebanon, and Tunisia.

F) Movement Certificates:

a) A.TR MOVEMENT CERTIFICATES

Benefiting from the mutual customs duty concessions occurs on the basis of “Free Movement of Goods” principle at the Customs Union founded between the both parties according to Partnership Agreement between Turkey and EC and the additional protocol related with this.

FOR WHICH GOODS A.TR MOVEMENT CERTIFICATE IS MADE OUT?

- It is required to make out an ATR Movement Certificate in order for the item at free movement in Turkey or in the Community to benefit from the preferential regime set forth in the Additional Protocol.

- Which goods will be in free movement mode in Turkey and the EC is 1mentioned below;

1. Goods originating from Turkey and the Community,

2. The goods from a third origin but whose import transactions are completed in either Turkey or the Community, whose necessary customs duty, equivalent effect taxes and pictures are taken, and whose these taxes and pictures has benefited from a complete or partial return are regarded in free movement.

3. During the export of the compensating products to EC, for the third party products used in the production of these products, in the event that the taxes projected at Common Customs Tariff are paid to the related exit customs and that A.TR Movement Certificate is made out by the exporter country, the processed products in question can benefit from the preferential system according to Additional Protocol. In the second article of the Additional Protocol, which products will be subject to free movement is stated

4. During the export of the products originating from Turkey and the Community to Turkey and Community countries, that the tax projected in the Common Customs Tariff for the products from a third party which are not subject to free movement in Turkey and the Community used in the production of these goods is collected by the exporting county under the name of “Compensatory Tax” has been adjudicated.

- FOR WHICH COUNTRIES A.TR MOVEMENT CERTIFICATE IS MADE OUT?

1- Germany	13- Autria
2- France	14- Finland
3- Italy	15- Sweden
4- Belgium	16- Poland
5- Luxemburg	17- Czech Republic
6- Holland	18- Hungary
7- Denmark	19- Estonia
8- Ireland	20- Slovenia
9- England	21- Latvia
10- Greece	22- Slovakia
11- Portugal	23- Lithuania
12- Spain	24- Malta
	25- South Cyprus (This county is not recognized by us, no export is made to this country)

b) EUR.1 MOVEMENT CERTIFICATE

It is the certificate of origin endorsed by customs administrative institutions and which is made out appropriately by the exporting country’s customs administrative institutions or the organizations authorized by these institutions in order to help the products from Turkey and European Coil and Steel Community (ECSC) countries benefit from the agreement conditions. It is the certificate for the products that originated in state parties benefit from the concessions in the scope of free trade agreements. It is used for trade with EFTA countries and the countries with which we have signed Free Trade Agreements.

A. Countries where it is issued

   - Bulgaria EFTA Countries:

   - Bosnian-Herzegovina-Switzerland (including Liechtenstein)

   - Israeli – Iceland

   - Macedonia – Norway

   - Romania

Works to actualize Free Trade Agreements with the countries taking part in the lists below continue:

Agreements at Negotiation Stage:

   - Morocco

   - Philistine

   - Egypt

   - Tunisia

Agreements at Preparation Stage

   - Jordon


c) FORM A (SPECIAL COUNTRY OF ORIGIN CERTIFICATE)

In the frame of Generalized Preferences System (GPS), the countries included in the list below must make out a FORM A (Special Country of Origin Certificate) in order to benefit from the Concessional Customs Tax Rates which are applied to Turkey unilaterally.

A. Countries where it is issued

   - Belarus

   - Japan

   - Canada

   - - Russian Federation

   - Ukraine

   - New Zealand

Although Australia applies GPS, it required to make out a Form A for getting benefited from the system.




d) The Certificate of Origin

The Certificate of Origin is a document which shows the origin, production place of the product to be exported. It is issued by the exporter in the direction of what the importing country has determined. After being prepared by the exporter, the certificate of origin is approved by the chamber of commerce to which the exported is registered. It is also approved by the consulate or embassy of the exporter country. If the importing country does not have a representative in the exporting country, it must be sent to importing country’s approving authority. Hungary, Albania, Poland, Syria, Far East Countries ask for certificate of origin. A special certificate of origin (Form A) must be issued for the exports to the countries which provide preference in order to get benefited from the concessional customs tax rates provided by the Generalized Preferences System. In the scope of this system, our country gets benefited from the preferences of the USA, Australia, Canada, Japan, New Zealand, Russia Federation. No Form A condition is asked for the export to the USA; it will be enough for the exporter and the importer in the USA to demand free-from-duty application from the customs by writing “A” letter before descriptive Harmonized System, Customs Tariff Position Number on the top of the delivery document of the product. Although Australia applies GPS, it required to make out a Form A for getting benefited from the system. After 1 January 2002, Turkey has come to a position in which it gives "GPS" in the scope of Customs Union.


e) The Packing List

Parcel List is a complementary document for the invoice. Parcel list must be comprehensive enough as it is in the invoice.

Parcel List;

   * The packages of the exported products include what is there in each box, bale and sack and also the details about dimensions, weight for every package to be loaded.

   * It provides important information at the stage where the type of loading will be determined in terms of the carrier.

    It is a critical document asked for by the insurance companies in case of damage.

   • As parcel list provides possibility to know the number of the goods, their delivery and to know what is there inside it, it is very helpful at the customs control. At the stage of inspection by the Customs staff, it is a necessary document for the customer to know the content of the load.

If the loading subject to export includes only one product in a standard package, it is enough to give packaging details only. But the general rule is that giving financial information and the packaging information separately, that financial information is given on the invoice but the parcel list is given as a separate document will be beneficial.


f) LOAD POINT [INSTRUCTION]

Load instruction or note is the document which starts loading transactions for the transporter and the forwarder companies after determining carriage type of your goods ready for the export.

Even though it is not an official document, it includes important information on many topics for the exporter and the transporter.

When it is looked at it generally, it includes every detail except for the price of the product.

It is the information about the exporter/ importer, destination of the product, declaration of the goods in Turkish or the desired foreign language, package type, their weights etc. that is, it is an informative form as a mixture of your invoice with your packing list.


g) The Insurance Certificate

It is needed in the export made according to CIF or CIP delivery type. It is issued by the exporter in the name of the importer and in the direction of the instruction and information given by the importer. It covers the carriage risks in the period in which the product is sent by seller to the buyer. Insurance documents/certificates prove whether the product is insured in the scope of the desired risks. The most common insurance certificate is the Insurance Policy. This document is a contract signed between the insured and the insurer, and determines the rights and responsibilities of the parties. It is issued in the name of the person or his/her bearer who will benefit from the insurance coverage. The rights covered by the insurance may be transferred to third parties by way of endorsement.

As per the “f” Clause of the Article 34 of UCP-500, minimum insurance value that the insurance certificate must cover is the CIP value (cost+insurance+freight till the destination port stated) or CIP value (carriage and insurance paid to till the destination stated) plus %10.


h) The Carrier’s Declaration/ Consignment note

The Carrier’s Declaration and Consignment note is the contact signed between the exporter and the carrier who will transport the goods from one point to another. The Carrier’s declaration which generally has standard formats is prepared by asking the necessary information to the exporter by the carrier and the freight forwarder. Information about the importer’s demand for the type of transportation, value, weight, volume of the goods and the other detail necessary for the documents, and who will make the payment in case of a breakdown is asked for.

The carrier’s declaration may vary according to transportation type and from one carrier to another. A carriage contract between the carrier and the shipper of the goods subject to transport is a receipt showing that the goods are received by the carrier, and is very valuable document under some conditions. While all the carrier’s declarations have the feature of a receipt, some of these documents may not have the feature of a contract or valuable document.

Consignment note according to delivery types:

Additionally, they are grouped in the classes like 1) Marine bill of lading 2) Special bill of lading and 3) Other carriage documents.

Types of Certified Bill Of Lading: Through bill of lading, combined transport bill of lading, container bill of lading, direct bill of lading, short term bill of lading, tanker bill of lading, non-negotiable bill of lading, freight contract bill of lading, master’s receipt.

Other Transport Documents are; airway bill, rail consignment note, way bill (CMR document), forwarder’s receipts, FIATA receipt documents and postal receipts.

CMR Road Waybill (CMR International Consignment Note / CMR Road Waybill)

It is a road waybill used by the countries who agrees on the clauses of the international standard CMR (Convention Marchandises Routiers) agreement and it indicates that the transport is conducted in accordance with the clauses of CMR. It is drawn up on the name of the recipient by the freightage agent or transportation company. It is a legal evidence showing that the goods are received in good condition in order to transport under specific conditions and a carriage contract is made. Since the ownership of the goods are not transferred, it can not be negotiated. It is drawn up as three original copies.

The first one is handed to the shipper, second accompanies the goods and the third is given to the carrier. The shipper has the right to demand from the carrier to stop the carriage, to change the place of delivery or to deliver the goods someone else while the cargo is on its way. This right becomes void after the second original road waybill is given to the recipient whose name is written on the documents. When the aforesaid wants to exercise his right, the shipper must present the first original of the document to the carrier.

In this case, the new instructions are recorded on the document. The shipper must also guarantee the carrier.

Following information is found on a CMR: