Documentation

• EHS
• Secondary Education

Chapter 2 

Documentation used in Transportation and Import/export of Goods

Learning objectives

1. To learn about types of documentation used for import and export of goods.

2. To learn the meaning of Letter of Credit and its types

3. To learn about the documents required for a Letter of credit.

Write Examples of Overhead costs

Overhead costs is 200,000 , Sales is 500,000 . Find the percentage of Overhead costs

Overhead costs are ?

1. Direct costs
2. Indirect costs
3. Both
4. None

What is Import and Export ?

wordwall.net

Section 2.1 Letter of Credit

It is an agreement between two parties, a buyer and a seller.

It is issued by a bank.

It is a document that promises that promises the buyer's payment to the seller.

Letter of Credit

If a buyer is unable to pay the amount to the sell, the bank pays the amount on behalf of buyer.

Letter of Credit normally costs 1% of the amount covered in the contract.

What is Letter of credit ?

1. Document
2. Share
3. Device
4. None

Who issues Letter of credit ?

1. Buyer
2. Seller
3. Bank
4. All

Letter of Credit is an agreement between ?

1. Buyer and Bank
2. Seller and Bank
3. Buyer and Seller
4. None

Documents required for LC

1. Shipping bill

2. Airway bill

3. Business invoice

4. Insurance certificate

5. Packing list

Which are the documents required for Letter of Credit ?

Example

Let us see an Example on CB page 8

www.mauthor.com

Section 2.2 

Different types of Letter of Credit 

What is Letter of Credit

What documents are needed while getting letter of credit ?

1. Shipping bill
2. Airway bill
3. Insurance
4. All of the above

Types of Letter of Credit

1. Commercial Letter of Credit

2. Standby letter of credit

3. Revocable letter of Credit

4. Irrevocable letter of Credit

5. Revolving Letter of Credit

6. Red Clause letter of credit

Write any two types of Letter of Credit

Types of Letter of Credit

Let us now see the explanation on page 11 and 12 of Course book

Commercial LOC are also known as

1. Standing LOC
2. Import/Export LOC
3. Revolving LOC
4. All

Which letters of credit are not seen very often

1. Revolving
2. Revocable
3. Standing
4. Import

Which letter of credit contains unsecured loan by the buyer ?

1. Revolving
2. Revocable
3. Red Clause
4. None

Activity

Create a Leaflet or PPT to explain all the types of Letter of Credit in detail

Section 2.3

The Main parts of an Invoice

What is an INVOICE ?

It is a document or paperwork issued by Seller to Buyer. It is also known as Bill. It is given at the time of Purchase and it mentions the price , tax , quantity of the product

What details are written in a Bill when you buy something

Parts of invoice

1. Name and address of the  business

2. Customer's name and contact details

3. Price and Quantity of goods

4. Details of any taxes

5. Net amount