List of Documentations Needed for Petrochemical Business
Question: Why the documents are needed for the export business?
Answer: This question lies like the business relations between the exporter (Infinity Galaxy) and the importer cooperating in two countries. Contrary to the domestic business, the commercial practices and legal systems are different in the two countries the exporter and importer are operating from. Therefore, to protect the respective interests of the exporter and the importer involved in export business, certain documentary formalities become essential. Such export documents facilitate the smooth flow of goods and payments thereof across national frontiers. Export documents based on our business are divided into below items.
Essential Export Documents
“Infinity Galaxy” Proforma Invoice is an export document that states a commitment on the behalf of the seller to deliver the products or services as notified to the buyer for a specific price.
This is the first comprehensive export document in Infinity Galaxy transactions. Commercial Invoice is a document of the goods specifications. Cargo details, price and shipment information is written on the packages of the commodities.
Infinity Galaxy shipping order is a copy of the shipper’s instruction sent to the shipping company. The shipping company is liable to issue B/L draft based on its details and available customs and export documents.
Draft of Bill of Lading (BL)
Bill of Lading (B/L) is a document provided by the shipping company to verify that the mentioned commodities are either being shipped or have been shipped. This is also a commitment that shows that the similar commodities will be delivered to the consignee at destination. This will be done only if the specific freight is completely paid.
Original Bill of Lading / Master Bill of Lading
As mentioned above, BL is a document provided by the shipping company consists of the details of buyer, seller, origin, destination, type of goods, number of containers, seal number, net and gross weight and HS Code number. In some cases, the customer may ask for the stamped original signed BL provided by the shipping company which may be sent to them. BL can be tradable or nontradable. In the first type, the BL holder may be the holder of the cargo who can trade it.
Switch Bill of Lading (SBL)
A Switch bill of lading is the second set of bill of lading that may be issued by the carrier (or agent) in exchange for the first set of bill of lading originally issued when the shipment was effected.
Why does importer ask for a Switch bill of lading?
Switch bills are requested generally when there has been a change in the original trading conditions. Some of the reasons could be:
A. Goods could have been resold and the discharge port has now been changed to another port and this could have occurred as a high-seas sale.
B. The seller (who could be an intending agent) does not wish the name of the actual exporter to be known to the consignee in case the consignee strikes a deal with the exporter directly.
C. The seller does not want the buyer to know the actual country of origin of the cargo so they request that port of loading to be shown as some other ports.
House Bill of Lading
HBL is provided by an NVOCC Operator or a freight forwarder to the customers. In HBL, the shipper and the consignee are the actual shipper and receiver of the cargo. Moreover, the HBL is also considered as a negotiable document which can fulfill the roles of BL.
|Differences Between HBL ( House Bill of Lading ) & MBL ( Master Bill of Lading )|
|BL Type ∞||HBL ( House Bill of Lading )||MBL ( Master Bill of Lading )|
|Provider||NVOCC Operator||Shipping Line|
|Freight Forwarder||Freight Forwarder|
|Shipper||The actual shipper/ exporter of the cargo||NVOCC Operator|
|Consignee||The actual receiver/ importer of the cargo||The destination agent or counterpart or office of the NVOCC Operator|
|Freight Forwarder ∞|
CO: Certificate of Origin
A certificate of origin (often abbreviated as C/O, COO or CO) is an export document used in international trade. In a printed form, it is completed by the exporter and certified by a recognized issuing body, attesting that the goods in a particular export shipment have been manufactured in a particular country.
COA: Certificate of Analysis
Certificate of Analysis is a document issued by Infinity Galaxy confirms that a regulated product meets its product specification. This export document commonly contains the actual results obtained from testing performed as part of quality control of an individual batch of a product.
Infinity Galaxy packing list (also known as a bill of the parcel, unpacking note, packaging slip, (delivery) docket, delivery list, manifest or customer receipt, shipping list) is an export document which details the contents, and often dimensions and weight, of each package or container.
International inspection is one of the critical components of incoterms. The supplier is usually in charge of providing the inspection unless the buyer is reluctant to have, or the volume of the loadings is low. Moreover, the buyer can himself coordinate with the international inspection company. If Infinity galaxy is committed to international inspection in the pre-issued invoice, the customer will receive daily inspection report through the international inspection company reports. The customer will also receive daily reports including film and photos taken by Infinity Galaxy operation team in the port of loading. Each report and international inspection contains quality and quantity.
Different Types of Inspections
- Infinity Galaxy Inspector
- IDF (Import Declaration Form)
- GIS (Government and Institution Service)
- PVoC (Pre-Export Verification of Conformity to Standards)
- Certificate of Quality and Quantity by Third Party Inspector (SGS)
- Certificate of Quality and Quantity by Third Party Inspector (Geo Chem)
- Certificate of Quality and Quantity by Third Party Inspector (Bureau Veritas – BV)
Infinity Galaxy Inspector
Whether the sold commodity by Infinity Galaxy has the international inspection or not, Infinity Galaxy inspectors will be present from the moment the container is received to the moment the customs documents are delivered to the shipping line. Infinity Galaxy operation team take proper photos and videos of empty and filled containers and commodities quality. These photos and videos will be sent instantly to Infinity Galaxy head office. Every specific report of the loadings demanded by the customers is accepted by Infinity Galaxy without any charge.
GIS | PVoC | IDF (Import Declaration Form)
Every buyer and importer of bitumen to Kenya should first apply for the Import Declaration Form (IDF) of the customs office. Consequently, the form attached to the performa by the Infinity Galaxy Company will be sent to the GIS agent in the loading port. SGS Company will allocate a unique job file to the buyer and seller. SGS and its GIS crew are present at the loading time in loading port and send reports directly to customs and inspection office in Kenya. Each importer should have the bill of lading attached to PVoC before the commodity released in Mombasa port.
Certificate of Quality and Quantity by Third Party Inspector (GEO Chem) & (Bureau Veritas - BV) & SGS
Certification of Quality and Quantity is an export document issued by a third-party inspector that confirms that a standardized product meets its product specification. This document commonly contains the actual results obtained from testing performed as part of quality control of an individual batch of a product. Some international inspection companies such as BV, Geo Chem, and SGS are nominated for their standard inspections. They send daily reports and inspections to the customers from everywhere. Infinity Galaxy as one of the dominant suppliers has always tried to cooperate with SGS, Geo Chem and BV to provide its commodities accordant to their latest standards.
Letter of Intent (LOI)
LoI (Letter of Intent) also is referred to as a letter of understanding or memorandum of understanding. It is written for facilitating the start of a business deal or project between the parties involved by identifying the key business and contractual understanding which form the basis of the final contract.
Soft Corporate Offer (SCO)
In marketing, an offer to receive a product is called a soft offer. Buyers will issue a Soft Offer and then they will receive the quotation.
Commission Letter or Commission Agreement
Commission Letter is a commitment between Infinity Galaxy and the broker or buyer or agent to refund their commission after finalizing the deal.