International commodity trade runs on documents. They prove what was shipped, where it came from and what quality it is, and banks pay letters of credit against them. The exact set depends on the product, the payment method and the destination country, but most bulk shipments use the documents below.
Commercial documents
- Commercial invoice: the seller’s bill, with description, quantity, price, delivery terms and parties. Customs uses it to value the goods.
- Packing list: how the goods are packed: number of bags or units, weights and marks.
- Contract or SPA: the sales and purchase agreement that sets specification, price, delivery and payment.
Transport documents
- Bill of lading (B/L): issued by the carrier as a receipt for the cargo, evidence of the contract of carriage and, when negotiable, a document of title.
- Charter party: the vessel hire contract for bulk shipments, which may be referred to in the B/L.
- Insurance certificate: required when the seller insures the cargo, for example under CIF.
Quality and origin documents
- Certificate of origin: states where the goods were produced; needed to apply preferential duty rates.
- Certificate of analysis or quality: the product’s test results against the contract specification.
- Inspection certificate: issued by an independent surveyor such as SGS for quality, quantity or weight at loading.
- Weight certificate: the quantity loaded, often from draft survey for bulk vessels.
Product-specific documents
- Phytosanitary certificate: for grains, rice and other plant products.
- Health or sanitary certificate: for many food products.
- Fumigation certificate: where the destination requires it for agricultural cargo.
- Safety data sheet (SDS): for fuels, chemicals and some fertilizers.
- Import permit or registration: for regulated goods such as fertilizers or petroleum products in many countries.
Documents and letters of credit
Under a documentary letter of credit, the bank pays only when the documents presented match the credit terms exactly. Small differences, such as a description that differs between invoice and B/L, can delay payment. Agree the full document list in the contract and repeat it accurately in the credit.
Requirements vary by product, shipment and destination, so confirm them with your customs broker or a qualified adviser. Agromer’s trade compliance page explains the checks in our procedures, and our trading process shows where each document fits.