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exporter. In foreign trade, waterways are used in ordinary course of delivery of goods.
A letter including the particulars of goods and carriage instructions, if any, is given to
the shipping company which is known as bill of lading. The bill of lading is termed by
different names in different modes of transport i.e. railway receipt in railway transport,
airway bill in airways, etc. In this way, the dispatch of goods and bill of lading are other
documents of foreign trade.
vii. Receipt and Carriage of Goods
After dispatching the goods to the transport company along with the bill of lading, the
company should physically verify them. When the company finds the goods as specified
in the bill of lading, it returns a copy of the bill of lading to the exporter with its authorised
signature, this document, then, is known as receipt of the goods. It is the evidence of
acceptance of the goods to deliver upto the importer. Many formalities like dock chalan
i.e. the permission of the dock authority to load the goods on the ship, custom/export
pass etc. are to be fulfilled. Then the transport company begins the carriage of the goods.
The total responsibility of the goods in transit should be borne by the transport company
unless otherwise mentioned.
viii. Remittance of Money
After the goods are verified and received by the importer, he should remit the net
total value of trade to the exporter before or at the due date. The remittance is made
through the most reliable means like bank draft or telegraphic transfer (TT) from the
importer’s bank to the exporter’s bank or it is done as the instruction of the exporter. The
payment of money is made in equivalent foreign currency.

Points to Remember

i. Inquiry letter ii. Reply to the Inquiry
iii. Letter of order (purchase order) iv. Letter of acknowledgment
v. Preparation of goods and invoice vi. Dispatch of the goods and bill of lading
vii. Receipt and carriage of goods viii. Remittance of money

c. Terms and Conditions of Foreign Trade
Terms and conditions of foreign trade refer to the specification of the goods like
quantity, quality, colour, size, package, price, mode, means of transport insurance,
terms of credit, means of payment, etc. There terms should be cleared before dealing the
activities between importer and exporter. Otherwise it creates problems in the future.
The following are the common terms and conditions for foreign trade:
i. Quantity of goods ii. Kinds and quality of goods
iii. Packaging iv. Price and discount
v. Invoice and carriage vi. Insurance
vii. Mode and timing of delivery viii. Credit terms and conditions
ix. Means of payment x. After sales services

50 Aakar’s Office Practice and Accountancy - 10 Trade 51