Documents Used in Foreign Trade

A – Customs Declaration Form

is the document submitted to the customs administration after it is filled in accordance with the customs legislation in export and approved by the relevant exporter union. After entering the Customs Union, the use of “Single Type Customs Declaration” was introduced within the framework of harmonization of legislation and documents.

The Customs Declaration is drawn up directly by the owners and their legal representatives or proxies.

• Scraping and erasure cannot be done on customs declarations.
• After the submission of the customs declarations for registration, no adjustments can be made in terms of the type, type, quality and unit price of the declared goods.
• The registration of customs declarations is completed by duly registering in the book kept at the customs, placing the registration number, date and official seal on it.

B – The Commercial Invoice

Commercial invoice is one of the most basic documents used in international trade and is issued by the exporter. An invoice is a document given in return for goods sold, produced or services rendered. Invoices, which are a document showing the quality, size, unit sales price and total price of a sold good; Care should be taken to ensure that it is as comprehensive as possible, that the information is clearly stated, and that it is understandable and simple enough to be understood even by someone with limited knowledge of foreign languages.

Invoices used in foreign trade; Domestic Invoice (Domestic Invoice, Internal Invoice), Proforma Invoice ( Proforma Invoice ), Original ( Commercial ) Invoice ( Original Invoice, Commercial Invoice, Sales Invoice ), Freight Invoice ( Freight Invoice ), Consular Invoice ( Consular Invoice ), Certified Invoice ( Legalized Invoice ).

The conditions that must be included in the commercial invoice are explained below.

• Date of invoice,
• Type of goods/services,
• Name/title addresses of seller and buyer,
• Payment method,
• Origin of goods,
• Delivery method,
• Unit price/amount/amount of goods or services,
• Weight, dimensions, quantity of goods,
• Type of shipment,
• Packing specifications of the goods, detailed explanations such as numbers,
• The issuer’s signature must be present. In accordance with the 37th article of UCP-500, although there is no obligation to sign the invoices, the documents in question must be original signed (Hand signed / Wet signed) in accordance with the laws of our country.
• Freight and insurance premium amounts,
• Loading and unloading points are important points that should be included in commercial invoices.

Special information that is obligatory in the country of the buyer and the seller, writing the invoice total, the exporter’s bank and the SWIFT No of this bank, on the FAS Invoice (sales price includes the selling price and costs until the goods are placed in the direction of the ship) – FOB Invoice (sales The price includes the costs until the goods are loaded on the ship)- information should be written. In addition, if any, Order number and Letter of Credit number should be written on the Original Invoice.

C – Proforma Invoice:

It is the invoice prepared by the exporter before shipment/shipping to serve as a basis for a Letter of Credit to be opened as a result of the offer given to the importer or the agreement of the exporter and the importer. If the importer accepts the exporter’s offer and an order is to be placed on the basis of this acceptance, the Proforma Invoice will need to be converted to a Commercial Invoice. In this case; It is obligatory for the importer to declare that he accepts the terms of the Proforma Invoice within the period specified in the Proforma Invoice (delivery date, quantity, price option in the proforma). In this case, it is obligatory to transfer the Proforma Invoice information exactly to the Commercial Invoice.

Commercial Invoices: Documents showing the sale of goods or services issued by the seller based on a proforma invoice, order, contract or contract. Commercial invoice is the final invoice taken as a basis for customs transactions, foreign exchange transfers and commitments. If the sales conditions specified in the proforma invoice are approved by the buyer, the proforma invoice is converted into a final sales invoice upon the order placed by the buyer. The invoice issued after the sale is also called the original invoice.

D – Freight Invoice:

In cases where the exporter undertakes the freight payment (CFR-CIF deliveries), it is the invoice that is required to be added to the bill of lading to write ‘freight prepaid’ on the bill of lading or to write this annotation on the bill of lading. Since this invoice is requested by the importer’s bank, it is a mandatory document for these types of delivery. It must also be sent to the buyer as an annex to the bill of lading, just like the export invoice.

If the letter of credit includes the freight cost together with the cost of goods, the “freight prepaid” record must be present on the bill of lading and other shipping document.

For the goods that are subject to change during transportation, the invoice issued in the time period until the invoice to be issued according to the exact situation at the time of delivery is called “temporary” or “temporary” invoice.

E – Certified Invoice / Consular Invoice:

It is the invoice that the exporter receives from the consulate of the importing country and issues the actual export by having it approved by the consulate of the importing country. Said approval is made for the commercial invoice originals, in particular the country of origin of the goods. Countries that require invoice approval: Algeria, Morocco, Iran, Egypt, Syria, Tunisia, Jordan, Lebanon.

F – Movement Documents:

a- A.TR MOVEMENT DOCUMENTS

In the Customs Union established between the two parties in accordance with the Association Agreement between Turkey and the EC and the related Additional Protocol, benefiting from mutual customs tax concessions is realized on the basis of the principle of “Free Movement of Goods”.

EN FOR WHICH PRODUCTS IS THE TRANSACTION CERTIFICATE ISSUED?

– In order to ensure that the goods in free circulation in Turkey or the Community can benefit from the preferential regime stipulated in the Additional Protocol, an ATR Movement Certificate should be issued.

– It is explained below which goods will be in free circulation in the EC and Turkey;

1. Products originating in Turkey and the Community,

2. Goods originating in a third country whose import procedures have been completed in Turkey or the Community, necessary customs duties, taxes and duties with equivalent effect have been collected, and have not benefited from a full or partial refund of these taxes and duties are considered to be in free circulation.

3. During the export of processed products to the EC, for third country origin products used in the production of these products, if the taxes stipulated in the Common Customs Tariff are deposited at the relevant exit customs and an A.TR Movement Certificate is issued by the exporting country, the said processed products are subject to the provisions of the Additional Protocol. may benefit from the preferential system. Article 2 of the Additional Protocol also states which goods will be subject to free circulation.

4. During the export of products originating in Turkey and the Community to Turkey and the Community countries, it is stipulated that the tax stipulated in the Common Customs Tariff for the goods used in the production of these products and which are not in free circulation in Turkey and the Community, is collected by the exporting country under the name of “Compensation Tax”. .

– WHICH COUNTRIES IS THE A.TR MOVEMENT DOCUMENT ISSUED?

b- EUR.1 CIRCULATION CERTIFICATE

It is the certificate of origin issued by the customs administrations of the exporting country or the institutions authorized by these administrations duly and visaed by the customs administrations in order to ensure that the products originating in Turkey and the ECTC (European Coal and Steel Community) countries can benefit from the provisions of the Agreement. Within the scope of free trade agreements, it is a document that enables the products originating from the party countries to benefit from the concessions. It is used in trade with the countries with which we have a Free Trade Agreement with EFTA countries.

Issuing Countries

– EFTA Countries:
– Bosnia and Herzegovina, Switzerland (including the Principality of Liechtenstein)
– Israel, Iceland
– North Macedonia

Efforts are underway for the entry into force of Free Trade Agreements with the countries listed below:

Agreements Under Negotiation

– Morocco
– Palestine
– Egypt
– Tunisia

Agreements Under Preparatory Stage

– Jordan


c- FORM A (SPECIAL ORIGIN FIELD OF ORIGIN

) Within the framework of the Generalized Reference System (GPS) Form A (Special Certificate of Origin) must be issued in order to benefit from the Compromised Customs Tax rates applied unilaterally to Turkey by the countries listed below.

A. Issued Countries

   – Belarus (Belarus)

   – Japan

   – Canada

   – Russian Federation

   – Ukraine

   – Although New Zealand

Australia also applies GPS, Form A is not required to use the system.

d- CERTIFICATE OF ORIGIN ( The Certificate of Origin ) The Certificate of Origin

is the document that shows the origin of the goods to be exported, that is, the place where it is produced, and which country it belongs to. It is prepared by the exporter as determined by the importing country.

After the Certificate of Origin is prepared by the exporter, it is approved by the chamber of commerce to which the exporter is affiliated. It is also possible that it is approved by the embassy or consulate of the country where the import will be made. If the importing country does not have a representative in the exporter’s country, it must be sent to the certifying authority of the importing country. Hungary, Albania, Poland, Syria, Far East countries require Certificate of Origin. A special certificate of origin (Form A) should be issued for exports to preferred countries in order to benefit from the concessional customs rates provided by the Generalized Preferences System. Our country benefits from the preferences of the USA, Australia, Canada, Japan, New Zealand and the Russian Federation within the framework of this system. (Form A) condition is not sought for export to USA; It is sufficient for the exporter or the importer in the USA to request a customs-free application by placing an “A” sign in front of the descriptive Harmonized System, Customs Tariff Statistics Position number on the delivery document of the product. Although Australia also applies GPS, there is no need to issue Form A in order to benefit from the system. As of January 1, 2002, Turkey has become a “GSP” issuing country within the scope of the Customs Union.

e- The Packing List (The Packing List) The

parcel list is a complementary document to the invoice. Just like the invoice, the parcel list should be as comprehensive as possible.

Parcel list;

   • It contains detailed information on the packaging of the exported products, what is inside each box, bale or sack, and the dimensions and weight of each parcel subject to loading.

   • Provides important information for the carrier at the stage of deciding how to load.

   • It is an important document sought by insurance companies in case of damage.

   • The parcel list provides important benefits in customs control, as it allows the goods to be counted, delivered and the goods inside to be known without opening the parcel. It is a necessary document for the customer to determine the content of the cargo during the examination phase by the customs authorities.

If the shipment subject to export includes a single product in a standard packaging, it may be sufficient to provide the packaging information on the invoice. However, in general, the rule is that it would be more beneficial to provide financial information and packaging information separately, and to prepare the financial information on the invoice and the parcel list as a separate document.

f- LOADING NOTE ( INSTRUCTIONS )

Installation instruction or note; It is a document that starts the loading process of your goods ready for export, after determining the mode of transportation, to the carrier or forwarder companies.

Although it is not an official document, it contains important information between the exporter and the shipper on many issues.

In general, it includes all kinds of information except the price of the goods.

Sender / Exporter, Buyer, the place where the goods will be left, declaration of your goods in Turkish and in the desired foreign language, container type, weight, etc. information. In other words, the mixture of your packing list and your invoice is an information form.


g- INSURANCE CERTIFICATE ( The Insurance Certificate )

It is in question in exports made according to CIF or CIP delivery method. It is made by the exporter in line with the information and instructions given by the importer and on the account of the importer. It covers the transportation risks in the process of shipping the goods from the seller to the buyer. Insurance documents prove that the goods are insured within the scope of the desired risks. The most common insurance document is the Insurance Policy. This document is a contract made between the insured and the insurer and shows the rights and responsibilities of the parties. It is issued to the name, order or bearer of the person who will benefit from the insurance. Rights within the scope of insurance can be transferred to someone else by endorsement.

According to the “f” clause of Article 34 of UCP-500, the minimum insurance value required to be covered by the insurance document is the CIF value of the goods (cost of goods + insurance + freight until the named port of destination) or CIP cost (carriage fee and insurance paid up to the named destination). ) plus 10%.

h- CARRIER’S DOCUMENT ( BILL OF WAY ) ( The Carrier’s Decleration / Consignment Note )

Proof of Carriage or bill of lading; It is a contract between the exporter and the carrier who will transport the goods from one point to another. The transport document, which usually has standard formats, is prepared by the carrier or the transport agent by asking the exporter the necessary details. The exporter is asked for information about the type of transportation he wants to transport his goods, the value, weight, volume of the goods and other details required for the documents, and who will make the payment in case of any disruption.

The transport document may vary by type of transport and from shipper to shipper. A contract of carriage between the carrier and the shipper of the goods subject to transport is a receipt showing that the goods have been received by the carrier, and under certain conditions, is a valuable paper. Although all transport documents are in the form of receipts, some of these documents may not be contracts or valuable papers.

According to the way of delivery of bills of lading:

a-) Registered bill of lading,

b-) Ordered bill of lading,

c-) Bearer bill of lading,

d-) Receipt bill of lading,

e-) Shipment bill of lading.

Moreover; 1-) Sea waybills 2-) Special bills of lading 3-) Other transport documents are grouped in three classes.

Featured bill of lading types: single bill of lading ( trough B/L ), combined transport bill of lading ( combined transport B/L ), container bill of lading, straight line bill of lading, short bill of lading, tanker bill of lading, non-negotiable bill of lading, freight contract based bill of lading, captain’s receipt.

Other transport documents are; airway bill of lading, railway consignment note, road transport document (CMR document), shipper’s receipts, FIATA receipt documents, postal receipt.

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

It is a road transport document used by countries that accept the provisions of the international CMR (Convention Marchandises Routiers) agreement and shows that the transport is carried out according to the provisions of the CMR. Issued by the freight broker or shipping company on behalf of the buyer. It is a legal evidence showing that the goods have been received in good condition to be transported under the specified conditions and that the contract of carriage has been made. It cannot be endorsed as it does not represent ownership of the goods. It is issued in three original copies.

The first is given to the shipper, the second accompanies the goods, and the third remains with the carrier. While the goods are on the way, the shipper has the right to stop the transportation, change the place of delivery or request the delivery of the goods from the buyer whose name is written on the document, to another person by giving instructions to the carrier. This right is voided when the second original of the document is given to the recipient whose name is written on the document. When the aforementioned wants to exercise his right, the shipper must present the first original of the document to the carrier.

In this case, the new instruction is recorded in the document. The shipper must also give a guarantee to the carrier. 

The CMR contains the following information:

1. a) The name, surname or trade name and address of the consignee, the place where the goods are sent, and an annotation to the order if the shipping bill is required to be written on the order,
   
   b) The type, weight or number of the goods to be transported, the numbers and signs written on the packages if they are in packages, and the shape and nature of the packaging,
   
   c. ) Name, surname or trade name and address of the consignor,
   
   d) Name, surname or trade name and address of the carrier,
   
   e) Transportation fee and this matter if the fee has been paid,
   
   f) Duration of transportation,
   
   g) Other matters agreed between the parties.