NEED AND RATIONALE : Export documentation is commonly considered to be the most complex and difficult part of overseas marketing. You may have come across such comments as "export is a botheration because one has to fill-up so many forms". Such comments tend to discourage people from entering experts business. It is therefore necessary to emphasis that exports documentation is as much of fulfilment.
Why is documentation needed in expo11 business? Answer to this question lies in the nature of the business relations between the exporter and the importer, who are operating from two countries: If one is doing domestic business. one knows or care easily know the commercial contracts. However, when the buyer and the seller are operating in two countries, the commercial practices and legal systems are different. Thus, for ensuring that the respective interests of the buyer and the seller are protected, certain documentary formalities become essential. Similarly; every country has, its own laws governing imports and exports.
Consequently, the exporter has to comply with laws in his country through documentary formalities. At the same time, he has to send some documents to the importer which will enable him to take possession of the goods after getting permission from the concerned government department (i.e. the customs authorities). There is yet another reason for documentation in export trade. Such documentation 1s linked with the claim of export incentives given by almost all countries world over. Since most of these incentives are to be claimed after shipment, the exporter has to give documentary proof of the fact of equipment.
Documentation formalities are necessary to enable the importer to get the contracted goods and the exporter to get sale value as well as to secure export incentives. In other words, export documents are needed to comply with commercial, legal and incentive requirements.
Let us now discuss these three perspectives in greater detail to undertake the rationale of different documents.