Match each foreign trade commercial document listed on the left with its corresponding primary purpose or function on the right.
- Bill of LadingServes as a document of title, proof of contract of carriage, and receipt of goods shipped by sea.
- Certificate of OriginDeclares the manufacturing country of goods to determine preferential tariff rates and trade restrictions.
- Letter of CreditProvides a bank guarantee of payment from the importer's bank to the exporter upon presentation of required shipping documents.
- Bill of SightAllows temporary clearance and customs inspection of imported goods when complete invoice details are unavailable.
Answer
Bill of Lading matches with serving as a document of title and shipping receipt; Certificate of Origin matches with declaring the manufacturing country for tariffs; Letter of Credit matches with providing a bank payment guarantee; Bill of Sight matches with allowing temporary customs clearance for inspection.
Each document is paired with its precise legal and operational definition in international commerce. Bill of Lading acts as a document of title and contract of carriage; Certificate of Origin states the manufacturing nation; Letter of Credit acts as a bank-backed payment security; and Bill of Sight is used for provisional customs inspection when complete shipping information is unavailable.
Step-by-Step Solution
Key Concept
Functions of Commercial Documents in Foreign Trade