Examkin

Question

Difficulty: MediumCommercial Documents in Foreign Trade

An exporter in Lagos hands over a consignment of cocoa beans to a shipping company for transportation to Liverpool. The shipping line issues a document that acts as a receipt for the goods, details the contract of carriage, and serves as a document of title transferrable to the buyer to claim ownership at the destination port. Which commercial document is described in this foreign trade transaction?

  1. Bill of LadingAnswer
  2. B
    Certificate of Origin
  3. C
    Advice Note
  4. D
    Consular Invoice

Answer

The Bill of Lading is the commercial document used in foreign trade that functions as a receipt of goods, evidence of the contract of carriage, and a document of title.
The correct answer is the Bill of Lading because it is the official document issued by a shipowner or sea carrier acknowledging that specified goods have been received on board and conferring title to the holder for delivery at the destination.

Step-by-Step Solution

1
Identify the key functions mentioned in the scenario.
The document serves as a receipt for cargo from the carrier, specifies contract terms of carriage, and acts as a document of title to claim ownership.
Different foreign trade documents serve distinct administrative, legal, and operational purposes.
2
Match the specified functions to the correct commercial document.
The Bill of Lading is the unique shipping document that satisfies all three criteria (receipt, contract of carriage, and document of title).
Without the Bill of Lading, the consignee cannot legally claim physical possession of the cargo at the port of discharge.

Key Concept

Bill of Lading in Foreign Trade
Estimated Time:1m 0s
Rate this question

Topics

Commercial Documents in Foreign Trade

More questions from this topic