Export Ship Alexandra. Master Smith, for Havre.

Entered Outwards 10th October, 1898.

Bond given £55.

Carman: Hodgson.

189

We declare that the quantity, description, and value of the goods entered in this Shipping Bill are correctly stated.

All the documents just named (viz., the Dock Warrant or Delivery Order, the Bond Note and Warehousekeeper's Order, and the Shipping Bill) are then handed to a licensed carman or lighterman (who alone is allowed to remove the goods), who delivers them up to the proper officials in exchange for the goods, which he then delivers on board the ship and receives in exchange the Mate's Receipt, which he delivers up to the exporter of the goods. Bills of Lading, Invoices, &c., are then made out as previously described for "Free Goods."

THE EXPORTATION OF GOODS—Continued

CHAPTER IX

INVOICING

This is an important matter in connection with the exportation of goods. Correct invoicing is very necessary, not only to prevent difficulties between the merchant here and his correspondent abroad, but also to prevent friction between the correspondent and the foreign Customs officials. In many cases the invoices have to be submitted to the Customs when the goods are imported, and in case of any discrepancy between the invoice and the goods, there is certain to be a fine inflicted on the importer, which he, of course, claims from the merchant on this side.

The specimens of invoices on the following pages are chiefly for textile manufactures, but the mode of invoicing is the same whatever kind of goods are shipped, and, subject to the technicalities of the different trades, the principles here laid down are applicable to nearly all goods shipped from the United Kingdom.

It should be pointed out that piece goods are not always bought from the manufacturer in the finished state. In many cases they are bought "in the grey," and are sent by the merchant to be bleached, dyed, printed, or otherwise treated, in order to suit the market for which they are intended. The cost of these processes is always included in the price charged to the foreign buyer, and for sake of convenience the goods referred to in this chapter are treated as though they were purchased in their finished state.

The different kinds of invoices used in the foreign trade are principally for goods sold on the following terms :—

(1) "Loco," meaning the first cost of the goods, as delivered at the place of production or place of export. Any packing, forwarding, shipping, or other charges paid by the exporters on account of the buyer are detailed and added to the invoice.

(2) F.o.b.-Free on board, meaning that all charges up to and including putting the goods on board the vessel are included in the price.

(3) C. & f.-Cost and freight. In this case the price covers packing, forwarding, and shipping charges, and freight to port of destination of the goods.

(4) C. f. & i., or c.i.f. (pronounced "siff")-meaning that the price includes all the charges mentioned in No. 3 (c. & f.), with the addition of insurance. Goods sold on c.i.f. terms are usually invoiced in the currency of the foreign country to which they are shipped.

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(5) "Franco" (or "rendu or "free")—meaning generally all charges incurred (including foreign import duty, &c.,) up to and including delivery of the goods at destination. Franco is a colloquial expression and has no generally accepted meaning. To a port the term might mean only c.f. & i.

Two other kinds of invoices not mentioned above are the "Proforma Invoice" and the "Consignment Invoice." These are dealt with further on.

The five terms above mentioned may be summarised thus:

(1) Loco-actual local cost.

(2) F.o.b.—cost, plus packing, forwarding, and shipping charges.

(3) C. & f.-F.o.b., plus freight.

(4) C.i.f.-C. & f., plus insurance.

(5) Franco—C.i.f., plus foreign import duty and forwarding charges.

The following specimens show how each kind of invoice is made out. To explain the matter more clearly we have in some cases taken the same lot of goods for different kinds of invoices, so that the difference between one invoice and another may be readily understood.

The headings for the different kinds of invoices are not always the same each firm has its own form-but those given here are used by some of the leading export houses, and may therefore be taken to be correct.

It should be borne in mind that when a person is acting as Agent he is bound to account to his principal for all discounts or other allowances that he may receive; his remuneration should consist solely and entirely of the commission which he receives on the transaction. A Merchant, on the other hand, if acting as such, and not merely as an agent, is entitled to retain any discounts or allowances received respecting the goods; but when he pays shipping or other charges for account of his customer, and specifies such charges on the invoice, he is in that respect acting as an agent, and should allow any rebates or allowances which he may receive off such charges.

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The initials "E.E." (errors excepted) or "E. & O.E." (errors and omissions excepted) are frequently inserted at the foot of the invoice.

1. "LOCO" INVOICES.

On the following pages are specimens of several forms of invoices of this kind.

No. 1 is supposed to be an invoice for the goods ordered direct from the manufacturers in the Australian Indent No. 4, given on page 41. The only charges incurred here are for packing the goods, and these are added to the invoice. In most respects this invoice is practically a copy of the invoice which would be rendered by the manufacturers to an English customer. The shipping charges, freight, insurance, &c., are charged "forward." The manufacturers' profit is included in the price. This is a form much used by manufacturers who export their own goods, but, strictly speaking, it is not correct as an export invoice.

No. 2 is a "loco" invoice for goods forwarded to Canada. Here again the only addition to the actual cost of the goods is the charge for packing. The commission is included in the price.

Invoice No. 3 is for Indent No. 1,275, on page 40. It has been already pointed out that in commission business of this kind invoices are rendered in triplicate or quadruplicate by the suppliers of the goods. When these invoices are lengthy documents (as is often the case), one of the copies of the original invoice is attached to the export invoice, as shown on Invoice No. 3, in order to avoid the trouble of re-writing all the particulars, and also to show the customer abroad that the goods are invoiced at the actual cost price. The exporter in this case is simply acting as a commission agent, and the only profit he is entitled to make on the transaction is the agreed-upon commission-in this case 2 per cent. The charges specified in the invoice are those actually paid.

No. 4 Invoice is supposed to be in execution of the Indian Indent No. 2, on page 40. Here, as is usual in the Indian trade, all the charges are paid by the exporter, and are specified on the invoice. In this instance a commission is charged and shown on the