Importing merchandise can be like learning a foreign language. There are several basic terms you must become familiar with if you decide to import merchandise from another country. 

The most common import / export documents used are:

Trade inquiry-A trade inquiry is a written request by an importer to the exporter for supply of information regarding the price and various other terms and conditions on which the latter exports goods.

Proforma invoice: A proforma invoice is a document that contains details regarding the quality, design, grade, size, weight and price of the export item, and the terms and conditions of which the export will take place.

Shipment advice: This is a document that the exporter sends to the importer informing the importer that the shipment of goods has been made. Shipment of advice contains information such as the invoice number, bill of lading/airways bill number and date, the port of export, name of the vessel with date, description of goods and quantity, and the date of sailing of the vessel.

Import order or intent: This is a document in which the buyer (importer) orders for supply of the required goods to the supplier (exporter). The indent contains information such as quantity and quality of goods to be imported, method of forwarding the goods, price to be charged, mode of payment, nature of packing, etc.

Letter of credit: This document contains a guarantee from the importer’s bank to the exporter’s bank, which basically honors the payment of the merchandise being shipped after receipt and inspection.

Bill of lading: This document is prepared and signed by the master of the ship acknowledging the receipt of goods on board. It contains terms and conditions on which the goods are to be taken to the port of destination.

Bill of exchange: This is a written instrument whereby the person issuing the instrument directs the other party to pay a specified amount to a certain person or the bearer of the instrument. In the context of an export-import transaction, bill of exchange is drawn by the exporter on the importer asking the latter to pay a certain amount to a certain person or the bearer of the bill of exchange. The documents giving title to the export consignment are passed on to the importer only when the importer accepts the order contained in the bill of exchange.