Question

Explain a ‘documentary bill’ as a document used in external trade.

Answer 1

Answer:

When a bill of exchange is accompanied by documents that are generated in an international trade transaction it is called a Documentary bill. The documents include the commercial invoice, Bill of Lading, warranty of title, Letter of Credit, Certificate of origin of goods, Inspection certificate, Packing weight list, Export declaration, Consular invoice, and the insurance document. A warranty of title is given by the exporter to the importer, in which the exporter attests that the title to the goods is good and hence the transfer is legally rightful. Usually all bills in an international trade are documentary bills.

Explanation:

List of documents

1. Bill of Exchange

2. Bill of Lading

3. Letter of Credit

4. Certificate of origin of goods

5. Inspection certificate

6. Packing weight list

7. Consular invoice

8. Insurance document

Answer 2

Answer:

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Documentary Bill :When the documents of title to goods are sent along with the bill of exchange drawn by the exporter on the importer, it is called a documentary bill.

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