Bills of exchange can be two types:
(a) Document against payment (D/P)
(b) Document against acceptance (D/A)

The shipping document consist of the bill of lading, insurance policy, certificate of origin, consular invoice, etc. It is forwarded to the importer's bank through a foreign exchange bank for collecting the payment of the bill.

(i) Commission Agent is an international agent who is paid a certain percentage of commission for the order booked by him abroad.
(ii) He offers product to potential customers in the territory allotted to him in accordance with the terms and conditions specified by the principal.

Letter of credit is an undertaking by its issuer (i.e. Importer's Bank) that bills of exchange drawn by the foreign dealer on the importer will be honoured upon its presentation by exporter's bank up to a specified amount.

There are three types of indent namely open indent, closed indent, and confirmatory indent.

(i) Export Promotion Council (EPC)
(ii) State Trading Corporation (STC)

1. After the scrutiny of quotation / proforma invoice, the buyer who intends to buy the goods sends an indent to exporter.
2. An indent actually points to an order received from abroad for export of goods. i.e. sale of goods.

The import documents are:
(i) Import License
(ii) Indent
(iii) Letter of Credit
(iv) Bill of Entry
(v) Bill of sight
(vi) Port Trust Dues Receipt
(vii) Bill of Lading
(viii) Bill of Exchange
(ix) Advice Note

Main functions of EXIM Bank are as follows:
(i) It provides direct financial assistance to exporters of plant, machinery and related services.
(ii) It underwrites the shares, debentures, and bonds of the companies engaged in exports.
(iii) It provides re-discount facility in respect of export bills for a period not exceeding 90 days against short-term export bill discounted by commercial bank.
(iv) It gives overseas buyer credit to foreign exporters for the import of Indian Capital Goods which are used for manufacturing export products.
(v) It finances export-oriented industries.
(vi) It collects and provides market and credit information about foreign trade to those engaged in international business.

Bill of Lading, refers to a document signed by the shipowner or to his agent mentioning that goods specified have been received and it would be delivered to the importer or his agent at the port of destination in good condition subject to the terms and conditions mentioned therein.

A Charter Party is a formal agreement between the ship owner and the exporter under which the exporter hires an entire ship or a major part of ship either for a particular voyage or for a specific time period when the shipping is heavy.

Content of an Indent:
(i) Quantity of Goods sent
(ii) Design of Goods
(iii) Price
(iv) Nature of Packing Shipment
(v) Mode of Shipment
(vi) Period of Delivery
(vii) Mode of Payment.

(i) Achieving Rapid Industrialisation :
Developing countries can achieve rapid industrialisation by importing advanced technology, scarce raw materials, capital goods like machinery, equipment etc. and talents from other countries.
(ii) Upgrading the Standard of living of the People:
Consumers are able to use a wide variety of goods like cell phone, car laptops, television, audio system, washing machine, perfume, soaps, etc. manufactured in foreign countries and enhance their standard of living through import trade.
(iii) Meeting Consumer Demand :
(1) Certain goods are either not available or cannot be manufactured/produced adequately to meet the growing demand in home country.
(2) Hence, import is necessary to meet the short supply of those goods.
(iv) Meeting shortage situation:
During famine, earthquake, flood, drought, tsunami, abnormal price-increase situations and so on food grains, vegetables and other essential commodities are imported from foreign countries and bad situations arising from the above natural calamities and thus overcome.
(v) Strengthening defence:
(1) Many countries around the world import defence equipments for its armed force.
(2) Such imports enable the country to ensure its sovereignty and territorial integrity.

(i) Documents Related to Goods :
(1) Indent
(2) Credit of Origin
(3) Certificate of Inspection
(ii) Documents Related to Shipment:
(1) Mate's Receipt
(2) Shipping Bill
(3) Shipping Order
(4) Bill of Lading
(5) Marine Insurance Policy
(6) Consular Invoice
(7) Railway Receipt / Lorry Receipt
(iii) Documents Related to Payments :
(1) Letter of Credit
(2) Commercial Invoice
(3) Bills of Exchange
(4) Bank Certificate of Payment.

 Sl.No   Basis   Domestic Business   International Business    1 Meaning  This represents a document acknowledging the receipt of goods on board for carrying them over to specified port of destination It refers to an agreement to hire a whole or major part of ship when the goods take exported is heavy.   2 Transferable  It can be transferred to third party by endorsement and delivery It cannot be transferred to third party   3 Loan Loan can be raised against it Loan cannot be raised it.   4 Crew Master and crew remain the agent of the ship owner Master and crew become the agent of exporter for a temporary period.   5 Lease It is not a lease of ship It is a lease of ship.