What does issued retrospectively mean on a GSP Form A certificate of origin?

GSP Form A certificate of origin should be issued on or before date of shipment stated on the transport document. 

If it is issued a later date than the date of shipment, then Form A certificate should bear " issued retrospectively" stamp. 

On my previous articles, I have explained some important points in regards to certificates of origin. 

If you have not read my past posts and you need further information regarding certificates of origin, I recommend you to read my following articles:
Today I want to clarify the meaning of issued retrospectively term on a GSP Form A certificate of origin.

What are the differences between certificate of origin and GSP Certificate of Origin Form A?

Certificate of origin is a generic name of an international shipping document, which is used to identify the origin of goods that is subject to foreign trade business. 

There are various types of certificates of origin in circulation. The most frequently used one is known as ordinary certificate of origin or simply "certificate of origin".

GSP Certificate of Origin Form A is a special type of certificate of origin, that can be grouped under "preferential certificates of origin".


Today on this article I would like to mention the differences between ordinary certificates of origin and GSP certificate of origin Form A.

When to use GSP certificate of origin: Form A?

GSP is the short form of Generalized System of Preferences also known as GSP schemes.

Generalized System of Preferences is a preferential tariff system granted by bunch of developed countries to developing or least developed countries.

Under Generalized System of Preferences schemes less developed countries or developing countries would benefit from reduced or zero tariff rates when exporting permitted products to GSP donor countries.

Today I would like to explain the fundamentals Generalized System of Preferences (GSP), who could get benefited from GSP incentives and how to get benefited from reduced GSP tariffs.

Who should issue certificates of origin?

Origin of the imported goods have strong effect on import custom duties, as almost every country in the world considers the origin of goods when determining applicable import duties.

While there are various types of origin of goods approval methods in international trade, origin declarations, ordinary certificates of origin and preferential certificates of origin are considered to be the most used ones.
  • Origin declarations are the simplest form of origin of goods approval methods. Exporters simply insert a standard origin declaration text to any of the commercial documents, that is all. 
  • Ordinary certificates of origin is one of the most common way to identify and certify the origin of goods in international trade transactions.
  • Some countries have preferential tariff agreements. If imported goods have been originated in a preferential country, then it would be possible to apply for a discounted import tariff rates during import stage.
One of the core conditions to be able to get benefited from a preferential tariff rate would be evidencing the origin of the goods in an acceptable format to the customs authorities.

Today I would like to write about the issuing bodies of the certificates of origin on this article.

Could net weight and gross weight be the same on the packing list?

Net weight and gross weight are two important international trade terms, which are frequently used on bills of lading and packing lists.

Generally gross weight and net weight are showing different values on the packing list.

But in some instances exporters state the same value to both net and gross weight on the packing lists.

Today I will try to explain whether gross weight and net weight could state the same figure on the packing list.

What are the differences between weight list and packing list?

Weight list is a commercial document, which is used in international trade in order to give detailed information about the weight of the order.

Packing list is a commercial document, which is used in international trade in order to give detailed information in regards to packing of the order.

Packing list is one of the most requested international trade documents. 

In some cases importers demand a weight list along with the packing list.

On this article, I will be explaining the differences between these two documents?


How to show an advance payment discount on a commercial invoice?

Advance payment in international trade defined as a payment that is made ahead of shipment take place, such as importers are paying for whole or part of the goods value before they actually receive them. 

Sometimes exporters and importers agree on an advance payments, which will be taking place ahead of the shipments. 

These kinds of advance payments should be demanded via proforma invoices and the advance payment amount must be shown as a discount on the commercial invoices.

On this page I will try to explain how to show an advance payment discount on a commercial invoice.


Mixed Payments in International Trade

Mixed payments work as a kind of financial security tool for exporters in international trade transactions.

Exporters demand a portion of the transaction amount from importers in advance of the shipments, such as 30% of the total amount. 

Remaining amount could be paid against CAD, letter of credit or sending copies of shipping documents by fax or e-mail to the importer.

Today I would like to explain mixed payments as used in international trade transactions.



Who should issue commercial invoice?

Commercial invoice is a type of commercial document, which is used in international trade transactions.

Commercial invoice is used as an evidence of the transaction between the exporter and the importer.

So far on this website I have written couple of articles regarding usage of commercial invoices in foreign trade.

Titles of Invoices: Commercial Invoice, Tax Invoice, Proforma Invoice

Invoice titles could create confusion among exporters and importers in some occasions. 

The biggest problem in regards to titles of invoices occurs when the payment term is letter of credit.

"Invoice" and "commercial invoice" are the main titles of invoices in circulation in international trade. 

Tax invoice and proforma invoice are another two common invoice titles.

Today I would like to explain the differences between various invoice titles.



Should commercial invoice and packing list show the same issuance date?

Exporters create packing list and commercial invoice on the same day for a regular international trade transaction.

But in some occasions one of the documents may need to be created earlier than the other.

For example, certified invoices or legalized invoices may have to be created earlier than the packing list, as certification and legalization process takes quite a long time.

Especially if the selected payment method is letter of credit, exporters frequently ask a common question in regards to the dates of the packing lists and commercial invoices.

Should commercial invoice and packing list show the same issuance date under letter of credit rules?



What is the relationship between incoterms and prices on the commercial invoice?

Exporters and importers use Incoterms very often on their of the daily language, as a delivery term is one of the key elements of international trade transactions. 

Almost every sales contract or proforma invoice contains an incoterms clause such as FOB New York Port, Incoterms 2010, CIF Dammam Port, Saudi Arabia, Incoterms 2010 etc. 

Furthermore, incoterms and prices shown on the commercial invoices have strict relationship. 

Delivery places of the goods, the party who pays for the freight costs and insurance premium are the main incoterms related determinants of the prices.

Today I would like to explain the relationship between incoterms and prices on the commercial invoice
 


What does "as per beneficiary's proforma invoice" mean in a letter of credit?

Almost all letters of credit, at least the ones that I have encountered with, contain a phrase under field 45-A Description of Goods, giving express reference to a proforma invoice.

Some examples are:
  • Commercial invoice must bear beneficiary's certification that goods shipped are in accordance with proforma invoice nr. 1910201100
  • Commercial invoice must be bearing this clause: ''We certify that invoices are in all respects correct and true both with regard  to the price and description of goods referred to therein and as per proforma invoice no.011 dated 09/06/2014."
  • Commercial invoice must state that as per beneficiary's proforma invoice ref no:AA130522 dd:04.07.2014.
  • As per applicant's purchase order no. d14080 dtd 17.12.14.


But what does an express reference to a proforma invoice mean in a letter of credit? 

How to present a correct invoice in such a situation?

Is it possible to make couple of shipments under the same proforma invoice?

Proforma invoice used as a simplified form of a sales contract in today's international business transactions. 

Many companies do not waste their times to write down a detailed sales contract, but instead they send a single page proforma invoice to their buyers.

In some occasions, a proforma invoice may cover an order which will be shipped not in once but under several shipments. 

This action is defined as partial shipment.

Partial shipment should be allowed by the sales contract or a proforma invoice under normal conditions. 

It is worth mentioning that, letter of credit rules also allow partial shipments as well.

But in some special situations, importers may prohibit partial shipments. In such a case, partial shipment should not be allowed under the sales contract or the letter of credit conditions.

What are the differences between proforma invoice and commercial invoice?

Proforma invoice is a written proposal, issued by the exporter, which contains the terms and conditions of the foreign trade transaction. 

Proforma invoice is issued at the beginning of the transaction and it would not be accepted as a final document. 

It can be amended even after it is signed by both parties.

Commercial invoice also states the details of the transaction with one exception. 

Commercial invoice issued in order to complete the export and import operation in a foreign trade transaction, as a result its contents are final and are not subject to any further change or amendment.

PS: All corrections made on the face of the commercial invoice have to be authenticated by the issuer.


Today I would like to mention the differences between a proforma invoice and a commercial invoice.

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