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Essay from the year 2015 in the subject Economics - Foreign Trade Theory, Trade Policy, grade: 70, Kingston University London, course: International Trade, language: English, abstract: The first document to begin with is the Purchase Order to trigger the delivery between the Mexican importer and British exporter confirming price, quality and quantity of products being ordered. After signed by the importer the Purchase Order acts as a binding acceptance for both sides (globalnegotiator, nd). After that, the importer receives the Commercial Invoice defining "the process used by customs officials to classify merchandise so that duties and taxes can be correctly assessed". It declares total sum for products that has to be paid including tax and it states the agreed Incoterms which will be explained in the following chapter. Additionally the Commercial Invoice acts as a documentation of sales for the exporter.The Incoterms are at least declared within the Commercial Invoice albeit negotiated before between the British exporter and the Mexican importer. The Incoterms, as shown in figure xxx, define two vital aspects: who is responsible to organise as well as pay the transport and who is responsible to carry the risk. The choice of Incoterms depends on a variety of factors.
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