Legal Definitions - documentary instruction

Definition: A written agreement between an importer and exporter that outlines the necessary documents for the shipment and disposal of goods.

Example: Let's say a company in the United States wants to import goods from a company in China. The two companies would create a documentary instruction that specifies which documents are required for the shipment, such as a bill of lading, commercial invoice, and packing list. This agreement ensures that both parties are aware of the necessary paperwork and can avoid any delays or misunderstandings during the import process.

Explanation: A documentary instruction is a crucial part of international trade because it helps to ensure that all necessary documents are in order. Without this agreement, there could be confusion or delays in the shipment process, which could result in financial losses for both parties. By outlining the required documents in advance, the importer and exporter can work together to ensure a smooth and efficient transaction.