The Trade Documents Library is a comprehensive glossary of the documents used throughout a commodity transaction, from initial buyer interest through final payment. It covers buyer and supplier documents, contracts, logistics paperwork, certificates, and compliance documents.
Buyer Documents
These are the documents a buyer issues to express interest and commit to a purchase. They mark the beginning of a transaction and establish the buyer's requirements and intent.
LOI — Letter of Intent
A preliminary, non-binding document issued by the buyer expressing intent to purchase a specific commodity under stated terms — product, quantity, delivery, and target price. It opens negotiations and signals genuine interest to the seller.
ICPO — Irrevocable Corporate Purchase Order
A firmer commitment than an LOI: an irrevocable purchase order issued by the buyer once preliminary terms are accepted. It cannot be withdrawn once issued and forms the basis for the seller to proceed with an offer.
NCNDA — Non-Circumvention, Non-Disclosure Agreement
An agreement signed by all parties in a transaction chain, including brokers, that prevents any party from bypassing intermediaries to deal directly with a counterparty, and protects confidential information exchanged during negotiations.
IMFPA — Irrevocable Master Fee Protection Agreement
An agreement that defines and protects the commission structure for brokers and intermediaries involved in a transaction, specifying the fee percentage and how and when it will be paid from the proceeds of the deal.
Supplier Documents
These are the documents a seller issues in response to buyer interest, setting out the commercial terms under which they are prepared to supply the goods.
SCO — Soft Corporate Offer
A preliminary, non-binding offer from the seller outlining indicative price, quantity, and general terms. It allows the buyer to gauge whether the seller's offer aligns with their requirements before requesting a firm offer.
FCO — Full Corporate Offer
A firm, detailed offer from the seller containing complete commercial terms — product specification, quantity, price, delivery schedule, payment terms, and Incoterm. The FCO forms the commercial basis for the contract that follows.
Contracts
These documents formalize the legal relationship between the parties, moving the transaction from negotiation to binding commitment.
SPA — Sales and Purchase Agreement
The definitive, legally binding contract governing a commodity transaction. It consolidates all agreed terms — specification, quantity, pricing, Incoterm, delivery, payment, inspection, and dispute resolution — into a single enforceable document.
PI — Proforma Invoice
A preliminary invoice sent by the seller before shipment, detailing the goods, quantity, agreed price, and payment terms. It is often used by the buyer to arrange financing or a letter of credit ahead of the actual transaction.
NDA — Non-Disclosure Agreement
A confidentiality agreement that protects sensitive business information shared between parties during negotiations, independent of the broader NCNDA which also addresses circumvention.
Brokerage Agreement
A contract between two or more brokers or intermediaries defining how they will cooperate on a transaction and how commission will be shared between them.
Logistics Documents
These documents accompany the physical movement of goods and are essential for shipment, customs clearance, and payment processing.
Commercial Invoice
The seller's official invoice for the goods shipped, stating the description, quantity, unit price, and total value. It is a core document required for customs clearance and payment.
Packing List
A detailed list of how goods are packed for shipment — including weights, dimensions, and package counts — used by customs authorities and the buyer to verify the shipment upon arrival.
Bill of Lading (B/L)
Issued by the carrier, the Bill of Lading serves three functions: a receipt for the goods, evidence of the contract of carriage, and, when issued as a negotiable document, a document of title that must be presented to claim the cargo.
Air Waybill (AWB)
The equivalent of a Bill of Lading for air freight. Unlike a B/L, an AWB is not a document of title and is non-negotiable — it serves as a receipt and contract of carriage for air-shipped goods.
Insurance Certificate
Evidence that marine or cargo insurance has been arranged for the shipment, specifying the coverage type and value. It is required under CIF and CIP Incoterms, where the seller is obligated to insure the goods.
Certificates
These documents independently verify the quality, quantity, and origin of the goods, and are essential for payment under a letter of credit.
COA — Certificate of Analysis
A laboratory report confirming the technical specifications and chemical or physical properties of the commodity, verifying it meets the quality standards agreed in the contract.
SGS Inspection Certificate
A certificate issued by SGS or another recognized independent inspection agency, confirming that the cargo was inspected at loading or discharge and found to conform to the agreed specification.
Certificate of Origin (COO)
A document declaring the country in which the goods were produced or manufactured, issued by a chamber of commerce or authorized body. It may be required for customs clearance or to qualify for preferential tariffs.
Certificate of Quality
A certificate, typically issued by an independent inspector, confirming that the cargo meets the quality specifications defined in the sales contract at the point of loading or discharge.
Certificate of Quantity
A certificate confirming the measured quantity or weight of the cargo, based on tank gauging, mass flow metering, or weighbridge measurement, at loading or discharge.
Compliance & Payments
These documents relate to regulatory approval and the movement of funds required to legally complete a cross-border transaction.
Export License
An official authorization issued by a government authority permitting a specific shipment of goods to leave the country of origin, required for certain regulated or controlled commodities.
Import License
An official authorization issued by a government authority permitting a specific shipment of goods to enter the destination country, often required for regulated commodities or in countries with import controls.
Bank Documents
The set of documents exchanged through the banking system to process payment, including the letter of credit, payment instructions, and confirmation of funds transfer between the buyer's and seller's banks.
Payment Receipt
A formal acknowledgment issued by the seller or their bank confirming that payment for the shipment has been received in full, closing out the financial side of the transaction.
Other Important Documents
Depending on the commodity and destination, additional specialized documents may be required to complete a shipment.
MSDS — Material Safety Data Sheet
A document providing safety, handling, and hazard information for chemical or petroleum products, required for the safe transport, storage, and handling of hazardous or regulated commodities.
Inspection Report
A detailed report from the inspection agency documenting the findings of a quality, quantity, or condition survey conducted at loading or discharge.
Shipping Instructions
Instructions issued by the seller or their freight forwarder to the carrier, specifying how the cargo should be booked, documented, and handled during transport.
Delivery Order (DO)
A document issued by the carrier or their agent authorizing the release of goods to the party entitled to receive them at the destination port or terminal.
Weight Certificate
An independent certificate confirming the weight of the cargo, typically issued alongside the Certificate of Quantity for bulk commodity shipments.
Fumigation Certificate
A certificate confirming that a shipment, typically agricultural commodities or wooden packaging, has been treated against pests, often required by the importing country's phytosanitary regulations.
Phytosanitary Certificate
An official certificate confirming that a shipment of plant-based commodities is free from pests and diseases, issued by the exporting country's agricultural authority and required by most importing countries.
Health Certificate
A certificate confirming that a shipment meets the health and safety standards of the importing country, commonly required for food, agricultural, or animal-derived products.
Dangerous Goods Declaration
A formal declaration required for shipments classified as hazardous materials, confirming the goods have been properly classified, packaged, and labeled in accordance with international transport regulations.