Transmission letters are used in international trade to outline details of a securities shipment, including information on the nature of the securities and means of transportation. They provide a snapshot of the transaction and help with processing at customs checkpoints.
Cover letters are documents that are commonly used in the world of international trade. The transmission letter is used as an official document to outline the details of a securities shipment. Information on the nature of the securities purchased is included, together with pertinent data on the actual means of transportation.
A typical letter of transmission describes the contents of the shipment in sufficient detail that identification and verification of the documents being shipped is easily accomplished. At the same time, the letter will include information about who ships the securities and who is to receive the security shipment at the time of termination for the transfer.
It is not unusual for a forwarding letter to provide information about the departure date for the shipment, the name of the carrier or carrier handling the security shipment process, and the expected delivery date for the shipment. The details may also include shipment or tracking numbers which allow both the buyer and the seller to track the progress of the shipment during the time in transit.
One of the primary functions of a transmission letter is to provide a snapshot of the transaction that has taken place. While the transmission letter will rarely include information on the purchase price of the securities involved, it will include the number of units included in the shipment. The detail will often also provide a brief description of the security details involved, making it easier for legal authorities to verify the contents of the shipment at points of departure and points of entry along the shipment route.
The use of a transmission letter is common to many types of international trade agreements. Along with use in a security shipment, a bill of lading often accompanies a bill of lading for goods sold for delivery to a buyer in another country. The added level of detail can help make processing at various customs checkpoints much easier, thus avoiding unnecessary delays in the delivery of your goods.
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