The export of goods and services that move between bodies of water can be valuable and risky if not done properly. Therefore, it is important that the exporter is familiar with the documents necessary to complete the export process. Exporters must provide compliant shipping documents, for products should clear and shipped to final destinations. We commonly use the following documents for export, this article explains how to use them in the export shipping documentation process. Here’s how they work together:
1. Commercial Invoice:
The commercial invoice for shipping is the single document that describes the entire export transaction from start to finish, including product purchase price and shipping terms. It is the key document used by customs officials for the control and valuation of goods and services. It allows to request payment for items that have actually been sold indicating the actual amount to be paid, it will provide information on the seller, buyer, shipping method, current account, freight forwarder, Product HS code, price, payment terms and transaction currency, among other details.
2. Bill of Lading:
This is a contract with receipt between the carrier and the owner of the products. The common document used in international shipments issued by the carrier to the shipper detailing the goods shipped, their destination, quantity, etc. The shipment must come and go from the parties listed on the bill of lading and delivered to a consignee not named on the document. When they can deliver goods to anyone in possession of the original endorsed negotiable invoice, it represents ownership and control of the goods.
3. Consular Invoice:
A consular invoice is a form available through a consular representative of the country to which you are shipping and who certifies the shipment of the goods. This is not a compulsory document, but it helps many emerging countries facilitate customs and tax collection. In the consular invoice, the Embassy should legalize the commercial invoice, certificate of origin and other supporting shipping documents.
4. Certification of Origin:
This is a certificate used for the export of goods by the exporter to certify the country of origin. The local chamber of commerce or government entity legalizes the certificate of origin. The Certificate of Origin is an important trade document certified by the government that the goods for a particular export shipment got processed, or manufactured in a particular country. It’s an important document, because most of the companies may be prohibited from shipping or receiving goods from a particular country.
5. Dock/Warehousing Receipt:
This receipt provides the exporter with proof that the delivery of the goods to the international carrier has been successful and in excellent condition. This receipt is used to transfer liability when the national carrier transfers the export shipment to the shipping company at the port of shipment. It utilizes this receipt to move risk when the public transporter moves the fare shipment to the transportation organization at the port of shipment.
6. Inspection Certificate:
They perform these inspections for industrial equipment and perishable products and certify that a product was in good condition during the inspection. It certifies that we received the items in excellent condition and that the shipment contained the correct quantity. An inspection certificate should be verifying whether the goods comply with the sales contract regarding quality, quantity, tariff classification, import eligibility and the price of goods for customs. The inspection certificate attests to the quality of the goods by a third party.
7. Decision Control Statement:
The Destination Control Declaration is a legal declaration required by the Export Administration Regulations (EAR) and the International Trafficking in Arms Regulations (ITAR) that the goods you are exporting destined for the country specified in all shipping documents. It appears on the commercial invoice, air waybill to inform the carrier and all foreign parties that it can only export the item to certain destinations. This is a legal boundary needed to clarify what happens to shipments, and it states that the buyer will not take the goods and transfer them to another country.
8. Insurance Certificate:
Make sure your team members and shipping partners pay attention to detail for preparing documentation for international shipments. During transport, you have to provide proof to the buyer they insure the goods against loss or damage. This can take the form of a policy or a certificate. Most freight forwarders have a general policy available and can issue the certificate on behalf of clients.
9. Packing List:
An export packing list is more detailed and informative than a standard national packing list. A packing list is like a shipping list in that it lists the goods shipped, the numbering of the goods and the weight / height dimensions and can serve as a compliant document. Commercial paper makers and freight forwarders carry packing list forms. Moreover, it helps the customs authorities in the receiving country to assess the security and compliance of the shipment.
If you are new to the world of shipping, follow the above tips to export documentation for your business growth strategy.