SHIPPING DOCUMENTS

FOR IMPORT/EXPORT
 IMPORTANCE OF DOCUMENTATION

• Accurate documentation is one of the most important elements in

international logistics and customs clearance. Properly completed
documentation will help your shipment reach its international
destination on time and reduce the risk of it being delayed at customs.
• To make sure your products get to their destination without any trouble, it’s
essential to get your paperwork and shipping documentation right.
AMUSEMENTS
There will be two parts needing shipping documents in a whole international trade process. One is
the export process at the loading port or airport, and the other is the import process at the destination
port or airport.

Carrier needed
Bill of Lading
•Ocean B/L for the ocean carrier
•Airway B/L for the air carrier

Customs needed
When your products arrive into your home country, a port via sea or an airport via air, the customs will
not release the goods to you until the appropriate paperwork is filled out along with paying the
necessary duties (if applicable – not all goods are dutiable).
The correct preparation and completion of the customs clearance procedures are critical, as heavy
penalties may be applied if the correct procedures are not fulfilled. Don’t let false or late
documentation problem cost your business time and money.
 CUSTOMS REQUIRED DOCUMENTS

• Packing List & Commercial Invoice

• These two shipping documents are mandatory for all types of international transport.
• A Packing List will specify the volume, different types of products and quantity per
type of product. This document often serves as the means for the recipient to verify
that the items identified on the bill of lading are in fact delivered to the recipient.
• A Commercial Invoice will specify the order value, types of products and consignee
details. This document serves for customs to determine the true value of goods when
assessing customs duties.
 Commercial Invoice & Packing List
A commercial invoice is a contract of sale issued by the exporter to the importer.
It helps customs determine the value of the goods to assess the duties and
taxes due on them. A commercial invoice carries details such as:
• Name, address of seller (exporter)
• Name, address of buyer (importer)
• Value, quantity of goods

A packing list is an itemized list with details of the goods. It helps facilitate their
examination and accurate tallying during clearance. It contains:
• Description of the goods
• Quantity and weight (gross and net) of the goods
• Number of packages
• Type of packaging (pallet, box, crate, drum, etc)
Air or Rail Waybill
Depending on your mode of transport, you will get an Air or Rail Waybill.

The Air Waybill (AWB) is a non-negotiable document that is issued by an air carrier
as an acknowledgement of the possession of a shipment. The AWB is also a type of
bill of lading. However, it is issued in a non-negotiable form, so there is less
protection with an AWB in comparison to the bill of lading. The AWB also serves as
a receipt for the consignor (the shipper). This document shows the shipment’s
destination address as well as contact information for the consignor and consignee
(the receiver).

In comparison, the Rail Waybill is a document used for shipments via a railway.
This document is prepared by the shipping agent or railway line, after receiving the
instructions from the shipper.
Export/Import Customs Declaration
An Export or Import Customs Declaration lists details of the goods which are
imported or exported. This declaration is especially important when shipping
international freight. Describing it in legal terms, with a Customs Declaration a person
shows the wish to place goods under a given customs procedure. The Declaration is
used for customs clearance and to calculate the duties or taxes applicable to the cargo.
It is prepared by a customs broker using the invoice and packing list.

Bill of Lading & Sea Waybill

It is the transportation contract and important details on the shipment are included in it.
It is another relevant part of the ocean freight and proof that the carrier has received the
goods from the shipper in good condition. The party holding this document is also the
party controlling the cargo.
A Sea Waybill is also a transport contract. However, the Sea Waybill is not needed for
cargo delivery and will only be handed out as a cargo receipt. Moreover, a Sea Waybill
is not negotiable and cannot be assigned to any third party.
Difference Between a Seaway Bill and a Bill Of Lading

• https://www.interlogusa.com/answers/bl
og/difference-between-a-seaway-bill-
and-a-bill-of-lading/
Arrival Notice
Another important document when shipping is the Arrival Notice or Notice of
Arrival. This document informs that the cargo is arriving at the destination. It
includes relevant details such as the commodity description, sailing details,
destination country related to customs charges and the contact details of the
ocean freight carrier. It is issued by the ocean freight carrier’s destination agent to
the consignee and to parties that might be needed to notify as mentioned on the
Bill of Lading.

Certificate of Origin
The Certificate of Origin is the document that declares in which country a good or
commodity was manufactured. It is needed on a regular basis. This document
contains information about the product, its destination as well as the country of
export. It is an important form as it helps to determine if goods are eligible for
import if they are subject to duties.
Letter of Credit

A Letter of Credit is a primary means of payment in an international

trade transaction. It is by default irrevocable.

This document is a promise by a bank on behalf of the buyer (the

importer) to the seller (the exporter) with a specified sum in an agreed
currency.

Moreover, it requires that the seller submits the needed documents at

a predetermined deadline. Additionally, it includes information such as
the description as well as the quantity of goods, technical description
and documentary requirements.
•A bill of lading is a legal document
issued by a carrier to a shipper that
details the type, quantity, and
destination of the goods being
carried.
•A bill of lading is a document of
title, a receipt for shipped goods,
and a contract between a carrier
and shipper.1
•This document must accompany
the shipped goods and must be
signed by an authorized
representative from the carrier,
shipper, and receiver.
•If managed and reviewed
properly, a bill of lading can help
prevent asset theft.
 TYPES OF BILL OF LADING
• Typically three bills are issued—one for the shipper, one for the consignee, and
one for the banker, broker, or third party.
• There is no restriction on the number of bills of lading that can be issued, but the
number issued must be stated on the bill.
• Because the bill of lading is a document of title, it is valuable.

This means that the bill of lading verifies the legal right to claim the freight. The
original is required; without it, the consignee at the destination cannot receive the
shipment. One can receive cargo in exchange for it.
WELLSPRING
THE STAR
OF THE SHOW
What is a Bill of Lading?

• https://www.youtube.com/watch?v=ig_8fMmwXfc

• https://www.youtube.com/watch?v=BYfk3xst93s
 SAFETY BACKUP

The bill of lading includes the terms and conditions of

transportation. The terms address issues like carriers
liability for loss and damage and reasonable dispatch
requirements. Common carriers are typically held
liable for full value of lost or damaged products unless
they can prove one of the five exceptions A shipper
must file a claim for lost or damaged goods .This
document represents a claim against the carrier to
recover financially from loss, damage, or
unreasonable delay. The shipper must file a claim with
the carrier within time limit usually nine months after
delivery of the product
 Bill of Lading Explained
1. A bill of lading is simply a transit receipt issued by the carrier during the cargo shipment from the
sender to the receiver. It is a document used to ensure that the importers receive
their merchandise while the exporters receive their payments. In addition, it is a legal document
representing the agreement between the shipper and the carrier for the transportation of the
consignment.
2. Once a buyer and seller enter into a contract to trade goods, the seller or shipper ships the goods
through a shipping agent or carrier to the buyer. First, the shipper’s custom house must approve the
‘let export’ order for the subject consignment. Then, it is the responsibility of the carrier to issue the
BL after confirming receipt of cargo from the shipper.
3. Now, the consignment/cargo is under the carrier’s custody, and it has official permission to transport
the goods from the origination port to the destination port. On obtaining the BL from the shipping
agent, the shipper sends it to the buyer. The buyer uses it to receive the shipped goods at the
destination. Typically, both the buyer and seller use the services of a bank to effect payment and
collection.
 Bill of Lading Explained
1. The banks and brokers act as mediators in the dealing to safeguard the interest of both
parties. Thus, the payment is released through a third party only when the consignment
reaches the receiver in the expected condition, quality, and quantity.
2. A BL may be negotiable or non-negotiable. A negotiable BL can be transferred to the third
party, while a non-negotiable BL cannot be. Anyone possessing a negotiable BL can take
delivery of the goods from the carrier. However, a carrier can release the goods only to the
consignee named in a non-negotiable BL.
3. Thus, BL is the carrier’s record of transportation of goods in return for payment of
transportation charges. The freight is the aggregate of all the charges associated with the
transport of a consignment, according to the applicable tariff on the BL. In addition, it
includes the cost of storage and demurrage. The freight expense is calculated based on the
particulars provided by the shipper.
 Bill of Lading Explained
Sections Details

Consignor or seller’s name, address, city/state/zip

Shipper
code, and shipment ID number

Consignee or buyer’s name, address, city/state/zip

Ship To
code, and consignee ID number

Number with which a particular bill of lading can

Bill of Lading Number
be identified and tracked

Transportation company’s name, trailer number,

Carrier serial number, Standard Carrier Alpha Code
(SCAC), and the Pro number

Name, address, city/state/zip code, and

Third-Party Freight Charges Bill To telephone number of the third party like a broker
or bank that intermediates the dealing
Freight Counted States whether the cargo is counted by the shipper, driver, or driver pieces
 Bill of Lading Explained
Sections Details

States the liability limitation in case the goods are

Note
lost or damaged in transit

Consignor’s signature and date of signing as a

Shipper Signature and Date declaration of handing over the goods in proper
condition to the carrier

Carrier’s signature and date of receiving the

Carrier Signature and Pick Up Date goods for transportation as confirmation for picking
up the goods mentioned above in order

Mentions whether the shipper or the driver loads

Trailer Loaded
the trailer

States whether the cargo is counted by the

Freight Counted
shipper, driver, or driver pieces
Freight Counted States whether the cargo is counted by the shipper, driver, or driver pieces
 Bill of Lading Explained
Sections Details

Any additional shipping instructions that the

Special Instructions shipper wants to convey to the carrier must be
specified.

Freight payment option has to be selected:

Freight Charge Terms prepaid, collect, or the third party (if no option is
marked, then it is prepaid)

Customer/buyer order number, number of

Customer Order Information packages, weight, pallet/slip, a total of all, and the
additional shipper information

Quantity and type of handling units, package

quantity and type, weight, number of hazardous
Carrier Information materials, description of commodity or articles,
National Motor Freight Classification (NMFC)
number, and class

Cash on delivery amount and terms, i.e., whether it

COD Details
is to be collected, prepaid, or customer check
Step by Step Procedure in an Export Shipment
https://www.youtube.com/watch?v=yd3GViFVxDo

EXPORT IMPORT PROCEDURES

https://www.youtube.com/watch?v=rJ7HIf-cOpo