How To Prepare A Post Shipping Documents

In a previous commodity, I explained the purpose of several common consign documents and the data they typically include. This article expands on that discussion and explains how to apply them in the export shipping documentation procedure.

Hither's how they work together:

Stride 1: Receive an Enquiry

The offset step in the shipping documentation process is when someone inquires about ownership your products. When a potential buyer expresses involvement, they volition ofttimes send a letter of the alphabet of inquiry outlining the terms of their interest along with a request for an informal or formal quote.

Footstep 2: Screen the Potential Heir-apparent and Country

After you receive an inquiry from a buyer, you first need to make sure you can do business with them. That means screening them against the diverse denied and restricted political party lists. Y'all can manually screen their name, their company name and their accost by checking each of the scores of lists published by the U.S. government, or you tin can automate that procedure by using software like Shipping Solutions, which automatically checks against the latest version of all the lists.

Watch How Restricted Party Screening Works

If your buyer shows up on whatsoever of the lists, you cannot practise business with them. If they exercise not prove up, keep with caution.

The screening step also includes making certain y'all can ship your goods to the heir-apparent's country. In some cases, you can ship simply if you apply for an export license. It's all-time to complete the licensing process as early as you can to avoid causing delays.

Step 3: Provide a Proforma Invoice

Afterwards screening your buyer and their land, you may need to provide the heir-apparent with a proforma invoice for the transaction. The proforma invoice is the commencement impression you will make on your buyers, then brand sure you practice it correct. It acts similar a quote and looks like a commercial invoice, and information technology tin can be used to arrange financing for the purchase.

If the proforma invoice results in an society, the final commercial invoice will closely resemble the proforma invoice. That means all of the costs included in the quotation are firm and may non vary beyond the terms outlined in the alphabetic character of credit.

Certain countries require a proforma invoice if they tightly control their currency, require an import permit, or protect local manufacture by placing import quotas on certain types of goods. For a deep dive into the benefits and features of a proforma, check out How Does the Proforma Invoice Fit in the Export Process?

Step 4: Finalize the Sale

After you send the proforma, the buyer will either reject or have your proposal. Every bit function of the credence process, they will most likely want to negotiate the terms of the auction. This volition result in a exact or written contract.

Non but should these negotiations include a word of the toll to be paid, but they should also include a word of:

The payment terms you'll be using, whether it'south cash in advance, open account or something in between.
The term of sale y'all'll be using, which is typically one of the 11 Incoterms 2020 rules.
How your goods will be shipped.
Who's responsible for shipping the goods.
Who's responsible for hiring the freight forwarder or carrier.
Who's responsible for filing the electronic export information through AES.
How the transaction volition exist paid. If y'all're using a alphabetic character of credit, you lot need to brand sure you lot accept the necessary documents to satisfy its requirements.
What documents need to be provided by which political party. As the exporter, you'll demand to meet whatever regulations your buyer may have in their own country likewise as the documentation and regulation requirements of the U.South.

Past taking intendance of all these important details before you send whatever appurtenances, you'll salve a lot of fourth dimension and avoid potential headaches—peculiarly if you have specific deadlines to meet.

Once you've reached agreement on these points and whatever others you or your heir-apparent wants to hash out, you'll receive the gild, which may appear in the form of a purchase guild.

Footstep 5: Set the Appurtenances and the Shipping Documents

Once you have finalized your sale and prepared your appurtenances for export, you need to prepare the proper shipping documents. Your export shipment may require you include these v export forms:

Commercial Invoice

The first form you almost ever need to include is the commercial invoice, and it is used by several parties throughout the shipment. U.S. Customs and Border Protection may review information technology for consign control purposes. The customs say-so in the destination country requires the invoice to clear the goods for import. The buyer may use the invoice to release funds through its banking concern to the seller. And the exporter may need it to brand an insurance claim if any impairment occurs during the shipment.

The commercial invoice includes these of import information elements. An exporter typically includes iii copies of the invoice with the original signed in blue ink.

Packing Listing

In improver, you would typically include a packing list, which provides the freight forwarder, carrier and ultimate consignee with information well-nigh your shipment, the packing details and the marks and numbers noted on the outside of the boxes.

A packing list is also used by customs regime in the importing country to assess security and compliance. And information technology is a required document to file a claim with the carrier or insurance visitor in the event of cargo harm or loss.

Certificate of Origin

While some countries will accept a statement of origin on the commercial invoice, the community regime of other countries may require a separate certificate titled a certificate of origin. The document of origin is documentary evidence that the appurtenances originated in the country stated on the certificate, commercial invoice or packing list.

If the United States has negotiated a free trade merchandise agreement (FTA) with the country to which you are exporting—and if your goods authorize for reduced tariffs under the terms of the agreement—you may want to provide the specific form for that trade agreement. Yous'll observe free PDF samples of many of these FTA certificates of origin on the Shipping Solutions website.

Shipper'due south Letter of Instruction

Based on the discussions y'all had with your buyer in step four about the type of export and who is filing through AES, yous may need to prepare a Shipper's Letter of Education (SLI). An SLI provides your company with a written record of who received the shipping documents, who to contact for questions, who to contact for proof of export and who issued the export control information that was used to back up the decision to export the goods.

In a routed export transaction—unless you specifically negotiate for filing—the forwarder/buyer will most likely file through AES. Otherwise, you tin can file through AES yourself or your amanuensis volition file through AES for you. If your amanuensis files, you must provide an SLI as well equally ability of attorney to file on your behalf.

Bills of Lading

You will need at least one—but y'all may need several—bills of lading to accompany your export. For case, y'all may need an inland pecker of lading to move your appurtenances to a port or airdrome. For moving goods out of the United states y'all will need a divide neb of lading, which is commonly filled out past your freight forwarder. If necessary, y'all will as well need to complete a dangerous goods form at this point.

Step six: Run a Restricted Party Screening (Once again)

Right before the goods transport for export, run ane last restricted political party screening to make sure cipher has changed on any denied or restricted party list. If you use Aircraft Solutions Restricted Party Screening Wizard to do this, your screenings will automatically be documented in the software, providing a paper trail of your due diligence in the event of an audit.

Stride vii: Miscellaneous Forms and Ship Your Goods

At that place may be other specific documents to set before y'all can consign your appurtenances. These may exist identified in the sales contract you negotiated with your buyer, documents required under the terms of a letter of the alphabet of credit or other payment options, or forms requested by the freight forwarder. These additional documents may including a bank draft or, for a temporary consign, an ATA carnet.

Once all your documents are accurately completed and yous fulfilled the other steps of this consign process, get alee and transport your goods!

One Concluding Tip: Record-Keeping

Don't forget that non only must yous ready a multifariousness of documents for your consign shipment, it is also your responsibleness to keep copies of all of your documents, as well equally all other correspondence throughout the sale, including phone calls, emails, etc. Subsequently all, it is your job—not your buyer's, your forwarder'due south or anyone else's— to document the whole process.

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This article was first published in January 2018 and has been updated to include current information and formatting.