Directing the complex process of international shipping can feel like cracking a secret code where a single misstep in international shipping documents can delay your cargo and cost you time and money.
Whether you are a business owner or shipping professional wanting to expand your knowledge about vital documents for international shipping, I have got you covered. This article will discuss 9 important documents you need to improve your international shipping experience. Let’s dive right in!
1. Bill of Lading
A bill of lading ( BOL) is a contract between the shipper, freight carrier, and recipient that streamlines the shipping process. It acts as a receipt issued by a carrier to the shipper after receiving goods. This also serves as a record of the mode of transportation, details of the goods, and their destination.
It is one of the significant international shipping documents that can only be signed by an authorized representative of the freight company upon receiving the goods. Once it is signed, cargo can be shipped to its destination.
2. Certificate of Origin
Getting a certificate of origin for your cargo is very important in global trade. It tells which country the goods being exported come from. The exporter prepares this document, which must be certified by the chamber of commerce.
A certificate of origin helps with customs processes. It can also reduce costs through reduced tariffs and taxes if goods are from countries with supportive trade agreements.
3. Packing List
Little things matter, they say; it is so true about the packing list. This document lists all about shipment, including sizes, weights, safety measures, no of boxes, and other important details for smooth shipping.
Here are some other points why a detailed packing list is an essential international shipping document.
- The bank can require it with other documents you submit to get paid under a letter of credit.
- The freight carrier can use it to create a bill of lading.
- Custom officials in the destination country can use this list to find a specific item they want to check. They would not need to search the whole shipment.
4. Commercial Invoice
A commercial invoice is a document that acts as proof of sale between buyer and seller. This includes complete information on the parties involved in a transaction, the PO number, order number, payment information, the goods description, and the HS code. This document is crucial for custom clearance, confirming transactions, and determining taxes.
5. Air waybill
Air waybill is a contract between the shipper and a freight carrier when cargo is shipped by plane. This is non-negotiable and serves as a receipt. It includes shipper and receiver information, cargo details, and destination. This international shipping document helps track shipments so they can reach their destination safely.
6. Letter of Credit
A letter of credit is an unalterable document issued by a bank to guarantee payment from buyer to seller. To get this letter of credit, the seller must submit some documents to the bank on time. Bank can require documents like bill of lading, invoices, certificates of origin, etc. This document is essential to have smooth transactions worldwide.
7. Insurance Certificates
An insurance certificate is another significant international shipping document that secures your goods and maintains trust in global shipping. It exhibits as proof of insurance coverage for your cargo, protecting against risks of loss and damage during shipping. It is compulsory for international shipping.
8. Custom Declaration
A customs declaration is a legal document describing your cargo’s nature, value, and content. This document is required by customs authorities of both the origin and destination country to access duties and taxes. This also helps in verifying compliance with applicable regulations.
9. Export /Import License
Export/Import license is an indispensable international shipping document that allows you to ship cargo worldwide. These licenses assure compliance with relevant laws and conditions. Having them saves you from legal issues and facilitates your shipping process.
Conclusion
Knowing the most important international shipping documents optimizes your shipping process. In this article, we have discussed all necessary documents (bill of lading, letter of credit, certificate of origin, etc) and their roles in customs clearance and reduced taxes. You can streamline your global shipping experience by being up-to-date about these documents.
