DOCUMENTATION & SHIPPING TERMS

WHAT IS EXPORT DOCUMENTATION?

The paperwork that is required for an export sales transaction The means by which the shipping process is facilitated and recorded recorded. Documentation is essential for moving g goods through the channels of distribution, transferring responsibility or possession, clearing goods through customs customs, and facilitating payment according to the agreed upon terms.

WHAT IS THE PURPOSE OF EXPORT DOCUMENTATION? Export documentation provides evidence th t the that th negotiated ti t d terms t between b t the th buyer b and the seller have been complied with.
This is essential if the seller wishes to get paid

Export documentation provides important information that is used by the seller, the freight companies, governments, and the buyer.

THE KEY INFORMATION CONTAINED IN EXPORT DOCUMENTS

Description of the goods Mode of transportation p
rail, air, ocean

Terms of sale
Who Wh pays f for what? h t?

Origin of the goods Identity of the seller/shipper Identity of the buyer Terms of payment Shipping instructions p Evidence of shipment

COMMON EXPORT DOCUMENTS

Pro forma invoice Bill of Lading Certificate of Origin g Packing List Commercial Invoice Shippers Export Declaration (SED) Consular Invoice Inspection Certificate Insurance Certificate Dock/Warehouse receipt Letter of Credit Draft

DEFINITIONS
Pro forma invoice - basically a price quote. Describes the type and quantity of the goods to be shipped, value of the goods total cost of the transaction based on the terms of goods, sale, and other specifications. carrier Bill of lading - a contract between the seller and the carrier. The BOL is usually prepared by the carrier of forwarder. It documents the condition of the goods upon the carriers acceptance. It is negotiable when it is consigned to to order of meaning the buyer is allowed to take possession of the goods. Certificate of Origin - a statement required by some countries that certifies the origin of the exported goods (eg. The NAFTA certificate of origin)

DEFINITIONS
Packing List - An itemized list describing the contents of each package in a shipment. Used in determining the total weight eight and volume ol me of a shipment and for verifying the cargo. Commercial Invoice - Basically a bill for the goods from the buyer to the seller SED - a document required to be filed for every shipment exceeding limit in value. It is used by th Department the D t t of fC Commerce t to gather th statistical t ti ti l information on the types, volume, value, and ( ) of p products exported p from the destination(s) country.

DEFINITIONS...
Consular Invoice - A document required by some foreign governments for identifying and controlling imported goods Inspection Certificate C f - a document required by some foreign governments that certifies that the goods imported conform to the order Insurance Certificate - the document providing proof that the cargo (goods shipped) have been properly insured. (amount and type of insurance)

DEFINITIONS...
Dock/warehouse receipt - this document transfers accountability from the seller to the carrier. Letter of Credit - a letter from your customers bank to you you, in which the importers importer s bank guarantees payment, provided that all the terms stated in the letter are met. Draft - An unconditional order in writing from the d drawer t to th the d drawee th that t directs di t th the d drawee t to pay a specified amount to a named drawer at a fixed or determinable de e ab e future u u e da date. e

A GUIDE FOR DOCUMENT PREPARATION To ensure accurate document preparation, the services of a freight forwarder should be sought. However, the exporter should understand preparation p and the essentials of document p at least review the prepared documents. Seek explanation and instruction from the freight forwarder.

A GUIDE FOR DOCUMENT PREPARATION...

To determine the required documents for a given country and transaction, an exporter can:
solicit the services of a freight forwarder consult the Exporters Exporter s Encyclopedia Encyclopedia or the National Trade Data Bank (both available at the Center.)

WHAT IS A FREIGHT FORWARDER?

The freight forwarding professional advises clients of the best rates, routings and modes of transporting goods to or from any area in the world. The forwarder is the exporters agent and provides the traffic and documentation services consistent with the exporters exporter s needs needs, arranging for carriage with vessel operators, trucking companies and airlines specializing in the consolidation of container-load shipments. Using the many resources at their disposal, forwarders find the right right match match of services available so that products are moved by the most timely and costeffective means. Customized services to fit the clients operational p needs are forwarders specialty. Forwarders coordinate arrangements for storage, pick-and-pack operations, consolidations or full container movements as well as inland transportation to provide clients with true door-to-door service. From assisting with initial quotations or preparation of proforma invoices, to banking clients documents for collection, the professional ocean and or air freight forwarder is and essential component in the facilitation of international trade.

STEPS IN THE DOCUMENTATION PROCESS

Receive the order under accepted terms & consult with a banker or a freight forwarder. Begin organizing information for required export documents and export license applications. Evaluate modes of transportation, requirements for perishable products, and cost of various alternative modes. modes Prepare goods for shipping (marking/labeling, packing, ki consolidating/containerizing, lid ti / t i i i i insuring) i ) Complete p and forward required q export p documents.

STEPS IN THE DOCUMENTATION PROCESS...

Transport goods to port of export. goods to carrier. Transfer g Ship goods and forward appropriate export documents . Unload goods at foreign port. Clear customs. Transport goods from foreign port to intermediate and/or ultimate consignee.
Note: Responsibility for different steps in the documentation and shipping process depends on the terms of sale and the et od of o payment pay e t and a d collection. co ect o method