CHAPTER XII

SHIPPING DOCUMENTS
¨ Commercial Invoice
¨ Packing List
¨ Ocean Bill of Lading
¨ Marine Insurance Policy
¨ Special Shipping Documents
¨ Pro Forma Invoice

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 Commercial Invoice
 Must be signed by the shipper or his agent
 Information required in a commercial invoice
(1) Port of entry
(2) Date, place, and names of seller and buyer
(3) Detailed description of the goods
(4) Quantities in weights and measures
(5) Purchase price
(6) For consignment, the value of each item that
would be in the ordinary course of trade

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 Commercial Invoice
(7) Kind of currency
(8) All charges incurred after the port of
exportation: freight, insurance, commission.
(9) All rebates, drawbacks, and bounties allowed
after exportation
(10) Country of origin
(11)All goods and services furnished for the
production not included in the invoice price

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 Commercial Invoice
¨ Special Requirements
 Separate invoice required for each shipment
 Assembled shipments: May be included in one
invoice if same consignee by one carrier
 Installment shipments: May be included in one
invoice if they arrive within 10 consecutive
days
 Production assists: Must be included
• Provided to exporter by importer free or at a reduced
cost
• Dies, molds, tooling, printing plates, artwork,
engineering work, design, and financial assistance

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 Commercial Invoice
 Exchange rate: If exporting country uses
two or more exchange rates, show exchange
rate used
 Pro forma invoice:
• When a commercial invoice is not available
at the time merchandise is entered
• Pro forma invoice (prepared by importer)
must be filed by importer
• Bond must be submitted for production of
required invoice within 120 days. If needed
for statistical purpose, within 50 days.

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 Frequent Errors in Invoicing
1) Commission or royalty not included in
the price
2) Cost of goods paid to domestic
manufacturer instead of exporter's price
including his profit
3) Omitting value of materials supplied by
Importer. Must be included in the invoice
price
4) Replacement goods excluded. Must
show full price less allowance for
defective goods

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 Frequent Errors in Invoicing
5) If sold at list price less a discount,
invoice shows net price instead of full
price less discount
6) Goods sold at a CIF price but FOB price
shown
7) Importer is shown as purchaser, even if
Importer is sales agent or partner of
exporter who shares proceeds

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 Packing List
 Packing recommendations
 Pack and invoice in systematic matter
 Show exact quantity of each item in each
package
 Put marks & numbers of each package
 Show those marks & numbers on invoice
 Packing list
 Easy identification & separation of shipments
 Gross Weight and Net Weight
 Dimensions of each package
 No price shown

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 Ocean Bill of Lading
¨ It carries the title to the goods
¨ Goods can be sold during transit with
endorsement of the B/L
¨ Carrier does not release goods without
original B/L

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 Ocean Bill of Lading
¨ Letter of Credit & Ocean Bill of Lading:
 UCP 600 sets forth the conditions acceptable
and unacceptable to banks for payments
 Exporter must make sure the B/L conforms to
all conditions stipulated in the Letter of Credit.
 Importer must check if ocean freight and
surcharges are the same as quoted or agreed
under FOB.
 Importer must pay attention to Arrival Notice
as to Arrival date and free period before
demurrage starts
 Free period: 12 days for Container Freight Station
and 7 days for Container Yard

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 Marine Cargo Insurance
Policy/Certificate
¨ It covers a loss or a damage to the cargo
during transit
¨ Must meet the following conditions:
 The same description of products as that of a
letter of credit
 The same coverage required in the letter of
credit
 The same currency as the letter of credit
 Effective date of policy or certificate: the
same or earlier than shipment date
 Amount of insurance: not less than 110% of
CIF or CIP

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 Special Shipping Documents
¨ UNCTAD Certificate of Origin Form A or
any Certificate of Origin
– If CBP requests, importer must submit it for
duty-free entry under special tariff treatment
programs and Free Trade Agreements
¨ NAFTA Certificate of Origin
¨ Phytosanitary certificate
 Required for importation of fruit or produce
issued by exporting country's quarantine
inspector
¨ Foreign site certificate of inspection issued
by USDA's quarantine inspector
 Required for importation of fruit or produce

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