Types of Commercial Documents Used in Export Trade
Shipper Instruction Used for export control and as a source document for the agent authorized to prepare the submission of Electronic Export Information (EEI) on behalf of the United States Main Party (PHEIC). A Declaration of Destination Control (DCS in Part 758.6 of the BIS Export Administration Regulations (EAR)) is required for exports from the United States of items on the Trade Control List that are not EAR99 (goods that do not require a permit) or that are controlled under the International Traffic in Arms Regulations (ITAR). A DCS will appear on the commercial invoice, sea waybill or air waybill to inform the airline and all foreign parties that the item can only be exported to certain destinations. For more information, visit the Industry and Safety Bureau website. If your goods are shipped by seagoing ship, you will need a bill of lading. A sea waybill can serve as both a contract of carriage and title deed for the cargo. There are two types: Destination Control Declaration This declaration is indicated on the commercial invoice and the bill of lading/air waybill and informs the carrier and all foreign parties that the item can only be exported to certain destinations. A commercial invoice is the most commonly used document in international trade. It is required by the customs authorities of the country of destination. It is required for all exports outside the EU. (For EU shipments after leaving the UK, a commercial invoice may be required, depending on the agreed customs arrangement).
This document is used to determine the value of imported goods so that applicable duties and taxes can be calculated. A commercial invoice should; The commercial invoice may be similar to the pro forma invoice that you originally sent to your customer as a quote, although it should contain additional details that you didn`t know before. For example, once you have the commercial invoice, you probably have an order number, order number, or other customer reference number. You may also have additional banking and payment information. Depending on the agreed terms of sale – remember that this is usually the Incoterm you choose – hire a freight forwarder to work for you, the exporter, or in the case of a forwarded export transaction, the buyer hires a freight forwarder. Packing lists are used for a variety of purposes. On the one hand, customs officers in the United States and customs officers in the country you are exporting to can use the list to identify the goods to be inspected. Second, carriers use export packing lists to help create bills of lading. There are three common consignment notes: the domestic waybill, the sea waybill and the air waybill.
In the case of export transactions, importing countries require certain documents due to legal necessity. These documents are received by the exporter and sent to the importer. A comprehensive guide to submitting electronic export information in the Automated Commerce Environment (AESDirect) is an excellent resource. See EEI and AESDirect. To log in and connect directly to ACE, visit the U.S. Customs and Border Protection portal. This document is prepared by the manufacturer and is certified by a government agency or chamber of commerce. It is used to identify the manufacturer`s country where the goods were manufactured. For example, the U.S. Food & Drug Administration requires a Certificate of Origin for every product imported into the U.S. In international trade, the use of correct and compliant export documents for shipments is essential. Incorrect documents can lead to delays in delivery, and troubleshooting issues can cost time and money.
The different documents used for export and import shipments to and from different countries can be very different. Below we explain the common types of export documents and their use, as well as the information they must contain or demonstrate. A consular invoice is a form obtained through a consular representative of the country to which you are shipping and which confirms the shipment of the goods. It is not mandatory in all countries, but it is used to help many emerging economies facilitate the collection of tariffs and taxes. First and foremost, a packing list is proof of reimbursement under a letter of credit, hazardous (or non-hazardous) substance declaration, commercial invoice or certificate of origin. Articulate other reasons for the importance of PL; International trade, in particular, requires a variety of documents, such as commercial documents, financial documents, transport documents, insurance documents and other documents related to international trade. Although the number of documents that play a role in international trade is high, most of them are quite common. Free trade documents required to obtain favourable customs treatment and be based on the rules of origin established for the exported good. Documentation varies depending on the country accepting the exported goods.
The United States has free trade agreements with 17 countries. For some agreements (Israel, CAFTA-DR and NAFTA), a special form must be completed. Other agreements have a streamlined certification process that requires a free declaration of ten data elements. Importing and exporting documents also helps facilitate the shipping process. Providing all information about the goods to be shipped helps create transparency between the importer and the exporter. This is particularly useful because face-to-face interactions are rare in the world of international trade. A domestic consignment note is often the first transport document required for international shipping created for your export. It can be prepared by the inland transport company or you can create it yourself. This is a contract of carriage between the exporter and the shipper of the goods, which specifies where the goods are destined; It also serves as a receipt that the goods have been collected.
Once you have sent a pro forma invoice to your international prospect and received their order, you will need to prepare your goods for shipment, including the documentation that must accompany the goods. Among these documents, the commercial invoice is one of the most important.
