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Shipping documentation

Numerous documents are required for shipping. The primary documents are listed
below with links to samples. Exporters should seriously consider having a freight
forwarder handle the formidable amount of documentation that exporting requires,
as forwarders are specialists in this process.

Documentation must be precise because slight discrepancies or omissions may


prevent merchandise from being exported, result in nonpayment, or even result in
the seizure of the shipment by customs. Collection documents are subject to
precise time limits and may not be honored by a bank if time has expired.

Most documentation is routine for freight forwarders and customs brokers, but the
exporter is ultimately responsible for the accuracy of its contents.

The following documents are commonly used in the shipping process:

← Airway bill
← Bill of lading
← Commercial invoice
← Inspection certificate
← Insurance certificate
← Packing list

Air waybills

Outline of air waybills and their use.

An air waybill is used for air transport and is documentary evidence of the
conclusion of a contract for carriage. It serves as:

• Proof of receipt of the goods for shipment


• An invoice for the freight
• A certificate of insurance
• A guide to airline staff for the handling, dispatch and delivery of the consignment.

Usually, the document consists of three originals and nine copies. The first original
is intended for the carrier and is signed by a export agent; the second original, the
consignee's copy, is signed by an export agent and accompanies the goods; the
third original is signed by the carrier and is handed to the export agent as a receipt
for the goods after they have been accepted for carriage.
Bill of lading (B/L)

Article explaning the certificate of owenership know as a bill of lading.

A bill of lading (B/L) is used for sea shipment and is a certificate of ownership of
goods. It must be produced at the port of final destination by the importer in order
to claim goods.

As a document of title, the bill of lading is also a negotiable document and you may
sell the goods by endorsing or handing it over to another authorized party, even
while the goods are still at sea.

Although negotiable bills of lading are in common use, some countries do not allow
them or make it difficult fro them to be used. You have to be sure that a negotiable
B/L is accepted in your country. Otherwise, a non-negotiable B/L is issued.

The B/L is a formal, signed receipt for a specified number of packs, which is given
to the export agent by the shipping line when the shipping line receives the
consignment. If the cargo is apparently in good order and properly packed when
received by the shipping line, the bill of lading, is deemed as "clean". The ship
owner thus accepts full liability for the cargo described in the bill.

See sample B/L below:


Commercial invoices

Sample invoice and overview.

A commercial invoice is a bill for the goods from the seller to the buyer. These
invoices are often used by governments to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoices to
control imports will often specify its form, content, number of copies, and language
to be used, as well as other important details.
Insurance certificates

Brief introduction into the world of insurance.

An insurance certificate is a representation of the insurance policy taken out by the


buyer or the seller (depending on the Incoterms) for a shipment.

• Blank insurance certificates are supplied by the insurer pre-signed and bearing
the open policy number of the exporter. For an air shipment, an air waybill serves
as an insurance certificate.

• For a sea shipment, an insurance certificate is issued as evidence of the


existence of the marine insurance policy.

• The marine insurance policy is a contract between the insured and the insurer
which defines the terms of the agreement between the insured and the insurer.

The packing list

Packing list sample and introduction.

The packing list indicates the number of items in the contents of each pack, along
with individual weights and dimensions. This list enables you to check that the
correct number of units has been received. Customs authorities can also easily
identify a specific pack if they wish to inspect.

See a sample of a packing list below:

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