International Requirements of Shipping Documents

International Requirements of Shipping Documents

The two activities defined by International movement of consignment are: Import and Export. In both activities, many documents change hands forming a long chain of exchange. The Documents start from the parties responsible for import and export, not excluding the companies that are handling shipping and movement who will look at another set of documents to move the consignment in international waters. Even the banks will have to look into the payments if it’s collected from the concerned parties. In this article, we would look into the set of documents that are very essential to pave the way for a consignment to move to its destination in international freight forwarding.

Invoice

The invoice will have all the specifications about the nature of the product that is being moved, from its identification to its market value. It will also have the details on how it’s going to be paid. This document is essential for the party responsible for importing the goods, as it has all the specifics of the transaction that will be submitted to tax authorities.

Proforma Invoice

Proforma invoice is made by the supplier or shipper to provide the purchaser or consignee with the details of the products with its rate as agreed upon by both parties. Based on the proforma invoice, the original invoice is prepared and its also a way to declare the goods at customs.

Purchase Order

The Purchase Orderis an official signed document to confirm that an order has been processed. It comprises information about the parties that are involved, the consignment that is been sent, and the date of the agreement been signed.

Bill of Lading

Bill of Lading is a crucial document as it offers the shipping lines with vital information throughout the cargo’s shipment process. It contains detailed information on where the consignment is headed, the details of the consignment, and how it needs to be handled.

Packaging List

Packing List is morelike the commercial invoice but doesn’t include information on the market value of the goods that are being shipped. It contain specifications, like:

• Invoice number
• Details of the goods
• Weight of the package

Letter of Credit (LC)

Letter of Credit is given by the bank which confirms that the consignee’s payment will be processed on time based on the agreement. But In situations, wherein the consignee is not able to process the payment on time, it’s the bank responsibilities to close the transaction by covering the remaining amount of money. The international shipping is complex and it has to take into consideration all the cumbersome legislation, the uncertainties, the distance between parties, etc.

Certificate of Origin

It is the party responsible for the export of the goods who prepares the Certificate of Origin, they take into account the laws and standards of the destination country, who is importing it. Sometimes may it need the certification from Chamber of Commerce or a Consulate.

Multimodal Bill of Lading

This is in a situation where the goods are moved from its origin to a destination point and might have to use different modes of transport to deliver it to the final point of destination. Every detail with regards to such transport would be recorded in the Multimodal Bill of Lading. The above are some of the documents that are prepared while moving shipments in the international waters.