4 important documents in international shipping

Whether you are an importing pro or a newcomer to the industry, there are four documents that will be required in order to get any business done: Bill of Lading, Certificate of Origins, Commercial Invoice, and Packing List. Without the four documents listed above, it is impossible to move goods and receive payment.

1.Bill of Lading

2.Certificate of Origin

3.Commercial Invoice

4.Packing List

Bill of lading

The bill of lading is a required document to move a freight shipment. The bill of lading (BOL) works as a receipt of freight services, a contract between a freight carrier and shipper and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly.

The BoL contains important information such as:

• Who is the shipper and who is the consignee
• Which carrier issued the BoL
• The freight forwarders who have had and will have the shipment
• The ports of origin and destination
• Which party will be paying for the journey (based on the already made agreement between buyer and seller)
• What is in the shipment
• How the shipment is packaged
• How much the shipment weighs, and the dimensions of the shipment
• The name of the ship/vessel that the cargo is traveling on
• Any other instructions needed for a successful journey

 In other words, the BoL is the evidence of title to the goods. If there is an issue with the shipment, for example, if some of it is missing or damaged, the BoL shows who (the carrier) can be held responsible.

Certificate of Origin

Along with a BoL, shipments will usually (but not always) have a certificate of origin (CoO) that shows where the goods were actually made. Determining the country of origin is important because tariffs and duties differ depending on this information, and some countries are under the effect of an embargo or other types of trade policies. The CoO is written by the exporter but must be verified by a certified issuing body such as a local chamber of commerce. Many products are a combined effort by more than one country – in this case, the origin country could be where the last significant part of the process took place or where the most amount of work (equal to more than 50% of the total cost) took place.

Commercial invoice

The document recording a transaction between the seller and the buyer. Commercial invoices are normally prepared by sellers, and should include the following information:

• Date, names, and commercial addresses of the seller and the buyer.
• Precise denomination and quantity of goods.
• Unit and the total price of the goods in the agreed currency.
• Means and conditions of payment.
• Delivery terms of the goods (it refers to Incoterms published by the International Chamber of Commerce). Nowadays the version in force is that of the year 2010. Apart from the above-mentioned data, which are demanded in the regulation in force, this document must also include:
• Seller´s and buyer´s identification for VAT purposes (in intra-communitarian operations).
• ORDER reference number.
• Origin of the goods.
• Tariff code of the goods
• Means of transport.
• A signature by an authorized person at the seller´s company, if required by the buyer´s government.

Packing List

Although submitting a packing list is optional, very often your factory attaches it with the CI and BoL. A packing list comes in handy when the buyer needs to claim insurance for any damage or defect. It specifies how the shipment is packed and labeled. When packaging and labeling are done appropriately, it will facilitate customs’ inspection and examination and minimize delays in the shipment’s release from customs.

A packing list can also come in handy for both buyer and seller in many ways such as:

1. It offers an accurate count of items being shipped from factory to the buyer’s warehouse
2. It has details needed to create a CoO
3. With hazardous materials, it makes creating a Material Safety Data Sheet easier
4. Can be used by customs broker to facilitate passing the shipment through customs
5. Can be used in insurance claims if something happens to the shipment in transit 

When you will work with a freight forwarder, they will need all four documents to start moving your shipment.