Shipping to other businesses domestically requires creating an invoice and shipping label, but even the most experienced domestic shippers may feel concern about the extensive list of requirements for international exports. Though the rules are broad, you can successfully get your products to their destination if you understand the export documents you need and how to fill them out correctly.
Jump To Sections:
- Shipping Documents for Export
- Export Procedures and Documentation
- How a Freight Forwarder Can Help With Exports
- What Can Go Wrong When Creating Export Documentation
- Export Checklist
When you ship internationally, you must have the correct export documentation to ensure your products get to their destination. Something as simple as not correctly outlining the contents of the containers or misspelling your company name could result in your products taken into custody, resulting in lost profits. Here is your one-stop export documents checklist to make sure you have everything you need to get your goods to another country.
Shipping Documents for Export
Documents for exports of physical goods fall into one of four categories — sales, shipping, regulatory and origin. This list also indicates the order in which you fill out these forms. Your sales forms will come first after making the sale. Fill in shipping documents next as you package your goods for transportation. Regulatory paperwork may require some information from the shipping documents. Technically, you can fill in the certificate of origin at any time, but you need to see if the country you deliver to requires it. You can find blank templates for many of these documents online.
Sales documents give information about the sale. Information in these papers includes the seller and customer, what the products sold are, where the products originated, their destination and the billing price.
Shipping documents describe what products ship and how they will reach their destination. These files outline the contents of the shipment, information on shipping insurance carried, contact information for the logistics point person and the methods of transportation.
Documents for regulatory compliance show that you have followed all legal rules of the U.S. and the destination country. This information may include safety certificates, licenses or permits.
The last type of documentation covers the place of origin of the shipment. These papers importantly show that your products genuinely came from the United States and are not low-quality, counterfeit products from another country.
1. Bill of Lading
The bill of lading is a contract that outlines the seller, goods and the carrier. The customer receiving the product needs an original bill of lading in order to collect product upon reaching the destination country. Two types of bills of lading existing. The straight one is a fixed agreement without any room for negotiation. A shipper’s order bill of lading allows for the deal to change hands by buying, selling or trading while the carrier transports the goods.
If you ever need proof of export documentation, you may use the bill of lading or the air waybill.
2. Pro Forma Invoice
The pro forma invoice formally quotes the price for export goods. These forms have much more information than traditional invoices you may prepare for domestic customers. The pro forma invoice includes the price of the products, sales terms and the shipping cost and method. In many countries, the local governments require businesses to have a pro forma invoice to get import permission or to exchange national currency for U.S. dollars.
Though pro forma invoices have additional information on them that your typical invoice does not include, you can use any format you like to create one of these forms. Many businesses use an amended form of their standard invoice for a pro forma. If your document includes all the required information, the format is not as important.
A pro forma invoice must include the following information to be complete:
- Names and addresses of buyer and seller
- Reference number and date of inquiry for the buyer
- List of requested goods and a description of each
- Pricing of each item in U.S. dollars as well as whether the products are new or used
- Cubic volume and dimensions of the packed export container in both U.S. and metric units
- Gross and net shipping weights in U.S. and metric units
- Amount of trade discount, if given
- Point of delivery
- Payment and sales terms
- Costs for insurance and shipping
- Quote validity period
- Charges the customer pays
- Estimated date of shipment from a U.S. airport or port
- Sale currency
- A statement that the included information is true
- Information about the country of origin for the products
The pro forma invoice has information that you will copy to most other export documents, so completing this form first will help you through the entire shipping process.
3. Commercial Invoice
Commercial invoices serve as final bills you create just before shipping the goods. The data included in these forms is so crucial that incomplete invoices will result in fines or delayed shipments.
Local governments use these forms to assess the value of your imported goods. Because the local governments importing your products use these, they may have specific requirements for content on the forms. Check with your destination country the for required information.
While some of the information on a commercial invoice repeats that on a pro forma invoice, they are not the same form. A commercial invoice requires more data. Commercial invoice requirements for export are:
- Seller’s name and address
- Buyer’s name and address
- Receiver’s name and address, if different from the buyer
- Exporter assigned invoice number
- Customer reference number for overseas clients
- Terms of sale and delivery agreement
- Terms of payment, including conditions, currency purchase order from the customer and letter of credit, if needed
- Currency agreed upon by the seller and buyer
- Method of shipment via ocean, air or surface
- Total number of units
- Full description of shipment including container type, gross weight per container, quantity of products, and net and gross weights of products in kilograms
- Price per product unit
- Total price
- Total commercial value
- Miscellaneous charges paid by the customer including insurance and export packaging
- Certifications the shipper needs for anything listed on the invoice
Additionally, package marks on the invoice and each container should include shipper’s company, country of origin, the port of entry, package weight in kilograms, package dimensions and the optional control number from the shipper.
4. Export Packing List
Compared to the packing slips you use for shipping within the U.S., export packing lists have much more information on them. Having accurate information on this list is vital because customs agents may compare the shipment to it.
When filling out the export packing list, you should use HS numbers. HS, which stands for harmonized system, is a numeric designation for package contents used by 98% of the trade world. Customs agents use these codes to determine product class and tariff rates. You will find these codes, also called schedule B codes, in the U.S. Census Bureau’s online databases where you can input the item description and it returns the correct six-digit code.
This itemized list has the following information:
- Package type, such as carton, box or drum
- Weights including net, tare and gross in U.S. and metric units
- Package markings such as 1 of 3
- Listing of contents with HS codes, if required
5. Air Waybills
If you ship via air, you will need an air waybill. The information on them is specific to the shipper you use. Check with your carrier for the particular air waybill that it uses. Unlike some types of bills of lading, these documents are never negotiable.
6. Certificate of Origin
Not every country or buyer will require a Certificate of Origin, and in some cases, if they do, they will not need an official document but a statement on your company’s letterhead. Check with your buyer or exporter whether you must include a certificate of origin with all your products, some of your shipment or don’t need one at all.
Generic Certificates of Origin may not suffice for countries with a Free Trade Agreement with the United States. For some of these countries, you will prepare the document as the exporter, but other countries — Australia, Chile, Dominican Republic, Morocco and many Central American nations — put the certificate of origin responsibility on the importer. Some nations, particularly countries in the Middle East, require notarized Certificates of Origin. You will need to find out the specific requirements of the country where you need to import goods to.
Regardless of its appearance, you may need this document certified by the government or a chamber of commerce. The certificate gives information on where the manufacturer created the products.
7. Electronic Export Information
The United States requires electronic export information (EEI) filed for most shipments valued at over $2,500. If your goods require an export license, you will need EEI regardless of the shipment’s value. This EEI replaces the Shipper’s Export Declaration paper.
To set up EEI, you will need to register and file through the U.S. Census Bureau’s website. After registering, you will file the EEI through the Automated Export System (AES) also found at the Census’s site.
8. Export License
If you export products, you are likely in the 95% of exporters who do not need licenses. You only need an export license if the products you have require it, the country where you ship to demands it or the end-user needs it. Products that need an export license typically have some military use. You will find these products on the Commerce Control List (CCL) from the Bureau of Industry and Security.
On the CCL, you will find categories of goods, and the specific export control classification number (ECCN) for each product. If your product has a listing, you will need to contact the Department of Commerce for an export license. You can apply online through the SNAP-R system for your export license.
9. Country-Specific Information
You will have country-specific information and papers to fill out for some destinations. Always check with the country you are shipping to. You may need some of the following for shipping to countries that require these documents:
- Consular invoice
- Inspection certificate
- Insurance certificate
- Pre-shipments inspections
Some countries require product-specific certificates depending on what you ship. These include documents for:
- Radiation certificate for plants and animals
- Phytosanitary certification for fresh produce, lumber and plants to verify freedom from agricultural diseases
- Ingredients listing when food product labels lack adequate information per the importing country
- Health certificate for animal products and live animals
- Halal certification for meat and poultry products that were slaughtered per Islamic law
- Certificate of analysis for pharmaceutical products
- Dangerous goods certificates
Export Procedures and Documentation
The shipping documentation process requires you to fill out all the necessary forms carefully. Because the process is so confusing, even the U.S. Commercial Service recommends that you have a freight forwarder take care of the paperwork.
Freight forwarders handle the regulations of the U.S. customs and those of other countries regularly. These professionals can help you to identify which forms a particular country requires and if you need extra information or forms. Getting an expert to help you can prevent problems arising when things go wrong with the documentation.
Even if you hire a freight forwarder to handle the logistics of moving your products and filling out the paperwork, you as the exporter still hold responsibility that all information is correct. Find a qualified freight forwarder with extensive experience in the field. These experts know how to wade through the legal regulations to find the right paperwork for wherever you need to export your goods.
How a Freight Forwarder Can Help With Exports
When it comes to getting help with shipping your goods overseas, you do have resources available to ensure you have all the paperwork and payments required. Freight forwarders work in your country and help you with exports while customs brokers work in the import country and assist you in bringing your goods into their nation. You can work with one or both, depending on how much of the export task you want to handle yourself.
If you choose a freight forwarder to assist you in the export of your products, you need to know what services you can expect. Check your freight forwarder for a license from the Federal Maritime Commission, which regulates and licenses these professionals. The tasks freight forwarders perform include everything needed to get your goods from the docks to the door of your buyer. Tasks freight forwarders do include the following:
- Arrange transportation and the tracking of the shipment via whatever methods necessary — air, surface or sea
- Prepare all shipping and export documentation
- Warehouse the shipment until ready to leave the dock
- Book cargo space on a vessel or plane
- Negotiate for the best shipping rates
- Consolidate freight
- Purchase cargo insurance
A customs broker provides a similar service with a distinct difference. Whereas freight forwarders help with the logistics of shipping and are a good option for first-time exporters, customs brokers are licensed and regulated by the Customs and Border Patrol. These agents ensure any imports meet U.S. regulations for incoming goods.
If you do not use a freight forwarder, consider finding customs brokers in the country you want to export to. These professionals can help with local import requirements. For example, in Australia, the Australian Border Force controls the import of goods and licenses customs brokers for the country. You will find information about importing from either the regulatory agency that licenses customs brokers or from the brokers themselves.
What Can Go Wrong When Creating Export Documentation
When you create export documents, accuracy is imperative. If you make a mistake anywhere on the papers, you could find yourself paying the price for the error. Written errors are only one form of mistake you can make. Taking too much time for the process can also cost you. If you don’t want to lose money or business from undelivered or unpaid products, watch out for missing or incorrect information on your export documents.
Making any mistakes on your export documents could keep your products from getting into the destination country, nonpayment or seizure of your goods by customs.
Avoid such problems by creating an export checklist of all the forms you need to ship to a specific country. Check off the documents as you fill them out, and have another person verify the information on the forms is correct. Getting a second set of eyes on the forms may help spot errors you would have missed.
1. Letting Documents Expire
Many documents for collection have limited time frames for completing the transaction. If you fail to complete the export during the allotted time, the bank may not honor the document, potentially resulting in nonpayment.
To avoid this situation, do everything you can to move paperwork and products through exportation as quickly as possible. If not, your buyer could end up with the products but you may not get the money from them.
2. Inaccurate or Incorrect Information
Failing to completely fill out the information or not having accurate data on the forms could result in the importer rejecting your package. Common reasons an import country may refuse to accept your products include not labeling the packages correctly or having the right information on the required documentation.
To prevent this error, double check the information on all documents or hire a professional freight forwarding service to verify your information for you.
3. Not Having the Correct Documents
Because export documents differ based on the importing nation, you may not have the correct forms for a certain destination. For example, if you are shipping frozen chickens to nations in the Middle East, you will likely need a Halal certificate to accompany the shipment, but non-Islamic countries may not require this document.
Just as incorrect information can bar your shipment from entering a country, so can missing documents. Check the specific import country’s requirements before shipping any goods.
Export Checklist
When shipping goods overseas, make the process easier with a checklist.
- Determine if you need an export license by referring to the Commercial Control List.
- Apply for an export license, if you need one, at the Department of Commerce’s SNAP-R website.
- Look up the Schedule B or HS number for your product.
- Register and file electronic export information online at the U.S. Census Bureau’s website.
- Look up information on the forms needed to export your goods into the destination country.
- Gather and fill-in information on basic export documents and any additional forms required by your import country. Fill in sales documents first, then shipping, regulatory and origin paperwork. These include the bill of lading, air waybills, certificates of origin, commercial invoice, pro forma invoice and export packing list.
- Get any forms notarized or certified as needed.
- Retain copies of all export documents for at least five years in case of an audit.
Contact Cherry’s for All Your Material Handling Equipment
While ensuring you have all the information needed for export compliance, you must also make your products ready for international shipping. At Cherry’s, we offer export pallets and other supplies for shipping and receiving. Our one-way export pallets have a special design to protect your goods through international shipping. Loading your products onto our pallets makes transporting them to the docks or trucks easier. For more information about our pallets or custom solutions for your material handling needs, contact us online or call us at 877-350-2729.
