Articles & Resources.
Tips for Customs
With the entry of the People's Republic of China into membership of the World Trade Organization the pace of international trade has quickened, aided by an explosion in e-commerce.
It is important that an exporting company understands its responsibilities in a documentary transaction, and a checklist like the one below will be advisable:
- Enter into a sales contract
- Obtain letter of credit (if required)
- Check details in letter of credit
- Hire carrier for transport of goods
- Arrange insurance
- Arrange inspection of goods prior to shipment
- Arrange packing and marking of goods
- Deliver to carrier
- Obtain shipping documents
- Transmit shipping documents
- Obtain payment under letter of credit
- Entry and customs clearance in country of delivery
- Liquidate customs duties and delivery to importer
- An international shipping checklist will also be advisable
Commercial Invoice
- Will a commercial invoice suffice or is a customs or consular invoice required?
- Do charges agree with the original quote?
- Are terms of delivery clear?
- Are terms of payment and currency clearly stated?
- Are unit descriptions, measures and prices recorded the same as on other documents?
- And exactly as required by the letter of credit?
- Is a destination control statement required?
Packing List
- Are shipper and consignee clearly identified?
- Do item descriptions and units of measure match the commercial invoice and the letter of credit?
- Are carton markings and numbers accurate?
- Does the packing list conform to the importing country’s requirements?
Shipper's Export Declaration (SED)
Is a SED required?
Has the correct export license designation been used? Is an individual validated export license required?
Have the commodity, consignee, and destination country been reviewed for export controls?
Bills of Lading
Are the consignee, shipper, and notify party clearly identified?
Do descriptions, markings and numbers match the commercial invoice and packing list?
Are ocean bills of lading marked “On Board” if that is required by a letter of credit?
If freight charges are included on the commercial invoice, is the bill of lading marked “Prepaid”?
Are any of the items classifiable as hazardous materials?
Certificate of Origin
Is an origin certificate required by the letter of credit or by the destination country?
Miscellaneous Documents
Pre-shipment inspection certificate?
Insurance certificate?
Manufacturer’s certificate?
Phyto-sanitary (plant health) inspection certificate?
Weight certificate?
List of Export Documents
Bill of Lading
A title document issued by a shipping company. It also serves as a formal receipt of the goods and a carriage contract. The holder of the bill of lading has a right to claim delivery of the goods from the shipping company at the port of destination. The most common bill of lading in international transport is the ocean bill of lading. A multimodal transport bill of lading may be used when more than one form of transport is being used.
Letter of Credit
A document issued by the importer- purchaser’s bank to guarantee the payment of the draft to the exporter for the purchase of the goods or upon the presentation of documents by the exporter. A transferable letter of credit allows the exporter (beneficiary) to make the credit payable to others (suppliers).
Letter of Indemnity
This document allows a carrier to release goods to the consignee not yet in possession of the bill of lading. It is a guarantee to indemnify the carrier from all liability related to the release.
Export License
A government issued document granting permission to export the specific commodity to a specific country.
Dock Receipt
This document certifies the receipt of the goods by a carrier at the port of shipment.
Warehouse Receipt
Acknowledges receipt of the goods by a warehouse operator. A “dock warrant” not only acknowledges receipt but also is a document of title.
Commercial Invoice
This document is prepared by the exporter and lists and describes the goods. It generally also gives the prices, discounts, quantities and delivery and payment terms. It is used by governments to place a valuation of the goods for the assessment of customs duties.
Consular Invoice
An invoice certified by the consul of the country of import. It is used by customs officials to verify the value, quantity, and quality of the goods. The consul may compare the export price with the marker price in the exporting country to determine if dumping is evident.
Certificate of Inspection
An inspection certificate is issued by an independent inspection company to assure the purchaser of the quantity and quality of the goods being shipped. Pre-shipment inspection is a requirement for importation of goods into many developing countries.
Certificate of Origin
This document may be required by the country of import. It is provided by a third party, such as an official of the local chamber of commerce or an official of the consular office.
Bill of Exchange or Draft
An order addressed to the importer or the importer’s bank for the payment of a fixed sum at sight or in the future (time draft).
ATA Carnet
An international customs document for the temporary duty free import of goods into a country for display, demonstration or other purposes. A carnet is usually good for one year from the date of issuance. Generally, a bond or cash deposit of 40 percent of the value of the good is required.
ISO 9000 Certificate
International quality standards that certify the exporter meets certain minimum requirements of quality.
Marine Insurance Certificate (or Binder)
Generic form of insurance available even in multi modal transport.