Sea Freight Shipping Documentation: Imperative Things To Consider
The world is growing by leaps and bounds. Everyone is doing their own business and is ready to expand it across the borders in the interconnected era. Transportation of goods across distinct territories is a smart idea to establish oneself in the international market, especially when you are exporting your goods to developed countries like the United States, UK, and Europe.
But all the planning you have done so far is not fruitful unless you are an experienced businessman who usually exports and imports goods globally. However, this may not always be the case; there are many businessmen too who are new to the world of international trade. For them, customs clearance can be a complex task. Therefore, in this blog, we will guide you with the necessary documents you’ll require for sea freight shipping. You can step your foot to unlock new business opportunities along with smoother transportation services.
What is Customs Clearance?
But before guiding you through the document requirements, let us tell you about a significant term: ‘Custom Clearance.’ The most important as well as backbreaking process is customs clearance. Getting your items legally imported or exported across international borders requires a process called customs clearance.
Various Essential Documents Needed for Ocean Freight Shipments
Bill of Lading:
This document is highly important in verifying the receipt of goods for transportation. Issued by the carriers or freight forwarder, it bridges the gap between the shipper and carrier and acts as the document or receipt for the goods.
An easy example to explain this: suppose someone has finally paid for the car he has been wanting for months. This car is expected to leave port tomorrow. If the deal goes through, then it means that he should go and pick up the car that very day so that the negotiation is complete. The negotiable bill of lading serves as proof that the carrier receives this imported vehicle from its exporter in good condition, which is necessary for ocean transportation. Therefore, whoever possesses this document becomes responsible for shipping those goods.
Commercial Invoice:
A commercial invoice is something that is extremely necessary while getting your cargo across borders. Through this invoice, the seller or exporter charges a particular amount from the buyer or importer.
This bill connects the seller to the buyer. When determining tariffs and customs duties, governments frequently use these invoices to estimate the actual value of the items.
Letter of credit:
A letter of credit is the most fundamental type of credit in an international commercial exchange or transaction. It is irreversible by default. In accordance with the contract, a bank promises to pay the exporter a specified amount in agreed currency on behalf of the importer.
Additionally, the seller submits the required paperwork by a specified date. It also contains details like the technical description, amount of goods, and documentation requirements in addition to the description.
Export Packing List:
A packing list is frequently needed for shipments within the country, but an export packing list is far more comprehensive and thorough. Each package’s contents are listed item by item in an export packing list, which also provides details about the package type. Additionally, export packing lists display each package’s weights and measurements in both US standard and metric units.
Export and Import Customs Declaration:
Forms known as export and import declarations are used to tell customs officers about the product type, quantity, and value of the items being shipped. This document is also required for calculating mandatory duties and taxes based on export and import regulation compliance. This document is essential during the customs clearance process. Considering the packing list and invoice, a customs broker prepares it.
Certificate of Origin:
A mandatory document that solely identifies the nation in which the items were manufactured is the certificate of origin. It is an official, self-attested certificate that proves the goods’ origin.
It is useful in determining whether appropriate duty rates are eligible under free trade agreements or in accordance with import laws and trade policies of the importing or exporting country, which is a requirement of the customs authority.
What’s forward?
Above mentioned are some common documents that are necessary for your freight shipping across boundaries. Having knowledge of these documents will be really helpful in order to pass your custom clearance process. Customs officers will verify your shipment based upon the authentic documents you provide during your customs clearance.
But if you are still confused and doubt managing it alone, then you must hire a custom broker. A customs broker is meant to guide. They get your customs clearance done by verifying your documents with customs officers at the clearance time. In return, they will charge you some money, which in turn helps you reduce your stress.