/ By tjchinafreight ivy / Shipping

Packing list – Simple Guide

Aerial view of an International port, Business logistics concept, Cargo Container ship in import export and business logistics, Shipping harbor.
Aerial view of an International port, Business logistics concept, Cargo Container ship in import export and business logistics, Shipping harbor.

What is a packing list?

A packing list is a document used in international trade. It provides exporters, international freight forwarders and final consignees with information about the shipment, including how the shipment was packaged, the dimensions and weight of each package, and the markings and numbers on the outside of the box.

Why do I need a packing list?

A packing slip provides you with information about your shipment and requires your signature upon receipt.

It is only required when the goods being transported are packaged into larger units (for example, containers or aircraft consoles).

packing list
packing list

What is the purpose of a packing list?

It can be said that the packing list is one of the important documents for sending or receiving shipments.
Therefore, it plays a fundamental role in achieving the efficiency of the entire transport process.
The shipping department uses this document to enable them to know the delivery details of the goods.
It allows shippers to ensure that they have included all items in the shipment.
Additionally, recipients or consignees can refer to this document to confirm that each item is included in the shipment.
Also, packing slips help with order management.
It facilitates smooth transition, processing and shipping of orders.
Order management mainly involves managing the life cycle of a product and keeping track of it until it reaches the customer's destination.
As a result, entities can easily check and track the status of product shipments, simplifying the management process.
This is also important when an order arrives in multiple packages.
In this case, what it does is keep track of what has and hasn't arrived.
As a seller, you may also consider using this document as an additional branding opportunity.
Ideally, you can create a design similar to your brand and use microcopy to express your voice.

Why is a packing list important in shipping?

  • Physical proof of the item shipped
  • Check and Cross Check
  • Identification of lost or damaged goods
  • Strengthen business relationships
  • Allow customs to estimate the value of goods
  • Express freight booking

Is there a legal requirement to provide a packing list in international shipments?

Different countries have different policies on the need for import orders.
In some countries, a packing list is a mandatory requirement for any type of imported product.
Essentially, this document is always required by the customs authorities of these countries to clear the goods
On the other hand, some countries only require packing lists for certain imported products.
Simply put, there are certain products that can only be cleared at customs after submitting a packing list.
In short, the legality of this document is based on whether it is mandatory or not, depending on the specific country.

/ By tjchinafreight ivy / International

Russia to update its strategy in WTO amid sanctions, says Putin

Russian President Vladimir Putin chairs the supervisory board meeting of the presidential forum "Russia - Land of Opportunity" at the Kremlin in Moscow, Russia April 20, 2022. 
Russian President Vladimir Putin chairs the supervisory board meeting of the presidential forum "Russia - Land of Opportunity" at the Kremlin in Moscow, Russia April 20, 2022. 

On the 20th local time, Russian President Vladimir Putin said at the Metallurgical Industry Development Conference that the illegal sanctions against Russia by the West are contrary to the principles of the WTO. Putin ordered the federal government to make an assessment of the legality of Western decisions on Russia's metallurgical industry by June 1.

Putin said that the demand for metallurgical products in the Russian domestic market needs to be stimulated, first of all, the demand for the construction industry. He said, "Europe ignores the interests of its own entrepreneurs, and the price of metallurgical products in Europe will rise, just like inflation." Putin also ordered that the update of Russia's strategy at the WTO is ready by June 1.

Putin said that Russia is one of the leaders in the world's metallurgical industry, and for foreign buyers, cooperation with Russia in this field is stable and mutually beneficial.

Putin: Russian SMEs can be more active in Russia-China joint projects

"China is our largest economic and trade partner, with (annual trade volume) more than 100 billion U.S. dollars. I will not talk about large-scale projects related to oil, natural gas, aviation, machinery manufacturing, nuclear energy, etc.," Putin said at the meeting. Under the current conditions, SMEs can participate more actively in various projects between the two parties."

TASS reported that Putin also believes that to develop cooperation with China, it is necessary for Russian entrepreneurs to master logistics and legal knowledge.

Regarding the non-profit organization "Russia - A Country Full of Opportunities", according to the organization's official website, the organization was established in 2018 under Putin's initiative. Able to develop their potential, implement business ideas or proposals related to social life. Entrepreneurs, volunteers, college students and other groups can exchange experiences through this platform.

/ By tjchinafreight ivy / Shipping

Proforma vs. Commercial Invoice: What’s the Difference?

Proforma vs. Commercial Invoice: What's the Difference?
Proforma vs. Commercial Invoice: What's the Difference?

Tell me about the pro forma invoice.

"Proforma" means "Proforma," a term used to estimate the price of services or invoices for goods prior to shipment or delivery. In situations where you can't provide your customers with an exact price, you can post pro forma information, but you can still give them a rough idea of ​​the costs involved.
If you import goods as part of your business, you can use a proforma to estimate their customs clearance value, but you still need to provide a commercial invoice within 180 days.

When do I use commercial invoices?

Because a commercial invoice is a document issued after the shipment or delivery of goods, it serves as a legal record of the transaction once the sale is completed.
This type of invoice also contains more details than a pro forma invoice, including information about the buyer and seller, the place of purchase and a full description of the goods. Also, if you are in your business dealing with international shipments, you actually need to use a commercial invoice.

Purpose of Proforma Invoices and Commercial Invoices

The purpose of a pro forma invoice is to give the customer a clear idea of ​​what to expect. This is a bona fide estimate that shows what can be known ahead of time, such as price and terms, and the average billable amount for the type of item requested. Customers can also use pro forma invoices to decide whether to place an order.
The purpose of a commercial invoice is to request payment for an item actually sold by showing the amount actually due.

Format of Proforma Invoices and Commercial Invoices

A pro forma invoice may look almost identical to a commercial invoice. However, it should be clearly marked "form" or use other language to reflect the fact that this is only an estimate and should not be paid until the work is completed and the final invoice is issued.

Proforma vs. Commercial Invoice: 3 Key Differences

In conclusion, although pro forma invoices and commercial invoices look very similar, there are three main differences between the two documents:

1. When will it be released

When a company receives an inquiry from a potential international customer for one or more of its products, it issues a pro forma invoice as a quotation, which lists not only the cost of the goods, but also the terms of sale. Potential buyers can accept the price and terms listed in the pro forma invoice, or make a counter-offer to negotiate.

2. What do they include

While the type of information that appears on both invoices may be similar, the commercial invoice should represent the final agreed transaction details, including any necessary additional import and export control information.

In the absence of a formally negotiated and agreed sales contract, pro forma invoices and commercial invoices are part of the written record containing the contract between the buyer and the seller. Check out the free webinar, create an international sales contract, and learn more details about the Battle of Forms.

3. How to use them

As mentioned above, buyers and sellers use pro forma invoices to negotiate prices and terms of sale. The buyer can also use it to obtain any necessary import licenses, overcome any potential import restrictions and arrange a letter of credit or some other payment process.

Commercial invoices are not only a collection tool, they are also used by customs agencies to determine appropriate duties, taxes and other import charges and to ensure compliance with export requirements. It also provides the necessary information to transfer the goods from the seller to the buyer.

/ By tjchinafreight ivy / Shipping

Consular Invoice Guide

Cargo Container ship in import export and business logistics, Shipping harbor.
Cargo Container ship in import export and business logistics, Shipping harbor.

What is a consular invoice?

Invoice for shipment of goods certified by the consulate of the country of destination of the goods. This invoice is used by the country's customs officials to verify the value, quantity and nature of imported goods in order to determine import duties. In addition, export prices can be checked against current market prices in the exporting country to ensure that no dumping has occurred.

Key takeaways

  • A consular invoice is a document detailing the contents and details of the goods, consular certification by the country to which the goods are sent.
  • Invoices are used by customs officials to confirm the items in the shipment, the quantity of the goods and the cost to determine import duties.
  • Export prices are scrutinized relative to market prices in the country of origin to ensure that unfair trade practices known as "dumping" do not occur.
  • Through dumping, exporters gain a competitive advantage over other suppliers by selling goods in foreign markets below domestic costs.

Format and contents of a consular invoice

A consular invoice may contain the following details –

  • Names of the importer and exporter with their relevant details
  • Ports of Origin and destination
  • Description of the goods
  • Additional charges (packing, insurance, etc.)
  • Total value of the shipment
  • Name of the certifier
  • Identification marks and numbers

THE GOVERNMENT OF INDIA
THE GOVERNMENT OF INDIA

Special attention items

The consular invoice also includes a copy of the commercial invoice in the language of the country that provides full details of the goods being shipped. Generally, the purpose is to provide foreign customs authorities with a complete and detailed description of the goods in order to collect the correct import duties. In addition, the export price of the commodity can be assessed against the current market price in the exporting country in order to avoid the process of export dumping.

Dumping is the sale of a product in a foreign market below its cost in the domestic market in order to maintain an advantage over other suppliers of the product. It is considered an unfair trade practice and is regulated by various governments. 2 In the case of a consular invoice, the invoice can be used to calculate the difference between the price of the imported product and the product of the exporting country to prevent unfair trade practices of dumping.

/ By tjchinafreight ivy / Shipping

Destination Control Statement (DCS)

A Maersk Triple-E class container cargo ship being loaded in Shanghai Yangshan Port
A Maersk Triple-E class container cargo ship being loaded in Shanghai Yangshan Port

Under the Export Administration Regulations (regulated by the Bureau of Industry and Security) and the International Traffic in Arms Regulations (regulated by the Defense Trade Controls Agency), exports are legally required to state that the destination of the exported goods is the country on all shipping documents indicate. This declaration is called a Destination Control Declaration (DSC) and must be included in the commercial invoice as follows:

"These items are controlled by the U.S. government and are authorized for export to the country of final destination only for use by the end consignee or end user identified here. No person other than the unauthorized end consignee or end user may Or be incorporated into another article to resell, transfer, or otherwise dispose of it as approved by the U.S. government or authorized by U.S. laws and regulations.”

When Is the Destination Control Statement Required?

According to BIS, all exported items listed on the Commerce Control List that are not classified as EAR99 or are eligible for license exception BAG or GFT require a Destination Control Statement. Exceptions to the Destination Control Statement are listed in Part 758.6 of the EAR, and you can contact the U.S. Department of Commerce, an attorney, or your freight forwarder to learn more.

While it’s not a requirement for all transactions, including a Destination Control Statement on every transaction is a good precaution in order to protect yourself in the event that merchandise you sold to a domestic purchaser is unexpectedly exported from the United States.

The new, harmonized Destination Control Statement must include the following statements at absolute minimum:

These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) identified herein. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations .

/ By tjchinafreight ivy / Shipping

About inspection certificate

A container ship passes beneath a suspension bridge as it departs for Europe.
A container ship passes beneath a suspension bridge as it departs for Europe.

What is an inspection certificate?

A certificate of inspection is a document used to indicate that the shipped goods have been inspected to demonstrate that they comply with the terms specified in the sales contract. There are only requirements for certain commodities, such as industrial equipment, perishables, and meat.

The inspection certificate can be provided directly to the buyer, the buyer's government, or directly to the buyer's bank. In the case of submission to the buyer's bank, it was facilitated by a letter of credit payment transaction request indicating that the certificate needs to be checked in order to fulfill the payment obligation. Usually, the manufacturer provides a certificate or report.

What does the inspection certificate do?

A certificate of inspection indicates that the goods in the goods have been inspected by the competent authority and certify that they comply with the terms specified in the sales contract. It verifies that the goods meet all specifications related to quality, quantity, import eligibility, tariff classification and price.

qualified

There are two types of inspection certificates:

1. Official inspection certificate

Customs authorities in some countries require official inspection certificates to handle the clearance of goods. It helps the authorities to check and confirm whether the goods in the goods meet the various specifications mentioned in the sales contract. This includes compliance with specifications related to the quality, quantity, tariff classification, import eligibility and price of goods.

2. Commodity inspection certificate/report

A commercial inspection certificate or report is a pre-shipment inspection that must be done before a batch of goods is produced. Send the certificate/report to the buyer to determine whether the various specifications of the intended shipment match the sales contract and other specific provisions.

If the batch does not meet the contract terms, it is deemed to have failed the inspection. In this case, the buyer may take any appropriate measures before the goods leave the factory. However, if the batch passes inspection, the buyer can use the report as proof that the product is of good quality and packaged correctly.

Countries requiring Pre-Shipment Inspection (PSI)

The countries that require or require a Pre-Shipment Inspection Certificate (PSI) vary from year to year and are based on shipments exceeding a certain value. However, in some countries an inspection certificate is required regardless of value, so be sure to check. Export.gov maintains a list of countries to check:

Angola, Bangladesh, Benin, Bolivia, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Comoros, Republic of Congo (Brazzaville), Democratic Republic of Congo (Kinshasa), Côte d’Ivoire, Ecuador , Ethiopia, Ghana, Guinea, India, Indonesia, Iran, Kenya, Kuwait, Liberia, Madagascar, Malawi, Mali, Mauritania, Mexico, Moldova, Mauritania, Mozambique, Niger, Nigeria, Peru, Russia, Rwanda, Saudi Arabia, Senegal, Sierra Leone, Tanzania, Togo, Uzbekistan, Venezuela, Zanzibar and Zimbabwe.

What should I do if there is a certification inspection dispute?

If there is any disagreement on the results of the inspection process, it should be resolved through consultation with the inspection company. In some cases, the exporter and inspection company can work together to solve the problem.

/ By tjchinafreight ivy / Shipping

What is Shipper’s Export Declaration (SED)

What is Shipper's Export Declaration (SED)
What is Shipper's Export Declaration (SED)

The U.S. Shipper Export Declaration (SED) is a standard U.S. government form for all U.S. exports valued at $2,500 or more. It has been superseded by the Electronic Export Information Form (EEI).

If the value of a single item in a U.S. export exceeds $2,500.00, an EEI must be submitted to the U.S. Census Bureau. The U.S. Census Bureau uses the EEI to compile trade statistics and enforce export controls.

The Census Bureau requires exporters to complete the SED for two main purposes:

Fulfilling obligations to collect U.S. export data, including the export value of each commodity.
Help ensure compliance with U.S. export regulations that require exporters to provide export license information.

The FTR requires exporters to complete SED for shipments with a merchandise value exceeding $2,500 per Schedule B number and for mail-in shipments with a value of at least $500. SED is required for all shipments that require an export license or are destined for embargoed countries, regardless of value.

How to use the export declaration?

Any U.S. exporter (or freight forwarder) must complete Form 2575-V required by the U.S. Department of Commerce and submit it to U.S. Customs at the port of export. If the value of the exported goods is $2,500 or more, or the value of the mailed goods is $500 or more, the individual must make the necessary filings. This form must be completed for any shipment to an embargoed country or that requires an exporter's license. The U.S. Census Bureau uses this form to compile trade statistics and enforce export controls. The Automated Export System (AES) allows shippers to make the necessary declarations online.

According to the Census Bureau, more than half of all SEDs submitted by exporters contain errors, making accurate data collection difficult. In the mid-1990s, in an effort to improve data accuracy and ease of data collection, the Census Bureau, in partnership with what is now the Bureau of Industry and Security (BIS) and the Department of State, introduced electronic collection of SED information through the Automatic Export System (AES).

/ By tjchinafreight ivy / Shipping

“HAIAN CITY” collided with tanker “ORION EXPRESS”

On April 14, about 15 nautical miles south of Chittagong, Bangladesh, a 1400TEU container ship "HAIAN CITY" collided with the oil tanker "ORION EXPRESS", both ships were damaged, the details are unknown, but the container ship has stability problems .

"HAIAN CITY" collided with tanker "ORION EXPRESS"
"HAIAN CITY" collided with tanker "ORION EXPRESS"

The Vietnamese-flagged container ship MV Haian City left Chattogram port for Singapore in the morning and was involved in an accident near Kutubia, about 14 nautical miles from Patenga Naval Base, around 10.30am.

The ship was hit by an inbound tanker named Orion Express, causing Hai'an to lose one or more containers into the sea, they added that the container ship was partially damaged by the accident.

Port officials said the container ship needed to repair the damage before it could resume sailing, and both ships were asked not to sail until claims were resolved.

The Chittagong Port Authority had deployed its salvage tug Kadari-11 along with pilots on duty and pollution control vessels to salvage the drowning containers, but work was interrupted due to rough seas.

Rafique Uddin, head of Intermodal Pvt Ltd, a local agent for the container ship, said, "Our surveyors were unable to reach the ship due to bad weather, so we were unable to assess the damage. Our maintenance crews were also unable to get close to the ship."

It is reported that the container ship "HAIAN CITY" is a feeder ship between Singapore and Chittagong, flying the Vietnamese flag and operated by Samudera Shipping Line Ltd.

/ By tjchinafreight ivy / Shipping

CMA CGM container ship catches fire

CMA CGM container ship catches fire
CMA CGM container ship catches fire

It is reported that on April 16, CMA CGM LISA MARIE, a large container ship owned by CMA CGM, encountered a container fire in the waters of Banda Aceh Sabang in the west of Sumatra Island.

The fully loaded vessel was on its way from Jeddah to Port Klang at the time of the incident. Basarnas Banda Acehs head Budiono said one of the containers caught fire when the ship arrived in Sabang waters, suspected to be caused by a short circuit.

The crew reportedly managed to put out the fire by their own means, with ships and tugboats in Banda Aceh district pouring water over containers at the fire site to cool them as a precaution. CMA CGM LISA MARIE resumes sailing after confirming fire safety.

At the time of the incident, the ship's voyage was "0BXBLW1MA", which may involve multiple shipping companies sharing cabins: CMA CGM, COSCO, Evergreen, OOCL, APL, ANL and CNC.

In addition, it should be noted that the next voyage of the ship is "0BXC7W1MA". The scheduled sailing date is to depart from Busan Port on April 26, and then call at Shanghai Port (April 27-28) and Ningbo Port (April 29). Japan-30), Xiamen Port (May 1-2) and Shekou Port (May 3), please pay attention to whether there will be delays in the subsequent shipping schedules.

/ By tjchinafreight ivy / Shipping

Stranded Evergreen container ship escapes trouble

After more than a month of salvage work, the container ship "EVER FORWARD" (long-haul ship) finally got out of trouble.

Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.
Evergreen Marine's Ever Forward container ship ran aground over the past month as it passed under the Chesapeake Bay Bridge after clearing from mud off the channel near Pasadena, Maryland.

Rescue operations

On March 13, the long-haul ship deployed on the Evergreen Asia-US East AUE route ran aground in the Chesapeake Bay. After multiple salvage failures, the salvage team unloaded more than 500 containers from the vessel and successfully towed the vessel away from shore using high tide on Sunday morning.

According to the Wall Street Journal, the long-distance ferry has become a local tourist attraction in the past few weeks. Tourists drove miles to a small park on the Maryland coast to watch the stranded container ship and its rescue efforts.

Ever Forward will be towed to Annapolis Anchorage for inspection, the release said. There, it will reload containers offloaded from the hull and continue on to its next port of call, Norfolk, Virginia.

How do you view this event?

"The breadth and complexity of this response is historic because an event like the Forever Forward stranding is rare in its type and duration," said Capt. David O'Connell, commander of the Coast Guard in the National Capital Region of Maryland. Say. "It was the collaboration of each response agency, Evergreen Marine Corporation and dedicated responders that allowed Ever Forward to successfully refloat while keeping the public and responders safe, reducing the potential for contamination, and minimizing economic impact
ring. "

Evergreen issued a thank you announcement

On April 17, Evergreen issued an announcement that "the long-distance wheel was successfully rescued". The announcement stated:

Evergreen expressed its sincere thanks to the rescue team, the U.S. Coast Guard, the Maryland State Government and all walks of life for their assistance and concern. After more than a month of hard work, they finally overcome all difficulties and the freighter successfully escaped.

In addition, Evergreen has declared general average for this stranding accident. The owner of the cargo on the ship and the joint operating partner using the space must provide the necessary guarantees and documents to the general average adjustment company in accordance with the general average adjustment rules, so that the delivery of the goods can be smoothly handled after the goods arrive at the port.