2023 | A Guide to Common Shipping Documents in International Trade

International trade is a responsible affair and different countries correspond to different regulations and require different relevant documents. The choice of shipping method corresponds to different materials, so below is a list of a few of the most commonly used shipping documents that should give you an idea of what documents are required to ship your goods or personal effects.

Commercial invoices

A commercial invoice is a document presented by the seller containing the name, quantity and price of the goods. A commercial invoice is effectively a note or invoice from the seller to the buyer describing the agreement between the parties on the terms of sale and purchase of the goods.

The commercial invoice is mainly used for import and export of goods between countries. It is mandatory in international trade. The commercial form of the invoice is used for customs clearance and collection of duties, and some countries require the original invoice for customs purposes.

It also records the goods being transported, the place from or to which they are being shipped and the names of the parties or businesses involved in the transport of the goods.

Bill of Lading (B/L)

A BOL has a lot of information. The B/L must have the name of the consignor and consignee, the origin, the destination and the quantity of goods. It is one of the most important documents you will care about when shipping internationally.

There are two forms of bill of lading. A non-negotiable bill of lading is a registered bill of lading, also known as a non-negotiable bill of lading.

In this case, the goods recorded on the bill of lading can only be picked up by the specific consignee on the bill of lading, in other words, the carrier can only deliver the goods at the port to the consignee named on the bill of lading for unloading.

A bearer bill of lading is negotiable – the carrier delivers the goods to the person holding the bill of lading. As a shipper or customer, you should always have a copy of the bill of lading because you prove that you own or have the right to claim the consignment.

A bill of lading is a written document provided by the carrier, usually signed by the shipping company’s transport department, certifying the carrier’s acceptance of the particular goods received in the form of cargo and its responsibility to deliver the goods to their destination. destination or to the named consignee.

Insurance document

An insurance policy is a certificate of cover issued by an underwriter who has underwritten insurance. This is the insurance of the goods purchased at the port of export prior to shipment. This document will be the basis of your claim if these goods are lost, stolen or damaged in transit.

Packing List

A packing list is a document detailing the contents of a shipment. As a supplementary document, it sets out details of the packing matters agreed between the buyer and seller in the letter of credit (or contract) so that foreign buyers and customs can check the destination of the goods when they arrive in port.

Usually, the commercial invoice includes the relevant contents, but when explicitly required by the L/C, the packing list must be produced strictly in accordance with the L/C.

Certificate of Origin

A certificate of origin is a document issued by the relevant government agency of the exporting country to prove the origin or place of manufacture of the goods. It is mainly used by the customs of the importing country to implement differential tariffs, import duty rates, import quotas, etc. according to different national policies.

Importers require exporters to provide certificates of origin, which are available in various forms. The most widely used are Certificate of Origin and GSP Certificate of Origin, which are commonly used in countries or regions where customs invoices or consular invoices do not need to be provided.

If you are importing from China, the certificate of origin is issued by the Chinese government’s customs department.

Air Waybill

This shipping document is issued by the air carrier or its agent. It is the carrier’s receipt of the goods and is the contract of carriage between the shipper and the carrier, proving that the carrier has received the goods you have listed in the AWB and that the air waybill is also non-negotiable.

It is also your proof that the carrier is responsible for the removal of your goods to the named destination.

Import Licence

Some countries require importers to obtain a prior licence for the import of certain goods. Otherwise, they cannot engage in this business.

These countries limit the amount of imports for the sake of homeland protection. So foreign companies have to apply for an import licence in order to import some goods.

Relevant Dangerous Goods Certificates

For certain goods you must prepare a Dangerous Goods Certificate. If the goods you are transporting are dangerous goods, you will need to use a Dangerous Goods Note, also known as a DGN.

The DRG will give details of what dangerous goods are, what risks may be involved in transporting them and how to transport them efficiently and safely. For example, if you are transporting lithium batteries, you will need an MSDS.

Our advice

Knowing the correct way to prepare these documents is very specific and must be done properly, otherwise even minor errors in the documents will be enough to keep your goods in customs for a long time.

Worse still, you will have to pay fines or penalties. To avoid this, it is a good idea to have your international shipping provider or customs broker assist you with all documentation requirements.

In addition, you need to know which documents are relevant to the laws of the country you are importing or exporting to, the goods and the mode of transport. For example, sea freight and air freight have different documentation requirements.

When you need to import certain goods from China, you should choose a professional China freight forwarder to hedge all the risks for you, a professional doing a professional job to achieve twice the result with half the effort. TJ China freight is a good choice for you.

Top 5 Shipping Documents Shippers Need to Know

Top 5 Shipping Documents Shippers Need to Know
Top 5 Shipping Documents Shippers Need to Know

Different countries have different requirements when it comes to shipping documents. The two main world organizations that set rules and guide business organizations on this issue are the World Trade Organization (WTO) and the International Chamber of Commerce (ICC).
Most shipping documents are based on rules and regulations established by these world bodies and the respective country's governing bodies, such as chambers of commerce, customs, trade commissions, etc.

Here are the top 5 shipping documents that all shippers should be familiar with, and the differences between them.

1. Bill of Lading

If there is only one shipping document you need to know that is in the palm of your hand, it is the bill of lading.

A bill of lading, also known as a bill of lading, is a contract of carriage between a shipping company and a cargo owner. This is a document issued by the carrier to confirm receipt of your cargo for shipment on their ship.

Importer and exporter information needs to be listed clearly as the bill of lading is proof of ownership of the goods being carried on board. The information on the bill of lading should also correctly reflect the Incoterms conditions under which the transaction is conducted.

Once the goods arrive at their destination, the bill of lading needs to be presented to the carrier to release the goods, which then serve as a shipping receipt.

2. Packing list

As the name suggests, it is a document that provides details of the packaging of the shipment. The packing slip will show a description of the goods, their individual and collective packaging, dimensions, weight and markings. It may look very similar to an invoice, but it is not a substitute for a pro forma or commercial invoice.

Packing slips help customs, carriers and consignees easily identify individual shipments during inspection or receipt.

Top 5 Shipping Documents Shippers Need to Know
Top 5 Shipping Documents Shippers Need to Know

3. Commercial Invoice

Any international transaction involving import/export of goods must be accompanied by a proof of sale called a commercial invoice. To a large extent, it is similar to a standard invoice. But unlike a standard invoice, it contains details about the purpose of customs clearance of the goods and is one of the most important documents in ocean shipping. Details of all parties involved, including importers, exporters, freight forwarders, banks, shipping lines, etc., must be listed correctly on the commercial invoice.

Even though the information listed on the commercial invoice may be very similar to the information on the packing list, you still need to submit both documents and the information must match. Don't confuse the two as they serve different purposes.

A commercial invoice is a legal document that lists the goods sold and their selling price—that is, what the importer agrees to pay for those goods, and is sent to the party paying for the goods. As mentioned earlier, the packing list details the items in the shipment and serves as evidence in the event of disputes and claims, and is sent to the consignee of the shipment.

4. Letter of Credit

A letter of credit or "letter of credit" is a letter from a bank guaranteeing that payments made by the buyer to the seller will be received on time and in the correct amount. If the buyer is unable to pay for the purchase, the bank will be required to pay the full or remaining amount of the purchase. It is available as a facility.

Due to the nature of international transactions, including factors such as distance, different laws in various countries, and difficulty in personally understanding the parties, the use of letters of credit has become a very important aspect of international trade.

5. Certificate of Origin

According to the International Chamber of Commerce, Certificates of Origin (COO) are "important international trade documents that certify that the goods in a particular export are obtained, produced, manufactured or processed entirely in a particular country. They also serve as an exporter's declaration.

In other words, the COO identifies the country of production of the goods. This document is prepared by the exporter/manufacturer and must be certified to be valid by a government agency such as a chamber of commerce or a consulate.

A Certificate of Origin is required for customs clearance, which determines the amount of duties and taxes to be paid. It also helps determine whether there is a tax exemption in the case of special trade agreements between exporting and importing countries.

The certificate of origin needs to fill in typical information such as exporter, consignee, importer, and description of goods. For each export commodity, a COO must be created.

Certificate of Origin

What is a Certificate of Origin (CO)?

A Certificate of Origin (CO) is a document that indicates the country in which the item or goods were manufactured. A certificate of origin contains information about the product, destination and exporting country. For example, an item might be labeled "Made in the USA" or "Made in China."

CO is an important form, required by many cross-border trade treaty agreements, because it can help determine whether certain goods are eligible for import, or whether goods are subject to customs duties.

Why do I need a Certificate of Origin?

If you are shipping internationally, you may need to obtain a Certificate of Origin (COO) for your shipment.
The COO is often required when there is a need to know the country of origin for economic, political or environmental reasons, such as whether there are import quotas, boycotts or anti-dumping measures.
If you ship between countries that share a trade agreement, the COO certifies to customs authorities that the goods are eligible for reduced import duties or taxes.
Some plant and animal products subject to the CITES agreement also require a certificate of origin.

Two types of CO

There is no standardized Certificate of Origin (CO) form for global trade, but the CO, usually prepared by the exporter of goods, contains at least basic details about the product being shipped, the tariff code, the exporter and importer, and the country of origin. After the exporter understands the specific requirements of the border control in the importing country, he will record these details, obtain a CO notarized by the Chamber of Commerce, and submit the form with the shipment. The detailed requirements depend on the type of goods exported and the export destination.

The two types of CO are non-concessional and preferential. Non-preferential COs, also known as "ordinary COs," refer to goods that do not qualify for tariff reduction and exemption treatment under inter-country trade arrangements, while preferential COs state that they are eligible. In the United States, the Generalized System of Preferences (GSP), enacted by Congress in 1974 to promote economic development in poor countries, eliminated tariffs on thousands of products imported from more than a hundred countries with preferential status. Countries such as Bolivia, Cambodia, Haiti, Namibia and Pakistan are currently on the list, as are many other third world or developing countries. The EU and countries around the world have their own versions of the GSP, which mainly promote economic growth through trade with friendly countries.

How to get a certificate of origin?

You can apply for one at your local chamber of commerce - keep in mind that you will need one for each shipment.

In some countries, you can apply for a COO directly online. In other countries, you fill out the standard Certificate of Origin form and submit it to your local Chamber of Commerce for stamping and approval.
Since applying for a Certificate of Origin can be complicated, to save time, you can have an agent (such as a freight forwarder) do it for you.
Keep in mind that some countries require the certificate to be legally approved by the Embassy or Ministry of Foreign Affairs, which may take more time.

Which countries require a certificate of origin?

Any country may require a COO for any product, so be sure to check with your local chamber of commerce if necessary.

Some of the international trade relationships that typically require a Certificate of Origin are:

  • Shipping from EU to countries with EU trade agreements - using EUR.1 file or EUR-MED file
  • For shipments between Canada, the United States and Mexico - use the NAFTA Certificate of Origin
  • For shipments between the US, Central America and the Dominican Republic - use the CAFTA-DR Certificate of Origin
  • Shipping to some countries in the Middle East and Africa - usually requires a Certificate of Origin
  • Shipping to some countries in Asia such as China, India, Malaysia or Singapore - usually requires a Certificate of Origin