Documents are a necessary evil in business transactions. Be it sale, purchase, or shipping, a single missing or incorrectly prepared document can cause immeasurable trouble for all parties involved. In shipping, goods cannot enter or leave a country unless accompanied by the necessary documents. If the paperwork is incomplete, exporters and importers can neither hand over nor collect their cargo. They might even end up paying a penalty and, worse, suffering a setback to their credibility.
Bill of Lading/ Airway bill
The most important document in the shipping process for exporters/importers. A bill of lading (lading is the act of putting cargo on a ship) is a legal document that must be signed by the exporter, the shipping line, and the importer. This bill includes details such as:
Description, quantity, weight of goods
Name and address of recipient
Terms of sale
Commercial Invoice cum Packing List
A commercial invoice is a contract of sale issued by the exporter to the importer. It helps customs determine the value of the goods to assess the duties and taxes due on them. A commercial invoice carries details such as:
Name, address of seller (exporter)
Name, address of buyer (importer)
Value, quantity of goods
A packing list is an itemized list with details of the goods. It helps facilitate their examination and accurate tallying during clearance. It contains:
Description of the goods
Quantity and weight (gross and net) of the goods
Number of packages
Type of packaging (pallet, box, crate, drum, etc)
Marks and numbers (symbols/numbers placed on each piece of cargo in a shipment to identify them)
Carrier’s (ship) name
Date of export
Export license number
Letter of credit number
Shipping Bill/Bill of Export
A shipping bill or bill of export is a document submitted by the exporter in the form of an application to obtain clearance from customs. It informs customs of whether the exporter has availed of government incentives, such as:
Exemptions/rebates/refunds on various taxes, duties
Benefits under various government export schemes
Export License
Businesses must have an export license that they can provide to customs in order to export or forward any products. This only needs to be produced when the shipper is exporting goods to an international destination for the very first time. This type of license may vary depending on the type of export you intend to make.
Import License
Import permits might be required as one of the documents for import customs leeway techniques and rules and regulations under explicit items. This permit might be required for bringing in explicit merchandise according to rules given by the government. Import of such explicit items may have been being managed by the government from time to time.
Insurance certificate
An insurance certificate is required for import customs clearance systems. However, it is a supporting document against the shipper’s presentation on terms of the conveyance. Insurance certificate under import consignment encourages customs specialists to confirm, in the case of selling cost comprises protection or not. This is required to discover an assessable amount that decides to import duty sum.
Industrial License (if any)
A copy of an industrial license might be necessary under importing explicit merchandise. In the event that Importer guarantees any import advantage according to government guidelines, such an Industrial License can be created to profit the advantage.
GATT/DGFT declaration
Every importer has to file a GATT and DGFT declaration while completing customs clearance formalities for imports. It has to be filed as per the terms stated in General Agreement on Tariff and Trade. Following are some of the requirements for filing this document
Customs Valuation for imported goods subjected to duties & Taxes.
Three copies of the declaration to be maintained
two copies are for customs administration and one copy is for the declarant
The Form should be kept with the detailed customs declaration for a period of 3 years
The declarant is obliged to fill the form accurately and fully in detail.
Here is a simple tabular form for all the documents required if you are a Exporter or an importer.
| MANDATORY DOCUMENTS LISTED BY WORLD BANK IN DOING BUSINESS | ||
| S. No. | EXPORTS | IMPORTS |
| 1 | Shipping Bill | Bill of Entry |
| 2 | Commercial Invoice | Commercial invoice |
| 3 | Packing List | Packing List |
| 4 | Bill of Lading | Bill of Lading |
| 5 | Foreign Exchange Control Form (SDF) | Foreign Exchange Control Form (Form A-1) |
| 6 | Terminal Handling Receipt | Terminal Handling Receipt |
| 7 | Technical Standard Certificate | Certified Engineer’s
Report |
| 8 | Cargo Release Order | |
| 9 | Product manual | |
| 10 | Inspection report | |
You need to be prepared to handle this paperwork and set up an organizational system that allows you to keep track of all contracts, forms, and correspondence and access it when you need it, or the easier way out is to find someone who can do all these documentation and other business activities other for you, so you only focus on your core business activity.
At Fair Trade LLC we can help you with every aspect of taking your business overseas, to know how, you can visit https://ftrade.ae/business-consultancy/
