1 CHAPTER XII SHIPPING DOCUMENTS Commercial Invoice Packing List Ocean Bill of Lading Marine Insurance Policy Special Shipping Documents Pro

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CHAPTER XII CHAPTER XII SHIPPING DOCUMENTSSHIPPING DOCUMENTS

Commercial Invoice Commercial Invoice Packing List Packing List Ocean Bill of Lading Ocean Bill of Lading Marine Insurance Policy Marine Insurance Policy Special Shipping Documents Special Shipping Documents Pro Forma InvoicePro Forma Invoice

Copyright(c) 2012 Dr. Chase C. Rhee

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Commercial InvoiceCommercial Invoice

Must be signed by the shipper or his agent Information required in a commercial invoice

(1) Port of entry

(2) Date, place, and names of seller and buyer

(3) Detailed description of the goods

(4) Quantities in weights and measures

(5) Purchase price

(6) For consignment, the value of each item that would be in the ordinary course of trade


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Commercial InvoiceCommercial Invoice

(7) Kind of currency

(8) All charges incurred after the port of exportation: freight, insurance, commission.

(9) All rebates, drawbacks, and bounties allowed after exportation

(10) Country of origin

(11)All goods and services furnished for the production not included in the invoice price


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Commercial InvoiceCommercial Invoice Special Requirements

Separate invoice required for each shipment Assembled shipments: May be included in one

invoice if same consignee by one carrier Installment shipments: May be included in one

invoice if they arrive within 10 consecutive days

Production assists: Must be included • Provided to exporter by importer free or at a reduced

cost• Dies, molds, tooling, printing plates, artwork,

engineering work, design, and financial assistance


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Commercial InvoiceCommercial Invoice Exchange rate: If exporting country uses

two or more exchange rates, show exchange rate used

Pro forma invoice: • When a commercial invoice is not available

at the time merchandise is entered• Pro forma invoice (prepared by importer)

must be filed by importer• Bond must be submitted for production of

required invoice within 120 days. If needed for statistical purpose, within 50 days.


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Frequent Errors in InvoicingFrequent Errors in Invoicing1) Commission or royalty not included in

the price 2) Cost of goods paid to domestic

manufacturer instead of exporter's price including his profit

3) Omitting value of materials supplied by Importer. Must be included in the invoice price

4) Replacement goods excluded. Must show full price less allowance for defective goods


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Frequent Errors in InvoicingFrequent Errors in Invoicing

5) If sold at list price less a discount, invoice shows net price instead of full price less discount

6) Goods sold at a CIF price but FOB price shown

7) Importer is shown as purchaser, even if Importer is sales agent or partner of exporter who shares proceeds


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Packing List Packing recommendations

Pack and invoice in systematic matter Show exact quantity of each item in each

package Put marks & numbers of each package Show those marks & numbers on invoice

Packing list Easy identification & separation of shipments Gross Weight and Net Weight Dimensions of each package No price shown


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Ocean Bill of LadingOcean Bill of Lading It carries the title to the goods Goods can be sold during transit with

endorsement of the B/L Carrier does not release goods without

original B/L


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Ocean Bill of LadingOcean Bill of Lading Letter of Credit & Ocean Bill of Lading:

UCP 600 sets forth the conditions acceptable and unacceptable to banks for payments

Exporter must make sure the B/L conforms to all conditions stipulated in the Letter of Credit.

Importer must check if ocean freight and surcharges are the same as quoted or agreed under FOB.

Importer must pay attention to Arrival Notice as to Arrival date and free period before demurrage starts Free period: 12 days for Container Freight Station

and 7 days for Container Yard


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Marine Cargo Insurance Marine Cargo Insurance Policy/CertificatePolicy/Certificate

It covers a loss or a damage to the cargo during transit

Must meet the following conditions: The same description of products as that of a

letter of credit The same coverage required in the letter of

credit The same currency as the letter of credit Effective date of policy or certificate: the

same or earlier than shipment date Amount of insurance: not less than 110% of

CIF or CIP


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Special Shipping Documents UNCTAD Certificate of Origin Form A or

any Certificate of Origin– If CBP requests, importer must submit it for

duty-free entry under special tariff treatment programs and Free Trade Agreements

NAFTA Certificate of Origin Phytosanitary certificate

Required for importation of fruit or produce issued by exporting country's quarantine inspector

Foreign site certificate of inspection issued by USDA's quarantine inspector

Required for importation of fruit or produce


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