Common Documents Needed for Ocean Freight Shipping​

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 Freight Shipping Documentation

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A variety of shipping forms are necessary to transport goods across borders. While not all forms are required for every shipment, it's crucial to grasp the purpose and requirements of each.

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 Bill of Lading

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The Bill of Lading serves as the contract between the goods' owner and the carrier, similar to domestic shipments. There are two main types: the non-negotiable Bill of Lading, which cannot be traded, and the negotiable or shipper’s order Bill of Lading, which can be bought, sold, or transferred while in transit.

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 Commercial Invoice

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Included in your shipping documents is the commercial invoice, which acts as a bill from the seller to the buyer. Governments use this invoice to assess tariffs and customs duties based on the goods' actual value. Specific details are often required by importing countries, and you may need to provide multiple copies.

Some nations also demand a consular invoice, which contains information about the shipment, such as the consignor, consignee, and shipment value, but is certified by a consular official from the destination country.

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 Certificate of Origin

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A Certificate of Origin is sometimes required, providing a signed declaration of where the export item originated. Typically, this document is issued by semi-official organizations, such as a local Chamber of Commerce. Notably, even if the commercial invoice includes this information, a separate Certificate of Origin may still be necessary.

For goods traded among NAFTA countries—Canada, the United States, and Mexico—a specific NAFTA Certificate of Origin is required.

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Inspection Certificate

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Certain countries may require an inspection certificate, which confirms that a third party or independent testing organization has assessed the goods.

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 Destination Control Statement

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The commercial invoice also includes a Destination Control Statement, which appears on the ocean or airway Bill of Lading. This statement informs carriers and foreign parties that the goods can only be exported to specific destinations.

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Shipper’s Export Declaration (SED)

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Shipping documentation extends beyond what is mandated by the destination country; exports also require official documentation. For shipments valued over $2,500, a Shipper’s Export Declaration (SED) must be completed. SEDs are also required for shipments needing an export license or destined for restricted countries. Typically, the exporter or their agent prepares the SED and submits it to the carrier.

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Export Packing List

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While domestic shipments often include a packing list, an export packing list is much more detailed. It lists the contents of each package and includes packaging type, weights, and measurements in both US standard and metric units. This list helps the shipper verify cargo and assists customs officials in checking the shipment.

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 Insurance Certificate

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An insurance certificate reassures the consignee that the cargo is protected against loss or damage during transit, detailing coverage specifics and limits.

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 The Importance of Accurate Documentation

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Having the correct documentation is vital when exporting goods. Implementing effective document management practices ensures timely arrivals. Even minor errors or omissions can lead to significant issues, including:

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- Non-payment to the exporter
- Seizure of goods by customs authorities
- Prohibition of exportation
- Shipping delays
- Fines for incorrect or missing documentation
- Additional storage fees while awaiting proper documents

Understanding and managing these documents effectively is crucial for a smooth international shipping process.