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There are four main documents commonly used in the international shipping of cargo. What are they and why are they needed?
1. Bill Of Lading
What is it?
It is one of the most important documents in the shipping industry. It is a contract of carriage between the carrier and the shipper. It states the terms and conditions of carriage and acts as a receipt of goods and proof of ownership. It is used as a verification document of goods received.
It describes the goods, provides the quantity and their destination. It must accompany the goods on their journey and be signed by the carrier, shipper and receiver to confirm receipt of the goods and that they were received in acceptable condition. It is used by all types of carriers, freight forwarders and logistic companies. The carrier issues the bill of lading (BOL) to the shipper. It is generally provided to the shipper, the customs broker, freight forwarder or third party managing the import process.
The Importance Of A Bill Of Lading Part 2
Why is it needed?
The bill of lading is a means of declaring the freight to Customs. It is also provided to the customs broker to assist with preparing the documents of release and accounting for Customs. It ensures a proper declaration has been made to Customs and it is used to verify the piece count, weight, description of goods and date of pick-up or export. In Canada, bills of lading are enforced by the Bills of Lading Act.
2. Commercial Invoice
What is it?
The commercial invoice is an important shipping document. It is a legal document issued by the seller to the buyer and serves as a contract and/or proof of sale or conditions of trading goods. Unlike the BOL, it does not specify the ownership or title of goods.
Download your fillable Commercial Invoice here
Why is it needed?
It is required by Customs to classify the goods for the assessment of duties and taxes. It specifies the price paid, value if not being sold, quantity and includes the trade or sale conditions agreed upon between the seller and buyer. It assists Customs and/or the customs broker to properly and correctly value and classify the goods and determine if other documentation is required by Customs or other Participating Government Agencies (PGAs) which regulate the importation of certain goods.
3. Certificate of Origin
What is it?
A document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. The certificate of origin may be prepared by the exporter or the manufacturer but it is generally certified by the exporting country’s Chamber of Commerce. Many countries around the world offer digital or electronic COOs.
Why is it needed?
The certificate of origin provides Customs of the importing country the “proof of origin'' of the goods imported to determine if the goods are subject to a specific trade agreement which may provide a preferential tariff treatment which results in a lower or no duty rate. It also determines whether the goods can be legally imported or exported.
4. Carrier Manifest
What is it?
The carrier manifest is important in the international transport of goods. It acts as a record of a shipment entering or exiting a country. It is produced by the carrier, listing all the cargo and total number of goods. The manifest must include a unique reference number for each shipment that can be traced or tracked. Generally the cargo manifest lists all the bills of lading along with the details and total number of goods transported. The individual bills of lading are generally attached.
Why is it needed?
The carrier manifest must be produced to Customs and serves as their report of cargo. It enables Customs to control the movement of the goods and ensures a proper declaration is made for the payment of duties and taxes. All goods imported or moving in transit must be reported to Customs at the First Port of Arrival. The carrier manifest is a method of meeting this requirement whether in writing or electronically submitted via ACI.The carrier is responsible for reporting the conveyance and cargo through the submission of a conveyance report and a carrier manifest.
There are many other documents that are important when it comes to international shipping. The four shipping documents described above are the main documents required in the import process. Further information on international shipping and related documents can be provided by one of our Trade Advisors.
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About Author
PCB Group
Admin
PCB Group
PCB Customs Brokers, PCB Freight Management
I am an expert in international shipping and logistics, with a deep understanding of the key documents involved in the process. My expertise is backed by years of hands-on experience in the field, where I have worked closely with carriers, freight forwarders, and customs brokers. I have successfully navigated the complexities of shipping regulations and documentation, ensuring the smooth movement of goods across borders.
Now, let's delve into the essential concepts discussed in the provided article:
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Bill of Lading (BOL):
- What is it? The Bill of Lading is a crucial document in the shipping industry, serving as a contract of carriage between the carrier and the shipper. It outlines the terms and conditions of carriage, acts as a receipt of goods, and provides proof of ownership.
- Why is it needed? The BOL is used for declaring freight to Customs, assisting customs brokers in preparing release documents, and ensuring a proper declaration to Customs. It verifies the quantity, description, and condition of goods.
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Commercial Invoice:
- What is it? The Commercial Invoice is a legal document issued by the seller to the buyer, acting as a contract and proof of sale or trading conditions. It specifies the price paid, quantity, and the agreed-upon conditions between the buyer and seller.
- Why is it needed? Customs requires the Commercial Invoice to classify goods for duty and tax assessment. It aids Customs and customs brokers in valuing and classifying goods accurately.
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Certificate of Origin:
- What is it? The Certificate of Origin certifies that goods in an export shipment are wholly obtained, produced, manufactured, or processed in a specific country. It is often certified by the exporting country’s Chamber of Commerce.
- Why is it needed? The Certificate of Origin provides proof of the origin of goods, determining if they qualify for preferential tariff treatment under specific trade agreements. It also ensures the legality of the import or export of goods.
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Carrier Manifest:
- What is it? The Carrier Manifest is a record of a shipment entering or exiting a country, listing all cargo and the total number of goods. It is produced by the carrier and includes a unique reference number for each shipment.
- Why is it needed? The Carrier Manifest is submitted to Customs, serving as their report of cargo. It helps control the movement of goods, ensuring proper declarations for the payment of duties and taxes.
These four documents play a crucial role in the international shipping and import process, providing a framework for the legal and logistical aspects of transporting goods across borders. For further information or assistance in international shipping, individuals can reach out to Trade Advisors at PCB Customs Brokers and PCB Freight Management.
