Key Documents

International trade is a world of paperwork, and having the right documents in order is the most critical step to a smooth and successful shipment. Without proper documentation, your goods can be held up at customs, leading to costly delays and frustrating headaches.

While the specific requirements can vary based on the country and type of goods, there are a handful of essential documents that form the backbone of almost every export-import transaction. Getting to know these is the first step to becoming a savvy international trader.

This is arguably the most important document in the entire process. The Commercial Invoice is a bill of sale from the exporter to the importer. It is a legal document that serves as the foundation for all other shipping documents and is a primary tool for customs authorities to assess duties and taxes.

What it includes:

• Detailed description of the goods (including HS Codes)
• Quantity, unit price, and total value
• Information on the buyer and seller (name, address, contact)
• Terms of sale (e.g., Incoterms) and payment terms

While the Commercial Invoice tells customs officials what the goods are worth, the Packing List tells them what’s in the boxes. This document provides a detailed breakdown of the contents of each package within a shipment. It’s a crucial tool for logistics, as it helps carriers and warehouse staff verify the contents and manage inventory.

What it includes:

• Description of the goods
• Quantity in each package
• Gross and net weight of each package
• Dimensions and volume of the shipment
• The number and type of packages (e.g., boxes, crates, pallets)

These are the transportation documents. They serve as a contract between the shipper and the carrier, a receipt for the goods, and, most importantly, a document of title.

• Bill of Lading (B/L): Used for ocean freight, the B/L is a legal document that allows the recipient to take possession of the goods at the destination port. A negotiable B/L can be bought, sold, or traded while the goods are in transit, which is common in commodities trading.
• Air Waybill (AWB): Used for air freight, the AWB is a non-negotiable document that serves as a receipt and a contract of carriage. It provides comprehensive details about the shipment and allows it to be tracked.

This document is a formal declaration that certifies where the goods were wholly obtained, produced, or manufactured. The COO is essential for customs authorities as it determines the applicable tariff rate and whether the goods qualify for any special trade agreements or preferential duty treatments.

Why it’s important:

• It can significantly reduce or even eliminate the import duties you have to pay.
• It helps a country track imports from specific regions.

In many countries, a business must be registered and hold a specific license or code to engage in international trade. For example, in India, an Import Export Code (IEC) is a mandatory requirement for any business to start export-import activities. This is a business identification number issued by the government that proves your legal right to trade internationally.

Depending on your product and destination, you may also be required to provide:

• Inspection Certificates: Certifies that the goods have been inspected and meet specific quality or safety standards.
• Health and Phytosanitary Certificates: Required for agricultural products, food items, and live animals to prove they are free from pests and diseases.
• Insurance Certificates: Provides proof that the shipment is insured against loss or damage.

While the paperwork can seem daunting, a reliable and experienced export partner will guide you through this process, ensuring every document is accurate and complete. With the right support, you can focus on building your business while we handle the fine print.