FREIGHT DOCUMENTS

Part of the Key Freight Documents Guide.

 1. What is a Commercial Invoice?

A Commercial Invoice serves as a proof of sale. It includes information like:

• Details of the Buyer and Seller.

• Information about the consignee (ie, to whom and where the shipment will be delivered).

• The notifying parties, such as customs agents.

• A description of the goods, including the HS code

• The value of the goods, from which the customs duties will eventually be levied.

Why do I need a Commercial Invoice?

A Commercial Invoice includes the same information found on a standard invoice, in addition to the freight-related information required by customs and for custom clearance.

2. What is a Certificate of Origin (CoO)?

• A Certificate of Origin (CoO) is a document that evidences that the goods in your export shipment were produced, manufactured, or processed in a particular country.

  It requires standard information, like the exporter, consignee shipment routing, and goods description. It also includes two additional sections specific to the document:

  • Exporter declaration A declaration by the exporter to the inspector vouching for product details and the country of manufacture.

  • Inspection Certificate – A certificate completed by a state employee or an outsourced agency signifying that the goods were inspected.

  Each shipped good requires its own CoO.

  Why do I need a CoO?

  Most countries need a CoO for customs clearance, to determine what duties may be relevant, and for advance cargo reporting (eg, for government import statistics).

  Many freight forwarder require that it is provided with the Shipper’s Letter of Instruction, just in case the goods are banned from import or additional documentation is required.

  You can calculate container, box, or pallet freight shipping costs with our freight rate calculator. Simply enter your dimensions and weight to get an instant estimate.

  3.

• What is a Bill of Lading?

  Ocean freight is a trillion dollar business that hinges on buyers getting goods and sellers getting paid.

  That mostly comes down to one incredibly important freight document– the Bill of Lading (BOL, B/L, BL, Sea Waybill).

  In this article, we will explore what a BOL is, how to fill one out, and the different types you might encounter.

  What is a Bill of Lading?

  A Bill of Lading is really three documents rolled into one:

  1. The Bill of Lading is a Loading Receipt

  The word “lading” is an archaic form of “loading”. Blackbeard would have used it when piling more booty onto his pirate ship.

  The bill of lading started out as a receipt issued when a shipment was loaded onto a vessel (not that Blackbeard was too fussed about paperwork).

  It is still used as a receipt at pickup, handed to the seller as proof that the goods were handed over. It is also a receipt that the shipment was handed over in good condition unless a note to the contrary is made on the BOL at pickup.

  2. The Bill of Lading is a Contract of Carriage

  The second role a bill of lading plays is as a shipment contract. The terms and conditions of the forwarder arranging the international transit are included on the bill of lading.

  Technically, the contract begins when you accept the forwarder’s freight quote but the Contract of Carriage is evidence of that contract, otherwise, why is the shipment being picked up for international transit?

  Forwarder terms and conditions are usually written on the reverse side. And it turns out that forwarders (carriers too, for that matter) limit their liability for the shipment if something goes wrong.

  That’s why taking out comprehensive cargo insurance is so important.

  3. The Bill of Lading is a Document of Title

  The third role a BOL plays is as proof of ownership. Technically, the commercial invoice does that.

  The buyer and seller select freight terms (Incoterms) when putting the deal together. The Incoterm listed on the commercial invoice sets the point during transit when the goods change hands.

  Possession is nine-tenths of the law, and possessing the bill of lading has come to be used as proof of ownership. The seller gets it in their hands at pickup. Later on, the buyer will need it for shipment release.

  The BOL is Useful in Other Ways, Too

  • Tracking: If the master bill of lading number (more on that later) is recorded on the BOL, it can also be used for shipment tracking. Other tracking identifiers, like container numbers, are often recorded on the BOL.

  • Payment: The bill of lading is one of the key documents submitted in the Letter of Credit (L/C) process.

  • Insurance claims: The BOL must be submitted when filing a claim for lost or damaged cargo.

  • Insurance liability: If a bill of lading has been issued in a freight forwarder’s name, they can be liable for damage to freight – even if they don’t handle it.

  What is Included on a Bill of Lading Form?

  Forwarders create their own forms, each with their own design.

  Fortunately, they all essentially have the same information and in roughly in the same place on the form, as laid out in this conceptual design.