Importing or exporting a shipment requires documents for customs review and clearance. What belongs in that documentation set? This guide explains the main documents businesses commonly encounter.
1. What are import and export documents?
These documents record details of the goods, sales contract, transportation, payment arrangements, insurance, and other terms agreed between buyer and seller. They may also serve as evidence if a dispute arises.
2. What documents are included?
Import and export documentation has many common elements, although customs may require additional documents for particular commodities. Typical documents include:
2.1 Sales contract
An international sales contract records the buyer's and seller's agreement on the goods, delivery terms, prices, and payment method. It typically covers:
- Commodity description.
- Quantity.
- Quality specifications.
- International payment method.
- Sales price.
- Delivery location and timing.
Your provider of customs clearance services will request these documents when arranging clearance.
In a dispute, the agreed contract terms may be used as evidence in proceedings involving the Vietnam International Arbitration Centre associated with the Vietnam Chamber of Commerce and Industry.
2.2 Bill of lading (B/L)
A bill of lading is issued by a carrier or freight forwarder to acknowledge the shipment. A carrier-issued bill is known as a master bill of lading (MBL), while a forwarder-issued bill is a house bill of lading (HBL).
The principal distinction is the issuer. A shipper booking directly with a shipping line receives its MBL. Where the booking is handled through a forwarder, the forwarder may issue an HBL to the shipper.
An HBL can be easier to amend because the forwarder controls its issuance, whereas amendments to an MBL may be more difficult and incur fees. The article also highlights the counterparty risks associated with smaller forwarders and their ability to meet responsibilities during disputes, compared with an established shipping line. Shippers and consignees should consider these factors when choosing their documentation arrangement.
2.3 Packing list
A packing list shows how the shipment is packed and provides cargo details such as weight and volume.
The shipper generally packs to the consignee's requirements and includes the packaging cost in the sale price. Packaging may also be outsourced to a logistics provider or freight forwarder.
2.4 Commercial invoice
The exporter issues the commercial invoice for international payment purposes. It records the payment terms associated with delivery under the contract, together with the goods, unit prices, and total sales value.
Its principal uses include:
- Payment.
- Import duty assessment.
- Cargo insurance calculations.
Together with the sales contract, the invoice supports the seller's claim for payment from the buyer. It is important evidence of payment obligations and amounts due if a dispute arises.
Failure to comply with the contract and invoice may lead to international dispute resolution proceedings.
2.5 Customs declaration
A customs declaration provides detailed information about the goods and transport. It may be filed by the cargo owner or an authorized service provider.
Shippers without sufficient filing knowledge or experience may use customs declaration assistance. An experienced logistics provider can help reduce clearance risks and may offer a more cost-effective option than assigning internal resources to unfamiliar procedures.
Read more: Customs clearance services from Alphatrans
2.6 Certificate of origin (C/O)
A certificate of origin establishes where goods originate. Different destination markets may require different certificate forms.
The trade example discussed here identifies Form E for shipments from Vietnam involving ASEAN and China to obtain preferential duty treatment.
As with customs filing, inexperienced shippers may find origin certification time-consuming and costly. Specialist logistics assistance can help them manage the process more efficiently.
2.7 Quarantine certificates
Certificates issued by plant or animal quarantine authorities confirm that the relevant inspections have been completed to help prevent the spread of pests and disease between countries. Plant certification is commonly referred to as a phytosanitary certificate.
The categories identified for pre-export inspection include:
- Plants.
- Plant products.
- Fungi.
- Animals.
- Animal products.
For the listed goods, the shipper is responsible for arranging the required quarantine certification and paying the associated costs.
2.8 Fumigation certificate
A fumigation certificate records treatment intended to control pests during transportation. The export categories identified here include:
- Organic commodities such as rice, cereals, cashews, and pepper.
- Wooden furniture, decorative items, and handicrafts.
- Goods packed on wooden pallets or in wooden cases.
2.9 Material safety data sheet (MSDS)
Dangerous or flammable cargo, such as chemicals and oil, requires the relevant safety data documentation. An MSDS describes the chemical composition and supports planning for safe transportation and handling to protect both the goods and the people involved.
A complete document set helps businesses manage customs clearance more smoothly. Check the documents relevant to your particular commodity and shipment before arranging transport.