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International Shipping |
| To successfully export, you should have a basic
understanding of how each of the following
shipping documents is completed, why it is
needed, and how it is used. However, it is not
necessary that you become an "export
documentation expert". That is why you hire
a forwarder who can process most documents at a
reasonable cost. |
|
| With the exception of documents that you must
sign and provide as the exporter, ask your
forwarder to complete as many forms as they can
on your behalf. You have more profitable things
to do with your time than spend long hours
filling out international shipping forms |
|
Shipper's Letter of Instruction |
| To successfully export, you should have a basic
understanding of how each of the following
shipping documents is completed, why it is
needed, and how it is used. However, it is not
necessary that you become an "export
documentation expert". That is why you hire
a forwarder who can process most documents at a
reasonable cost. |
| With the exception of documents that you must
sign and provide as the exporter, ask your
forwarder to complete as many forms as they can
on your behalf. You have more profitable things
to do with your time than spend long hours
filling out international shipping forms |
| Purpose and Use of a
Shipper's Letter of Instruction |
| The Shipper's Letter of Instructions is prepared by you. You
send it to your forwarder and retain a copy for your
records. A copy of the Shipper's Letter of Instruction
becomes the Shipper's Export Declaration
(SED), Form 7525-V. |
| The Shipper's Letter of Instructions is your written
statement telling your forwarder how you want the shipment
to be handled. You are granting permission to your forwarder
to act as your authorized forwarding agent for U. S. export
control and customs purposes. |
| The Shipper's Letter of Instruction is designed to avoid
misunderstandings that can result in financial loss to you
as the exporter - or to your freight forwarder. It is
important that this document be absolutely accurate -
especially when you consider the litigious society in which
we live today. |
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| Definition of the Terms in a Shipper's Letter of Instruction |
| Pro
Number: |
Trucker's Reference
Number |
| Exporter
EIN Number: |
Exporter's IRS Employer
ID Number or Social Security Number |
| Point (State) of Origin or FTZ Number: |
Two-digit U. S. Postal Service or Free Trade Zone Code |
| Shipper's Reference Number: |
Shipper's invoice or purchase order number |
| ECCN: |
Export Classification Control Number |
| Shipper Requests Insurance: |
Amount of insurance requested by the exporter |
| Shipper's Instructions in Case of Inability to Deliver Consignment as Consigned: |
Return or not return shipment to the exporter if unable to deliver |
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| Sample Document - Shipper's
Letter of Instruction |
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| Warning Regarding
Under-Invoicing the Value of Export Shipments |
| If you are asked by a foreign buyer to
deliberately understate the value of the goods
you are shipping to them, or to change the
Harmonized Number on your commercial invoice,
price quotation, or other export documents, refuse
to do so! The advantage to under-invoicing
is solely with the buyer who will pay lower
import duties and taxes. However, if the
shipment is lost, you will only be paid the
artificially low insurance value on the
commercial invoice. |
| It may appear that your cooperation with the
foreign customer in under-invoicing is risk-free
but it is not. If under-invoicing is discovered
by local authorities, your foreign customer may
face severe penalties - and your company's name
may be forwarded to the U. S. Customs
Authorities for "SPECIAL ATTENTION."
In the United States, providing fraudulent
information on a government document, including
the Shipper's Export Declaration (SED), is
punishable by significant fines, imprisonment,
or both! Under-invoicing is simply not worth the
risk! |
| For more detailed information on
under-invoicing, refer to Rules
of Customs Valuation of the World Trade
Organization (WTO). |
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| The Commercial Invoice is prepared
by you. If the words "Proforma
Invoice" are typed in the upper right
corner, it can be used by the importer to apply
for an import license, letter of credit or other
form of payment at the importer's bank. |
| The commercial invoice acts as a
bill of sale from you to the buyer and specifies
goods, quantities shipped, prices and terms of
sale. It can be used by foreign governments to
determine the value of goods for assessment of
local customs duties and taxes, and to control
the importation of prohibited goods into the
local economy. |
| A commercial invoice can also serve
as a "legalized invoice" for certain
countries when stamped by an authorized
government official of the importing country. |
| Routing of a
Commercial Invoice |
| Routing with a Letter
of Credit. The completed commercial
invoice is sent from you to your
forwarder, then to the BANKS, and
finally to the consignee (or to the
designated agent of the consignee)
for clearance of the shipment
through local customs. The
commercial invoice must agree
exactly with all of the terms and
conditions of the Letter of Credit. |
| Routing without a
Letter of Credit. The commercial
invoice is sent by you to your
forwarder, and then to the consignee
(or designated agent of consignee)
for clearance of the shipment
through local customs. The
commercial invoice must agree
exactly with all of the terms and
conditions of the sale. |
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| Definitions of
Terms in a Commercial Invoice |
| Presenting
Bank: |
Name of Exporter's Bank |
| Country of
Origin of Goods: |
Country where the goods
were produced. |
| Port of
Lading: |
Final port of loading
in the exporter's country. |
| Terms and
Conditions of Delivery and Payment: |
Examples: Prepaid, letter
of credit, etc. |
| Other
Transportation Information: |
Example: "no transshipment
allowed" |
| Weights and
Measurements: |
State total weights and
measurements for the entire
shipment. You are not required to
list weights and measurements of the
individual containers. Use both U.
S. and metric
measurements. |
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| Sample Documents -
Commercial Invoices |
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| An export packing list is far more
detailed than a domestic one. It is a statement
used for export shipments of more than one
packaging unit, indicating the items packed in
each container, type of container, weights and
measurements (in both U. S. and metric terms),
total number of containers, and the markings on
each container for identification and
distribution at the foreign port of import.
Pricing information is not required. |
| An export packing list should be
securely attached to the outside of each
container in a waterproof packet or envelope
clearly marked "Packing List
Enclosed." It is used by the shipper and
forwarding agent to determine the total weight
and volume of the shipment, and whether the
correct cargo as indicated is being shipped. |
| Routing of a
Packing List |
| Routing with a
Letter of Credit. Packing list is
sent by you to your forwarder, then
on to the BANKS, then to U.S.
Customs, and finally to the
consignee (or the designated agent
of the consignee) for clearance of
shipment through local customs.
Packing list must conform exactly
with the commercial invoice and the
terms and conditions of the letter
of credit. |
| Routing without
a Letter of Credit. Packing list is
sent by you to your forwarder, and
then to consignee (or designated
agent of consignee) for clearance of
shipment through local customs. The
packing list must agree exactly with
all the terms and conditions of the
sale. |
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| Sample Document - Packing
List |
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| Form/Document |
Purpose |
Format |
| Shipper's Letter of
Instruction |
Letter specifying the contents and delivery instructions for
an international shipment.
|
PDF
|
| Shipper's Export
Declaration (SED) |
Shipper's Export Declaration (SED) form, made available by
the U.S. Department of Commerce.
|
PDF
|
Shipper's Export
Declaration
(continuation page) |
Continuation page for the Shipper's Export Declaration form
(above).
|
PDF
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Shipper's Export
Declaration
for In-Transit Goods |
Shipper's Export Declaration for In-Transit Goods, made
available by the U.S. Department of Commerce.
|
PDF
|
| The Correct Way to
Fill Out the SED |
Instructions for properly completing the SED form.
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PDF
|
Printing instructions
for the Shipper's Export
Declaration (SED) |
Instructions for printing the SED form.
|
PDF
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| SED/AES Data Element
Reference Table |
Reference document which explains the each of the values on
the SED form.
|
PDF
|
Questions &
Answers Relating to the Shipper's
Export Declaration (SED) Requirements |
Frequently Asked Questions regarding the SED form.
|
PDF
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| Commercial Invoice
(Standard) |
Commercial Invoice for International Shipments (except
Canada).
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PDF
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| Commercial Invoice
(Canadian) |
Commercial Invoice for Canadian shipments.
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PDF
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| Packing List |
Example Packing List
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PDF
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