Shipping an Export Products

After receiving and accepting an export order, the next step is to coordinate shipment and ensure the goods reach your customer. This seemingly simple process involves complying with various rules and regulations concerning packing, labeling, documentation, and insurance.

Utilizing a Freight Forwarder

While not mandatory, many exporters, especially those new to the process, enlist the services of a freight forwarder. Freight forwarders act as agents, coordinating the movement of cargo from its origin in the United States to its international destination. Their services extend to coordinating shipment from the factory, arranging cargo loading onto the vessel, and processing shipment documentation.

Freight forwarders possess expertise in:

  • Export regulations legal
  • Import regulations of the destination countries
  • Various shipping methods
  • Documentation related to international trade

Their knowledge can be invaluable in ensuring smooth and compliant shipping, whether it involves a small air parcel, large ocean crates, or full container loads.

Before choosing a freight forwarder, consider the following:

  • Specialized product lines: If your product is specialized, find a broker with expertise in clearing such items. For instance, perishable goods like fruits and vegetables have specific Department of Agriculture regulations governing their import.
  • Experience: Gauge the forwarder’s experience level, particularly with your product type and destination country.
  • Reputation: Check references or seek recommendations from other exporters to assess the forwarder’s reputation for reliability and efficiency.
  • Fees: Compare the fees and services offered by different forwarders to find one that aligns with your budget and requirements.

Packaging and Labeling

International shipping can be demanding on packaged goods, and your packaging should withstand potential issues like breakage, moisture, pilferage, and excess weight. Additionally, comply with the buyer’s specifications for export markings on the cargo for easy identification.

Your shipping cartons should include:

  • Shipper’s mark: This functions like a return address, identifying the exporter for easy recognition by the buyer.
  • Country of origin: Clearly mark the country of origin, as required by Customs regulations in most countries.
  • Weight markings: Display gross, net, and tare weights in both pounds and kilograms, as some countries may have specific unit requirements.
  • Number of packages: If shipping multiple packages, number them sequentially and indicate the total number of packages included in the shipment.

Required Documentation

Accurate and complete documentation is crucial for export shipments to meet the requirements of both the U.S. and the importing country’s governments. While a freight forwarder can handle this, understanding the key documents involved is essential:

  • Commercial invoice: This crucial document provides details reflected in other documents and includes:

    • Names and addresses of the shipper and seller
    • Tax identification/VAT numbers
    • Invoice and purchase order numbers
    • Terms of sale (Incoterms)
    • Detailed description of goods, including Harmonized Tariff Numbers
    • Country of origin
    • Unit and total values
    • Total invoice amount and currency code
    • Total number of packages and weight
    • Declaration statement

  • Consular invoice: Certain countries mandate a consular invoice to regulate and track goods. These are obtained from the consulate of the destination country and often need to be in the local language.

  • Shipper’s letter of instructions: Prepared by the exporter for the freight forwarder, this document outlines shipping specifics:

    • Exporter’s details, including EIN or SSN
    • Ultimate consignee’s name and address
    • Forwarding agent’s details
    • Inland carrier’s details

  • Bill of lading: This document serves as a contract between the shipper and carrier, acknowledging receipt of goods for shipment and specifying their destination. There are different types of bills of lading, including:

    • Ocean bill of lading: Used for ocean shipments, this document is issued by the shipping company upon cargo loading and is required for the importer to claim the goods.
    • Air waybill: Similar to the bill of lading, this is used for air shipments.

  • Certificate of origin: This document, often requested by Customs, certifies the origin of the goods.

  • Inspection certificate: Some buyers or countries require this to verify the goods’ specifications, usually performed by a third party.

  • Dock and warehouse receipt: This receipt confirms the transfer of accountability once the domestic carrier delivers the goods to the port and hands them over to the international carrier.

  • Destination control statement: This statement, mandated for most export sales, informs the carrier and foreign parties that diverting the U.S. goods contrary to U.S. law is prohibited. It’s included on the commercial invoice, ocean/air waybill of lading, and shipper’s export declaration.

  • Insurance certificate: When the terms of sale are CIF (cost, insurance, and freight), the exporter is responsible for providing cargo insurance. The insurance certificate details the coverage type and amount.

  • Shipper’s export declaration: Used by the Department of Commerce to monitor exports and compile trade statistics, this document (or its electronic equivalent) is required for shipments exceeding a certain value.

  • Export license: Issued by the U.S. government, this document is necessary for items requiring a Validated Export License.

  • Packing list: A detailed document, it lists items in each package, package type, individual weights and measurements, markings, and references to identify the shipment.

Cargo Insurance

Considering cargo insurance is essential to protect against loss or damage during transit. The type and extent of coverage required depend on the chosen Incoterms and the value of the goods. CIF terms make the exporter responsible for insurance, while other Incoterms may shift the responsibility to the importer.

By understanding and diligently addressing these aspects of shipping export products, you can ensure that your goods reach their destination safely, securely, and in compliance with all applicable regulations.