SHIPPING DEPARTMENT

Working Procedure of the Shipping Department

When the shipment is sent through sea by FOB a consolidator is responsible to handle
cargo and documents on the behalf of buyer. This consolidator is generally nominated by
the buyer.
The payment is to be done within 45 hrs after shipment.

Mode of payment is LC, i.e. letter of credit which is given by the buyer to the bank.
As soon as the buyer receives shipment, the LC is opened but before payment the
bank requires all the documents of shipment which are given by the companys
bank. FCR (first cargo received) is also submitted along with the documents.
The custom duty in case of the buyer A&F is FCA. For Nordstrom and Chicos, it is
FOB but in case of late shipment it becomes CFR. In case of Monoprix the custom
duty is FOB.

Documents in shipping department

1. Invoice

It is prepared by the exporter and sent to the importer for necessary acceptance. When the buyer is
ready for the order, he requests for invoice. There are 2 types of invoice- commercial invoice and
consular invoice.Commercial invoice is a fundamental document for primary acceptance. It contains
the name of the exporter, importer and the consignee along with description of goods.

2. Packing List

It shows the details of goods in each shipment and is more detailed than a standard
domestic packing list. It itemizes the material in each individual package and indicates the
type of package, such as carton.
3. Certificate of Origin

Importers in several countries require a certificate of origin without which clearance to

import is refused. This certificate states that the goods exported are actually manufactured
in the country which has been mentioned.
4. Shipping Bill

Shipping bill is the main customs document, required by the customs authorities for granting
permission for the shipment of goods. Shipping bill is normally prepared in 5 copies:
customs copy, drawback copy, export promotion copy, port trust copy, and exporters copy.
5. Airway Bill

AWB refers to a receipt issued by an international airline for goods and an evidence of the
contract of carriage, but it is not a document of title to the goods. Hence, airway bill is non-
negotiable. It is the most important document issued by a carrier either directly or through
its authorized agent. It covers transport of cargo from airport to airport.
6. Bill of Lading

This is the key document used in transporting goods and an important financial instrument. It is
generated by the shipper, detailing the shipment of merchandise, giving title to the goods and
requiring the carrier to release the merchandise to a named party at the destination.