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How to Manage Transport Documentation: Logistics and Supply Chain

When items are transported either domestically or internationally the delivery must be accompanied by
the relevant documentation. The amount of documentation varies depending on if the shipment is within
the US or to another country.

As far as interstate transportation of goods in the US, there are three documents that are of the greatest
importance; the bill of lading, freight bill, and the Free On Board (FOB) terms of sale.

Bill of Lading
a detailed list of a ship's cargo in the form of a receipt given by the master of the ship to
the person consigning the goods.

The bill of lading is the most important document that is used in transporting goods. The legal definition
of a bill of lading is a contract for the carriage of goods and a document of title to them.

It provides any and all information that the carrier will need to transport the items. It contains the
shipment origin and the contract terms for the transportation and is required by a carrier before the
shipment is taken.

The bill of lading should include the name and address of the consignor and consignee, and often it will
have the routing instructions for the carrier. It will contain a description of the goods to be transported, the
quantity for each of the commodities, and the commodity class and rate.

The bill of lading will contain the terms of the contract for the movement of goods by a common carrier.
This is the contract between the shipper and the carrier to transport the goods on the bill of lading to the
consignee (i.e., the buyer). The bill of lading contract has nine terms:

1. Common Carrier Liability: The carrier is liable for loss and damage of the goods being
transported, except if the goods were improperly packed by the shipper or if the goods themselves
would be liable to a normal loss like through evaporation. The carrier is not liable for acts of God,
public enemy or public authority.
2. Delay in Transit: The carrier cannot be held liable if the loss or damage is due to a delay in the
transportation of the goods.
3. Freight Not Accepted: If the goods are not accepted within the time allocated, the carrier can
store the goods at a cost to the owner.

4 Extraordinary Value: The carrier is not liable and does not have to carry items of extraordinary
value that are not on the rated in the published classifications or tariffs unless a special agreement
with the shipper has been negotiated.

5 Explosives: The carrier has to be given full written disclosure when they are shipping dangerous
material, otherwise, they are not liable for any losses.

6 Recourse: The carrier cannot make additional charges to the shipper after making a delivery.
 7 Substitute Bill of Lading: If the bill of lading is a substitute or exchange for another bill of lading
then the current bill of lading has to include all the clauses from previous documents.

8 Alterations: The carrier must note any changes or additions to ensure that they can be
enforceable.
9. Claims: This clause specifies the details on how to file a claim against the shipper and the time
period after delivery in which the claim will be accepted.

Freight Bill

The freight bill is the carrier's invoice to the shipper for all the charges that the carrier has incurred. The
carrier’s freight bill will include the details of the shipment, the items being shipped, the consignee, the
origin, and destination, as well as total weight and total charges.

Some carriers can ask for prepayment from the shipper if the value of the items being shipped is less than
the total expected freight charges. If the charges are not prepaid then the carrier can present a freight bill
on collect. This implies that the carrier will present the freight bill on the day of delivery.

FOB Terms of Sale

Free on Board (FOB) terms of sales documents which party will be liable for the transportation costs,
which party is in control of the movement of the goods, and when the title passes to the buyer.

If the FOB terms of sale indicate that it is FOB Delivered then this implies that the shipper will be
responsible for all of the carrier’s costs. If the terms of sale show FOB Origin, this means that the buyer
will take the title of the goods when they are shipped and they will incur all the transportation costs.

http://mohawkglobal.com/global-news/common-export-documents/

Common Export Documents

Your cargo rides on paper. Check with your customer to find out what forms are required and use a
freight forwarder to help you prepare the forms. The following are commonly used export documents that
may be required depending on the rules of the U.S. government or importing country.

Bill of Lading
A receipt and contract for the transportation of the goods, as well as a title document. There are several
types of bills of lading.

Straight B/L (nonnegotiable)-requires the cargo to be delivered to the named consignee only.
Shipper’s Order B/L (negotiable)-can be bought, sold, or traded while the goods are in transit. In order to
take possession of the goods, the foreign buyer will need the original B/L as proof of ownership.
Air Waybill-a nonnegotiable document used for air shipments.
Ocean B/L-a document issued by the ocean carrier.
Truck B/L-a document used for inland shipments to Canada and Mexico.
 Certificate of Origin
Used by the exporter to certify the country of origin of the exported goods. The certificate of origin is
legalized by a local chamber of commerce. See Consular Documents if needed to be legalized by the
embassy.
Commercial Invoice
The key accounting document for the goods from the seller to the buyer. Used to determine the true value
of goods for assessing Customs duties and to clear the shipment through Customs. It must be completed
in full and the correct number of copies supplied. It should include (not comprehensive):
 country of origin (manufacture)
 Incoterms rule
 complete description of the goods
 invoice quantity
 net and gross weights
 total number of packages
 value
 currency
 destination control statement
 certifications
 authorized exporter signature
 the following statement plus signature; “I hereby certify that this invoice is true and correct.”
Consular Documents
Required by some foreign customs services, these documents are special forms/certifications that confirm
the value, quantities, consignor, consignee, etc. They are certified prior to export by the Foreign
Consulate Office stationed in the US. The embassy will legalize the commercial invoice, certificate of
origin, and other supporting shipping documents.
Destination Control Statement
Indicated on the commercial invoice and ocean bill of lading/air waybill, this statement notifies the carrier
and all foreign parties that the item can only be exported to certain destinations.
BIS Destination Control Statement. These commodities, technologies, or software were exported from the
United States in accordance with the export administration regulations. Diversion contrary to U.S. law
prohibited.

Diversion Statement for ITAR regulated goods. These commodities are authorized by the U.S.
government for export only to (Country) for use by (End User). They may not be transferred,
transshipped, on a non-continuous voyage, or otherwise be disposed of in any other country, either in
their original form or after being incorporated into other end-items, without prior written approval of the
U.S. Department of State.
Dock Receipt
A receipt showing that the shipment was received at the steamship terminal. This form is supplied by the
steamship line and completed by the exporter or their freight forwarder.
Electronic Export Information (EEI)
Required for all export shipments, this electronic export data must be filed in the Automated Export
System (AES). It replaced the Shipper’s Export Declaration (SED).
Export License
A permit issued by the U.S. government that grants approval for the USPPI to export specific
commodities, in given quantities/values, to a named destination.
Export Packing List
Used to conduct Customs examinations, to verify that all goods were shipped and received, to determine
the total shipment weight and volume, and for insurance claims. It’s more detailed than a domestic
packing list or commercial invoice, although it does not show any pricing. It’s recommended to always
include an export packing list with the contents of each package, including marks, weights, dimensions
(in U.S. and metric measurements); type of package; shipper’s reference number; and buyer’s purchase
order number.
Free Trade Documentation
Required to receive favorable tariff treatment and based on the rules of origin determined for the exported
product. Documentation varies by the country accepting the exported goods. The U.S. has free trade
agreements with 17 countries. For some agreements (Israel, CAFTA-DR and NAFTA), a specific form
must be completed. Other agreements have a simplified certification process, requiring a free form
statement of ten data elements.
NAFTA. A certificate of origin is required for goods that qualify under the NAFTA rules of origin and are
shipped within the borders of Canada, the U.S., and Mexico.
Inspection Certification
Requested by the importer and arranged by the exporter in order to certify merchandise grade, material
contents, and quantities. Inspections are performed by a certified third party agency like Societe Generale
de Surveillance, Bureau Veritas, or Cotecna.
Insurance Certificate
Provides proof to the buyer that the goods are insured against loss or damage while in transit. It can be in
the form of a policy or a certificate.
Shipper’s Letter of Instruction
Used to control exports and as a source document for the authorized agent to prepare the Electronic
Export Information (EEI) filing on behalf of the U.S. Principal Party of Interest (USPPI).

Common Export Documents

This section covers documents that are commonly used in exporting, but specific requirements vary by
destination and product. It is divided into the following subsections: common export
documents, transportation documents, export compliance documents, certificates of origin, other
certificates for shipments of specific goods, other export-related documents, and temporary shipment
documents. Learn more about export documentation. For additional assistance with country-specific
documentation requirements, please email the Trade Information Center.
COMMON EXPORT DOCUMENTS
Commercial Invoice
A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by
governments to determine the true value of goods when assessing customs duties. Governments that use
the commercial invoice to control imports will often specify its form, content, number of copies, language
to be used, and other characteristics.
Export Packing List
Considerably more detailed and informative than a standard domestic packing list, an export packing list
lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes
quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages,
total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both
commercial stationers and freight forwarders carry packing list forms. A packing list may serve as
conforming document. It is not a substitute for a commercial invoice. In addition, U.S. and foreign
customs officials may use the export packing list to check the cargo.
Pro Forma Invoice
A pro forma invoice is an invoice prepared by the exporter before shipping the goods, informing the
buyer of the goods to be sent, their value, and other key specifications. It also can be used as an offering
of sale or price quotation.
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TRANSPORTATION DOCUMENTS
Airway Bill
Air freight shipments require airway bills. Airway bills are shipper-specific (i.e., USPS, Fed-Ex, UPS,
DHL, etc.).
Bill of Lading
A bill of lading is a contract between the owner of the goods and the carrier (as with domestic shipments).
For vessels, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or
shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The
customer usually needs an original as proof of ownership to take possession of the goods. See
also: straight bill of lading and liner bill of lading.
Electronic Export Information Filing (formerly known as the Shipper’s Export Declaration)
Electronic Export Information (EEI) is the most common of all export control documents. It is required
for shipments above $2,500* and for shipments of any value requiring an export license. It has to be
electronically filed via the AES Direct online system, which is a free service from Census and Customs.
Numerous videos are available on AES Direct, including: Registering for AESDirect, Filing a Shipment
in AESDirect, Response Messages from AES, Proof of Filing Citations , AESDirect - The Shipment
Manager, and Elimination of the SSN in the AES.
*Note: The EEI is required for shipments to Puerto Rico, the U.S. Virgin Islands and the former Pacific
Trust Territories even though they are not considered exports (unless each “Schedule B” item in the
shipment is under $2,500).
Shipments to Canada do not require an EEI except in cases where an export license is required.
(Shipments to third countries passing through Canada do need an EEI.)
EXPORT COMPLIANCE DOCUMENTS
Export Licenses
An export license is a government document that authorizes the export of specific goods in specific
quantities to a particular destination. This document may be required for most or all exports to some
countries or for other countries only under special circumstances. Examples of export license certificates
include those issued by the Department of Commerce’s Bureau of Industry and Security (dual use
articles), the State Department’s Directorate of Defense Trade Controls (defense articles), the Nuclear
Regulatory Commission (nuclear materials), and the U.S. Drug Enforcement Administration (controlled
substances and precursor chemicals).
Several videos are available on export licenses, including: Export Compliance Introduction, Exporting
Commercial Items: ECCNs and EAR99, The Commerce Control List and Self-Classification,
and Exporting EAR99 Items: Screening Your Transaction, Lists to Check and Red Flags.
Destination Control Statement
A Destination Control Statement (DCS) is required for exports from the United States for items on the
Commerce Control List that are outside of EAR99 (products for which no license is required) or
controlled under the International Traffic in Arms Regulations (ITAR). A DCS appears on the
commercial invoice, ocean bill of lading, or airway bill to notify the carrier and all foreign parties that the
item can be exported only to certain destinations. For more information, watch relevant videos: Export
Compliance Introduction, and Exporting Commercial Items: ECCNs and EAR99.
The U.S. Principal Party in Interest (USPPI)

The USPPI, as defined in the Foreign Trade Regulations ("FTR"), is the person in the United States that
receives the primary benefit, monetary or otherwise, of the export transaction. The attached article
describes responsibilities of the USPPI, and offers a handy checklist to assure compliance with U.S.
export regulations.
http://www.ncbfaa.org/Scripts/4Disapi.dll/userfiles/uploads/USPPIExportResponsibilityInfoSheet_62.pdf
CERTIFICATES OF ORGIN
Generic Certificate of Origin
The Certificate of Origin (CO) is required by some countries for all or only certain products. In many
cases, a statement of origin printed on company letterhead will suffice. The exporter should verify
whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade
Information Center.
Note: Some countries (i.e., numerous Middle Eastern countries) require that certificate of origin be
notarized, certified by local chamber of commerce and legalized by the commercial section of the
consulate of the destination country. For certain Middle Eastern countries, the National U.S.-Arab
Chamber of Commerce may also provide such services.
For textile products, an importing country may require a certificate of origin issued by the manufacturer.
The number of required copies and language may vary from country to country.
Certificate of Origin for claiming benefits under Free Trade Agreements
Special certificates may be required for countries with which the United States has free trade
agreements (FTAs). Watch our FTA webinar for more information. Some certificate of origin including
those required by the North American Free Trade Agreement (NAFTA), and the FTAs with Israel and
Jordan, are prepared by the exporter. Others including those required by the FTAs with Australia; the
Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) countries;
Chile; and Morocco; are the importer’s responsibility). Click on a specific country below to learn details
on how to document origin.
 Australia (CO samples)
 Bahrain (importer to check with Govt. of Bahrain on format/information)
 CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras CO
sample)
 Chile (CO sample)
 Israel (CO sample Note: The green form needs to be purchased from Vendor or US-Israel
Chamber of Commerce or a publishing house.)
 Jordan (notarized generic certificate of origin required)
 Morocco (importer makes a claim on the basis of supporting evidence)
 NAFTA (CO sample and relevant videos)
  Singapore (No certificate of origin is required. However, the importer is required to produce
the necessary permits together with an invoice, at the time of cargo clearance.)
 Peru (There is no prescribed format. However, specific information is required.
See implementing instructionsand sample certification guidance for Peru.
 Korea (There is no prescribed format. However, specific information is required.
See documenting originguidance and required data elements for certification for Korea.
 Panama (there is no prescribed format; however, specific information is required.
Read implementing instructions and certification guidance for Panama and view
a Panamanian Customs (optional) Sample Certificate of Origin.
Certificate of Origin for goods not manufactured in the United States
Certificates of origin for goods that are manufactured in the United States, as well as abroad, can be
obtained by contacting eCertify.com.
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OTHER CERTIFICATES FOR SHIPMENTS OF SPECIFIC GOODS
Additional certificates are needed for different purposes. Check with your importer, freight forwarder, or
contact the Trade Information Center at tic@trade.gov for further information.
ATA CARNET/Temporary shipment certificate
An ATA Carnet, a. k. a., "Merchandise Passport," is a document that facilitates the temporary importation
of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or the posting of a
security deposit normally required at the time of importation. Apply for an ATA Carnet.
Certificate of Analysis:
A certificate of analysis can be required for seeds, grain, health foods, dietary supplements, fruits and
vegetables, and pharmaceutical products.
Certificate of Free Sale
Certificate of free sale may be issued for biologics, food, drugs, medical devices and veterinary medicine.
More information is available from the Food and Drug Administration. Health authorities in some states
as well as some trade associations also issue Certificates of Free Sale.
Dangerous Goods Certificate
Exports submitted for handling by air carriers and air freight forwarders classified as dangerous goods
need to be accompanied by the Shipper’s Declaration for Dangerous Goods required by the International
Air Transport Association (IATA). The exporter is responsible for accuracy of the form and ensuring that
requirements related to packaging, marking, and other required information by IATA have been met.
For shipment of dangerous goods it is critical to identify goods by proper name, comply with packaging
and labeling requirements, which vary depending upon the type of product shipper and the country
shipped to. More information on labeling/regulations is available from the International Air
Transportation Association or Department of Transportation - HAZMAT websites.
For ocean exports, hazardous material regulations are contained in the International Maritime Dangerous
Goods regulations.
Fisheries Certificate
The National Marine Fisheries Service conducts inspections and analyses of fishery commodities for
export.
Fumigation Certificate
The Fumigation Certificate provides evidence of the fumigation of exported goods (especially agricultural
products, used clothing, etc.). This form assists in the quarantine clearance of any goods of plant or
animal origin. The seller is typically required to fumigate the commodity at his or her expense a
maximum of 15 days prior to loading.
Halal Certificate
Required by most countries in the Middle East, this certificate states that the fresh or frozen meat or
poultry products were slaughtered in accordance with Islamic law. Certification by an appropriate
chamber and legalization by the consulate of the destination country is usually required.
Health Certificate
For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish, seafood,
dairy products, and eggs and egg products). Note: some countries require that health certificates be
notarized or certified by a chamber and legalized by a consulate. Health certificates are issued by the U.S.
Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS).
Ingredients Certificate
A certificate of ingredients may be requested for food products with labels that are inadequate or
incomplete. The certificate may be issued by the manufacturer and must give a description of the product,
contents, and percentage of each ingredient; chemical data; microbiological standards; storage
instructions; shelf life; and date of manufacture. If animal fats are used, the certificate must state the type
of fat used and that the product contains no pork, artificial pork flavor, or pork fat. All foodstuffs are
subject to analysis by Ministry of Health laboratories to establish their fitness for use.
Inspection Certificate
Weight and Quality certificates should be provided in accordance with governing USDA/GIPSA
regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin
certified by the local chamber of commerce at the load port and a phytosanitary certificate issued by
APHIS/USDA and fumigation certificate are to be provided to the buyer. Costs of all inspection, as well
as certificates/documents at the load port, are usually the responsibility of the seller. Independent
inspection certificates may required in some instances.
Pre-Shipment Inspections
The governments of a number of countries have contracted with international inspection companies to
verify the quantity, quality, and price of shipments imported into their countries. The purpose of such
inspections is to ensure that the price charged by the exporter reflects the true value of the goods, to
prevent substandard goods from entering the country, and to deflect attempts to avoid payment of customs
duties. Requirements for pre-shipment inspection are normally spelled out in letter-of-credit or other
documentary requirements. Inspections companies include Bureau Veritas, SGS and Intertek. Some
countries require pre-shipment inspection certificates for shipments of used merchandise.
Insurance Certificate
Insurance certificates are used to assure the consignee that insurance will cover the loss of or damage to
the cargo during transit. These can be obtained from your freight forwarder or publishing house. Note: an
airway bill can serve as an insurance certificate for a shipment by air. Some countries may require
certification or notification.
Phytosanitary Certificate
All shipments of fresh fruits and vegetables, seeds, nuts, flour, rice, grains, lumber, plants, and plant
materials require a federal phytosanitary certificate. The certificate must verify that the product is free
from specified epidemics and/or agricultural diseases. Additional information and forms are available
from Animal and Plant Health Inspection Service(APHIS).
Radiation Certificate
Some counties including Saudi Arabia may require this certificate for some plant and animal imports. The
certificate states that the products are not contaminated by radioactivity.
Other (Product-Specific) Certificates
Shaving brushes and articles made of raw hair must be accompanied by a recognized official certificate
showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate.
Grain requires a fumigation certificate, and grain and seeds require a certificate of weight. Many countries
in the Middle East require special certificates for imports of animal fodder additives, livestock, pets, and
horses.
Weight Certificate
A certificate of weight is a document issued by customs, certifying gross weight of the exported goods.
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OTHER EXPORT-RELATED DOCUMENTS
Consular Invoice
Required in some countries, a consular invoice describes the shipment of goods and shows information
such as the consignor, consignee, and value of the shipment. If required, copies are available from
the destination country's embassy or consulate in the U.S. The cost for this documentation can be
significant and should be discussed with the buyer.
Canadian Customs Invoice
Although not required by regulation, this customs invoice is a preferred document by Canadian
Customs and customs brokers. It is issued in Canadian dollars for dutiable and taxable exports exceeding
$1600 Canadian dollars. Detailed invoice requirements can be obtained at the Canadian Customs website.
Dock Receipt and Warehouse Receipt
A dock receipt and warehouse receipt are used to transfer accountability when the export item is moved
by the domestic carrier to the port of embarkation and left with the ship line for export.
Import License
Import licenses are the responsibility of the importer and vary depending upon destination and product.
However, including a copy of an import license with the rest of your documentation may in some cases
help avoid problems with customs in the destination country.
ISPM 15 (Wood Packaging) Marking
The International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging
Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary
Measures adopted by the International Plant Protection Convention (IPPC). The IPPC is an international
treaty to secure action to prevent the spread and introduction of pests of plants and plant products, and to
promote appropriate measures for their control. The American Lumber Standard Committee (ALSC) and
the National Wooden Pallet and Container Association (NWPCA) provide phytosanitary certification for
wood packaging materials (WPM). APHIS will issue a phytosanitary certificate for wood package
materials only if WPM are the cargo.
Shipper’s Letter of Instruction
The shipper’s letter of instruction is issued by the exporter to the forwarding agent and includes shipping
instructions for air or ocean shipment.
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TEMPORARY SHIPMENT DOCUMENTS
ATA CARNET/Temporary shipment certificate
An ATA Carnet, a. k. a., "Merchandise Passport," is a document that facilitates the temporary importation
of products into foreign countries by eliminating tariffs and value-added taxes (VAT) or the posting of a
security deposit normally required at the time of importation. Apply for an ATA Carnet.
Customs Certificate of Registration
Customs Form 4455 may be used (often in conjunction with a temporary import bond or ATA Carnet for
goods that are leaving the United States on a temporary basis for alteration, repair, replacement, and
processing).
Transporting Goods by Truck to Canada
An application to transact bonded carrier and forwarding operation, Form E370, is required to bring
goods over the border to Canada, when not already cleared through Customs at the border.