General Export Sample with Definitions and Instructions

EXPORT TRANSACTION FILE

Pro Forma Invoice

Upon receiving a purchase order from a buyer overseas, a “pro forma” invoice is usually then prepared and sent to the buyer for approval. The buyer will check the pro forma to make sure only those items on the purchase order are listed. The approximate weights and value should be listed as well as terms and conditions of sale. In some cases, the buyer needs the pro forma to obtain import permits or foreign exchange permits.

Once the buyer approves the pro forma invoice, the seller (or exporter) begins to ready the order. Upon having the order completed, a commercial invoice and packing list is usually prepared.

Commercial Invoice

This document is a “bill” that the seller prepares for the buyer. It should contain all pertinent details of the sale, including the shipping terms and other information such as

Name, address, and phone number of export/shipper

Name and address of buyer, or “sold to” party

Name, address, and phone number of “ship to” party, if other than “sold to” party

Date

Invoice number

Buyer’s purchase order number

Terms of payment

Terms of sale

Quantity, description of goods, unit price, and extended prices

Total value of goods (specify currency)

Country of origin

Signature of exporter

The commercial invoice travels with the air waybill (or ocean bill of lading).

Note: there may be certain countries that require additional specific information, so it is always best to check with the buyer for any documentation instructions.

Some countries require that the commercial invoice be “legalized” by the local chamber of commerce and the specific country’s consulate.

Packing List

This document describes the physical packaging of the goods. It should list the following information:

Date

“Ship to” party

Buyer purchase order number

How many packages

Type of packing (e.g., crate, drum, fiberboard box, cases)

Contents of packages

Gross and net weight

Dimensions (length × width × height)

Any marks or labels on the packages

Although not all countries require this document, it is certainly instrumental with regard to filing a cargo insurance claim. It is recommended that every cargo movement be accompanied by a packing list.

Certificate of Origin

Some countries require goods to be shipped with a certificate of origin. This document certifies the country of manufacture, and the manufacturer’s name and address. This document is signed by the exporter, notarized by an official notary public, and usually is required to be certified by the local chamber of commerce.

Your freight forwarder can advise if your consignment needs a certificate of origin, but it is always recommended that the exporter check with the buyer for a list of all documents required to enable customs clearance in the country of destination.

When shipping between North America (Canada, Mexico, and the United States), there is a specific certificate of origin called North American Free Trade Agreement (NAFTA) that may be filled out by the manufacturer, or the seller if he has intimate knowledge of the product composition. This document allows preferential duty rates to be applied to the shipment for goods qualifying under the applicable NAFTA rules of origin.

Air Waybill

This document is a bill of lading for air transportation. It identifies the pieces, weight, commodity, shipper, and consignee.

This document must be tendered to the airline with the cargo. It also serves as a receipt of tender.

Shippers Export Declaration (SED)

This document is only required when:

a. Goods are valued at $2,500 or more. (Exports from Canada do not require an SED.)

b. Goods are licensable by state or commerce department.

The main function of this document is to compile census information regarding trade and exports from the United States.

Insurance Certificate

Insurance certificates are used as evidence that the shipment has proper coverage. The standard is to insure for 110 percent of the cost-insurance-freight (CIF) value. This certificate is not always required so it is best to check the conditions and terms of sale and to see who the responsible party is.

Straight Bill of Lading Form

This document is used as a receipt of carriage for inland freight from the origin point to the airport or port of departure or the consolidation warehouse. It lists the pieces, weight, and a short description of the goods. Whoever is receiving goods against this inland freight form should always check the cargo they are receiving and sign any exceptions such as broken seals, crushed corners, tear in boxes, and so on.

Ocean Bill of Lading

This document is issued by the ocean freight carrier as evidence that they acknowledge receipt of your goods and that they agree to transport it to the destination that is indicated, and becomes the contract and agreement of carriage between the exporter and the carrier.

Quality Certificate

This document is used as evidence that the product complies with all U.S. Food and Drug Regulations, that it is offered for sale in the United States, and that it is fit for human consumption. Some products require more specific information regarding how the processing was done.

It cannot be stressed enough that you should always check with the buyer for their country’s requirements.

EXPORT LICENSE

There are certain commodities that cannot be exported from the United States without having prior authorization by the U.S. Department of State. The Bureau of Industry & Security and the Department of State issue licenses for dual use items and items for military end-use as well as technology for these items.