No one likes filling out paperwork. But it is a vital part of the logistics process.
Shipping documentation is necessary to clear customs, keep cargo secure, meet trade regulations, and calculate charges, duties and taxes. Every importer and exporter needs to be on top of it, too, lest they want their cargo stationary in customs.
But what documents exactly do you need to ship goods by sea freight and air freight? Let us explain…
Documents you need for sea freight
Let’s start with sea freight, the most popular and common method of transporting goods around the world.
Bill of lading
A Bill of Lading is a legal document issued by the carrier to the shipper to confirm their receipt of the cargo. The document states where the goods are being shipped from, the end destination, who’s shipping them, the type of vessel and any identifying marks on your packages.
The Bill acts as a contract between the carrier and the owner of the goods and then doubles as a receipt once the goods have been delivered.
A Bill of Lading is crucial because it outlines the terms of the shipment, the destination, and the consignee. It can be negotiable or non-negotiable, affecting the transferability of the goods. A non-negotiable bill (also known as a Straight Bill of Lading) is consigned to one individual. Negotiable bills of lading can mean the carrier can consign goods to anyone in possession of the bill.
Commercial invoice
The commercial invoice is a detailed statement provided by the exporter to the importer, listing the goods, their value, and the terms of sale. It is a line-by-line description of every item in your shipment, including its HS code, value and quantity. It should also list the total value of the shipment.
It should include all costs related to the shipment, including shipping and insurance costs, payment terms and Incoterms. The commercial invoice should also include details of the buyer and seller, including names and addresses, as well as delivery and payment terms.
A commercial invoice is essential for customs clearance, as it provides the necessary information for calculating duties and taxes.
Certificate of origin
A Certificate of Origin states where the goods originated. It is usually certified by a governing body and required by customs officials at your destination to calculate the correct duties.
If you’re looking to import goods from a specific country at a reduced rate, you’ll also need a EUR1 Certificate. You must present this certificate, which is valid for four to 10 months, to the customs office at your destination.
Note that goods must either originate from the UK or EU or be manufactured in a country with a trade agreement for your EUR1 to be valid.
Export packing list
An export packing list is an itemised list of the products within your shipment.
It should include the:
- Total value of the freight
- Name and address of the shipper
- Name and address of the consignee
- Country of origin
- Weight of cargo
- Quantity of cargo
Accuracy is essential. Your freight forwarder may use your export packing list to create bills of lading and customs officials may use it to examine specific contents in your shipment. It will also be used to file an insurance claim if cargo is lost, damaged or stolen.
Insurance certificate
An insurance certificate provides proof that your goods are insured against loss or damage during transit. It is important for the financial protection of both the shipper and the consignee, ensuring that they are compensated in case of loss, damage or theft.
Documents you need for air freight
The documents you need when shipping cargo by air are largely the same except for one major difference:
Air Waybill
An Air Waybill is a document specific to air freight that acts as a contract of carriage between the carrier and the shipper. It is distributed by the International Air Transport Association (IATA) and is non-negotiable. You can think of it as the air freight version of a Bill of Lading.
Commercial Invoice
If you’re sending goods by air, you'll need a commercial invoice, too. This should contain similar information to the commercial invoice for sea freight, including a detailed breakdown of the goods being shipped, shipping costs, insurance quotes, and Incoterms.
Packing List
Air freight cargo also needs a packing list to help customs identify your goods and ensure they are stored correctly. It should contain the same information, including the content, dimension, weight and value of each piece of cargo.
Certificate of Origin
Like sea freight, most air freight cargo will require a certificate of origin that verifies your good’s country of origin.
Insurance Certificate
Air freight also needs an insurance certificate to prove the goods are covered in the event of damage or loss.
Documents you need for air freight
The documents you need when shipping cargo by air are largely the same except for one major difference:
Air Waybill
An Air Waybill is a document specific to air freight that acts as a contract of carriage between the carrier and the shipper. It is distributed by the International Air Transport Association (IATA) and is non-negotiable. You can think of it as the air freight version of a Bill of Lading.
Commercial Invoice
If you’re sending goods by air, you'll need a commercial invoice, too. This should contain similar information to the commercial invoice for sea freight, including a detailed breakdown of the goods being shipped, shipping costs, insurance quotes, and Incoterms.
Packing List
Air freight cargo also needs a packing list to help customs identify your goods and ensure they are stored correctly. It should contain the same information, including the content, dimension, weight and value of each piece of cargo.
Certificate of Origin
Like sea freight, most air freight cargo will require a certificate of origin that verifies your good’s country of origin.
Insurance Certificate
Air freight also needs an insurance certificate to prove the goods are covered in the event of damage or loss.
What other documents could you need?
The documents above are essential regardless of your cargo, but they’re not the only ones you may need. Depending on your business and shipment, you may also need to include the following:
Pro Forma Invoice
Often used in the initial stages of a transaction, a pro forma invoice provides an estimated value of the goods before they are shipped. It is used for securing financing, import licences, and customs declarations.
Dangerous Goods Forms
If you are shipping dangerous goods by sea or air, then the International Air Transport Association (IATA) or the International Maritime Organization (IMO) require you to include the relevant dangerous goods form with your shipment
A dangerous goods form outlines the nature of the dangerous goods, ensuring they are handled according to international safety standards to prevent accidents.
Letter of Credit (L/C)
A letter of credit is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter. It ensures that the seller will receive payment once the terms specified in the letter are met. This document is crucial for mitigating payment risks.
Export and Import Licences
An export licence is required for shipping certain goods that are regulated by the exporting country's government. This document ensures that the export complies with national regulations and policies.
Similar to the export licence, an import licence is needed for importing regulated goods into the destination country. It ensures that the goods comply with the importing country's regulations.
Let Pro Carrier handle your paperwork
The above documents are essential for ensuring the smooth and legal transport of goods by both sea and air freight. They facilitate customs clearance, verify the legality and compliance of the shipment, provide financial protection and ensure proper handling and delivery of the goods.
You need accurate and complete documentation to avoid delays and penalties, but you shouldn’t have to handle everything on your own.
That’s the beauty of working with an experienced freight forwarder like Pro Carrier. Our team has decades of experience helping customers ship from the Far East to Europe and from the UK to cross-border destinations. We handle all of your documentation needs, working two weeks ahead of schedule so you rarely — if ever — experience delays.
So, you focus on growing your business and we’ll handle the paperwork. Speak to one of our experts today to find out more.