Exporting is a complex process which is made even more intricate with the requirement of the seemingly endless variety of documentation that needs to be completed and submitted correctly to ensure that the exporter's cargo reaches its destination timely and problem free. When preparing the documents, you will notice that you will need to fill in a wide range of forms which can include: bill of entry, foreign exchange documents, export permits, documents required by the importer, those necessary for payment and lastly, transportation documents. Of course your list of documents will vary according to the country of destination as well as to the type of goods that are to be shipped, but they will mostly all be similar in effect.
Why is all of this documentation necessary you ask?
A written document is an official means of transferring information from one individual or business to another. It also serves as solid proof of tasks and actions performed or to be performed throughout the exporting process. Many of these documents also serve as a type of "passport" for your products so that they can legally exit and enter into foreign countries. It is always a good idea to make copies of the finalised documents to ensure that you are protected against any errors that might occur from the various departments
Your Export Documents may serve many of these valued functions:
- A confirmation of facts
- Evidence of the terms and conditions which are agreed upon
- Proof of ownership of goods
- Confirmation of payment and agreement of monies owed
- A demand of noted payment
- An agreement of acknowledged liability
- A confirmed receipt or acknowledgment of goods received
Most companies request the assistance of international Freight Forwarding companies to help with the export documentation. If you are new to exporting, then this route is recommended as these companies will have the input and resources to help you through the maze of documentation that you will inevitably receive.
I have summarized and listed some of the documents that you can expect to complete if you are planning to export. The can be divided into five categories:
1. Documents concerning the Importer:
A Proforma Invoice
An Export Contract
A Commercial Invoice
A Packing List
Letter of Credit
Certificate of Origin
Health Certificates
Fumigation Certificate
Pre-shipment Inspection Certificate
Transport Documentation
2. Documents required to export:
Registration form of Exporter
Letter of Credit
Commercial Invoice
Bill of Entry
No Foreign Exchange Proceeds Document
Repatriation of Foreign Exchange Earnings Document
Export Permit
3. Transportation Documents
Bill of Lading
Airway Bill
Freight Transit Order
Road Consignment Note
Export Cargo Shipping Instruction
4. Payment Documents
Commercial Invoice
Letter of Credit
Transport Documents
5. Insurance documents
Marine Insurance
As mentioned before, the list of documents you will need to complete may seem endless, daunting and quite frustrating. Once you get the hang of it however, the process will start to make sense to you and I am sure you will become a professional in the trade! I hope I was able to give you a good idea of the paperwork involved and why it is so necessary and important.
