Documents Required For Cargo Transportation

Editorial Team

Documents Required For Cargo Transportation

Paperwork is an essential, but boring part of preparation for cargo transportation. In this article we will tell you about documents required for cargo transportation.

The most important shipping documents

Commercial invoice

A commercial invoice is used as a customs document in international trade by the exporter or importer. It serves as the seller and buyer’s evidence of sale. It permits international shipments to pass customs and functions as your freight passport. Although, there is no set format, a commercial invoice must contain the following:

  • name and address of the buyer and seller
  • detailed description of the goods
  • country where the goods were manufactured
  • Value of the goods
  • Terms of Sale (Incoterm)

Commercial invoice can also contain other information, depending on where your cargo is transported and what type of cargo and either you do import or export of goods.

Packing list

Another essential shipping document when sending ocean freight abroad is the packing list. It is a thorough description of the cargo listed on the aforementioned Commercial Invoice. Also, it contains details about the shipment’s packing, including what marks and numbers are written on the outside of the boxes.

Export/import customs declaration

Details about the products that are exported or imported are listed in an export or import customs declaration. When transporting international freight, this notification is particularly crucial. Speaking in a legal terms, a person expresses their desire to place items under a specific customs procedure by submitting a Customs Statement. The Declaration is used to determine the charges or taxes that will be charged to the goods and to clear customs. A customs broker creates it using the packing list and invoice.

Bill of lading sea waybill

You will receive a detailed document from your transport company called the Bill of Lading. It is the transportation contract, and it contains crucial information about the shipment. It is an additional crucial component of the journey and evidence that the items were delivered by the shipper in excellent condition to the carrier. The person in possession of this document also has control over the shipment.

A Sea Waybill is another type of transit agreement. The Sea Waybill will only be sent out as a cargo receipt; it is not required for cargo delivery. Moreover, a Sea Waybill cannot be issued to any third parties and is not negotiable.

Air or rail waybill

You will receive either an Air or Rail Waybill, depending on your way of transportation. An air carrier issues the Air Waybill (AWB), a non-negotiable document, to acknowledge possession of a package. This document includes the shipment’s destination address and the sender and recipient’s contact information (the receiver).

The Rail Waybill, in contrast, is a document used for goods made by railroad. After obtaining the shipper’s instructions, the shipping agent or railroad line prepares this document.

Arrival notice

The Arrival Notification, is another crucial transportation document. The arrival of the cargo is announced in this document. It contains relevant information including the description of the commodity, sailing information, destination country information on customs taxes, and the contact information of the ocean freight carrier.

Certificate of origin

The document that specifies the nation in which a thing or commodity was produced is known as a certificate of origin. It is frequently required. This document includes details about the product, its location, and the exporting nation. It is a crucial document because it helps establish if products are duty-free and suitable for import.

Letter of credit

The main method of payment in a transnational business transaction is a letter of credit. It can not be changed. This document represents a bank’s pledge to the seller on behalf of the buyer to pay the given amount in the specified currency. Additionally, it calls on the seller to deliver the required papers by a particular deadline. It also contains details like the description, the amount of the goods, the technical specifications, and the documentation needs.