5 MANDATORY

SHIPPING DOCUMENTS
WHEN SHIPPING TO
AND FROM THE US

Tu Le Mai Thao
Asia Direct Logistics/
Skutouch
5 MANDATORY SHIPPING DOCUMENTS WHEN SHIPPING TO AND FROM THE US

• Commercial invoice
• Bill of lading
• Customs bond
• Certificate of origin
• Packing list
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1. COMMERCIAL INVOICE (CI)

ADL

• What is a commercial invoice?

• A commercial invoice is the most important
document used in ocean freight shipping. It
acts as a proof of sale — denoting every
detail about financial interactions between
the shipper and the receiver, including
details about consignment, terms, taxes, etc.
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1. COMMERCIAL INVOICE (CI)

ADL

• A commercial invoice must have the following information:

• Invoice number and date issued
• Order number
• Total sales amount (in USD)
• Payment instructions in English
• Country of import/ Destination country
• Contact information of shipper & receiver (name, address, phone number) in
English
• Tax identification number (e.g., TIN, VAT)
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1. COMMERCIAL INVOICE (CI)

ADL

• Notifying party’s information in English

• Reason for export
• Description of goods (number of packages, units, weight, dimension, type of cargo) in English
• HS code
• Incoterm
• Country of origin of goods
• Insurance details
• Bill of lading number
• Forwarding agent
• Date of exportation, means of transport, and final destination in the US
• Shipper’s signature with date
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1. COMMERCIAL INVOICE (CI)

Who is responsible for creating a commercial invoice?

•The seller (consignor, exporter, or

shipper) issues the commercial
invoice to the buyer (consignee,
importer, or receiver) — on or
before the dispatch of goods.
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1. COMMERCIAL INVOICE (CI)

Why is a commercial invoice important?

• It is a mandatory, legally required document while shipping

to and from the US, i.e., you cannot ship without a
commercial invoice. It is also used for customs declaration
by the US Customs and Border Protection (CBP).
• Any falsification or lack of information in the commercial
invoice could lead to complete rejection of cargo or even
severe legal ramifications. That’s why sellers (or exporters)
are advised to provide accurate information in this
document.
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1. COMMERCIAL INVOICE (CI)

Do you need a commercial invoice to ship to the US?

•Absolutely yes. You

cannot begin the
shipping process without
a commercial invoice.
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1. COMMERCIAL INVOICE (CI)

Do you need an HS Code for the commercial invoice?

•Yes, an accurate HS code is a must in

the commercial invoice. The customs
authorities use a harmonized system
code or HS Code to identify the
category of goods and assess duties
on the imported items.
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1. COMMERCIAL INVOICE (CI)

Can I fill the commercial invoice in any language?

•No, all details on the

commercial invoice are
filled in English only.
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1. COMMERCIAL INVOICE (CI)

How many commercial invoices do I need for US shipping?

• Usually, you require three copies of commercial

invoices for the US import/export process:
• One copy for the country you are exporting from
• One copy for the country you are importing to
• One copy for the recipient/consignee
• The first two are put outside the consignment, and the
last one is placed inside the package for the recipient.
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1. COMMERCIAL INVOICE (CI)

What is the difference between a customs invoice and

commercial invoice?

• Both are used for cross-border shipments.

However, a commercial invoice is issued before
the delivery of goods by the exporter, while a
customs invoice is issued after the actual
delivery of goods by the importing country's
customs. A customs invoice is also called a pro
forma invoice with the label “customs” or “pro
forma” on the top.
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2. B ILL OF LA DING (B OL)

What is a bill of lading?

• A bill of lading (BoL or B/L) is another important legal

document for shipping goods to and from the US.
Similar to a commercial invoice, it contains all
essential details of the shipper, receiver, goods, and
shipping terms.
• BoL is a negotiable document, i.e., an authorizing
signature can transfer ownership from one party to
another. It is signed by the carrier, shipper, and
receiver or their respective agents.
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2. B ILL OF LA DING (B OL)

Why is a bill of lading important?

• A bill of lading carries out three essential

functions:
• Evidence of contract of carriage
• The title of ownership to the goods
• A receipt of the shipped goods
• However, when the BoL is non-negotiable, it does
not serve a title of ownership.
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2. B ILL OF LA DING (B OL)

What are the different types of bills of lading?

• Depending on the issuing authority and purpose, there are

several types of BoLs, such as house bill of lading, master
bill of lading, container bill of lading, straight bill of lading,
and charter bill of lading. The two most common BoLs are:
• House bill of lading: Issued by the non-vessel owning
common carrier (NVOCC) or ocean transport
intermediaries (OTI) like freight forwarders
• Master bill of lading: Issued by the vessel owning
common carrier (VOCC)
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2. B ILL OF LA DING (B OL)

Who prepares the bill of lading?

• The carrier (VOCC) or ocean transport

intermediary (like a freight forwarder or
NVOCC) fills out the information on the
bill of lading. However, it’s the shipper’s
responsibility to provide accurate
information about the freight.
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2. B ILL OF LA DING (B OL)

What is the difference between bill of lading and

commercial invoice?

• While the shipper issues a commercial invoice,

the carrier issues a bill of lading. Unlike a bill of
lading, a commercial invoice does not show
ownership or title of the goods sold.
• Lastly, a commercial invoice is issued before the
shipment leaves the consignor. In contrast, a bill
of lading is issued when the freight is loaded
onto the vessel before transit.
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2. B ILL OF LA DING (B OL)

Can you ship without a BoL?

•No, you cannot execute your

ocean shipment without a
bill of lading, as it is
evidence of the contract of
carriage.
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2. B ILL OF LA DING (B OL)

How many bills of lading can be issued?

•Besides the mandatory three BoLs

for shipper, carrier, and receiver,
the carrier can issue any number
of bills of lading. However, they
must specify the number of bills
issued on it.
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2. B ILL OF LA DING (B OL)

What if I lost my original bill of lading?

• Suppose the shipper (you) loses the

original bill of lading. In that case,
prepare a letter about the loss to the
carrier and a letter of indemnity releasing
the carrier from liability if the original BoL
is found. You can then request the issuer
of BoL for a duplicate copy.
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3. CUSTOMS BOND

What is a customs bond?

• A mandatory US shipping document, a customs bond is required for clearance of

commercial goods above USD 2,500. It guarantees that the importer complies
with the customs regulations and pays the levied duties, taxes, and penalties.
• It also applies to duty-free shipments but is subject to specific payment
requirements from other Partner Government Agencies (PGAs) while shipping in
and out of the US.
• Essentially, a customs bond is a contractual agreement between three parties:
• Importer on the record
• Surety bond company that issues the document
• US Customs & Border Protection (CBP)
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3. CUSTOMS BOND

How to obtain a customs bond?

• Customs and Border Protection (CBP)

issues customs bonds in the US. You can
obtain one through a surety company or
certificate licensed by the
US Department of the Treasury. Or,
contact your customs broker to help you
with the customs bond-related processes
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3. CUSTOMS BOND

How long does it take to get a customs bond?

•If the importer presents all

the documents, getting a
customs bond will take 2-5
business days.
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3. CUSTOMS BOND

What is a customs bond number?

•It is a unique number

issued when your
custom broker files for
a customs bond.
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3. CUSTOMS BOND

What are the types of customs bonds?

•There are two types of customs

bonds: single (valid for individual
shipments) and continuous (valid
for a set period of time by the
surety company).
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3. CUSTOMS BOND

Do customs bonds expire?

• Single bonds expire after the completion of

that particular shipment.
• Continuous bonds do not expire, as long as
the importer pays an annual premium to
the surety company issuing the bonds. The
company issues a bond termination letter if
it fails to pay the premium.
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3. CUSTOMS BOND

How much does a customs bond cost?

• The cost of a customs bond is determined by its type.

• A single-entry customs bond cost is decided based on the
value of individual shipments (with a minimum value of USD
100). It is equal to the declared value of the imported goods
without including applicable duties or taxes.
• A continuous customs bond cost equals 10% of taxes paid by
the importer in the previous year. The bond amount is rounded
to the nearest $10,000 up to $100,000; and then in increments
of $100,000. The minimum value of a continuous customs bond
is USD 50,000.
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3. CUSTOMS BOND

What happens if the importer doesn't pay the customs

duties?

• This is when the customs bond comes into

force. Suppose the importer fails or refuses to
pay the levied taxes and duties. In that case,
the CBP will collect the pending amount from
the surety company that had issued the
customs bond. The company can then use the
customs bond as a legal document to collect
the amount from the importer.
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4. CERTIFICAT E OF ORIG IN (CO)

What is a certificate of origin?

• Also known as the declaration of origin (DO), a

certificate of origin certifies that the shipped goods are
obtained, produced, manufactured, or processed in a
particular country. It may be subject to authentication by
an authorized party.
• The International Chamber of Commerce issues guidelines
for commercial invoices. It is not a required document.
However, many business owners importing the goods
demand a CO to verify the authenticity of the goods.
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4. CERTIFICAT E OF ORIG IN (CO)

Who issues the certificate of origin?

•The manufacturer or
exporter of the goods
issues a commercial
invoice.
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4. CERTIFICAT E OF ORIG IN (CO)

Why is the certificate of origin important?

• Foremost, it is essential for international trade

as proof of the origin of the product. Based on
the origin, a CO determines and regulates
duty rates, preferential trade agreements,
trade sanctions, and import quotas for the
shipped goods. The authorities require a
certificate of origin as part of the US customs
clearance process.
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4. CERTIFICAT E OF ORIG IN (CO)

When is a certificate of origin issued?

•It is issued for

international shipments
sold as a permanent
export for foreign trade.
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4. CERTIFICAT E OF ORIG IN (CO)

Does a certificate of origin expire?

•The validity period of a

certificate of origin is 12
months from the date of
issue.
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4. CERTIFICAT E OF ORIG IN (CO)

Who is responsible for certificate of origin?

•The shipper or
exporter is responsible
for the certificate of
origin.
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4. CERTIFICAT E OF ORIG IN (CO)

How do I verify a certificate of origin?

•Customs authorities and the

issuing chambers can
authenticate the certificate of
origin by entering a unique CO
number and the chamber's
accreditation code.
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4. CERTIFICAT E OF ORIG IN (CO)

Can companies not based in the United States get a

certificate of origin stamped by the US Chamber of
Commerce?

•Yes, if the goods listed on the

certificate are made in the
United States, companies can
get a CO stamped by the
US Chamber of Commerce.
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5. PACKING LIST

What is a packing list?

• As the name goes, a packing list gives a

detailed overview of packed items to be
shipped by the exporter or shipper. It also
provides information needed to procure an
international bill of lading and a certificate of
origin.
• A packing list also specifies details required by
the Automated Export System (AES)
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5. PACKING LIST

What is a packing list?

• It contains important details about the specifications of your

cargo like:
• Order number
• Details of consignor & consignee
• Quantity of goods
• Weight of goods
• Description of goods
• Dimensions of goods (length, width, height)
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5. PACKING LIST

What is a packing list?

• It contains important details about the specifications of your cargo like:

• Order number
• Details of consignor & consignee
• Quantity of goods
• Weight of goods
• Description of goods
• Dimensions of goods (length, width, height)
• Handling instructions
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5. PACKING LIST

What are other names for the packing list?

•Shippers can also refer to

the packing list as packing
slip, delivery list, delivery
docket, bill of parcel, or
shipping list.
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5. PACKING LIST

Who prepares the packing list?

•The packing list is

prepared and issued
by the seller or shipper
of the goods.
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5. PACKING LIST

Is packing list a mandatory document?

•A packing list is a
mandatory document and
must accompany every
export US shipment.
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5. PACKING LIST

Why is packing list important?

•A packing list is a confirming

document of the goods in the
container. It also specifies
handling instructions, units, and
other important details about the
exported freight.
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5. PACKING LIST

Why is a packing list required at customs?

• An exact packing list ensures faster

inspection at customs, thereby reducing
costs and time for the consignee. The
customs officials use it to check whether
the freight complies with data stated in
the commercial invoice, bill of lading,
and other documents.
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5. PACKING LIST

Is a packing list useful when freight contains hazardous

materials?

•Yes, a packing list is

helpful when shipping
hazardous goods, acting
as a safety data sheet.
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5. PACKING LIST

Is the packing list the same as bill of lading?

•No, packing list and bill of lading

are different documents used for
different purposes. While a BoL
represents the title of ownership, a
packing list informs the actual
specifications of the goods.
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5. PACKING LIST

List of other relevant documents required for US shipping

Besides the ones listed above, other important US shipping

documents include, but are not limited to:
• Import and export license
• Letter of credit
• Customs power of attorney
• Insurance certificate
• Notice of arrival (for imports)
• Importer security filing (for imports)
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5. PACKING LIST

List of other relevant documents required for US shipping

• Customs declaration sheet

• Delivery order
• Shipping Instructions
• Shipper’s letter of instructions (for exports)
• Any special certificates from partner government
agencies (if required)
• Other forms or certificates specific to the shipped goods
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5. PACKING LIST

List of special forms required for US shipping

• Along with the listed documents, these forms are also crucial while shipping
to the US for specific items:
• FCC 740: A Federal Communications Commission (FCC) document is required
for devices that emit radio frequencies.
• HS-7: A Department of Transportation document — applicable to vehicles,
tires, and safety devices.
• PPQ 505: A US Department of Agriculture document — applicable for a
Lacey Act declaration for plants and plant products.
• EPA 3520-1: An Environmental Protection Agency document — applicable to
motor vehicles.
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5. PACKING LIST

Wrapping Up

• Delivering your cargo in and out of

the US becomes less taxing if you
know the required shipping
documents. Make sure you fill
them accurately and legibly to
avoid any shipping hassles.
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ASIA DIRECT LOGISTICS / SKUTOUCH
US
Tu Le Mai Thao

•THANKS FOR YOUR

LISTENING

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