This article explains what you need to know about shipping documents – including the bill of lading, commercial invoice, packing list, and Form A.
Bill of lading
The Bill of Lading (B/L or BoL) is issued by the freight forwarder and is sent to the importer. The bill of lading serves as a receipt for the shipment and includes the following information:
• Shipper (e.g., the supplier)
• Importer
• Delivery address
• Special instructions
• Bill of lading
number• Name of the freight forwarder
• Terms of transportation charges (e.g., FOB or CIF)
• Description of goods
• Quantity
• Number of packages
Depending on the payment terms agreed upon by the supplier and the buyer, the bill of lading can serve as a document that:
a. Confirms the issuance of a letter of credit (L/C)
b. Or, as proof of shipment, which obliges the buyer to pay the balance
The second alternative is the most common, when paying by bank transfer (T/T).
Most suppliers only produce scanned copies of the bill of lading, not the original, which are required to allow the shipment to be delivered once it arrives at the destination port.
Usually, the original bill of lading is delivered by mail about a week after the supplier receives the balance payment.
There are a few things to check on the bill of lading before proceeding with the transfer of the balance:
a. Have you specified the correct shipping terms (e.g., Incoterms)?
b. Is the insurance specified?
c. Are the data of the importer, shipper and freight forwarder correct?
Commercial invoice
The commercial invoice (C/I or CI) indicates the value of the goods and is used to declare the customs value.
The customs value is used to calculate import duties and other taxes (e.g., VAT in the European Union).
When a scanned copy of the commercial invoice is received, two things must be verified:
at. Is the value of the product declared correctly?
Some suppliers deliberately underestimate products – sometimes even without having received instructions from their buyers.
A reduced customs value generates import duties and other taxes of lower value. Clearly, this practice is illegal and the importer, not the supplier, is always held responsible for it.
b. Has the correct customs value been declared?
There is a difference between the real value of a product and its customs value. The customs value is the amount from which import duties and other taxes are calculated.
In the United States, for example, the customs value is based on the cost of Free on Board (FOB), which basically reflects the cost of the product.
In the European Union, on the other hand, the customs value is based on the value of the cost, insurance and transport to the port of destination (CIF), which includes both the cost of the product and the cost of transport to the first location within the European Union.
It should never be assumed that the supplier knows how to indicate the customs value in our country or in our market. You must proceed with the calculation and communicate to the supplier what he has to declare.
In addition, customs valuation (both in the European Union and the United States) may include costs such as those of tools, samples, and other taxes paid to the supplier.
Distinta dei colli – Packing List
The packing list (also referred to as a shipping list, waybill or delivery list) includes information about the packages, quantity and type of products.
It is used by the shipping company to keep track of the shipment of the products and the customs authorities assess whether the goods have been declared correctly – in terms of type and quantity.
Certificate of Origin / Form A
The certificate of origin (also called Form A, C/O, COO, or CoO) refers to the origin of the country of production or assembly of the products.
The certificate of origin may be required by the customs authorities upon arrival of the goods at the port of loading for the following reasons:
a. To confirm the country of origin, which can affect the current import duty rates.
b. To confirm if the product has been labeled correctly. In the United States and many other countries, the certificate of origin is mandatory (e.g., Made in China).
Usually, the certificate of origin is issued by the supplier.
Some questions with answers on shipping documents
Do I have to submit test reports or product certificates to the customs authorities?
Although test reports and other compliance documents are not always necessary, some product categories are more rigorously controlled than others.
For example, toys and other children’s products, medical devices, food and beverages, electronic products, equipment, chemicals and agricultural products.
In many cases, product compliance documents are part of the customs document submission procedure. Yet, in most cases, when such documents are mandatory, they are random checks on “high-risk” shipments.
For example, in several European countries they check scooter shipments and refuse customs clearance to any importer who does not produce the necessary compliance documents.
Simply put, the submission of compliance documents is not necessarily mandatory – but you face serious risks if you do not produce such documentation within the time frame in which the products arrive in port
When should we expect to receive the documents?
Usually, shipping documents are sent via airmail, one week after shipment. However, this assumes that the supplier has received the money, as it is rare for them to be inclined to send the originals of the shipping documents until the goods have been fully paid for.
There are valid reasons for this, since the buyer can unload and clear the goods through customs, once they have obtained the original documents.
Who issues the transport documents?
It can be both the freight forwarder and the supplier.
Do we have to pay for these documents?
Yes. These documents are part of the customs clearance process and are included in the price of the FOB – but not the EX Works (EXW).
In addition, you have to pay an airmail fee of approximately 30 USD for the delivery of the originals.
What happens if I don’t receive my documents?
Without the originals (or sending them by telex, preferably receiving the documents electronically) you cannot have the goods cleared through customs.
Need help importing products from China?
Our agency is specialized in supporting customers in all phases of projects, in order to import any product category without problems.
Rely on ImportazioneFacile.it’s experts who will take care of checking all the documents and verifying that the products you want to import comply with CE certifications.
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