The process of export in sea freight is fairly straightforward.
Receive an Inquiry
The initial step to launching the export process includes gathering the shipping documentation. Once the potential buyer expresses an interest then a letter of inquiry is sent that outlines the terms of the buyer’s interest and a request for two quotes, an informal and formal quote.
Screening of the Buyer and Country
Once an inquiry is received then you’ll need to ensure that you’re a carryout business with them. You must screen them against the restricted lists. Manually screen the name, the company need, and the organization’s address against the lists published by the United States Government before you automatically process everything.
If the buyer should show up on a list, then you cannot do business with them. If they show up then you must go forward with caution.
The screening step ensures double-checking if you can ship the goods to the buyer’s country. You can then apply for an export license. Complete the licensing process early so you can avoid delays.
Provide the Proforma Invoice
Once you have screened the buyer and the country then you’ll provide a proforma invoice. The proforma invoice acts as the first impression to make your buyers. It is similar to a commercial invoice and it can help with financing the purchase. All costs included are firm and clearly outlined in the letter of credit.
Many countries require a proforma invoice, especially if they control their currency and require an import permit or strive to safeguard the local industry by enforcing import quotes on particular goods.
Finalizing the Sale
Once you send the proforma, the buyer will either accept or reject the document. If they accept then you will go on t negotiate the terms of the sale. A verbal or written contract will be created. At this time you can discuss the price, payment terms, goods shipped, responsibility, whether you will hire a freight forwarder or carrier,r and who is responsible for the filing of the extrinsic export information via AES. You’ll also determine how the transaction is to be paid and whether you will use a letter of credit.
Shipping Documents
You must include the commercial invoice for the U.S. Customs and Border Protection. The buyer can use the invoice to release funds and the exporter can use it for any needed insurance claims if the gods become damaged.
Packing List
Include a packing list for the freight forwarder, carrier, and consignee. A packing list is used by customs authorities to document the claim for the carrier and insurance company.
Certificate of Origin
Many countries accept a statement of origin included on the commercial invoice but others will require a separate document that is clearly titled a certificate of origin. The certificate of origin acts as evidence of where the goods originated.
Shippers’ Letter of Instruction
In some cases, you’ll need to prepare a Shipper’s Letter of Instruction (SLI). An SLI provides a written record of who will receive the shipping documents.
Bill of Lading
A Bill of Lading will accompany the export. You might need an inland bill of lading to effectively move the goods to a port or airport. Moving goods through the United States quill require a separate bill of lading.
Restricted Party Screening
Before the goods undergo exportation, a restricted party screening must take place Use a Shipping Solutions Restricted Party Screening Qizard. The screenings create a paper trail of due diligence if an audit should happen.
Miscellaneous Forms
There are a variety of miscellaneous forms that you may need to prepare to export your goods. The documents are often identified in the sales contract that you create with the buyer. Documents such as a letter of credit, payment utopia, or other requested by the freight forwarder. Some documents may include a bank draft or a temporary export.
Record Keeping
Always keep copies of all of your documents and correspondences during the entire process.
When undertaking the process of exporting at sea, contact the Sobel Network Shipping Co. with any questions or concern.
