Chapter 4
CARGO DOCUMENTS
4. Cargo Documents
4.1 Letter of credits
4.2 Cargo manifest
4.3 Mate’s receipt
4.4 Packing list
4.5 Certificate of origin (COO)
4.6 Commercial invoice
4.7 Pro forma invoice
4.1 Letter of Credit
4.2 Cargo Manifest
• A shipping document used by customs personnel
reviewing a particular transport vehicle's
intended trip that summarizes all bills of lading
that have been issued by the carrier or its
representative for that particular shipment. For
example, a cargo manifest might be used for
shipments made by sea, air or land, and will
generally show the shipment's cosigner and
consignee, as well as listing product details such
as number, value, origin and destination.
Read more:
• A bill of lading is a waybill. It acknowledges receipt
of the items to be sent. It specifies the terms of
delivery e.g. how the freight will be conveyed
whether ground, ship, or air, and how many days
transit.
A manifest is an itemized list. It is usually issued by
customs, and it lists the contents put on a ship or
plane
Manifest Correctors
• Once the manifest is updated in the shipping lines
system and the bill of lading has been released,
the documentation is deemed to be complete..
However, at times there are requests from the
clients to make some changes to the details that
have been submitted..
• The only way that these changes can be effected
after the bill of lading has been issued is by way
of a corrector..
• Lets assume the client is changing the description of
the cargo.. A typical manifest corrector would then
show as below :
• Bill of Lading No. : SISA1234567
• Container No (s) : SISU6754321
• Port of Load : Durban
• Port of Discharge : Mombasa
• Cargo description now reads : 140 packages anabolic
steroids (this is what the bill of lading and manifest
currently shows)
• Cargo description should read : 23 cartons containing
150 cans muscle enhancing drugs (this should have
been the right description)
• The manifest corrector generally also makes reference
to whether the original bill of lading has been amended
or not.. In some cases it is possible that after the
submission and filing of the manifest, the client
returned the full set of incorrect OBL’s and got a new
set of OBL’s with the right description..
• This manifest corrector is then sent to the shipping
lines agents at the port of discharge who in turn will
submit this to the customs and port authorities as
required by their regulations.. There are also cases
where customs authorities belonging to certain
countries might not allow any amendments to be done
to certain cargo descriptions etc as it might affect the
customs duty valuation already made based on a
certain commodity..
• All shipping lines charge a fee at their discretion
depending on the corrector itself..
4.3 Mate’s receipt
• Document signed by an officer of a vessel
evidencing receipt of a shipment onboard
the vessel. It is not a document of title
and is issued as an interim measure until
a proper bill of lading can be issued.
Shipping note, dock receipt and mate’s receipt
 The goods are transported to the docks accompanied by a
shipping note. The note is handed to the superintendent of
the docks, advising him that the goods are to be shipped.
This note gives details of marks, references, number and
description of packages, weight, and port of destination.
Each package making up a shipping consignment must be
distinguished by the so-called leading mark which is
necessary for identification of the goods. All relevant
documents must also bear this mark.
 The shipping note is signed by the wharfinger and
returned to the shipper (consignor), confirming that the
goods are stored and awaiting shipment. This is a dock
receipt or a wharfinger's receipt. The shipper then
lodges bills of lading with the shipowner or agent. Cargo
is loaded aboard ship under the supervision of the chief
officer or cargo officer. Once the goods are on board the
ship, a mate's receipt may be sent, acknowledging that
the goods have been loaded. The mate's receipt serves
as a document of title until the bill of lading is ready.
4.4 Packing List
• Packing List (also known as a bill of parcel,
unpacking note, packaging slip, (delivery) docket,
delivery list, manifest or customer receipt, shipping
list) is a document which details the contents, and
often dimensions and weight, of each package or
container. It serves to inform all parties involved
with shipping, including transport agencies,
government authorities, and customers, about the
contents of the package. It helps them deal with the
package accordingly.
4.4 Packing list
• Packing List helps you to create and maintain
packing lists. It not only lets user to create a list
from scratch, but also allows you to generate lists
from an existing one. This application comes with
a pre-loaded packing master list. You can simply
open the master list(or any existing list). Click on
“Generate List/Mass Change” menu item. Check
the items you want for your trip and you will have
a new packing list ready in no time. You can
group items by category, location and luggage.
Each items also has note, quantity and weight
fields. Mass change features allow you to edit
lists more easily. You may also email and share
your lists. Printing out a copy of the lists helps
you in case of lost luggage.
• Key features include:
• Pre-loaded master list
• Create new list from scratch or generate from
existing one
• Support Multiple lists
• Share/Sync lists between devices and users(full
version with separate purchase of Packing List Cloud
Connector only)
• Reorder categories/items using drag/drop
• Mass change for easy editing
• Group by location/luggage for easy packing
4.5 Certificate of Origin
• A Certificate of Origin (CO) is a document
attesting that goods in a particular export
shipment are wholly obtained or produced or
manufactured or processed in a particular
country.
WHAT IS A CO?
A Certificate of Origin (CO) is a
document attesting that goods in a
particular export shipment are wholly
obtained or produced or manufactured
or processed in a particular country
Example:
UK history and structure
European Community - CO
EXAMPLES OF CO FORMS
International Template for COs
Kyoto Convention - 1999
CCPIT/CCOIC - China
Dubai Chamber of Commerce
and Industry - UAE
THE CERTIFICATE OF ORIGIN
 Why needed
– Official reasons
• Importing country regulations
– Commercial reasons
• Customer request
– Financial reasons
• Letter of credit
ABOUT ORIGIN
 Exporters must declare the
origin of goods and complete
the reverse of the application
(pink) copy of the CO
 It is important that
documentation staff
understand the rules of origin
that apply to certificates
ABOUT ORIGIN
European community regulations have 2 different sets of
rules for determining origin:
 Non preferential rules of origin for COs
 Preferential origin rules for EUR1/ATR/suppliers
declarations
ABOUT ORIGIN
Non Preferential Origin
– European community regulations 2913/92 and
2454/93 apply
– Both sets of rules are in PROCEDURES MANUAL
ABOUT ORIGIN
Preferential Origin
– Movement of goods between EC and countries with a
preferential trade agreement
– EUR1 or ATR certificates required
– Chambers now authenticate these documents
– HM revenue and customs are responsible for
verification of origin status
– Rules and procedures contained in customs notices
812, 827, 828 & 832
HOW TO ESTABLISH ORIGIN
 Identify goods
– Goods must be clearly identified
– Normal trade descriptions should be used
– Brand names should NOT be used on their own
HOW TO ESTABLISH ORIGIN
 Applicant makes origin claim on
reverse of application (pink) copy
 Each of the 3 possible origin
claims has specific criteria which
the goods must satisfy
HOW TO ESTABLISH ORIGIN
 Box 1 will be ticked where the
goods are wholly obtained or
produced in the UK
- Animal, vegetable or mineral
products (incl. fish)
- Products made exclusively from
any of these
- Scrap, waste or used products for
recycling
HOW TO ESTABLISH ORIGIN
 Box 2 should be ticked where the
goods are of UK origin by virtue of
the processing that the goods
have been subjected to in the UK
i.e. because of economically
justified substantial process
HOW TO ESTABLISH ORIGIN
 Box 3 is completed where the
goods are not of UK origin
 Supporting proof of origin is
required
– Check the evidence provided
– Does it clearly support the origin
claim
– If in doubt request further proof
REVISION OF CERTIFICATION PROCESS
 4 primary checking operations
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–
–
–
Formal undertaking
Signature
Face checking
Accuracy of origin claim
THE CERTIFICATION PROCESS
 Formal undertaking
– Is a formal undertaking from the applicant held on file?
– Must be renewed every 2 years (annually if combined with
signature list)
– Company agrees to abide by Standard Rules and
indemnifies Chamber against inaccuracy of documents
– A template of a formal undertaking and letters of indemnity
for members and non-members are available in the ICC
WCF International CO Guidelines
THE CERTIFICATION PROCESS
 Signatures
– A list of authorized signatories must be held on file
– Specimen signatures must be provided (renewed
annually)
THE CERTIFICATION PROCESS
 Face Checking
– Is product described in sufficient detail
– Are all necessary fields completed
– Are all documents consistent
– Metric system must be used
THE CERTIFICATION PROCESS
 Accuracy of origin claim
–
–
–
–
–
Origin claim must be checked
Supporting documents
Insufficient evidence - further proof required
Possible company visit?
Maybe a phone call sufficient
THE CERTIFICATION PROCESS
Remember the 4 primary checking operations:
 Formal undertaking
 Signature
 Face checking
 Accuracy of origin claim
THE CERTIFICATION PROCESS
 Double Checking
– Once the entire checking operation is complete the
documents should be passed to another staff member
to be double checked
THE CERTIFICATION PROCESS
 Stamping and signing
– When satisfied certify the certificate
– The official stamp applied to box 8
– Authorized signatory signs in box 8
(CEOs must attend Certification
Assessment course)
– Authorized signatory name stamp to
box 8
This procedure will vary for
EXPRESS CERTIFICATES
CERTIFICATION OF INVOICES AND DOCS
 Issuing bodies authenticate the signature on invoices,
packing lists, declarations etc.
 Face check for obvious errors or statements that are
clearly false
CONFIDENTIALITY
 Office environment
 Duty of confidentiality to customer
 Quiet area
 Visits by external organizations - Fraud Squad, MI5, HM
Revenue & Customs (HMRC) - see next slide
FRAUD
 Inform your chief executive immediately
 Ensure there is an appropriate statutory order before
handing over documents for examination
 For further advice contact WCF
CUSTOMER CARE
 Quality Service
– Follow CPG guidelines
– Checks are necessary to avoid delays for goods and
payments
– If documents are incorrect advise in friendly but
firm manner and offer assistance where needed
CUSTOMER CARE
 Consistency:
– Companies need to feel confident in the consistency
of service offered by the chamber network
– Companies should be made aware of opening times
for documentation
– Pricing
– Availability of e-Cert for EC and Arab docs
CUSTOMER CARE
 Confidentiality
– Segregation of personal callers
– Stamping of documents away from the public area
RECENT CO TRENDS
 Preferential Certificates of Origin (PCO)
 Electronic Certificates of Origin (ECO)
4.6 Commercial Invoice
• Commercial invoice is the cargos manifest the
exporter trades to the importer and the
payment settlement between them.
Commercial Invoices
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Commercial Invoice
Commercial invoice is the cargos manifest the exporter trades to the
importer and the payment settlement between them.
Commercial invoice functions as following:
A manifest traded by the exporter to the importer;
Certificate of accounting, valuating and inspection of goods at the
importer’s side;
One of document in a whole set of Customs declaration and
clearance for either exporter or importer;
Payment details substituting the draft;
Details for other documents related.
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Invoice Preparing
Commercial invoice contains the major items as invoice
Number, its nomination, issuing date and issuer, the title,
the mark, good description, quantity, unit price and total
amount, among which the good description, unit price and
total amount are critical to the functions outlined above.
1) Seller’ item should be the same with what the L/C and
the contract regulate and filled with full name and address.
2) Buyer’s item is also called the consignee or the receipt,
which should be the same with L/C applicator under L/C
payment in case of no relevant regulations in L/C, or should
be the buyer’s name in the contract or the ordered name
under collection.
3) Invoice No. is fabricated by the exporter and should not
to be forgotten, which is the No. of the draft for the same
consignment.
• 4) The issuing date of invoice should be later than that of
the L/C’s issuing date and before the shipment date, or at
least before the submitting date or expiry of L/C.
• 5) Place of departure and the destination should be filled in
accordance with both L/C and B/L.
• 6) Transportation carriage item should show both carriage
name and voyage No. after the advice from the carriers or
agencies.
• 7) Marks should be written word by word in accordance
with those in other documents. In case of no regulation in
L/C, marks could be prepared in accordance with contract’s
requirements. And provided that no such specification
occurred in L/C and contract, marks could be printed to the
seller’s will but be shown on all documents related in the
same way.
4.7 Pro forma Invoice
• Proforma invoice is an informal invoice same
with commercial invoice in contents used for
offer by the exporter. The word proforma” can
be read in proforma invoice and thereof
admits alterations in appliance with signed
contract.
• An abridged or estimated invoice sent by a seller to
a buyer in advance of a shipment or delivery of
goods. It notes the kind and quantity of goods, their
value, and other important information such as
weight and transportation charges. Pro forma
invoices are commonly used as preliminary invoices
with a quotation, or for customs purposes in
importation. They differ from a normal invoice in
not being a demand or request for payment.
Proforma Invoice
A-Plus Avocado
411 South Street, Modesto, CA 97049 USA Phone: 123-456-7890 fax 123-456-7899
Date:
15-Apr-06
Proforma No.:
01FPJ0406
Sold To:
Ship To:
Fresh Produce of Japan,
Fresh Produce of Japan
3-1-2721 Rydo-cho, Tokyo 665-0921, Japan
3-1-2721 Rydo-cho, Tokyo 665-0921,
Ship Date
25-Apr-06
Ship Terms:
CIP Tokyo, Japan
Order No.:
01-0406-AA
Currency:
USDollars
Ship Via:
Ocean Freight
Payment Terms:
Item
No.
Weight kg/case
Japan
50% Prepay+50% Net 90 days invoice
Unit
Qty
Description
Net
Gross
Price
Units
Total
AA-10
Haas Avocados - Size 10
20.0
22.0
$0.25
100,000
25,000.00
AA-15
Haas Avocados - Size 15
23.0
25.0
$0.30
150,000
45,000.00
Freight
4,250.00
Insurance
700.00
Harmonized (Schedule B)
No.: 0804.
All Products are of USA
Origin
Totals
Net wt
54,500
40.0000 - A
Gross wt
59,500
vocado
Units
250,000
I certify that the above is true and correct
Please sign your authorization & fax back:
A+A -Export Manager
Sign Here:
Dollars
$
74,950.00