• A bill of lading is a contract issued by a carrier (shipping company) or its agent to the owner of the goods, confirming that the goods have reached an acceptable condition and are ready to ship.
• The bill of lading acts as a title of ownership of goods throughout the process of shipping, transportation, and receiving, the bill of lading is the sole proof of transaction. This legal document protects the shipper, the carrier, and the customer all in one place.
• The exporter needs a copy of the bill of lading to hand over to the bank if payment is done in a letter of credit.
• A bill of lading is a standard-form document that is transferable by endorsement.

Importance of the Bill of Lading Form

1.Evident of Shipment or Carriage:

The contract of carriage entered into between the “Carrier” and the “Shipper or Freight Owner” in order to carry out the transportation of the freight as per the contract between the buyer and the seller.

2. Receipt of Goods:

A BOL is a document that verifies that goods have been received by an agent, carrier, (3PL Third-party logistics), or others from one party. When this occurs, in most cases, the organization that takes possession of the commodity is responsible for its condition. The BOL provides a paper trail of evidence to support freight damage claims.

3. Title Documentation:

This essentially means that whoever holds the bill of lading has the title for possession or ownership of the goods.

• The following is the information that must be included:

*Names and addresses:

The full names and addresses of both the shipper and receiver (consignee).

*Purchase orders

Any special order tracking numbers can include as a reference number.

*Special instructions:

Here is where you will note instructions for the carrier that are not extra service requests like liftgate or delivery notification.

* Date:

This is the pickup day, and it may be needed as a reference to track your freight or when you reconcile shipping invoices.

*Description of items:

The shipper will verify with the carrier the type of packaging (such as cartons, skids, pallets, drums, or containers), the quantity of packaging or shipment units, the amount of space it takes in the shipping container, or platform, and the dimensions.

*NMFC freight class:

Classes are an industry standard for the transportation of goods. They are based on NMFC tariffs and are a publication for motorists that includes rules, descriptions, and ratings of all products. It is divided into 18 classes of shipping.

*Department of Transportation hazardous material designation:

Hazardous shipments must be clearly cited and special rules and requirements apply when shipping.

*Declared Value:

The declared value for courier is equal to the cost of purchase of the item.

The declared value for customs i.e price at which the item is sold.
Customs use this value to clear your shipment and determine taxes and duties. Additionally, your commercial invoice should have the HS value and a detailed description of your shipment. If any of the information is inaccurate, your package will be held at the customs or courier services.

The following acronyms can also include details around the bill of lading:

OBL: Ocean bill of lading.
AWB: Airway bill of Lading.

• Usually the seller’s bank will send the bank draft and related documents via the freight forwarder to the buyer’s bank.
• When the buyer authorizes payment for the goods, the bank releases the documents to the buyer and transfers the funds to the seller’s bank.
• There are two drafts; a sight draft requires an immediate payment while time drafts allow the importer to pay at a later date.

• It certifies that goods in a particular export shipment are totally obtained, produced, manufactured or processed in a particular country. They declare the ‘nationality’ of the product and also serve as a declaration by the exporter to satisfy customs or trade requirements.
• COs are requested by customs, banks, private stakeholders and importers for several purposes. Almost every country in the world requires CO for customs clearance procedures: when determining the duty that will be assessed on the goods or, in some cases, whether the goods may be legally imported at all.

• The proof of review usually amounts to the chamber’s official embossing stamp and a signature of an authorized chamber representative. Some countries are accepting electronically issued certificates of origin that have been electronically signed by a chamber of commerce.

• The product may be marked ' Made in Sri Lanka "Made in the USA" or "Made in China"

• Free Trade Agreements  (FTA) with other countries don’t typically require a specific form to be used as proof of origin. Instead, they identify the information that must be included on a certificate of origin or some other document like the commercial invoice to prove that the goods qualify for preferential duty rates.

• A commercial invoice is a contract and proof of sale issued by the seller to the buyer. This document describes the goods for sale and describes the price, value, and quantity of the goods. The commercial invoice is used by customs to calculate and assess customs duties and taxes payable on shipping.
• A commercial invoice is prepared to contain information about the buyer, the freight forwarder, the customs broker, the C&F agent, and the shipping to the bank. It is mandatory for all sea freight, air freight, and incoterms shipments. There is no specific format for creating an invoice. However, it should contain all the basic details of the transaction.
• A properly completed and correct commercial invoice for export helps customs authorities quickly decide which taxes and import duties apply to your package.
• A complete and accurate commercial invoice is indeed a legal requirement. Failure to do so may result in long customs delays and potential charges. Furthermore, providing incorrect information about a customs invoice can lead to lower payments on customs and taxes, which can have legal implications.

Commercial Invoice Checklist for Exports

Transaction Information

• Currency
• Instructions of payment
• Invoice data
• Invoice number
• Order number
• Sale total

Exporter and Importer Information

• Exporter/Seller’s tax ID number (VAT, EORI)
• Exporter/Seller's name address, phone number
• Importer/Buyer’s name, address, phone number
• Importer/Buyer’s tax ID number (VAT, EORI)
• Notify party’s information

Shipping Information

• Bill of Lading number
• Description of goods (number of packages, units, weight)
• Exportation date, mode of transport, and final destination
• Forwarding agent
• Harmonized System (HS) code
• Incoterms
• Insurance
• Origin of goods
• Shipper’s signature

• A dock receipt is a receipt issued by a shipping company as proof of receiving the goods for shipment. A dock receipt ensures the carrier is accountable for the safe custody of the good until it is delivered to the destination. The bill of lading is prepared based on the dock receipt.
• The ocean carrier booking number in your dock receipt is the key number during all international cargo transportation. All the information related to your shipment connects to the booking number.
• If you utilize a third-party trucking company such as FedEx Ground, DHL Ground, etc., ensure that the carrier's booking number is the key number in your delivery order.
• This Suits for damages in the case of lost, missing, stolen, and damaged merchandise will require people to sift through the receipts, bills of lading, and other documentation to see when the problem developed and who was responsible for the shipment while the incident occurred.
• Standardized dock receipt forms are available from a number of companies involved in the shipping industry.

Warehouse Receipt

• After an individual or company drops of their goods at a warehouse or dock, they are given a receipt called warehouse receipt. A warehouse receipt is to ensures the quality and quantity of a particular commodity stored within an approved facility.
  Warehouse receipts list the types, numbers, and other identifying characteristics of the stored goods.
• The warehouse operator who has custody of the stocks guarantees delivery against the receipt and should be able to make good any value lost through theft, fire, or other issues.

• A packing list is produced by the seller primarily for the use of the buyer, it contains information about the contents of the exported goods.
• The document will typically state a number of details relating to the shipment including how they have been physically packed, it is needed to generate the Bill of Lading. Simple mistakes of this document may result in unnecessary delays and their corresponding fees.

1 – Details of the exporter/consignor

• The full name, address, and contact details of the seller.

2 – Consignee & Buyer (if not Consignee)

• The full name, address, and contact details for the buyer

3 – Shipping Details

• Country of Final Destination.
• Country of Origin.
• Letter of Credit No (if goods are sold under a Letter of Credit).
• Marine Cover Policy No (if applicable).
• Method of Dispatch – Road, Rail, Air, or Sea Freight.
• Port of Discharge (POD).
• Port of Loading (POL).
• Type of shipment – FCL, LCL, Breakbulk, or other.
• Vessel / Aircraft Name.
• Voyage Number.

4 – Reference Numbers

• Invoice number
  Sales order number.
• Purchase order number.
• Any other reference number.

5 – Product Details
• Currency of transaction
• Description of goods
• HS Code
• Incoterm
• Price (per unit type)
• Product Code
• Unit Quantity
• Unit Type

6. Marks and Numbers

• Identify any special marks, codes, numbers and so forth that may appear on your package. Number of Packages Enter the total number of packages, cartons, or containers for this shipment.
• All companies involved in the transport of your cargo (manufacturer, shipper, customs, carriers, warehouses, consignees, etc.) trust on the respective marks and numbers to distinguish it from all others
• This can and does often show as ‘Fully Addressed’ to represent.

7 . Type of packaging used.

• Wooden box, drums, corrugated carton boxes, pallets.
• The dimensions of each piece.
• The net weight and the gross weight for each piece.

8. Authorized Signatory

• Dated and stamped, affixes a stamp of authenticity to the packing list.

• An Export Health Certificate (EHC) is a document used in export transactions, issued by the governmental organizations at the countries of origin, to certify that a food shipment is fit for human consumption, and meets safety standards or other required legislation for exporting.
• All food products which are subject to international trade, whether of animal or non-animal origin, must be fit for human consumption and comply with all relevant food standards such as hygiene, pesticides, genetic, labeling, contaminants, use of additives/preservatives, etc.

Following Products, you need an export health certificate (EHC) or other certificates to export or move:

• Processed food and drink
• Food or drink that contains products of animal origin (POAO)
• Vegetables, fruit, and other plants are used as food.
• Meat
• Dairy (milk, yogurt, cheese, butter & ice cream)
• Hides, skins, wool, feathers & lanolin
• Collagen, Gelatine, honey & animal casings
• Egg
• Fish and fishery products
• Pet food and animal feeds

• An export license is a document issued by government bodies allowing registered companies or individuals to legally ship goods that are otherwise restricted.
• The application process for an export license varies for each country. You can find out what you need to do on your country’s government website.
• Once you’ve received the export license, you need to include the export license number on the commercial invoice when shipping your goods.

• Sometimes called a certificate of inspection or pre-shipment inspection certificate, an inspection certificate provides proof that what you are shipping is, in fact, what the customer ordered, and is also of good quality.
• The Certificate of Inspection is an inspection report or report of findings and is required by some importers or importing countries.
• The third-party inspection company issues inspection certificates after inspection and when the goods are shipped to the buyer's premises. There are well-known International Inspection Companies that carry out these activities.
• Generally, LC’s mandate the inspection certificate issued after the B/L (Bill of Lading).
• It is precipitated by the request for a Letter of Credit payment transaction that indicates an inspection certificate is required in order to fulfill payment obligations.

The following items are included in the content of the certificate of Inspection:

• Applicant :(The name of buyer company which has opened the LC).
• Consigned to the Order; The name of the LC opened bank or buyer bank’s.
• Beneficiary: (The name of the seller).
• LC No. and LC Date
• Custtom Tariff Code No.
• Proforma Invoice No. and Date
• Purchase Order No. and Date
• Insurance Policy No.
• Country of Origin
• Place of Inspection
• Date of Inspection
• Scope of Inspection
• Port of Discharge
• Type of Packing
• Number of Packages
• Description of Goods (with reference to the packing list number and Date)
• Bill of Lading No. and Date
• Gross weight
• Conclusion (as per LC, 46.A clause , if even there is syntax error in the LC should not be corrected)
• Name and Signature of Authorized Person
• Place and Date of Issue

• Certificates of Insurance cover the importer/exporter for any possible damage to the goods while in transit. It contains details such as the insurance company, limits of coverage, policy number, consignee, and valid period for the policy.
• Your broker or freight forwarder can arrange insurance for your shipment.

Loss and Damage Claim

• Exporters use this form to claim insurance compensation for goods lost, damaged & delays during exportation. The claim must fully describe lost items and supporting documents, copies of documents necessary to support an insurance claim include the insurance policy or certificate, bill of lading, invoice, packing list, and a survey report (usually prepared by a claims agent).

• No law prescribes the exact format of a pro forma Invoice, a pro forma invoice may look almost exactly the same as a commercial invoice. However, it should be clearly labeled “Pro forma”.
• A pro forma invoice is not an original/tax invoice. Therefore, it does not have any legal validity. Hence it does not legally bind either party in a supply transaction. It can be amended even after both parties sign it.
• 
  A pro forma invoice should include the following information:

** Unique invoice number.
** Date of preparation/issue.
** Address of the supplier.
** Address of the prospective buyer.
** Description of goods or services, including their unit costs and line-item totals
** Validity of the pro forma invoice
** Proposed terms of sale
** Terms of Payments (L/C, D/P, D/A, etc)
** Terms of Delivery (FOB, CFR, CIF, etc.)

** Certifications required by “Customs Authorities” if any
Signature by an authorized person from supplier’s company.