Shipping documents in international trade: who issues what
Trade documents do three jobs: they describe the goods, prove carriage and origin, and make payment and customs clearance possible. One missing or wrong document can hold a container at the port or block payment under a letter of credit. Here is the core set, who issues each document and what to watch.
By Hiram Trade Editorial Desk
- Published
6 min read
Overview
| Document | Issued by | Purpose |
|---|---|---|
| Commercial invoice | seller | basis for payment, customs value and tax |
| Packing list | seller | packages, weights and marks |
| Bill of lading (B/L) | carrier or its agent | sea carriage, receipt, often document of title |
| Sea waybill | carrier | sea carriage without document-of-title function |
| CMR / air waybill (AWB) | carrier | road / air carriage |
| Certificate of origin | chamber or authority (non-preferential); exporter or customs (preferential) | origin for duty and trade policy |
| Insurance policy or certificate | insurer or broker | evidence of cargo cover |
| Inspection certificate | independent inspection company | confirms quantity, quality, loading |
| Certificate of analysis (CoA) | laboratory or producer | quality parameters of the lot |
Commercial invoice
The invoice is the key commercial document. It should show seller and buyer, number and date, a description matching the contract, HS code, quantity, unit price and total, currency, Incoterms rule with place, payment terms and country of origin. Under a letter of credit, UCP 600 requires among other things that the description of the goods on the invoice corresponds with the credit and that the invoice is issued by the beneficiary to the applicant. Even a small difference in wording can be a discrepancy.
Packing list
The packing list shows what is in each package: number of units, net and gross weight, dimensions, lot numbers, container and seal numbers. Customs uses it, and so do you when checking quantities or handling a claim. It must match the invoice and the transport document.
Bill of lading
A bill of lading, issued by or for the ocean carrier, does three things: it is a receipt for the goods, evidence of the contract of carriage and, in negotiable form, a document of title that entitles the holder to take delivery.
Types you need to distinguish:
- straight (named consignee): names a specific consignee and is generally not negotiable;
- to order: negotiable by endorsement; standard under letters of credit and collections;
- bearer: whoever holds it can claim the goods; rarely used because of the risk;
- shipped on board vs received for shipment: the first confirms loading on the vessel, the second only receipt for carriage; letters of credit usually require evidence of shipment on board;
- clean vs claused: remarks about defective goods or packing can stop payment under a credit;
- master B/L vs house B/L: the first is issued by the shipping line, the second by a forwarder acting as a contracting carrier (NVOCC).
Bills of lading are usually issued in a set of originals. With negotiable bills, control over the originals means control over the goods, which is why banks require the full set under collections and credits. Releasing cargo without an original (telex release or surrender) is convenient but removes the seller's security.
Sea waybill, CMR, AWB
A sea waybill is not a document of title: the goods are delivered to the named consignee without presenting an original. It works well for established relationships and for prepayment or open account, but poorly for collections.
Road transport uses the CMR consignment note, based on the CMR Convention; air freight uses an air waybill. Neither is a document of title.
Certificate of origin
There are two kinds:
- non-preferential: confirms the country of origin for trade policy purposes such as anti-dumping duties, quotas or sanctions, or because the buyer asks for it. Chambers of commerce usually issue these; in the Philippines and elsewhere, check which body is authorised.
- preferential: entitles the goods to reduced or zero duty under a trade agreement or the GSP. It may be an EUR.1 certificate or a statement on origin made out by the exporter. Under the EU GSP, the REX system applies: the statement is made out by a registered exporter, and for consignments up to EUR 6,000 any exporter can make it out. In the Philippines, REX registration is handled by the Bureau of Customs.
The required form depends on the agreement and the country. Check it in Access2Markets.
Insurance
Under CIF and CIP the seller provides an insurance policy or certificate. It should show the risks covered (for example Institute Cargo Clauses A or C), the insured amount (UCP 600 calls for at least 110% of the CIF or CIP value unless the credit says otherwise), the currency and where claims are payable. The date must not be later than the shipment date unless the document shows cover applies from that date.
Inspection and analysis certificates
An inspection certificate comes from an independent inspection company that checks quantity, quality, marking or supervises loading. The contract should say who appoints the inspector, who pays and whether the result is final. A certificate of analysis confirms the parameters of a lot. For bulk commodities, name the umpire laboratory and the sampling method in the contract.
The consistency rule
All documents must agree: product name, quantities, weights, container numbers, ports, dates and party names. Most refusals under letters of credit and most clearance problems come from inconsistencies, not from the goods themselves.
In a Hiram deal room, the agreed delivery terms and shipment progress are recorded in one place, which makes it easier to check documents against what was agreed. Hiram does not verify the documents themselves: that remains with the parties, the banks and customs.
Pre-shipment checklist
- Invoice matches the contract (description, Incoterms, payment, origin).
- Packing list matches the invoice and B/L.
- B/L type fits the payment method.
- Correct proof of origin (non-preferential or preferential).
- Insurance with the required cover and amount.
- Inspection and analysis certificates from the agreed providers.
- All data consistent across documents.
To run deals with agreed terms kept in one place, create a Hiram account.
Sources
- ICC, UCP 600 - Uniform Customs and Practice for Documentary Credits: https://2go.iccwbo.org/ucp-600-uniform-rules-for-documentary-credits-config-1+book_version-Book/ (opens in a new tab)
- ICC Academy, Documentary credits: rules, guidelines & terminology: https://academy.iccwbo.org/international-trade/article/documentary-credits-rules-guidelines-terminology/ (opens in a new tab)
- Polish Chamber of Commerce (KIG), Non-preferential certificates of origin (Polish): https://kig.pl/uslugi/karnety-ata-legalizacja/niepreferencyjne-swiadectwa-pochodzenia/ (opens in a new tab)
- European Commission, Registered Exporter (REX) system: https://taxation-customs.ec.europa.eu/online-services/online-services-and-databases-customs/registered-exporter-rex-system_en (opens in a new tab)
- Bureau of Customs (Philippines), Registered Exporter System (REX): https://customs.gov.ph/registered-exporter-systemrex/ (opens in a new tab)
- Access2Markets, Rules of origin: https://trade.ec.europa.eu/access-to-markets/en/content/rules-origin-3 (opens in a new tab)
- UNECE, Convention on the Contract for the International Carriage of Goods by Road (CMR): https://unece.org/DAM/trans/conventn/cmr_e.pdf (opens in a new tab)
This article is for information only and is not legal, tax or customs advice. Rules and rates change: check the current official sources or consult an adviser before you decide.