Shipping goods across borders is more than logistics; it’s a compliance exercise. The right paperwork ensures smoother customs clearance, protects your payment, and safeguards your ability to file insurance claims if something goes wrong. Yet, many exporters still treat documentation as an afterthought. Mistakes can lead to delays, penalties, and even shipment seizure. A strong documentation workflow is your best line of defence.

Let’s break down the full documentation process step by step, from the initial quotation to post-shipment aftercare, highlighting where compliance checks are most critical.

1. Quotation Stage

Key Documents: Commercial offer or Proforma invoice - a preliminary invoice that shows the buyer the price, product details, and terms before they place an order.
Key Data: Product details, HS code (Harmonised System code, a global classification number used by customs to identify goods), and Incoterms (International Commercial Terms, which define who arranges shipping, pays insurance, and takes on risk).
Compliance Checkpoint: Ensure HS codes are accurate; they determine duties, tariffs, and potential trade restrictions. Incorrect coding is one of the most common causes of customs disputes.

2. Contract Stage

Key Documents: Sales contract - the legally binding agreement between buyer and seller.
Key Data: Buyer and seller details, payment method and timeline, delivery terms, penalties for non-performance, governing law, and dispute resolution clause
Compliance Checkpoint: Screen your buyer against international sanctions lists. If you sell to a blacklisted party, your goods can be seized, and you could face penalties.

3. Order Confirmation

Key Documents: Order acknowledgement, purchase order confirmation - a confirmation from the seller that the buyer’s order has been accepted.
Key Data: Quantities, delivery dates, product specifications, final agreed pricing, and packaging instructions.
Compliance Checkpoint: Confirm these details match the sales contract exactly. If they don’t, banks may refuse to release payment, or customs may delay clearance.

4. Export Documentation

Key Documents: 

• Commercial invoice - the final invoice that shows the actual sale price of the goods.

• Packing list - details of how goods are packed (number of boxes, weights, dimensions).

• Certificate of origin - proof of where goods were made, often required to qualify for reduced tariffs under trade agreements.

• Export license - a permit required if you’re shipping restricted goods such as chemicals or technology.

• Export declaration - a form submitted to local customs before goods leave the country.

Key Data: Buyer/seller details, product description, HS codes, gross/net weight, volume, number of packages, declared value, country of origin
Signatures: Authorised exporter signature, chamber of commerce certification for origin documents
Compliance Checkpoint: Certificates of origin and export licenses must be validated against the requirements of the importing country. Missing or incomplete documents are the leading cause of customs clearance delays.

5. Shipping Stage

Key Documents: 

• Bill of lading (B/L) – the shipping contract issued by the carrier. It proves goods were loaded, outlines the journey, and is often required by banks to release payment.

• Insurance certificate – proof that the goods are insured for transport.

• Delivery order – issued by the carrier so the buyer can collect goods at the destination port.

Key Data: Consignee details, carrier information, shipment route, Incoterms, insurance coverage value, container/vehicle number
Signatures: Carrier and shipper signatures, insurance company stamp (for coverage verification)
Compliance Checkpoint: Confirm the bill of lading shows the correct Incoterms. For example, under CIF (Cost, Insurance, and Freight), the seller must provide insurance. If the bill doesn’t reflect this, disputes over who pays in case of damage may follow.

6. Aftercare

Key Documents: Proof of delivery, payment receipts, insurance claim documentation (if needed), internal compliance report
Key Data: Date and location of delivery, condition of goods on arrival, settlement confirmation, any damages or losses noted
Compliance Checkpoint: Keep all export records for 5–10 years depending on your local laws. Authorities can audit you long after the shipment. Without proper records, you may not be able to defend yourself or prove compliance.

Why It Matters

• Smoother Customs Clearance: Complete, accurate documents reduce inspection risk and speed up clearance.

• Faster Payment: Banks, especially under letters of credit, require perfectly aligned paperwork before releasing funds.

• Insurance Protection: Missing or incomplete documentation can void insurance claims in the event of loss or damage.

• Reduced Risk Exposure: Proper compliance demonstrates due diligence and protects against legal penalties.

Key Takeaways:
✔ Learn the basics of key export documents (invoice, packing list, certificate of origin, bill of lading).
✔ Double-check HS codes and Incoterms before shipping.
✔ Archive all records; you’ll thank yourself if there’s ever a dispute.

Next week: We’ll continue with our series on how to improve compliance and documentation within your business.

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