What International Shipping Documents Do I Need?

Paper may be obsolete in many industries, but documentation isn't. International shipping documents are critical to accurate, timely and cost-effective shipping. Missing, inaccurate or subpar documentation can lead to delays, fines or loss of goods through confiscation.

Essential shipping documents include invoices, packing lists and bills of lading, but you may need more than that to help protect your freight. The required international shipping documents depend on the shipping method, the country of origin, the destination and the borders the goods may pass through along the way.

Find out about international shipping documents and how Atlas International can help with international freight and shipping processes. 

Essential International Shipping Documents

Whether preparing hazardous goods for international shipping  or making regular shipments of basic goods and products, you typically need to start with essential documents. Almost every international shipment requires a commercial invoice, packing list and bill of lading. 

Commercial Invoice

A commercial invoice is an essential internal document. It can help you track what you ordered or sold and whether payment has been made. Invoices are also helpful when reviewing shipments are accurate. They provide a record of the order so you can compare it to what was packed or received.

However, commercial invoices also act as critical documents for customs clearance. They provide a concise record of information, such as:

• What company or entity shipped the goods
• What company or person is to receive the goods
• What goods are included in the shipment
• The value of the goods
• The terms of the sale

Packing List

The invoice details what was sold and provides information about the terms of the agreement. In contrast, the packing list details what was included in the shipment — which isn't always the same as what is on the invoice.

A packing list can help customs understand what is in each part of your shipment, potentially reducing delays related to quarantine or inspection. For example, imagine a hypothetical invoice that includes 10 items. One of those items requires customs processes that are different from the others.

Now, imagine the shipment is split into two separate containers. Without a packing list, both containers may go through a more rigorous inspection process. With a packing list, only one of the containers gets held up in that process, potentially reducing expenses and helping ensure faster delivery of a portion of the order. 

Packing lists are also essential to internal receiving processes. If clients receive goods across several containers, packing lists help them confirm which parts of the order have arrived. Comparing packing lists with order invoices lets clients identify which items haven't arrived or report missing goods. 

Bill of Lading

The bill of lading documents the receipt of goods by a carrier, providing accountability and transparency throughout the freight forwarding process. By issuing a BOL, a carrier acknowledges it received specific goods. The document also indicates some responsibility for the goods has passed to the carrier until it completes its part of the freight and shipping process.

The bill of lading you need depends on the situation. Some types include:

• Inland BOL: Covers the shipment of goods across land
• Ocean BOL: Covers the shipment of goods across sea
• Straight BOL: Requires the person selling the goods to use an agreed-upon mode of transportation without deviation
• Master BOL: A consolidated document that includes details about multiple shipments that have been combined into a larger shipment by a carrier or other company
• House BOL: A type of BOL issued by a freight forwarder

Additional Documents for Specific Types of Shipments

Some types of shipments require other shipping logistics, including different types of documentation. This is especially true when working with regulated goods, tariff or free trade agreement situations or high-value or specialty shipments. 

Certificate of Origin

A certificate of origin is sometimes called a declaration of origin. This document typically includes information about the goods being shipped and a verification of their country of origin. 

While you may not need COO documents for international shipping, this document is often required when:

• You want to leverage a free trade agreement: If the shipper's or receiver's country has a free trade agreement with the country of origin, you may save money on reduced or waived tariffs. However, you need to show the products qualify because they originated in a country covered by the agreement. 
• Any type of tariff or duty situation exists: Even if there isn't a free trade agreement in place, a COO may be necessary so customs officials know which duties or tariffs apply to the shipment. Not having a COO could delay your shipment as customs officials track down this information.
• The receiver's country has import limits: Some countries have import restrictions on goods or items from specific countries. Customs officials track import volumes with the help of certificates of origin, so they may not allow shipments through without these documents. 

In some cases, a COO may not be required based on customs regulations, but your buyers may request one anyway. Buyers may want this documentation so they can claim preferential tariff or tax treatment or to ensure they have comprehensive records about every order. 

Export License

Export licenses ensure you have permission from a government to conduct certain export activities. You may need different types of licenses if you export various goods and materials.

Typically, export licenses are required when shipping restricted, high-value or dangerous items. Some industries where these licenses are especially important include technology, industrial and manufacturing. 

It's essential to remain updated on export license requirements for each type of good or material you ship internationally. Exporting goods without the required license can result in civil and criminal penalties, including loss of exporting privileges, steep fines and time in prison. At a minimum, not having the right license can result in substantial shipment delays. 

Insurance Certification

Having documents on hand that certify your insurance coverage provides peace of mind about protection against losses if something happens with your shipments. However, you may need to demonstrate insurance coverage when your cargo passes through or into a country, as it's a legal requirement in many cases.

An insurance certificate is also called a cargo insurance certificate. It's a document that proves coverage exists for a shipment and that the buyer or you will be compensated if goods are damaged or lost during transport. 

Consider building insurance coverage into your pricing structures and other processes. You may also want to invest time in learning about insurance coverage requirements in areas where you often import or export. 

Some carriers offer default coverage on shipments, but these options often only cover the most basic losses and don't account for indirect expenses you might experience if something happens with a shipment. Carrier default coverage also may not help you meet legal insurance requirements, and without the required additional insurance certificate, items can get held up in customs. 

Compliance and Customs Documentation

In addition to operations and account documents, you likely need to complete customs-specific paperwork. 

Customs Declaration Form

A customs declaration form is official shipping documentation that provides details about each shipment. Most countries require some form of customs declaration. While the specific forms vary, common information required includes:

• Where the goods are coming from (the country of origin)
• Where the goods have been (potentially including countries the goods have passed through)
• The destination for the goods
• What types of goods are included in the shipment
• The quantity and value of goods in the shipment

Customs agencies use the information on these declaration forms to determine:

• Whether to allow the shipment through
• Any tariffs or duty payments that apply
• How the shipment impacts import limits 

Much of the information you include on a customs declaration form is also included on packing slips or COOs. It's critical to understand when a separate customs declaration form is required and to ensure your backup documents match the information on the declaration form. If a packing slip lists 100 of an item and a typo results in the declaration form indicating only 10 are in the shipment, you can expect a hassle in customs. 

Export Declaration Form

A customs declaration form accounts for goods coming into a country. An export declaration form accounts for goods leaving a country. When required, this document must include detailed information about the goods in the shipment, including what they are, quantities, values and their end destination. 

The primary purpose of export declarations is to monitor trade statistics and ensure exports from another country align with any limitations the nation has set regarding certain types of goods or trade. 

Country- and Industry-Specific Import Permits

Depending on the goods you're shipping internationally and where you're shipping them, you may need to purchase specific permits. Because these requirements depend on the goods being shipped, it's essential to conduct compliance research regularly to ensure your permitting processes are up to date.

For example, some special permits required for importing in the United States include:

• Food and Drug Administration permits on medical devices, pharmaceuticals and food items regulated by the FDA
• Animal and Plant Health Inspection Service permits for certain products related to the care of or research involving live animals
• Permits from the Bureau of Alcohol, Tobacco, Firearms and Explosives for products that contain substances regulated by the ATF

Tips for Ensuring Accurate Documentation

Your required documentation for a shipment needs to be accurate — a simple typo can easily derail a shipment or drive up compliance costs at customs.

Follow these tips to help optimize accuracy in your international shipment documentation processes: 

• Match invoice details with packing lists. Create workflows that ensure details match across various shipping documents. For example, you should double-check the information on invoices matches the packing slips, and you may want to ensure insurance certifications cover everything in a shipment or that your customs declarations align with your packing slip. 
• Leverage automation and AI. Create efficiencies where possible by using optical character recognition scanning technology and machine learning to handle tedious document processing. For example, advanced OCR and AI tools can compare packing slips and invoices, kicking out discrepancies for a human to resolve. 
• Consult with experienced customs brokers. Customs regulations are complex, and keeping up with evolving requirements across numerous borders can be difficult. Partner with experienced customs brokers to ensure you're doing everything you can to meet regulatory requirements and reduce delays in shipping. 
• Talk to shipping experts about complex shipping needs. A partner experienced in international shipping can help you make decisions and design optimal freight processes, from  choosing the correct shipping method  to understanding how various customs rules might impact shipping deadlines. 
• Maintain copies of all documents. Keep copies of your documents, as you may need to reference them to help resolve issues during shipping. You should also keep documents relevant to historical shipments, as you may need them for audit or tax purposes in the near future. 
• Create digital backups. Sustainable shipping practices start with seemingly small decisions, such as managing document processes digitally. Keeping digital backups makes it easy to access needed information during the shipping process and cuts down on the resource requirements of storing paper in the future. 

Get Organized With International Shipping Documents

Ensuring you complete the right international shipping documents helps support a smooth shipping process. Work to stay informed on specific requirements, including those of destination countries, to reduce expenses, avoid delays and improve client satisfaction.

Reach out to Atlas International for assistance with international shipping documentation and logistics.