Structured Freight Magazine Issue 01 / April 2017 | Page 38

Shipping documents might be used to transport by sea, land or air, no matter whether Freight or Courier Services are utilised; in any case the following papers are needed depending on the chosen service.

5. Insurance Certificate

The insurance certificate is a document in which we ensure the value of the goods to be conveyed to prevent economic loss for damage or theft of the goods to be transported. This document is not a prerequisite and Freight Forwarders have minimum mandatory liability coverage, but the maximum amounts provided are very low and clearly does not cover the value of the goods. Therefore, it is important that the owner of the goods to be transported to secure by the invoice value to prevent any unforeseen event that may actually damage the business. The issue of insurance will be discussed further in the publication of the INCOTERMS, as it is stipulated who is responsible if the merchandise is damaged or stolen, for such reasons a transport insurance should be considered.

6. Commercial Invoice

This is the sales document the parties engaged carry out in an international transaction and where the type of product is registered to detail as country of origin, value, quality and quantity. This document should define which INTERCOM is used for the transaction to determine the rights and obligations of the seller and the buyer in the matter of ownership, payment, transport, insurance and responsibilities.

The commercial invoice is the tax document in which the importer shall declare to customs the commercial value and type of goods to be imported to calculate import taxes and VAT. From the exporter point of view, this document, along with the sale proof of payment, the export transport document and the customs export document, commonly called SAD (Single Administrative Document), will be used to declare to Inland Revenue and overseas trade statistics registry, export operation, being able to fee 0 VAT.

The bill, together with the certificate of origin will set up the origin of production for the export/ import goods to benefit from international free trade agreements or to pay any duties to the country of origin, although the product is not from a country where it was produced.

This document is prepared by the exporter under the retailer national laws.

7. Packing List

The Packing List is a descriptive and more detailed product described in the invoice but not including prices. In this document, quantities, weight and numbers or specific markings are usually specified. Generally this document is replaced and included in the commercial invoice to decrease the volume of documents.

8. Delivery Note

The Delivery Note is a document that all freight companies deliver to sign by the addressee when the goods are delivered. This document is a statement that they accept the cargo complete and in good condition. Although this document is not mandatory it is common practice to avoid conflicts among the parties and to obtain a document certifying proof

of delivery and condition of the property.