Introduction

Although often underrated and overlooked, export documentation and shipping concerns are an integral part of the export process and should be considered as important as anything else related to the sale. The term "export" documentation is actually a misnomer, since in reality they function more as "import" documents. Most of the paperwork is really being prepared on behalf of the buyer, and is used for customs clearance and other legalities at the port of import. Companies that are successful in exporting usually are very adept at preparing export documents (or they use service providers who are). Problems with documentation can lead to delay in shipment, penalties, and unwanted storage costs, all of which will aggravate your relationship with your buyer. Always think of how you would feel if you were an importer and you lost business because your supplier had problems with their paperwork. Before long, you would likely consider another business partner.

All of the following are important aspects of Export Documentation:

1. Explanation of the buyer and seller agreement.

   Export documentation should clearly identify the buyer and seller, product, methods of shipment, INCOTERMS used, packing, marking, weight and dimensions and any other information required by either party, service provider, or country involved. 
   

2. Defining the written agreement between the buyer and seller and their service providers.

   Export documents are used by such service providers as freight forwarders, packing companies, carriers, banks, customs agents, and insurance companies. This is done to determine handling, shipping, payment and licensing issues. 
   

3. Satisfying the regulations of both the exporting and importing countries.

   On the export side, the shipper’s export declaration is used for export clearances and statistical data, and licensing requirements, if any. The document package is also used at the destination to determine the origin of manufacture, the appropriate tariff number, the valuation, and the application of the appropriate duties and taxes. 
   

4. Qualifying the products for preferential tariff treatment, if applicable.

   In trade agreements such as NAFTA, the Certificate of Origin is provided to determine qualification for either duty-free importation, or to qualify the goods for the lowest rate of duty applicable. (See the NAFTA chapter of this Export 101 section for further details.)