A: Some of the common government-required forms of documentation are listed below. The seller normally prepares his or her own commercial documents and the freight forwarder normally prepares the transportation documents. Some freight forwarders will do all the paperwork for you.

Shipper’s Export Declaration (SED). The SED authorizes the export of freight. It is used to control exports and compile trade statistics and must be prepared and submitted to the customs agent for shipments by mail valued at more than $500 and shipments by any other means valued at more than $2,500.

An SED must be prepared for all IVL (Individually Validated Export License ) shipments regardless of value. Filing an SED is easier and less costly thanks to the U.S. Census Bureau’s and U.S. Customs Service’s Automated Export System (AES). Small exporters can reduce processing costs by filing the SED electronically and eliminating paper handling. For more information call AESDirect Help Desk at 877-715-4433 or visit www.aesdirect.gov

Bill of Lading. These documents are contracts between the owner of the goods and the carrier. There are two types: a straight bill of lading, which is non-negotiable, and the negotiable/shipper’s order bill of lading, which can be bought, sold, or traded while goods are in transit and is used for letter-of-credit transactions. The customer usually needs a copy as proof of ownership to take possession of the goods.

Certificate of Origin. A certificate of origin is a document signed by the exporter and witnessed by a semi-official agency, like a Chamber of Commerce, and required by certain foreign countries for tariff purposes. It indicates that the country originating the specified goods is indeed the exporter’s country.

An exporter can obtain a certificate of origin from several sources including a local U.S. Department of Commerce office, a freight forwarder, or a local Chamber of Commerce. (In Raleigh, call the Greater Raleigh Chamber of Commerce at 919-664-7000). Chambers of Commerce are often viewed by many foreign companies as having more authority and function than is actually the case in the United States.

There is no uniform rule as to when a certificate of origin is required. A freight forwarder or foreign consulate office of that particular country can provide advice on the actual need for a certificate of origin. The requirement is left to the discretion of each country.

Proof of origin is critically important to those countries in which the U.S. has a reciprocal trade agreement, especially under the North American Free Trade Agreement (NAFTA). Exporters must prove that the goods they are exporting are entitled to receive the preferential tariff reduction or elimination.

In brief, goods produced entirely in the United States qualify for NAFTA tariff treatment. In some cases, at least 50% of the product must be produced in the United States. Goods processed outside of the U.S., Mexico, or Canada regardless of the original content do not qualify for NAFTA tariff treatment.

Commercial Invoice. As in a domestic transaction, the commercial invoice is a bill for the goods from the buyer to the seller. A commercial invoice should include a description of the goods, addresses of the shipper and seller, and the delivery and payment terms. The buyer needs the invoice to prove ownership and arrange payment. Some government agencies use the invoice to assess customs duties.

Consular Invoice. Consular invoices are required by certain nations and used to identify goods. The invoice is purchased from the consulate of the country into which the goods are being shipped and must be prepared in the language of that country. The US State Department’s Office of the Chief of Protocol publishes Foreign Consular Offices a complete listing of the foreign consular offices in the United States.

Destination Control Statement. This statement appears on the commercial invoice, ocean or airway bill of lading, and SED to notify the carrier and all foreign parties that the item may be exported only to certain destinations.

Export Packing List. An export packing list itemizes the material in each individual package, and shows the individual net, legal, tare and gross weights in U.S. and metric values. Package markings should be shown along with the shipper’s and buyer’s references.

The packing list is attached to the outside of the package in a clearly marked waterproof envelope. The list can be used to determine the total shipment weight and whether the correct cargo is being shipped. Customs officials may use it to check the cargo at inspection points.

Inspection Certificate. Some purchasers and countries may require a certificate of inspection attesting to the specifications of the goods shipped, usually performed by a third party and obtained from independent testing organizations.

Insurance Certificate. If the seller provides insurance, the insurance certificate states the type and amount of coverage.

A: The federal government offers highly specialized information and services for businesses dealing in agricultural products through the U.S. Department of Agriculture Foreign Agricultural Service (FAS). The FAS is a full-service agency offering the exporter everything from marketing assistance and information to technical assistance to export programs.

The USDA-FAS has designed a brief tutorial to guide U.S. food, fish, fiber, and forest product companies, new to exporting, through the information gathering and assessment process that is needed to develop a successful export plan or strategy: "Recipe for Export Success."

Licensing/Inspections. Most agricultural exports fall under the general export license granted by the U.S. government; however, some foreign countries require a special import license. These countries require U.S. products be certified to certain standards. An inspection of the goods at the point of embarkation will usually suffice. The Agricultural Market Service will certify products for a fee.

Each country has different requirements regarding the documentation that accompanies any given import shipment. Importing countries require these documents for the administration of their import laws, assessment of taxes, and protection from hazardous pests and diseases. Some of the more frequently required documents are: commercial invoice, bill of lading, phytosanitary certificate (for plants or plant products), veterinary health certificate (for animals or animal products), packing list, and certificate of origin. Other import regulations that may affect a shipment are packaging and labeling requirements and recycling laws.

Foreign Import Requirements - Information to help identify the particular import requirements imposed by the target country for your product.

Information on foreign requirements for livestock, fruits and vegetables can be obtained from the Animal and Plant Health Inspection Service (APHIS).

APHIS serves to facilitate safe international trade, monitor the health of animals presented at the border, and regulate the import and export of animals, animal products, and biologicals.  Animal and animal product export information can be found here. Information on plant exports can be found here.

Grain inspections are provided by the Grain Inspections, Packers and Stockyards Administration (GIPSA). GIPSA’s website has information on outreach and education programs and marketing documents (such as inspection certificates). It also includes information on registration for companies that export 15,000 tons or more (per year) of grain (covered by the U.S. Grain Standards Act).

Meat, poultry and egg products inspections are provided by:

Food Safety and Inspection Service (FSIS)

Shipping livestock and fresh produce requires special attention. Freight forwarders are a good source of information to help ensure your products arrive safely and in a timely fashion.

Livestock may be shipped by air or by sea. Air is more expensive and you must ship in smaller quantities but it is also faster (usually within 24 hours) so food and water stores are usually not required to be shipped along with the animals. The faster transport also places less stress on the animal.

Perishable food items that are being shipped via air or sea require careful packaging to prevent spoilage. Foreign Agricultural Services  provides many informative handbooks addressing shipping concerns.

Marketing.  AgExport Services also provides Foreign Buyer Lists and U.S. Supplier Lists to help match up prospective buyers and sellers. Both of these services charge $15 per list, and lists are available by country or by commodity. They also maintain U.S. pavilions at foreign trade shows and initiate special trade missions.

For help with any USDA-FAS services, call the USDA locator at: (202) 690-3576.

For more information on exporting agricultural products from North Carolina, please contact the International Marketing division of the North Carolina Department of Agriculture.

A: Most of the forms necessary for export are regulated by the U.S. Department of Commerce and are available at this link.  For assistance with country-specific documentation requirements, please contact the Trade Information Center at (800)USA-TRADE.

Because of the vast amount of documentation that can be required, it is best to enlist the expertise of a freight forwarder whose job is to know documentation required with exporting. With so much at stake, it is best to consult a freight forwarder to help ensure accuracy.  A directory of North Carolina freight forwarders can be found here.

The necessary documentation varies from order to order and country to country and it must be precise. Slight discrepancies may prevent the merchandise from being exported or precipitate it being seized by the United States or a foreign government. Collection documents are subject to a time limit and may not be honored if out of date.

After gaining some export experience, you may be able to do it by yourself, but you should confer with a freight forwarder or a trade specialist until feeling comfortable doing it alone.

A: Incoterms is a codification of the terms used worldwide in foreign trade quotations and contracts. They clarify the responsibilities of the buyer and seller in international commerce. Examples of INCOTERMS (IN(ternational) CO(mmercial) TERMS ) are:

• EXW (Ex Works)
• FCA (Free Carrier)
• FAS (Free Alongside Ship)
• FOB (Free On Board Vessel)
• CFR (Cost & Freight)
• CIF (Cost, Insurance & Freight).

Incoterms were last revised on July 1, 2000 by the International Chamber of Commerce. They provide a new set of comprehensive rules for export transactions that are more compatible with recent developments in worldwide electronic data exchange (EDI). They accommodate international cargo shipped in containers, multi-modal transport and roll-on/roll-off traffic.

If you are or plan to become an active exporter, we recommend that you purchase the publication Incoterms 2000 from the International Chamber of Commerce website.

 (Source: The Export Institute, Ask the Experts, Category Six.)

A: Schedule B is a U.S. adaptation of the international Harmonized System (see What are Harmonized System Codes?)  Schedule B codes are used to classify products for export, and are administered by the U.S. Census Bureau.

A: The Harmonized Tariff Schedule is another (see What are Schedule B codes? U..S adaptation of the international Harmonized System (see What are Harmonized System (HSC) codes?)

Harmonized Tariff Schedule codes are used to classify products for import, and are administered by the U.S. International Trade Commission (Office of Tariff Affairs and Trade Agreements).

A: The Harmonized System is an international method of classifying products for trading purposes. This classification is used by customs officials around the world to determine the duties, taxes and regulations that apply to the product.

Under the Harmonized System, products are assigned a six-digit identifying number:

• The first two digits of this number identify the chapter into which the product falls.
• The second two digits identify the heading within that chapter.
• The final two digits identify a specific class of products.

Each country may further expand the Harmonized System by adding additional digits (see What are Harmonized Tariff Schedule (HTS) codes?)

A: To obtain a Harmonized System code for your product, call the U.S. Census Bureau Foreign Trade Division at: (301) 763-2207 or you can try using the Schedule B search engine.  You can purchase a print version of the Schedule B (Stock # 903-009-00000-4) from the Government Printing Office (GPO) for $138.

A: Most goods do not need a license, and can be cleared by entering "NLR" (no license required) on the Shipper's Export Declaration. Licenses are generally required for high tech or strategic goods or goods shipped to certain countries where national security or foreign policy controls are important. The U.S. Department of Commerce's Bureau of Industry and Security (BIS) administers export licenses and regulations. The Export Administration Regulations (EAR) requires a license for certain activities and items, e.g. commodities, software, and technology, if one of ten general prohibitions applies and the export or re-export is not eligible for a license exception. An exporter can call BIS to determine if he/she needs a license. BIS holds numerous seminars each year on export licensing requirements and documentation. BIS can be reached at (202) 482-4811 (Fax: 202-482-3617) on the East Coast, or (714) 660-0144 on the West Coast. BIS also maintains a home page, which provides information on their regulations and procedures (source:  US Census Bureau FAQs).