Global trade has gained a lot of popularity because of open markets. That said, it is a complex concept. The export and import of goods involve a lot of time, effort, and overhead tasks. Documentation is one of the most important tasks of global trade. If the import and export documents are not prepared correctly, the shipment of goods may be delayed or even seized.
Another important aspect of global trade is the HS code. The HS code, or Harmonized System of Coding, is a universal method of coding. It is used to categorize the products in global trade. It is important to find the correct HS code so that any shipments do not get delayed and reach the right destination at the right time. Read on to lean more about the documentation involved in exports.
Invoices and packing lists
Among the various documents needed for global trade, invoices and packing lists are important. It is important to prepare these documents carefully and accurately. This helps the shipment reach the correct destination. If there are errors in invoices and packing lists, it may create problems at customs clearance or when the products have to be processed for payment.
Invoices are required to ensure that customs clearance and payment processing for the traded products proceed smoothly. The invoice contains important information such as:
- Name of the importer and exporter.
- Invoice number and date.
- Detailed description of goods along with the HS codes.
- The quantity of goods being shipped.
- The total value of the shipment.
- Payment terms.
- The mode of shipment and details about the place of origin and the destination.
- The signature and stamp of the sender for authenticity and validity.
In addition to an invoice, a packing list should always be prepared for any shipment. This document provides a breakdown of the contents being shipped. It helps in the verification of goods by customs as well as the buyer. The important information that packing lists provide includes the following:
- Details of the importer and exporter.
- Invoice number for reference.
- Details of the goods being shipped, including quantity, weight, and dimensions.
- Detailed packing information, including the number of cartons and types of cartons used.
- Unique identifiers for the different packages to facilitate shipment handling.
- Weight and volume of the shipment.
How to find the correct HS code
In addition to invoices, it is important that any shipment includes HS codes. An HS code is a six-digit numerical code that categorizes several products in a shipment. HS codes are universal, so it is easy to identify the various products in a shipment in any country across the world. It is therefore important that HS codes are accurate and are known to exporters, importers, as well as customs officers.
If an HS code is not known, it can be easily found from approved sources and websites. To find the correct HS code in the right resource, the keyword related to the product should be searched for, along with all potential HS codes. Once the potential HS codes are known, it is easy to narrow down to the right code using product details and descriptions.
It is important to find the correct HS code so that there is no misclassification of products and no errors in the calculations of the various tariffs and taxes.
To sum it up
It is important to have the correct import and export documents and HS codes for the products being shipped. This helps with quick customs clearance of products, quick delivery of the shipment, and a correct calculation of any tariffs and taxes.