“Most Effective Ways To Overcome Cargo Documentation And Flow’s Problem”
Hello everyone,
Are you exporter or Importer?
Are you planning to export /import something through shipping lines then you should know about the process of cargo movement of cargo and what are documents to be used in whole process?
Flow of Cargo
Documentation Flow
>>Booking Note (Issued by Shipping Line to Shipper/Exporter)
It includes:
· Port of Loading (POL)
· Port of Destination (POD)
· Commodity
· Type of Container
· Number of Container
· Shipper Name
· Sailing Date
· Vessel Schedule (ETD&ETA)
· Pick up address of container
Packing List (Given by Shipper to Custom House Agent)
It includes:
· Weight of the Goods
· Type of Packaging
· Type of Commodity
· Product Description
Commercial Invoice (Importer to Exporter; Shipper to CHA for Custom clearance as an agreement proof)
It includes:
· Confirmation between Shipper and Consignee
· Type of Goods
· Name of the shipper
· Name of the consignee
Checklist (Prepared by CHA by combining Packing List and Commercial Invoice and forward it to Customs)
· It is a combination between Packing List and Commercial Invoice.
· It is prepared by CHA and submitted to Customs Authority.
Shipping Bill (Given by Custom Authority to CHA)
· Acknowledgement by Custom Authority that goods are sailing out of the country
Let Export Order (Given by Indian Customs to CHA)
· The final order to enter the container into the port.
· It is received after the final assessment by the customs.
Port Entry Form [Form 13] (Submitted to Gate by Shipper)
Acknowledgement by the port to know the number of containers entered into the port.
For Example.
Exporter wish to export to his goods to importer.
Step 1: Pro-forma Invoice is generated by the exporter and then gives it to the Importer to confirm it.
It includes method of payment, mode of transportation, process of packing goods, packing material to be used .
Step 2: Letter of credit or purchase order will be sent by the importer.
Step 3: Commercial invoice is equivalent to any seller bill. Commercial invoice should be prepared by the exporter after the conformation of the export order/ purchase order.
Exporter places order through cogoport ( best provider in ocean freight rates and services)
Step 4: Booking note the exporter will place an order for the container with the shipping line. Once it’s confirmed the shipping line will give booking-note to the shipper which will give shipper authority to pick a container from CFS to stuff the goods.
The goods will then stuffed into the container either by factory stuffing or dock stuffing (under the CHA supervision)
Step 5: Packing list contains item wise list of the package content. It serves to inform all parties. Also helps to the custom authorities in case they wish to inspect the shipment
Step 6: Shipping instructions is furnished by the freight forwarder to the shipping line as some goods may be perishable, flammable, explosive etc.
Step 7: The Let Export Order will then be given by the customs officer, the shipping bill is generated in 2 copies i.e. one is custom’s copy, one exporter’s copy. There is a third copy EP copy which is generated later after submission of the Export General Manifest (EGM).
Step 8: The CHA issues a sample of shipping bill to the exporter after receiving the commercial list, PI and other documents. After approval the CHA will file the shipping bill with the customs department of the port concerned.
Step 9: Then the stuffing of the container on the dock will be done under the supervision of customs.
Step 10: Bill of lading will be issued by the shipping line once after all the documents are submitted and containers are loaded to the vessel.
Step 11: Export General Manifest — The shipping lines or agents informs the customs of the destination country within the 7 days from the date of sailing. EGM contains the list of all the items that were loaded or present on the ship while it sailed from the port.
Truck Movement flow
• Shipping Instructions — (Shipper gives to shipping line)
— It is the outer details of the consignment which includes the POL, POD, shipper name, consignee name, Cargo details, vessel details.
— Can also be called as replica of B/L
— Any instructions such as specific temperature or conditions are mentioned in this document.
• Draft B/L — (Shipping line gives it to exporter)
— It is the first copy to check for any correction or necessary things to add for the final B/L.
— It goes to and fro until the final draft is fixed and after the shipper gives the confirmation the original B/L is printed on the specific stationary which shipping line has.
- VGM — (Filled by shipper to shipping line)
— VGM information is provided on shipping instruction.
— It is important because it helps in reducing the accidents also the weight distribution can be calculated for the same by this document.
I’ve given an insight about documentation process of cargo movement that will sure help you to understand the shipment process.
You can find also all articles on https://diginotebookclub.com/
Next part I will talk about some imp. technical terms and charges which is used in Cargo movement and shipping process.
Hope you liked it.
Thank you!!
