IBM 416 Lecture Notes - Lecture 6: World Customs Organization, Commercial Invoice, Harmonized System

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Chapter 12: Shipping Your Product
· What are the things that you should be aware of when shipping a product overseas?
you must be aware of packing, labeling, documentation, and insurance requirements and
regulations. Make sure that the merchandise is
• Packed correctly so that it arrives in good condition
• Labeled correctly to ensure that the goods are handled properly and arrive on time at the
right place
• Documented correctly to meet U.S. and foreign government requirements, as well as proper
collection standards
• Insured against damage, loss, pilferage, and delay
· What are the definitions of the following?
· International freight forwarder
-agent for moving cargo to an overseas destination
· Customs broker
an individual or company that is licensed to transact
customs business on behalf of others. Customs business is limited to those activities
involving transactions related to the entry and admissibility of merchandise; its classification
and valuation; the payment of duties, taxes, or other charges assessed or collected; and the
refund, rebate, or drawback of those charges.
· Airway bills: Air freight shipments are covered by air waybills, which can never
be made in negotiable form
· Bill of lading: a contract between the owner of the goods and the carrier ( as with
domestic shipments).
o Straight: which is not negotiable and does not give title to the goods,
o Negotiable: (Shipper’s order)bill of lading. The latter can be bought, sold, or
traded while the goods are in transit. The customer usually needs an original bill of lading as
proof of ownership to take possession of the goods.
· Commercial Invoice: bill for the goods from the seller to the buyer
-Many governments use commercial invoices to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice to control imports will
often specify the invoice’s form, content, number of copies, language to be used, and other
characteristics.
· Consular Invoice required document in some countries, describes the shipment of
goods and shows information such as the consignor, consignee, and value of the shipment.
Certified by the consular official of the foreign country, it is used by the country’s customs
officials to verify the value, quantity, and nature of the shipment.
· Certificate of origin required document in certain nations, is a signed statement as
to the origin of the export item. usually validated by a semi official organization, such as a local
chamber of commerce. A certificate may be required even if the commercial invoice contains the
same in formation.
· Inspection certification required by some purchasers and countries to attest to the
specifications of the goods shipped. The inspection is usually performed by a third party, often an
independent testing organization.
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