Basics of International Exporting. Steve Magee CFF

Transcription

1 Basics of International Exporting Steve Magee CFF

2 Shipping Documents Accurate documentation is one of the most important elements in international shipping. To successfully export, you should have an understanding of how each of the required shipping documents is completed, why it is needed, and how it is used. It is not necessary that you become an "export documentation expert". Except for documents that you must sign as the exporter, ask your forwarder to complete as many forms as they can on your behalf. Properly completed shipping documents can have a profound effect on the cost of buying and selling goods, and reducing the risk of being delayed at customs. This presentation was designed to assist you in preparing the necessary shipping documents or understand the reason for the information you are being asked to provide.

3 Decide where you want to ship? The destination for your item is crucial in determining what documentation you ll need, as well as the duties and taxes you ll pay. You will need four basic pieces of information, which will be required on all your shipping documents: 1. The shipper s address and contact information. 2. The destination address and contact information. 3. The INCO (International Chamber of Commerce) that will be used for the shipment. 4. Harmonized System Codes (HS Code)

4 What do you want to ship? The nature of the item you are shipping can be as important as where it is going. The following information will help you describe each item in your shipment accurately and determine which documents you will need to complete: A consistent and detailed description of your shipment contents across all documents will help reduce customs delays. A description should answer these questions where applicable: What is the item? Where is it from? How many items? What is the unit cost? What is the item made of? What is the intended use of the item? What country was in manufactured in? What is the HS (Harmonization System Code)?

5 What documents will I need? * Paperwork you need to complete will vary from country to country, but most countries will require that a bill of lading and commercial invoices for customs verification to accompany the shipment. Permits, licenses, and other document requirements may vary from country to country. If you are unsure as to what paperwork is require, or if you are responsible for providing the documents contact your Traffic Team or Honeywell customs compliance team.

6 What are the documents for? * Commercial Invoice (Cl)* A Commercial Invoice is required for international shipments and is the primary document for determining duties and taxes in the destination country. Packing List* The Packing List is valuable in checking whether the shipment is correct, and may be required by the importing country and in some cases will facilitate the clearance of goods through customs. Shipper s Export Declaration (SED)(B13A)* Some goods leaving Canada and the USA must be accompanied by certain documents to satisfy export regulations. NAFTA Certificate of Origin* With NAFTA, duties, and tariffs applied to Canadian and US companies exporting, and importing NAFTA eligible goods may be low or non-existent. Standard Certificate of Origin* The commodity being exported, terms of sale and its destination determine if the Certificate of Origin is required. * Documents mentioned should not be considered as a complete list of all the documentation that will be required.

7 Commercial Invoice The Commercial Invoice is the first shipping document you should complete, since it is the foundation document for all the others and is evidence of a transaction between the shipper (exporter) and the recipient (importer). It is very important to ensure all the information across all your documents is consistent, accurate and supports the information on your commercial invoice. Commercial Invoices are used to classify merchandise so customs officials can efficiently clear your shipment through customs, and assess duties and taxes. The CI also contains information that demonstrate the goods eligibility to enter a country.

8 What do I need in my CI ommon required information that should appear on a commercial nvoice Shipper s contact name, company name and full address Recipient s contact name, company name, and full address The importer of records government approval number. VAT, EIN, GST*, or other government assigned ID number. - 4.The country of original manufacture for each item Accurate describe your shipment contents. cont. Most countries have ID number that are issued to importers and individuals to shows they are eligible to receive imports from other countries

9 What do I need in my CI (Continued) 6. INCO Terms2000. INCO terms are internationally accepted commercial terms defining the respective roles of the buyer and seller in the arrangement of transportation and other responsibilities and clarify when the ownership of the merchandise takes place. 7. Declared Value. Declared value for customs reflects an accurate value. It is a serious offence in all countries to under state the value for duty of good 8. Currency used to describe the value for the goods. Only one currency can be used on each commercial invoice. 9. Specify the country of manufacture. The country of original manufacture for each item in your shipment. 10. Signed and dated documents. Incorrect or missing HS codes is one of the major causes of goods being held by customs and can result in delays, additional landed costs, penalties, and fines.

10 B13A Canada Export Declaration CANADA B13A customs declaration is required by the CBSA to report exports from Canada to any country other than the U.S., Puerto Rico or the U.S. Virgin Islands. * Type of Goods Canadian shippers are required to submit a B13A for: U.S. Destinations or Puerto Rico and U.S. Virgin Islands) All Other Destinations (includes goods moving through the U.S. to foreign destinations) Controlled goods (regardless of value) Non-controlled goods - Permit, certificate, or license - Documents required by other government departments (if applicable) - Form B13A, Export Declaration is not required - Form B13A, Export Declaration is not required - Permit, certificate, or license - Documents required by other government departments (if applicable) - Form B13A, Export Declaration** - Form B13A, Export Declaration (for goods valued at CAN$2,000 or more). The exporter is responsible for the content of their export declaration, and is not relieved of that responsibility regardless of who crates or files a B13a. * Note that there are some exceptions to these requirements. ** Note: If you are a CAED participant and the goods you are exporting are controlled, prohibited, or regulated, you must also present a paper copy of Form B13A, together with the accompanying permit, certificate, or license.

11 Shipper s Export Declaration (SED) USA An SED is used by the U.S. to compile export statistics and maintain export control. You must submit an SED if you can answer Yes to any of the fallowing questions about the commodity items in your shipment: Does the total customs value of any single Schedule B Classification in your shipment exceed US$2,500? Does your shipment require any permits or licences?

12 Free Trade Certificate of Origin In almost all cases Honeywell does not provide a NAFTA COO. A NAFTA COO should never be provided then by a person designated by Honeywell to provide them. Serious fines and penalties to Honeywell can result from incorrectly providing a NAFTA COO. Canada the USA, and Mexico are signatories to the North American Free Trade agreements. Due to this trade alliance, duties and tariffs applied to Canadian, US, and Mexican companies exporting, and importing eligible goods to member countries may be low or non-existent A North American Free Trade Agreement (NAFTA) Certificate of Origin is required* by he importer in NAFTA preferential treatment will be claimed. *For the purposes of obtaining preferential tariff treatment a NAFTA COO must be completed legibly and in full by the exporter and be in the possession of the importer at the time the declaration is made.

13 International Certificate of Origin Standard Certificates of Origin certifies the countries of manufacture for the items contained in your shipment, and may be required depending on the commodity to be exported and its destination. 1. Provide the shipper s information name, company name and full address. 2. Provide the recipient s information. Contact name, company name and full address. 3. Include the country of manufacture. The country of original manufacture for each item in your shipment. 4. Describe your shipment contents accurately. What is the item? What is the HS code? What is the intended use? What materials is the item made of? What are the parts or serial numbers?

14 Packing List A Packing List may be required by the importing country for clearance of goods through customs. Packing Lists show the total shipping weight and volume so that shipping space may be reserved. It is also used to determine that the correct cargo has been received. Finally, a Packing List can help during a customs exam to determine which box the product is in. Always include a copy of your Packing List inside as well as outside the package

15 Useful Links Government of Canada - Canada Business Service Centers Export Development Canada U.S. Customs Service U.S. Government s Export Portal The Canadian Trade Commissioner Service NAFTA Canadian Automated Export Declaration (CAED)

16 Direct questions or comments about this presentation to: Team Mission To design, develop, and implement world class trade programs that maintain high levels of customs compliance, optimize available trade programs, and provide delivery efficiency to our customers