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Date: 2016-08-12

Parsing the Export Paperwork

Many small companies around the world are intimidated by the paperwork associated with shipping products to customers in other countries. But this process isn’t that horrendous anymore. The world is becoming more accessible to SMEs - no longer are the days where only large companies filling large steamships and overseeing all aspects of documentation successfully exported.
Today, a buyer in Ireland can purchase a product from your website and receive it in a few days.  And this process is rather easy for your company as most goods required documentation only takes minutes to complete.
This isn’t true for every global transaction, as some countries may have more extensive import documentation, but no international transaction is beyond your capacity.  And there’s plenty of help available if you don't want to directly oversee the exporting paperwork.
With that said, let's go through the most common shipping documents to show you how manageable this process has become.
The most common document is the commercial invoice.  It is required for all export transactions except goods shipped by your Postal Service.  When you mail an item by post you will fill out a separate document provided by the Postal Service.  The postal service accepts goods for international shipment if they are lightweight, usually 70 pounds or less.  Postal services in different countries cooperate with each other and have a separate land for clearing customs, meaning that they move through faster and don't require a private customs broker and an extra payment.
Harmonious product classification
To complete the commercial invoice you need the products harmonized code number.  They are called harmonized because the first six numbers are used by all countries in the world to help simplify the process.  For example, a dog carrier cage will have the same code number regardless of where it's made.
The invoice part of the document needs the description of the items sold, the full sales price, and the cost of insurance and freight.  The costs must be accurately stated because they will be used to calculate the duties and taxes charged by the importing country.  Typically, no fees are charged on outbound shipments.
In the U.S., shippers use the Electronic Export Information, or EEI.  You must file this if the value is more than $2500.  Your shipping company, for a nominal fee, can file this for you but this form is also rather straightforward and requires you include the products' Harmonized Code Number, value, and country of destination.
If you are shipping to Canada or Mexico and the product meets the rules of origin under the NAFTA you can save your buyer money on duty fees by submitting a NAFTA Certificate of Origin with the commercial invoice to Customs.  This optional filing is needed if the shipment to Mexico is valued at more than $1000 and to Canada if the value is more than $2500.
There are more specific documents and certificates for various products and shipping destination.  For example, certain products may need to be independently tested and certified before they can be shipped and some countries may request a Certificate of Free Sale, proving that the product has been commercially sold in the issuing government’s market.
As such, make sure you research if your product/destination requires any additional documentation to ship in addition to the commercial invoice. ( Vivian )19 Jul,2016


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