Tips to Manage Export Compliance Documents Efficiently

In our article on export process stakeholders, we discussed the various parties involved in the export process. In this article, we will explore the documentation aspect of this process further.

Documentation is essential in export as it forms the foundation for transactions, financing, and compliance. We will discuss the documents required during the process and guide you on the best way to manage documentation with minimum effort and maximum accountability with the right document management system.

Here’s a look at the documents you will use in the export process. It is critical to remember that when a business accepts international payments, the export payment terms are complicated and require more documents.

Documentation for Exports

When an export business acquires a new customer, the first step is gathering all the customer information. Creating a customer ID would be a good idea since repeat business with the same customer is possible. This way, there’s no need to collect the same information repeatedly.

New customer information and documentation

This will include documentation and information about the following:

• Name
• Address proof
• Type of company
• License, registration
• Banking information
• Other details, if required

Once the customer is onboarded and you proceed with the export contract, you will require the following documents for every deal you have with them.

Proforma Invoice

The exporter will send the bill of sale to the buyer before the shipment is sent. This document will confirm the sale details, product quantity and specifications, pricing, and delivery terms.

Commercial Invoice

The exporter will provide the commercial invoice as the final bill to the importer to be used for customs clearance. It has details of product, value, and trade terms and is used for customs declaration.

Packing List

The packing list will be created when the goods are packed for shipping and will once again contain the details and physical dimensions of the goods. The packing list will specify weight, measurements, and the specifics of how the goods were packaged. The packing list will help in customs clearance and facilitate transport.

Bill of Lading

When exporters hand over goods to a carrier for transportation, they receive a Bill of Lading (BoL) as an official acknowledgment. Common types of BOL include Clean, Claused (or Foul), Sea, and Airway Bills, each suited to specific shipping requirements. The BOL records the shipment date and condition of the goods, playing a vital role in customs clearance, timely payment processing, and supporting insurance claims if damages occur.

Certificate of Origin

As the name specifies, the CO will certify where the goods were manufactured. This document must be issued by an authorized body like the Chamber of Commerce. It ensures that the importer can clear the goods at their end.

Export License

This document may be required to export specific government-regulated goods, which could include items related to defense, restricted products, and goods with dual uses.

Customs Declaration

The exporter must file a declaration with the customs of the country they are exporting from, which is in the form of a shipping bill. The details of this declaration will include the exporter, importer, goods shipped, and shipping details.

Insurance Certificate

Exports involve risk, so exporters avail insurance against the goods shipped. Insurance covers any potential risk against damage, loss, or other incidents during shipping. Insurance is necessary for CIF (cost, insurance, and freight) shipments consignments.

Letter of credit

This document is a payment guarantee that the buyer or importer’s bank issues to the exporter subject to fulfilling specific conditions. Exporters often leverage the Letter of Credit to get trade finance to manage their working capital requirements.

Certificate of Inspection

The certificate confirms that the consignment has been inspected and checked to ensure that the quality specifications have been met. This could often apply to industrial or agricultural products.

Export Packing Declaration

The exporter must provide details of the materials used to package the consignment and confirm that they meet the importer's specifications.

The above is an indicative list of documents that apply to a typical export transaction. In most cases, the documents are not once-used and filed away. In most cases, the exporter and their team will need to refer to these documents repeatedly throughout the process.

How to manage export-related documentation? The solution!

While repeated access to these export-related documents on the move seems like an unsurmountable problem, the solution is simple. You need a document management platform like LeDocs. With a solution like this, onboarding customers, saving documents, retrieving them, and managing access even while on the move becomes easy.

Do you want to restrict document access at different levels? LeDoc allows you to set access levels to varying documents according to usage. Do you want to track access history? That, too, has been enabled. Are you worried about document security? No worries—we have you covered with encryption according to international standards. Are you seeking better collaboration across various stakeholders? The platform easily enables that.

Are you eager to learn more? Click here to get in touch with our team!