Transporting cargo and dealing with customs can be a hefty amount of paperwork. In fact, so much of importing and exporting is about dealing with paperwork and ensuring compliance with varying regulations of different governments. Transporting cargo out of Texas means you must comply with several regulations and documentation.
Here’s what you need to know.
When dealing with transporting cargo in and out of Texas, contact RM Custom House to ensure you are up to date with documentation requirements.
The Complexities of Supply Chains and Cargo Shipments
The supply chains have received quite a bit of attention in the past two years. During the Covid-19 pandemic, disruptions in the supply chain caused backlogs, delays, and shipping containers stuck in ports. All of this garnered plenty of public attention, as shelves appeared empty and fears of missing items began to permeate. Customs brokers play an important role in international trade, helping people navigate the shipping process.
Similarly, demand for specific goods increased, causing prices to rise. The supply chain has since then adjusted some and tried to make up for labor and truck driver shortages. In order to avoid added delays in shipping, companies want to ensure they are in compliance with all required paperwork as they ship across states or across borders.
For your shipments to be timely, make sure you are following the rules and regulations of your business.
Why Shipping Documentation is Necessary
If you are shipping internationally or domestically, you need specified documentation to ensure full compliance with local, national, or international regulations. Every country is different and has different requirements. Customs brokers ensure all paperwork meets the requirements from where the cargo is going and where it originated from.
The documentation helps secure the cargo, record important details, secure payment, and ensure compliance with all regulations.
Bill of Lading
A complete bill of lading is one necessary document whether you are shipping domestically or internationally. The bill of lading is a contract between the company (the owner of the goods) and the carrier of the goods. The contract states where the shipment is headed and where it has originated. The bill of lading also becomes the receipt issued by a carrier.
The bill should be in compliance with shipping regulations and carrier standards. It contains a few pieces of valuable information including the shipper, recipient, and necessary contact information.
The seller issues this document to the buyer. It is a legal document and states the sale price and the goods sold. The commercial invoice is required by a lot of customs processes. It serves as a legal agreement between the two parties (buyer and seller) and provides a description of the amount due and the goods being transported. This document is also used by the buyer to send payments or funds through its bank, and can be important documentation if there is any insurance claim filed on any of the goods.
The packing list is another piece of documentation needed for exporting or transferring goods. When shipping documents through ocean freight, this is a mandatory document. Freight companies issue this to prepare the bill of lading for the carrier. It provides carriers with information regarding the space required for the cargo. It also contains important details and information about the cargo including volume, weight, and the value of each box.
Certificate of Origin
This document is known as an important piece of the international trade process. It certifies that the exported goods are properly obtained, manufactured, or produced in that particular country. This document determines the amount of taxes that must be paid or exempted and must clear customs.
Letter of Credit
This is another formal document that serves as a binding payment agreement between the seller and the buyer. Because of the possible delays during international or long-distance domestic travel, it can be difficult to determine when to make a payment. A letter of credit is a safe payment method that helps both parties that deal with this long period in between while cargo is in transit. Before it is signed, the terms and conditions have to be signed by both parties.
Are You Shipping Cargo Domestically or Internationally? Contact an Experienced Customs Broker
RM Customs House is a customs broker out of El Paso, TX helping companies remain in compliance with customs requirements and regulations. The shipping landscape has changed considerably in the last couple of years, but our job is to stay on top of it and make the transfer of goods smooth sailing.
Do you need to ship goods out of Texas? Call RM Customhouse and learn more.