Making an Export Shipment 1

freight, invoice, steamship, total, charges, shipper, permit and statement

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The various steamship lines have their own regula tions regarding packing and marking, as for example: "Shipments packed in bags or sacks must not exceed 200 pounds gross weight." "Boots, shoes, jewelry, guns, revolvers, cigars, silverware, and valuables of any description must be packed in iron-strapped and sealed cases, and facsimile of seal must appear on the bills of lading and receipts." "Arrangements must be made in advance for shipments measuring more than 30 feet in length or weighing more than 4000 pound (without regard to length) ." 5. Invoicing the invoice should contain full descriptions of the goods and give the number of boxes, method of packing, number of ar ticles in each container, marks on the boxes, weight and dimensions of the cases. The invoice should also state the price per unit of measurement, the total price for each group of articles and the total price of the entire shipment including discounts and additional outlays such as freight prepaid, insurance, consular fees and other extras. It should be clearly stated 'whether the prices mentioned are f.o.b., c.i.f., or cal culated on some other basis.

The foreign invoice is almost always signed. In many countries the signature is necessary to give it legal force. It is customary to add at the bottom "e. & o. e." (errors and omissions excepted), but this is an empty form; it does not protect the shipper.

Foreign invoices should always be numbered and the cable code in use in the office should be indicated.

Some markets require great detail in the invoices. In Australia it is necessary to give the cost of pack ing, the freight from interior points to seaport, and the actual cost at the factory, no matter whether goods are sold f.o.b. or c.i.f. Similar provisions are found in other countries. Sometimes the extra charges, such as cartage, insurance, and cablegrams are brought together on a separate "statement of charges" which bears its own number and also the number of the invoice. On this statement the total of these charges is accumulated and added to the amount of the invoice, giving the grand total. This statement is signed by a responsible member of the firm. Such a statement of charges must accompany the invoice and the draft to the bank.

It is sometimes necessary or desirable to send other documents with the invoice. Some of these are: a list of cases and their contents, their measurements and when goods are sold on analysis, the certificates of chemists or experts.

_ and accompanying documents are usually made out in triplicate, one copy going to the cus tomer, one to the bank with the draft, and one into the shipper's file.

6. Engaging freight shipment having been checked against the invoice, the next step is to engage freight room. It is customary to do this as soon as it is known when and what quantity of freight will be dispatched. Frequently the exporter will make certain of the freight space and the rate before he makes a sale. Then he knows how much the goods must bring c.i.f. and is able to guarantee delivery at a definite date.

In asking for freight rates, it is necessary to be specific. The size of the boxes or cases, their num ber, weight, contents and value must all be indicated. When the rate has been received the shipper must act promptly, usually by telegraph, or lose his option. After acceptance, the freight space is formally re served at the rate quoted. Goods must then be brought alongside for loading, otherwise the "dead space" will be charged for.

7. The shipping the steamship company has been notified of the acceptance of the option it sends the shipper a "shipping permit." The permit must be presented before the goods can be de livered at the wharf. In case of small shipments the permit is given to the driver of the delivery truck.

8. a freight forwarder is em ployed, he should be notified when a shipment has been sent in his care. The blanks supplied by most forwarders are in the form of a letter, giving notice to them that certain goods described in detail have been dispatched. Careful instructions must be given on the following points: the name of consignor, con signee, and person to be notified upon arrival of the vessel; destination and value of shipment, amount for which insurance must be taken, to whom the premium must be charged and to whom the certificate must be sent. Finally, it is necessary to indicate to whom the various incidental expenses are to be charged and the number of copies of the final bill of lading to be sent to the consignee and to the consignor.

9. Shipper's export declaration.—Many steamship lines will not issue a shipping permit until the shipper has made out a shipper's export declaration or issue bills of lading or permits until the declaration is in the possession of the steamship company. The reason for this is that the government holds the steamship companies liable for each shipment appearing on the manifest for which no export declaration can be pro duced. In the freight contracts there usually is a clause giving the company a lien on the goods actu ally loaded on the vessel for which the necessary docu ments were not provided.

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