The Incoterms® rules (International Commercial Terms) are an internationally recognized standard and are used worldwide in national and international contracts for the sale of goods.

Incoterms® are intended to define the responsibility of buyers and sellers upon delivery of the product, in accordance with the sales contract. The terms determine the parties' costs and risks.

First published in 1936, the Incoterms® have been helping importers, exporters, lawyers, transporters, insurers and international graduates for over 75 years. They are recognized by UNCITRAL as the global standard for the interpretation of the most common terms in international trade.

Introduced in September 2010, the latest edition of the rules, called Incoterms® 2010, took effect on January 1, 2011. All contracts made under the Incoterms® 2000 rules remain valid after 2011.

Source: ICC Brasil

Commercial Invoice is a customs document, used as a declaration provided by the person or corporation that is exporting an item across international borders.

The Commercial Invoice is, together with the International Air Waybill (AWB or HAWB), one of the main documents required by most customs authorities around the world, to release shipments and/or shipments.

The Commercial Invoice is a document of a legal nature and is subject to international law, in addition to being a fundamental instrument between the exporter and importer, as it serves as a record of the commercial transaction carried out between both parties.

The Commercial Invoice below is an example for general use. Customs authorities have the right to request additional documentation and information.

The commercial invoice must be completed in English.

Although there is no standard format, the document must include some specific information, such as:

• the parties involved in the transaction

• the goods transported

• the country of manufacture

• quantity of goods

• the Harmonized System codes for these goods.

• must include a statement certifying that the invoice is genuine and a signature.

A commercial invoice is used to calculate tariffs, international commercial terms (such as cost in a CIF, FOB, etc.).

The packing list is the shipping document that lists all the goods shipped or all the components of a load in how many parts it is divided. The packing list has the objective of making known in detail how the goods are presented, in order to facilitate the identification and location of any product within a batch, in addition to facilitating the inspection of the goods by the inspection, both during loading and unloading. .

There is no standard template for this document. It commonly contains the following elements:

• total amount of volumes (package);

• marking of volumes;

• identification of volumes in numerical order;

• type of packaging (box, pallet etc) containing net weight, gross weight, unit dimensions and the total volume of the load.

The packing list is required in situations where it is common practice to issue it. The normative provision that requires the presentation of the document are the provisions of the sole § of art. 553 of Customs Regulation w/c inc. III of art. 18 of IN SRF nº 680/06, where it is mentioned that the import declaration will be instructed with the packing list, when applicable.

The basic function of packing list is the identification of sets of volumes, as a rule, packaged goods. In situations where it is not usual practice to issue such a document, there is no need to talk about the instruction of the Import Declaration with the packing list and, therefore, neither the imposition of a fine. Examples of situations where it is not practical to issue a packing list: bulk and unpackaged cargo that by themselves are identified as automobiles (chassis number) or large machinery and equipment (serial number).

The non-presentation of the packing list in the customs clearance instruction (in situations in which issuance is current practice) gives rise to the imposition of a fine of R$ 500.00 (five hundred reais) provided for in paragraph “e”, item VIII of art. 728 of Customs Regulation.

The declaration of content is a document that has been made available for specific shipments that can be made without an invoice.

Its use is for national shipments only.

For the transport of goods through Brazilian territory, it is necessary to issue and send the Invoice attached to the transported product.

However, there are cases where the company cannot issue the Invoice. In these specific cases, it is mandatory to replace the Invoice with the Declaration of Contents.

The AWB is a receipt issued by an international airline for goods and proof of the contract of carriage, a document of ownership of the goods. Therefore, the air waybill is non-negotiable.

The air waybill is the most important document issued by a carrier, either directly or through its authorized agent. It is a non-negotiable transport document that covers the transport of cargo from the airport to the airport. When accepting a shipment, an IATA freight forwarder is acting on behalf of the carrier whose air waybill is issued.

Air waybills typically have eleven digits that can be used ​​to make reservations, check delivery status and a current shipment status.

House and Master AWBs

A freight forwarder offering a consolidation service will issue its own air waybill. House AWB or House BL.

They act as contracts of carriage between the shipper and the freight forwarder. The freight forwarder, in turn, enters into contracts with one or more carriers, often using more than one means of transport.

The contract of carriage between the freight forwarder and the carrier (air company) is called the Master Air Waybill.

A House Air Bill (HAWB) can be a multimodal transport document.

The HAWB number has 11 digits and 3 parts:

• The first 3 digits are the airline prefix;

• The next 7 digits are the AWB serial number;

• The last digit is the check digit.

The ocean bill of lading (abbreviation as B/L or BOL) is a document issued by a carrier (or its agent) to obtain the bill of lading about a cargo shipment. It is originally from the English Bill of Lading. In British English, the term refers to the transport ship. And, in American English, to any type of transport of goods.

The bill of lading must be negotiable and serves three main functions:

• is a conclusive receipt, that is, an acknowledgment that the goods have been loaded;

• contains evidence of the terms of the contract of carriage;

• serves as a document of ownership of the goods, subject to the "nemo dat" rule.

Bill of lading is one of three crucial documents used in international trade to ensure that exporters receive payment and that importers receive the goods.

The other two documents are an insurance policy and an Invoice.

While a bill of lading is negotiable, both the policy and the invoice are required.

Most shipments by sea follow The Hague Rules, The Hague-Visby Rules or the Hamburg Rules, which require the exporter to deliver to the carrier/cargo agent a bill of lading that identifies the nature, quantity, quality and main brands of the goods.

Rules and Objectives of the Maritime Bill of Lading

As receipt of goods

The main use of the bill of lading is as a receipt issued by the carrier once the goods have been loaded onto a ship. This receipt can be used as proof of shipment for the purpose of securing cargo and customs, and also as commercial proof of completing a contractual obligation, especially under Incoterms such as CFR (cost and freight) and FOB (free on board).

As proof of the contract of carriage

Bill of lading will rarely be the contract itself, as cargo space has already been reserved previously, perhaps by phone, email or letter. The preliminary agreement will be recognized by both the shipper and the carrier to incorporate the terms of the carrier's standard of business.

If the Hague-Visby Rules apply, then all rules will be automatically appended to the bill of lading, thus forming a legal contract.

As a title

Bill of lading confers prima facie title over the goods to the recipient's holder or named legal guardian. Under the rule "nemo dat quod non habet" ("no one gives what he does not have"), a seller cannot pass on a title to what he himself does not have; therefore, if the goods are subject to an encumbrance (such as a mortgage or a charge), or even stolen, the bill of lading will not grant full title to the holder.

Maritime Bill of Lading Clauses

A bill of lading that denotes that the goods are in good condition when received by the carrier is referred to as a undamaged cargo, while a bill of lading that denotes that the goods suffered any damage before being received by the carrier would be known as a "fault".

The damage to the maritime bill of lading will have a statement (clause) recorded on the bill of lading being written down any damage or other issues.

Letters of credit will not normally allow for non-accountability of bills of lading, and the buyer is not obligated to accept any bill of lading that is not “clean”.

Knowledge of Electronic Transportation

For many years, the industry has sought a solution to the difficulties, costs and inefficiencies associated with paper bills of lading.

One answer is to make an electronic bill of lading, an Electronic Bill of Lading (or e-B/L). It is the legal and functional equivalent of a paper bill of lading.

An Electronic Bill of Lading should replicate the essential functions of a paper bill of lading, ie its functions as a receipt, as proof of the contract of carriage and as a document of title.

The Certificate of Origin is the document that identifies the origin of a certain good for the purposes of granting contractual or autonomous preferential tariff treatment.

To this end, the certificate of origin must be issued in accordance with the rules prescribed by each relevant Agreement or legislation.

When the exporter opts for the Certificate of Origin, he will have advantages in the commercialization of his products. Among them, we can highlight the reduction of import taxes, which can reach up to 100%.

The Certificate can be issued in all Brazilian states. In São Paulo, it can be issued at the locations below:

• Santos Commercial Association

• Federation of Trade Associations of the State of São Paulo

• Federation of Industries of the State of São Paulo

• Federation of Trade in Goods, Services and Tourism of the State of São Paulo

Import Declaration or Clearance (DI) is the document related to the customs process of regular importation of goods and merchandise carried out with the Federal Revenue of Brazil that formalizes and unites the information related to the import process.

The import declaration contains the identification of the importer and the identification, classification, customs value and origin of the goods, in addition to other information required by the Federal Revenue.

Another similar document, the Simplified Import Declaration or Clearance (DSI) is the simplified import procedure, done through the Federal Revenue Service's own form, and can be done with or without registration with SISCOMEX in the situations provided for in articles 4 and 31 of normative instruction 611/06.

Among the operations that can be carried out through DSI, there are samples with no commercial value, goods whose total value is equal to or less than US$ 500.00, imports carried out by diplomatic representations and books and documents with no commercial purpose.< /p>

Form B13A is required by the Canadian Border Services Agency (CBSA) to enforce the necessary export controls in Canada.

The form must be prepared and signed by a Canadian shipper (exporter) or their broker. The description, value, weight, destination and other basic information of the shipment must be indicated for processing by Customs.

B13A information can be sent electronically, by mail or by fax.

When is an export declaration (B13A) required?

An export declaration (B13A) must be completed and submitted, prior to export, for commercial goods valued at CAD $2,000 or more destined for any country other than the US, Puerto Rico or the US Virgin Islands .

An export declaration (B13A) must be completed and submitted, prior to export, for controlled, regulated, or prohibited goods, regardless of value, for commercial products destined for any country other than the US, Puerto Rico, or the US Virgin Islands.

Important Notes

Goods in transit through the US destined for the Rest of the World that meet the above criteria must also be reported on an export declaration.

Be aware of fluctuating exchange rates to ensure that CAD $2,000 is met.Please refer to the table below for export document requirements.

Non-restricted goods: export declaration requiredfor valued commercial goodsfor CAD $2,000 or more

Restricted Goods: (ie Controlled, Regulated or Prohibited): Export declaration is required for all goods regardless of value.

For more information, consult Global Affairs Canada at the link: (https:// www.international.gc.ca/gac-amc/index.aspx?lang=eng), or contact us directly.

Canada Commercial Invoice is required on all export shipments that pass through Canadian Customs.

The CCI is an integral part of the classification of shipped products, the assessment of the due obligations to be paid and any special tariff treatment.

For these reasons, any commercial shipment valued at more than USD 1600.00 must be accompanied by a valid CCI.

The invoice can be prepared by the importer/exporter and must include:

• Importer/exporter name and company number;

• Measurement of unit and quantity of goods;

• Estimated value of goods in Canadian dollars;

• Detailed description of the shipment;

• Country of origin;

• Reference number

The Canada Border Services Agency is directly responsible for any updates to this form. Please see our external resources section for links.

https://www.cbsa-asfc.gc.ca/publications /forms-formulaires/ci1-eng.html

A Confirmation of Sale is required by the Canadian Food Inspection Agency on all shipments of fruit and vegetables to Canada.

The document describes the names of the supplier/buyer, carrier, destination, sales terms and product description.

The Canada Border Services Agency is directly responsible for any updates to this form. Please see our external resources section for links.

http://www.inspection.gc.ca/eng/1297964599443/1297965645317

The US Shipper's Export Declaration (SED) was a standard US government form required for all US exports of goods valued at USD 2,500 or more. It has been replaced by the Electronic Export Information (EEI) form.

If the value of a single commodity within a US export shipment exceeds USD 2,500.00, an EEI must be registered with the US Census Bureau to compile trade statistics and exercise export controls.

The form must be prepared and signed by the US shipper (exporter) or their forwarding agent.

Description, value, weight, destination and other basic shipping information must be indicated for processing by Customs.

SED information can be sent electronically through the Automatic Export System (AES), by mail, or by fax.

For more information, see the US Code of Federal Regulations or contact us directly.

Note: SED / EEI only applies to shippers in the United States and Puerto Rico.

This is a trilaterally agreed form used by Canada, Mexico and the United States to certify that products qualify for the preferential tariff treatment agreed by NAFTA.

The Certificate of Origin must be completed by the exporter. A producer or manufacturer may also complete a certificate of origin in a NAFTA territory to be used as the basis for an Exporter's Certificate of Origin.

To claim NAFTA preference, the importer must have a certificate of origin at the time the claim is made.

The North American Free Trade Agreement (NAFTA) is a preferential tariff program, which allows zero or reduced tariffs for products that qualify under its provisions.

A NAFTA Certificate of Origin must be provided with products that qualify for reduced or tax-exempt entry as a product from any of the three participating member countries: United States of America, Canada and Mexico.

The Border Protection and Customs Agency (CBP) or the Canadian Border Services Agency (CBSA) is responsible for NAFTA form updates and regulations. Please see our external resources section for links to both agencies.

https://www.cbp.gov/trade/nafta/nafta-certificate-origin