THE IMPORTANCE OF PACKING LIST IN INTERNATIONAL TRADE

 Many different documents are required for international transportation. The most important documents include the shipper’s export declaration, the bill of lading, the commercial invoice, and the packing list. These documents are used to track the shipment, calculate customs duties, and provide information about the contents of the shipment. A packing list is one of the terms that are used a lot in the business world. Undoubtedly, the correct understanding of these terms can be a good guide for us in commercial affairs. In this article, we are going to talk about an international document called a packing list.

Table of Contents

Types of International Transportation Documents

What is a Packing List?

How to Prepare a Packing List

Tips for Creating an Effective Packing List

Conclusion

Types of International Transportation Documents

In international trade and transportation, there are documents that specify the features and requirements of the cargo. Shipping documents are the most important documents during international sales and purchases and are considered to be the identification documents of the goods. Shipping documents are crucial at the time of a purchase since, after satisfying financial commitments and clearing accounts with the seller or bank, the buyer can only finish customs formalities and complete the goods clearance by providing international shipping paperwork. International shipping documentation and their various types are described in this article. The most common of these documents are:

Bill of Lading

Certificate of Origin

Commercial Invoice

Packing List

It is important to follow the instructions on all international shipping documents carefully. Failure to do so could result in delays, damage to the shipment, or even legal problems.

What is a Packing List?

Packing list is an international critical document in which important export or import information is mentioned. It provides important information about the shipment that can be used for customs clearance and to ensure that the shipment arrives safely. This document should be accurate and complete to avoid any delays or issues in the shipping process. If you are shipping goods, be sure to include a shipping packing list with your shipment. This document can save you time and money by ensuring that your shipment arrives safely and intact. This list typically includes the following information:

• Shipper and consignee information
• Details about the contents of the shipment
• Packaging and labeling information
• Weight and dimensions of the shipment
• Shipping and handling instructions

In general, this document can be utilized in at least three situations:

• It is required by officials and evaluators when inspecting the contents of boxes or cartons.
• It is used by storekeepers to issue invoices and check the quality and quantity of products imported to customs.
• A packing list is also used as a supporting document if there is a disagreement between the carrier and the exporter over the cargo’s measurement and weight.

How to Prepare a Packing List

As mentioned, packing lists are an essential part of the transportation process, whether you’re shipping goods domestically or internationally. A packing list is a document that itemizes all of the products being shipped in a single transaction. It is used by the carrier to verify that the products being shipped match the description on the this list. This document can be created manually or with the help of shipping software. When creating a packing list, be sure to include the following information:

• A description of the products being shipped
• The quantity of each product
• The weight of each product
• The dimensions of each product
• The value of each product
• The origin of the shipment
• The destination of the shipment
• The name and contact information of the shipper
• The name and contact information of the consignee

Packing lists can be simple or complex, depending on the nature of the shipment. For example, a shipment of books might only require a description of the goods and the quantity. However, a shipment of electronic equipment would require a more detailed list that includes the weight, dimensions, and value of each item. Once the packing list is complete, it should be attached to the outside of the shipment so that the carrier can easily verify the contents. In some cases, this list may also be used as the commercial invoice.

Tips for Creating an Effective Packing List

When it comes to packing for a freight shipment, there are a few things to keep in mind in order to make sure everything arrives safely and on time. This document is important as it will be used by the freight company to determine what items are being shipped, as well as how they should be packed. Here are a few tips for creating an effective packing list document:

Include all items that are being shipped: This seems like an obvious one, but it is important to make sure that all items that are being shipped are included on the packing list. This includes any items that are being packed in boxes, as well as any loose items.

Clearly label all items: All items should be clearly labeled with your name, address, and contact information. This will help the freight company to identify the items and get them to their destination safely.

Use proper packaging: It is important to use proper packaging when shipping items via freight. This includes using boxes that are the proper size and strength for the items being shipped. Additionally, items should be properly cushioned and secured so that they do not shift during transit.

Include a packing slip: A packing slip should be included with your list. This document should include your name, address, and contact information as well as a list of all items being shipped.

Use a reputable freight company: This is perhaps the most important tip of all. Be sure to use a reputable freight company that has a good reputation for shipping items safely and on time.

By following these tips, you can be sure that your packing list document will be effective and that your items will arrive safely at their destination.

Conclusion

Preparing a packing list can greatly reduce your financial cost and time. By preparing this list, there is no need to fully inspect your goods when entering different countries. A full inspection usually involves costs that are the responsibility of the sender. By making a packing list, you can avoid such problems.

ICEGATE

 One of the most crucial tasks in the business is having proper records and managing the database accurately. Several importers and exporters have a large database containing the files of shipping bills, bill of lading, bill of entry and a number of other documents. ICEGATE is an online portal that helps in managing these records without any hassle. The ICEGATE full form is Indian Customs and Central Excise Electronic Data Interchange or Electronic Commerce Gateway, which has been highly beneficial to a number of importers, exporters, cargo service providers, etc. Every user is provided with a unique ICEGATE ID and their password, which keeps the whole record safe and private.

Did You Know?

There are more than 7 lakh exporters and importers that are using ICEGATE, which has been beneficial in the smooth running and safeguarding of their business. Currently, there are more than 43542 registered users of this web portal.

What is ICEGATE?

ICEGATE is termed as Indian Custom and Central Excise Electronic Data Interchange or Electronic Commerce Gateway. It is an online portal that works as an infrastructure for supporting the management of the database of several bills regarding imports, exports, and several other services. 

ICEGATE is basically used by traders, import service providers, cargo transporters, etc. They have the unique ICEGATE ID that helps in maintaining all the records and prevents the entry of any non-registered user. ICEGATE had spread its arm into various other fields as well. Several licensing and governmental bodies are using ICEGATE for the management of important documents. On the other hand, ICEGATE also plays a great role in helping the citizens to clear out their taxes online without spending much time in offline payment methods. Mostly, the ICEGATE registration is done for import, Import general manifest, export, Console manifest and Export General Manifest.

ICEGATE- Service and Advantages

There are a number of advantages you can avail of the ICEGATE e-commerce portal. Some of the great features associated with ICEGATE are:

It is very much beneficial as well as necessary for filing online import and export-related documents.

 ICEGATE helps in tracking the status of the online filing of several documents.

Information about the import and export status are duly informed to the owner or the user through their registered email ID.

 ICEGATE can prove beneficial in terms of having any query or misunderstanding related to any service,  for which the help desk is available with 24/7 support.

To ensure the proper privacy and security over the documentation, only the individual with a valid ICEGATE ID is eligible to file a document on the portal.

Steps to Register for ICEGATE

Registering an ID on the ICEGATE portal is made quite simple for the ease of the customers. Following are several steps for registering on the ICEGATE portal.

For the registration, an individual is required to open the official website of ICEGATE.

It will redirect the individual to the homepage of the ICEGATE portal. There will be a registration link.

Click on the registration link for proceeding towards registering.

After clicking the registration link, there will be an option of Simplified Registration.

Click on the Simplified Registration option to proceed with the signing up of the ID.

The user is required to enter several personal information, which includes GST number, mobile number, email ID, etc.

After filling up the form, the individual is required to set up a password for their ID. It is required for the password to be strong enough to prevent any unauthorised access.

A registration form will appear on the screen with the unique ICEGATE ID as well as the password created by the user.

For the verification of the ICEGATE ID, there will be 2 OTPs that will be sent to the user, one on the registered email ID and another to the registered mobile number.

The user must enter both the OTPs for the successful verification of documents which will lead to a successful registration in the ICEGATE portal. Entering the wrong OTP will show an error report.

After the successful registration, the final form will be provided to the user for re-checking.

Once all the details are rechecked and corrected, the individual is required to click on the finish button.

 A popup warning window will appear on the screen, which will be tagged as, Are you sure you want to complete the auto IEC registration?

Tap the yes option for completing the registration.

Documents Required to Register Yourself

By following the above-given instructions, an individual can easily create an account on the ICEGATE portal. However, there are several documents that are required to be kept ready before registering into the portal. The documents required for ICEGATE registration are photo identity proof (Aadhar card/Voter ID card/driving licence/passport), authorisation letter, authorisation to F card or G card and licence or permit.

Benefits of Using ICEGATE Portal

ICEGATE is an online portal that keeps the records as well as manages the documentation related to import and export. The primary storage in the database includes the shipping Bill, bill of lading, bill of entries, employee list, etc. These data are managed in a precise manner according to a unique ICEGATE ID which can be logged in by entering the password created by the registered user. It has help desk management that provides support in solving a number of issues. On the other hand, the ICEGATE offers several services like online payment, tracking of the document status using a registered ID, finding the status of import-export code (IEC), registration over the intellectual property rights through the internet, as well as online tax payment, i.e., custom duty. The basic principle of an ICEGATE portal is the exchange of data between traders or users in the most precise, secure and accurate manner.

Conclusion

As we have mentioned earlier, ICEGATE stands for Indian Custom and Central Excise of Electronic Data Interchange or Electronic Commerce Gateway. It is an online web portal that is designed for the management and record of the database, storing the information related to the documentation of imports and exports. The service provided by the ICEGATE e-commerce portal is being expanded to several fields, which includes online tax payment, IGST reimbursement, e-payment, etc. An individual registering on the ICEGATE portal will receive a unique ID which will be used during the filling of the report. Several benefits of using the ICEGATE portal includes the online tracking of the records, checking the status, getting the information on their registered email ID, online payment and 24/7 assistance.

It is a platform that keeps all of the important documentation safe and secured from any threat.

Container Shipping

Container Shipping

What Is Container Shipping?

We now understand that container shipping involves loading goods onto standardised containers for seamless overseas and inland transportation. Let us now look at the journey of a container filled with goods from one place to another. 

Different Stages in Shipping a Container

Container shipping involves a laborious process and documentation to ship freight from one destination to the other. Let us break the cycle into simple stages:

Order Placed

A client will place an order. The delivery process then involves both the manufacturer and a freight forwarder. 

Goods are loaded onto warehouse, factory, or farm containers. They have to be packaged and labelled as per international standards.

The container is locked and sealed so the goods can remain secured inside the container.

Goods Loaded

Then they are loaded onto trucks or trains, which carry them to a port storage facility or a container freight station. 

The containers are weighed and scanned at these facilities for contraband or illegal substances.

The rest of the journey depends on whether they must be shipped inland or overseas.

Loading on a Ship

In most cases, the freight forwarder will find the best route from point A to point B.

Depending on the buyer’s needs, this could be either the most economical or the fastest. 

Either way, the next step in the journey is loading the container onto a vessel that will carry it to the destination country.

Carriage of Goods at Sea

Adhering to strict ETA or the estimated time of arrival requirements and schedules of the container shipping industry, ships carry these containers from one country to another. 

The master of the ship, along with the crew, is responsible for the safe carriage of all containers. They are highly trained professionals who comply with standards the International Maritime Organisation (IMO) sets.

Arrival at Destination and Unloading

Upon receiving clearance from the Port and Customs authority, the ship docks at the port of the destination country.

With the help of advanced machines called Gantry Cranes, Dockworkers unload ship cargo containers.

They load these containers onto trucks lined alongside the ships on the jetty.

Inland Transportation

Customs officials carefully analyse the documentation of each container before forwarding it to the container freight station.

Special trailers or railways carry these containers to their final destination depending on the distance from the port. 

Final Delivery

Once the containers reach the warehouse or factory designated by the freight forwarder; they are dissembled. 

Individual packages are prepared for delivery to the final destination decided by the buyer.

Types of Shipping Containers

Containers are the backbone of the entire container shipping industry. Hence, they are of robust build, made using industry-grade steel, and are both weathertight and watertight. Each shipping container has its unique identity, set as per ISO standards. 

So, let us look at the different types of containers:

Standard Dry Storage Containers

These shipping container sizes are  20-footers and 40-footers. To simplify the counting of containers, a 20 ft container is known as a Twenty Foot Equivalent Unit (TEU). A liner’s ship’s container carrying capacity is measured in TEU. Today some ships have carriage capacities upwards of 20,000 TEU. Both 20ft and 40ft containers have the same height and width

High Cube Containers

These can only be 40ft or 45 ft in length. The main difference between them and standard containers is their height is more.

Flat Rack Containers

These containers have collapsible sides. This makes it easier to stow non-standard-height cargo like boats, tractors, etc. They can be of Top Open type or Side open type as well.

Refrigerated containers

These are containers that can carry cargo that needs refrigeration. They are fitted with a refrigeration system that derives power from the liner ship’s generators.

They can carry anything from fruits, vegetables, juices, wines, pharmaceutical supplies, etc. 

They are always white for easy identification.

Tanktainers

They carry small quantities of liquid cargo like chemicals, powders, and gases.

Their carriage has to be as per the International Maritime Dangerous Goods (IMDG) Code made by IMO.

 What Are the Freight Options, INCOTERMS, and Documentation in Container Shipping?

Container freight is the amount of money charged for transporting the container. The freight depends on the amount of cargo the shipper wants inside the container for transportation. The type of freight rate also determines the shipping time of the consignment.

Let’s have a look at the two different types of container shipping freights.

Full Container Load (FCL) Container Shipping

• This means that your cargo occupies a full container load. 
• FCL is used if your shipping load is more than 15 CBM in volume.
• For FCL, cargo must not exceed the maximum allowed weight of the container.
• The FCL container shipping freight rate is volatile.
• FCL freight rate is a fixed price and does not depend on the volume or weight of the cargo.

Less Than Container Load (LCL) Container Shipping

• This means that your cargo does not occupy the entire volume of the container. 
• So, the remaining space in the container will be filled with other cargoes of different origins and destinations.
• LCL is used for shipments under 15 CBM in volume.
• LCL freight rates are more stable in comparison to FCL. However, LCL rates can be higher than FCL rates after a break-even point. 
• LCL container shipping takes almost 4 days more than FCL on average. This is because it takes more time to assemble and disassemble the shipments.

INCOTERMS: Buyer and Seller Responsibilities in Container Shipping

• Container shipping International Commercial Terms (INCOTERMS) is a set of rules for international transit detailing responsibilities between suppliers and buyers. There are 11 Incoterms published by the International Chambers of Commerce (ICC). A 3-letter code represents each Incoterm.
• These changes came into effect on the 1st of January 2020 and are being used in 2022 as well.
• They will be in use until ICC publishes the next changes sometime in the future.

Main Documents Required for Container Shipping

According to Maersk, the biggest container shipping company in the world, there are about 2000 documents involved in shipping a single container. 

Let us look at the two most important documents required for container shipping.

Bill of Lading 

The Bill of Lading (B/L) is a commercial contract of carriage between the shipping line and the cargo owner. One copy is provided to the master of the ship to acknowledge the receipt of your cargo for shipment on board their vessels. The cargo is released at the destination port when the master provides this B/L to the cargo receiver. Customs do not clear any shipment without a B/L

Packing List

It lists all of the details and information regarding the cargo shipment. This includes each box’s weight, volume, and value and the overall cargo being shipped in one container.

Conclusion:Now we know about the basic framework of the container shipping industry. It is important to know about it because imports and exports have become a crucial part of the growth of every nation. Thanks to Malcolm McClean, the pioneer of containerisation, Container shipping is now the cheapest way of importing and exporting.
The industry forms a huge chunk of the global supply and logistics chain. It is also responsible for generating a large number of employment opportunities. Supported by a meticulous multi-modal inland transport system, container shipping keeps the global supply chain and logistics ticking.