Bill of Lading (B/L)International Payments§ 80104. Form and requirements for negotiationGLOSSARY OF SHIPPING TERMSA bill of lading is a document issued by a carrier (trucking company) which serves as a receipt for the goods to be delivered to a designated person or to his order. The bill of lading describes the conditions under which the carrier accepts the goods and details that nature and quantity of the goods, identifying marks and numbers, destination, etc. The person sending the goods is the "shipper" or "consignor," the company transporting the goods is the "carrier", and the person for whom the goods are destined is the "consignee". Bills of lading may be negotiable or non-negotiable. If negotiable (i.e., payable to the shipper's order and properly endorsed) title to the goods passes upon delivery of the bill of lading. A Canada Customs Invoice is a form or document, required by Canadian Customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment. The Canada Customs Invoice is required on all export shipments passing through customs en route to Canada. Commercial shipments to Canada, which are valued at more than $1,600 (Canadian funds), may be subject to duties and sales taxes and must be accompanied by a Canada Customs Invoice. The invoice can be prepared either by the exporter/importer or their agents. A Certificate of Origin form is a document, required by foreign governments, declaring that goods in a particular international shipment are of a certain origin. Even though the commercial invoice usually includes a statement of origin, some countries require that a separate certificate be completed. Customs offices will use the Certificate of Origin form to determine whether or not a preferential duty rate applies on the products being imported and whether a shipment may be legally imported during a specific quota period. A Certificate of Origin is a signed statement as to the country of origin of the exported products for a particular shipment. The country of origin is NOT the country from where the product is shipped. The country of origin is the country where the product was manufactured or last underwent a substantial change or modification, for WTO members, goods can be considered originating if there is a shift of at least two chapters in the harmonized code. For example, the country of origin for 100% cotton, knit shirts that are manufactured in China and then shipped to the U.S. and have a logo or slogan placed on them, and are then exported to Canada, would be China. However, if the cotton knit fabric was manufactured in China and then shipped to the U.S. and the fabric was transformed into shirts and are then exported to Canada, the country of origin would be considered the U.S. A commercial invoice is a form identifying the seller and buyer of goods or services, identifying numbers [invoice number] date, shipping date, mode of transport, port of entry, delivery and payment terms, and a complete listing and description of the goods or services sold including, quantities, prices, discounts. The commercial invoice form is considered the most important document in international trade, because merchandise is not allowed to clear customs at the destination without one. That is even true if the goods are samples and have no commercial value. This document is usually the one that all the service providersfirst look to for information about your shipment. It is important to prepare the commercial invoice as clearly and accurately as possible to avoid problems with your shipment. The Commercial Invoice is aCustoms requirement, not a transportation requirement. When someone is engaged in international trade, Customs requires a Commercial Invoice form. You will need two copies of the Commercial Invoice. One must accompany the freight from the point of pickup to the point of customs clearance, the other should be attached to the Bill of Lading. Customs Broker A person or firm licensed by an importer's government and engaged in entering and clearing goods through customs. The responsibilities of a broker include preparing the entry form and filing it; advising the importer on duties to be paid; advancing duties and other costs; and arranging for delivery to the importer.The U.S. Customs Service defines the importer of record as the owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed Customs broker.Import shipments moving into or through the United States or Canada which have not cleared Customs at the border and therefore travel under a Customs (Treasury) bond, and are identified as in-bond shipments.NAFTA (North American Free Trade Agreement) which entered into force in January 1994, is a free tradeagreement comprising Canada, the United States and Mexico. NAFTA exceeds 360 million consumers and a combined output of $6 trillion --approximately 20 percent larger than the European Community. NAFTA's consumer population is slightly smaller than the European Economic Area which has over 380 million consumers. The Agreement: Progressively eliminates almost all U.S.-Mexico tariffs over a 10-year period, with a small number of tariffs for trade-sensitive industries phased out over a 15-year period. Mexico-Canada tariffs are also phased out over a 10-year period. Tariff reduction schedules between the United States and Canada negotiated in the Canadian Free Trade Agreement are retained. Eliminates other barriers to trade such as import licensing requirements and Customs user fees. Establishes the principle of national treatment, for ensuring that NAFTA-origin products trade between NAFTA countries will receive treatment equal to similar domestic products. Guarantees service providers of the three countries equal treatment in the NAFTA area, including the right to invest and the right to sell services across borders. Establishes five basic principles to protect foreign investors and their investment into the free trade area: (a) nondiscriminatory treatment, (b) freedom from performance requirements, (c) free transference of funds related to an investment, (d) expropriation only in conformity with international law, and (e) the right to seek international arbitration for a violation of the agreement's protections. The NAFTA Agreement contains special provisions for sensitive economic sectors,
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