Cargo Description:

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What is it?

These guidelines for the declaration of cargo cover the description itself and classification codes. The desired end result of the declaration of cargo is that the cargo is rubber stamped through the transportation processes, especially customs, both import and export at the most reasonable costs.

Description on Shipping Documents

A good description is one that conveys credibility of what is moving and wilcdl finally enter a destination country. Credibility is conveyed by consistency of documents and the wording itself. Please consider the description on two levels, general and detailed.

The general description appears on the bill of lading and the summary invoice. They should have very similar (but different) wording. Missionary Expediters recommends a) a general description, followed by b) some specificity of the high value stuff or majority stuff, then c) a phrase representing other. E.g., Donated Relief Cargo: Medical Equipment and Supplies, including one used ulrasound unit, hospital beds, exam tables, other hospital fixtures, and various medical supplies. Keep it down to, say, two sentences.

The idea is to convey full disclosure, yet innocence. In conjunction with a consistent inventory, you want to give the customs officials confidence that the cargo is described accurately and completely... no reason to ask questions, do an inspection, or get supervisory guidance.

Detailed Description The Packing Lists, the Manifests, the Inventory

Yes, a general description usually works on the Bill of Lading and the summary Invoice. But, if youve got it, be prepared with a corresponding, consistent, detailed, itemized packing list with a breakdown of values per each single line item. If you dont have it, then make the description appear full disclosure and complete. Realistically, whether you can provide or obtain a detailed packing list will depend on the cost to make it. Here are two extremes.

MAP International usually provides a very detailed packing list for their shipments. This is because MAP deals in pharmaceuticals which require a sophisticated inventory management system. MAPs computer generated invoices/packing lists has been accepted and considered sufficient all over the world. You might say, MAPs documents are like those for a commercial sale.

At the other extreme are documents that we supply for Samaritans Purse, and which we helped author. As Samaritan Purse usually ships Christmas gifts in shoe boxes supplied by millions of families all over, it is impossible to specify the detail of the contents. Therefore, the packing list provides a long list of probable items in the shoe boxes, freely stating that the items are not precise. The words are intended to convey that the mix of items are a category in and of themselves. The documents are not so detailed, but still achieve sufficient clearances because they look like they are full disclosure. Image.

We have mentioned the documentation from MAP and Samaritans Purse, representing shipments with available detail and with unavailable detail. But the best is that which consistently meets the criteria described here, as for the most part the available details varies shipment to shipment, as your stream of donations will always vary.

If the cargo is practically impossible to inventory, think of clever ways to make a packing list that looks detailed. It is usually not wise to invest in a high cost of inventorying a lot of donated commodities, since a higher degree of accuracy still may not be possible. Remember, the more detailed your inventory is, the greater chance for inaccuracy.

Hints for image making:

Freely use phrases like, estimated to be, said to contain. Be verbose, when you really have no details. Be general, though wordy, to avoid being off based with specificity. Deemphasize high value or high sophistication. List the high volume stuff; and relegate the other stuff to general categories. Emphasize words of charity and relief without being too flowery.

Every country / destination will have different requirements, or shall we say, reputations. We would recommend that the documentation prepared for a particular destination be dependent upon what the consignee needs. Missionary Expediters says, plan ahead by working backwards; i.e., identify the needs at the destination, and then work backwards to the USA to lay out and provide the requirements.

For example, a shipment to Zambia will require a detailed packing list (e.g.. MAP example enclosed), in order for the shipment to move inland from Durban. A shipment to Jamaica however, does not usually require as much detail (e.g. Samaritans Purses example enclosed).

We just had such a case where the shipment was held at the port, pending detailed packing list / commercial invoice. Here what they requested for customs clearance:

Quote

This container will not move without customs clearance and, based on the info already provided on this commercial invoice there is no chance of it being passed.

Exporter needs to provide:

• What is Costco?
• What clothing is this? New or used? Mens/ladies/childrens?
• Shirts/trousers/dresses?
• What is Stride Rite?
• What shoes are they? New or used? Plastic or leather? How many pairs? Same with PW Minor/shoes.
• Cardinal/Health/medical supplies. What is cardinal? What health/medical supplies are these? Are they operating tables/beds/bed pans/ medicines/bandages/vitamins?
  
  These requirements are not ours they are Customs, and without customs clearance the container will not move.
  
  If customs are not happy with the declarations on the invoice they will undoubtedly stop the container, it will have to be examined and who knows what will happen when you have commodities like this in a contr.
  
  Even if they have to produce a ten page invoice, it has to be done if they want to get their cargo.

Unquote

The idea is to NOT give the customs official the chance to write such a message/query. If they are provided a respectable detailed. itemized inventory, they might not ask the sort of questions like show above, even if the inventory would not have answered to those questions from the get-go.

Units and Counts

The units of packing lists should be according to what one sees when the door is opened. So, if one sees pallets, say pallets on the packing list. Then, if you know how many cartons are on each pallet, say so. If you only know the total carton count, say 416 cartons on 19 pallets.

Further, dont say 50,000 syringes because you wont see 50,000 syringes laying on the container floor. Say 10 cartons with 50,000 syringes. Dont say 9 broom/mop handles unless they are loose on the floor. Say one bundle of broom and mop handles.

Valuation of Cargo

For relief cargoes, Missionary Expediters has distinguished four kinds of values. Because these are donations, cash is not normally "paid" for such commodities. So, different valuations are used for different purposes.

1. Donation Value
   The commodities do have a true worth prior to donation, say when the commodity was in prime condition. It is on the high side is thusly used in income and financial statements. Often the values derive from the donor, but not necessarily. Often Missionary Expediters is not be given this value. AERDO may have guidelines for donation value.
2. Insurance Value
   However, since little out of pocket cash was paid out for these commodities, the exporter normally sets the insurance value to cover such expenses (like ocean freight, cargo handling, procurement, service fees, etc.). These expenses are rarely precise, and the exporter sets these values, though often we are asked to estimate the insurance value.
3. Export Value
   Nextly, there is the value on the "Shippers Export Declaration". U.S. Customs says this should be the "fair domestic appraised value", which is like, what can you sell it for in the marketplace. In the end, this value is rather subjective. By the time the commodity is readied for shipment, it is already, of course, designated for a donation, a free gift. In that sense, it is no longer worth the donation value. On the other hand, it is not worth $0.00. It is akin to salvage value, wherein, we are not really all that precise about all this.
4. Import Value
   Lastly, there is "customs value", which is the value presented to customs of the destination country. Customs always needs to have some sort of "invoice" or declaration of value for cargoes entering their country. We cannot say $0.00 and say it is a gift; that would cause Customs to "review" how something can be worth zero. So, we normally estimate a reasonable, low value, set for the purpose of getting it "rubber stamped" through customs without any further interrogation. We feel this approach is proper because the cargo, being free, is really not invoiced and really will not cause the destination country to pay out any hard foreign exchange. The customs import value invoice hopefully is just for the customs statistical and administrative work. If Customs charges a duty unexpectedly, this value provides a low basis therefor.
   
   Though we recommend a low customs import value, sometimes the exporter wants a high customs import value. Okay, maybe it is to show off. But in one case, the exporter explained that since the consignee was going to pay for the onward carriage, a high value was specified to allow the consignee to feel his expense was really worth it.

Original Documents

Agents and customs officials are always looking for hard copies of the documents, signed and stamped, especially of the ocean bill of lading. Since the bill of lading still has to be the one and only hard copy, there is more control of document integrity if all hard copies of the documents and produced here in the USA. As a backup method of document preparation, or to revise documents already couried overseas, email attachments of the some shipping documents provide good looking images that can then be signed in blue ink and look as good as originals.

We usually recommend to our shippers to send copies of the invoice/packing list in advance to the consignees, in order to arrange pre-wiring of the customs clearance for faster release. Be sure they are consistent with the final documents.

Be sure all sets of documents and all documents within each set have consistent information (counts, units, values, descriptive wording)

Classification Codes

The U.S. Schedule B 10-digit codes, also known as harmonized codes, are recognized and often accepted for commodity and material descriptions. They are required for most of the ex-Soviet republics and for cargoes transiting South Africa.

Though almost a universal classification scheme that is recognized overseas, the classifications in Missionary Expediterts opinion awkward to use. Commodities often are not mutually exclusive and can be applied to more than one classification. Yet, other commodities dont seem to fit in anything.

See this website to find Schedule B numbers.

So, if a Schedule B classification fits, use it. Otherwise, make up your own description, and identify a Schedule B number that is general in scope and still fits. Your description should be true of course, but not use words to show high value, high tech, or high sophistication. Innocence. Keep a library of these descriptions; you'd be surprised how often you'll use it.

Automated Systems and Documents?

Software or web sites for document preparation is available primarily for businesses in the transportation industry. However, most is geared for commercial businesses and for freight forwarding/logistics companies. E.g. many ocean carriers have their own websites on which you can prepare your own bills of lading. However, to integrate shipping information with your inventory management system, valuation system, and donor relationships is another matter.

We ourselves have customized our transportation data base system, which we regard as state of the art, as it integrates inventory management, financial data, freight rates, and addresses all together in one system. The problem is, every carrier will one day require forwarder, hence World Vision, as the exporter, to comply with their standards; and this means for, say, 28 carriers you need to know 28 different procedural standards.

Its like, is Amazon better than eBay? What model will win? Who knows.

Consignee Guidelines

Missionary Expediters feedback is incorporated in the above. However, we also suggest you read our Consignee Guidelines. We recommend to our shippers to train their consignee partners overseas in these principles. The final leg of the journey is the weakest link in the door to door journey, and consignees are encouraged to be wheeler-dealers.