Export documents

Export Documentation: Things that can go wrong!

Export documents. When everything goes right, and you don’t have to worry about anything—it’s like gliding through butter. But when something goes wrong, everything goes wrong. Your documents get rejected, the exports get delayed, clients are unhappy, so are you. It’s like dominoes falling one after the other. And you’ll have to back again and again to rectify anything. 

It is everyone’s worst nightmare. 

Export documentation is detail-driven work. It requires time, patience, and that extra care. So, you need to take many steps to prevent any mistakes and check your work, just like when you used to do your mathematical equations. But most of all, you need to anticipate all the things and be proactive in your corrections. That is how you succeed with documentation. 

So, let us look at some of the most common mistakes, how to prevent them, and make sure you’re all ready to handle your own set of documents. 

Wrong Information 

The information you provide on your documentation is crucial. If you offer the wrong contact, packing, and payment information for your documents, the goods might go to a different address—and well, you know what happens then. 

Angry clients on the phone and days trying to double-back and plead with various people, that’s what. 

So, what do you need to make sure to put on your documentation?

  • The right contact name and phone number are essential. Without it, your goods might arrive late, or they might not arrive at all, and will delays your shipments. So, verify your client’s contact information once, twice, thrice before you start the paperwork. The more careful you are, the better. 
  • Make sure you have the right location. With the wrong address, likely, your container won’t reach the client at all. Instead, you’ll find it stuck in a dusty corner of a warehouse, paying extra fees as you try to undo your mistake. 
  • You also need to check the inventory of goods, carefully label them, and examine what is inside them to make sure everything is there before you send it off. The packing list is a safeguard for you and your client who is expecting the container, yes. But it also helps the officials who are checking your exports. 
  • The last thing you will need to check is your bank draft information. If you don’t fill out the information correctly, you might not get paid in time. And you know how that goes. 

Classification of Goods

The next thing you have to worry about is the goods classification. Misclassifying your goods or leaving something out might result in expensive fines—and no one wants that to happen. There are two ways to classify your products: either the Schedule B or Harmonized System (HS) codes. Both works, as long as you have all the numbers down right. 

The Automated Export System is also something you will have to look out for when filing your documents. The system requires you to fill in the proper 10-digit classification codes when filing your electronic export information (EEI) through AESDirect. With a misclassified filing, you run into the problems of rejection. Or worse, you will be unknowingly committing fraud, which comes with its fines and penalties and the possibility that no one might want to work with you again. So, watch out for that!

Export Licensing

Classifying your goods will determine whether your products require you an export license. Without an export license, you cannot ship your products. So, this process’s primary step is understanding who has jurisdiction over your goods. 

Once you know the jurisdiction, you need to identify whether your products have a classification number under the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR). You are lucky because most products fall under the jurisdiction of the EAR. Most items also do not require an export license. Nevertheless, you should check before you file your documents. 

Wrong Value

Entering the right value is essential for your commercial invoice and export documentation. If you create export documents with the wrong value of goods, you would be committing fraud. 

Some things to check here would be—

  • Product Descriptions: You need to write a product description that matches your letter of credit. Discrepancies could lead to a delay in shipment and payment.
  • Dangerous Goods Forms: Please do not mislabel your hazardous goods or fill out the wrong information, folks! The consequences are disastrous. Remember: check and recheck. 

Wrongly Assuming Your Goods Qualify for Preferential Rates

When using free trade agreements, you are proclaiming to the governments that your goods qualify for duty-free treatment under their specific rules. You can also offer proof when someone is auditing you. But do make the mistake of assuming your products qualify! You need to make sure that they do before you go about filling your documents. Because if your products do not qualify under the rules of origin, you would, again, be committing fraud. 

The consequences of making assumptions are widespread. Your clients, too, might have to pay for the mistake. 

Final Thoughts

Depending on how big your company is, you might be the only person responsible for the documentation, or you might have a few employees to share the workload. But if and when mistakes happen, it is your responsibility. It might be because you are not paying attention or because you lack the knowledge about rules and regulations–whatever the reason is, it is on you. 

For this reason, you must receive some training in managing and dealing with these goods and documents before you assume responsibility—for your sake, your company’s, and your client’s. 

All this might seem like we’re trying to scare you, but we are only trying to prepare you. Once you feel prepared, be confident in your skills and your knowledge. Do your work diligently, and you have nothing to be afraid of at all!

So Why to Choose Sarita Nimble ?

For efficient management, it requires a dedicated solution that helps to centrally control and manage consistent export orders and documentation with ease. The Sarita Nimble is an export management software that can help you manage your export documents and operation right from order to payment realization. To know more about our products and to get a free demo, contact us today @+91 9499652305 or email us at [email protected].

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