In 2016, India introduced Direct Port Delivery (DPD), a system that allows a select group of importers to clear cargo directly from the port within 48 hours of arrival. It is an alternative to the CFS (container freight station) model, where import cargo is routed to an off-site CFS and delivery takes roughly three times longer. The objective behind DPD is to reduce time and cost for importers, decongest ports and, in the process, facilitate trade and improve India’s<a href="https://www.worldbank.org/en/businessready" target="_blank"> Ease of Doing Business</a> ranking.The DPD model was first introduced at the Jawaharlal Nehru Port Trust (JNPT) – India’s busiest container gateway – and has since been extended to ports across India. This piece takes an in-depth look at this key government initiative and how it has performed in the last four years. Read on to know:<ul><li>What is Direct Port Delivery?</li><li>What are the benefits of DPD?</li><li>Who is eligible for DPD and who isn’t?&nbsp;</li><li>How do you apply for DPD?</li><li>What is your role as an importer/customs agent?</li><li>What are the problem areas?</li></ul>‍<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a><h2>What is Direct Port Delivery (DPD)?‍</h2>Under the DPD model, importers can complete customs clearance of their shipment and take delivery of it at the port within a stipulated time frame (usually 48 hours) of the shipment being offloaded. If the importer fails to take delivery within this time, the shipment is transferred en-bloc (as a whole) to a pre-designated CFS. The importer then has to follow the CFS model, under which cargo delivery takes roughly seven to nine days.&nbsp;&nbsp;&nbsp;&nbsp;These flow charts show the stages in both models and how DPD eliminates three stages in the CFS model:<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:5001px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="5001px"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5fe479f70636434404f6ab74_231220_Cogoport_DPD%20infographic_Facebook%20rev_v1%20(1).jpg" loading="lazy" width="auto" height="auto" alt="CFS Model V/S DPD Model"></div></figure>Under the DPD model, there are<a href="https://www.dpdchennaicustoms.in/assets/circulars/dpd-user-guide.pdf" target="_blank"> two modes of delivery</a>:<ul><li>DPD/DPD: Here,the importer arranges for their own transport and takes delivery at the terminal.</li><li>DPD/CFS: The importer arranges CFS transport and takes delivery at the terminal.‍</li></ul><h3>What are the Benefits of Direct Port Delivery (DPD)?</h3><ul><li>It cuts the delivery time of import cargo by five to seven days.</li><li>Importers save on storage, ground rent, CFS handling and terminal-to-CFS transport charges as well as <a href="https://www.dpdchennaicustoms.in/assets/circulars/dpd-user-guide.pdf" target="_blank">detention fees</a> payable to the carrier. The JNPT estimates<a href="https://www.cogoport.com/blogs/understanding-demurrage-and-detention-charges-and-how-to-avoid-them" target="_blank"> savings of Rs 10,000-20,000 per container</a>.</li><li>The DPD clearance and delivery facility is open 24x7.&nbsp;</li><li>Quicker delivery means faster turnaround of containers for shipping lines.</li></ul>‍<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a><h3>Who is Eligible for DPD?</h3>Only importers who fulfil these government-prescribed guidelines can avail of this facility:<ol><li>Importers with Authorised Economic Operator (AEO) status. The World Customs Organisation (WCO) defines an AEO as “a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with WCO or equivalent supply chain security standards”. They include “manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors”. India’s AEO programme is implemented by the Central Board of Indirect Taxes and Customs (CBIC).&nbsp;</li><li>Importers with a clear track record of compliance and import volume of 25 Full Container Load (FCL) TEUs through a particular port or otherwise in the preceding financial year.</li><li>Importers who don’t fulfil the first two conditions can still be eligible for DPD if their “imports have enjoyed a consistent pattern of customs risk facilitation” and/or if they “provide an assurance that they would be in a position to pick up containers directly from the terminal”. This relaxation is aimed at micro, small and medium enterprises (MSMEs). The discretion of accepting such an application lies with the chief customs commissioner.&nbsp;</li></ol>Additionally, DPD is open to shipments only if they fulfil these conditions:<ol><li>If the consignment is <a href="https://www.cogoport.com/blogs/complete-guide-to-fcl-shipping-everything-exporters-importers-need-to-know" target="_blank">FCL</a>.&nbsp;</li><li>If it is covered by an RMS-facilitated Bill of Entry on a “<a href="https://www.cogoport.com/blogs/complete-guide-to-fcl-shipping-everything-exporters-importers-need-to-know" target="_blank">no assessment no examination</a>” or “<a href="https://www.joc.com/sites/default/files/u1390826/DPD-FAQ.pdf" target="_blank">assessment but no examination</a>” basis (RMS being Indian Customs’ Risk Management System).&nbsp;&nbsp;&nbsp;&nbsp;</li><li>If the importer has a pre-deposit account (PDA) with the terminal. The account should hold sufficient funds to pay terminal handling charges.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li><li>If the importer has made their own transport arrangement to take delivery of cargo.&nbsp;</li><li>If the importer has fulfilled any other procedural formality prescribed by the relevant customs zone.&nbsp;</li></ol><h3>Who isn’t eligible?</h3><ol><li>Importers against whom a case of misdeclaration of description of goods or of concealment/diversion of imported goods/evasion of duty has been made in the preceding five years.</li><li>Importers facing prosecution proceedings under the Customs Act, 1962.</li><li>Those importing goods subjected to 100% examination.</li><li>Those importing <a href="https://www.cogoport.com/blogs/complete-guide-to-lcl-shipping-everything-exporters-importers-need-to-know" target="_blank">Less-than Container Load</a> (LCL) consignments.</li></ol><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a></figure><h3>How do you Apply for Direct Port Delivery (DPD)?</h3>Step 1: Submit a<a href="http://mundracustoms.gov.in/wp-content/uploads/2017/10/PN-52-2017-18-.pdf" target="_blank"> request letter</a> – in the form of an application called Annexure-A (see copy below) – to the deputy commissioner, port customs house. This application must be on the importer’s letterhead and accompanied by these<a href="http://mundracustoms.gov.in/wp-content/uploads/2017/10/PN-52-2017-18-.pdf" target="_blank"> documents</a>:<ul><li>List of authorised signatories of the importer</li><li>Self-attested copies of PAN (permanent account number)</li><li>Letter of authorisation for customs broker acting on the importer’s behalf</li><li>Details of company official with photograph and signature in case &nbsp;self-clearance</li></ul><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5fe4796379f7fb6b85be0580_Annexure%20A%20Sample%20(1).jpg" loading="lazy" width="auto" height="auto" alt="Application for DPD (Direct Port Delivery)"></div></figure>Sample image, Credit: cbic.gov.in&nbsp;&nbsp;Step 2: The customs house will respond either with a permission letter or a rejection.Step 3: If you receive a permission letter, this and your documents will then be forwarded to the terminal.Step 4: Your registration is complete once you receive a unique DPD code from the terminal.Step 5: Using this DPD code, you will need to open a PDA with the terminal.<h3>What are your Responsibilities as an Importer/Customs Broker?</h3><ol><li>Advance intimation: You must submit the Bill of Lading (BL) number, consignment details, a copy of the letter of permission and your preferred CFS to the shipping line 72 hours before vessel arrival. Specify the DPD mode as well. If not, the carrier will by default mark the consignment as DPD/DPD.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Advance BL submission: Once the shipping line/customs agent receives advance intimation, they will generate an advance invoice. You must pay the shipping line/customs agent as per the invoice and submit the BL, both in advance. The shipping line/customs agent will then issue an advance electronic Delivery Order (e-DO).&nbsp;</li><li>Advance Bill of Entry: Your next step is to file an advance Bill of Entry and approach the terminal’s DPD-RMS Facilitation Centre for an out of charge (OOC) order.&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Clearance and delivery: You must pay the customs duty, submit the e-DO and take delivery of the consignment within 48 hours of vessel berthing.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ol><h2>Some Problem Areas&nbsp;</h2>The DPD model has had its share of teething troubles, many of which have smoothened out while some persist: &nbsp; &nbsp;<ul><li>Lack of space/infrastructure: Industry insiders point to the fact that ports like JNPT were built on the CFS model in restricted spaces. Also, in an indication of the lack of infrastructure, Adani Hazira Port suspended DPD operations in April due to a pile-up of DPD cargo during the Covid-19 lockdown period. The reason,<a href="https://www.hellenicshippingnews.com/adani-ports-suspends-direct-port-delivery-of-containers/?__cf_chl_jschl_tk__=20f54a6e6f7940361fd82770c5a19752770be118-1608463076-0-Afmlw9S5ZU9tD6-YybF6M_1PX733WPnEu_Cqrp9qeRV89yL9OiD-0rN1TYtroFhtpMjH8bRdEEZVB7fYEG0E06k-CV0nknZ5aLn_gvgHXEa7lbSX8FZGaB619eIY9cZSiWDmoBYLGS2YxZ4dqKzvrZW5X6U1rhutO6lsNu0KxHY2D8T2LoJ60v15zfetvSUPxpRIQRvZ8xpIZV1fGlZWJPOd27HTtYfCcioLZnjVc72K0R7eK6IMkDHuqdvEb_Raby-l74GOfWpaOrknd2Hc1pNKGqEQq08aMbnWzA4OkeGQYPzhl8cy0mdFHbccl7s4j6v72-kSPs_dvqnDxT9YQCymJAvvV7R2LjCvZBEjF1SjzAF0q6bBAhIx9iOdFFY2cg" target="_blank"> this report</a> says, was because Hazira isn’t connected by rail. So, the containers couldn’t be moved en-bloc by train to CFSs, as had been done to decongest JNPT and the Chennai port.&nbsp;</li><li>Lack of uniformity: Traders have often complained of a lack of uniformity on prices and free times across Indian ports. For example, importers have<a href="https://www.briefindia.com/wp-content/uploads/2017/05/DPD-report.pdf" target="_blank"> 48 hours</a> to take delivery at JNPT and<a href="https://www.hellenicshippingnews.com/adani-ports-suspends-direct-port-delivery-of-containers/?__cf_chl_jschl_tk__=20f54a6e6f7940361fd82770c5a19752770be118-1608463076-0-Afmlw9S5ZU9tD6-YybF6M_1PX733WPnEu_Cqrp9qeRV89yL9OiD-0rN1TYtroFhtpMjH8bRdEEZVB7fYEG0E06k-CV0nknZ5aLn_gvgHXEa7lbSX8FZGaB619eIY9cZSiWDmoBYLGS2YxZ4dqKzvrZW5X6U1rhutO6lsNu0KxHY2D8T2LoJ60v15zfetvSUPxpRIQRvZ8xpIZV1fGlZWJPOd27HTtYfCcioLZnjVc72K0R7eK6IMkDHuqdvEb_Raby-l74GOfWpaOrknd2Hc1pNKGqEQq08aMbnWzA4OkeGQYPzhl8cy0mdFHbccl7s4j6v72-kSPs_dvqnDxT9YQCymJAvvV7R2LjCvZBEjF1SjzAF0q6bBAhIx9iOdFFY2cg" target="_blank"> 72 hours</a> at the Chennai port. Also, the private terminals at JNPT levy a<a href="https://www.briefindia.com/wp-content/uploads/2017/05/DPD-report.pdf" target="_blank"> shifting charge</a> on DND containers, which varies from terminal to terminal. The Chennai and Haldia ports don’t have such a charge.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Lack of choices: In 2017, home appliances company<a href="https://economictimes.indiatimes.com/small-biz/startups/direct-port-delivery-failing-to-deliver-cos/articleshow/57723260.cms?from=mdr" target="_blank"> Voltas</a> asked to be removed from the DPD list, saying its Uttarakhand factory could handle only 15 containers a day whereas the model required it to take delivery of all 50 containers arriving by ship. Similarly, luggage maker<a href="https://economictimes.indiatimes.com/small-biz/startups/direct-port-delivery-failing-to-deliver-cos/articleshow/57723260.cms?from=mdr" target="_blank"> VIP Industries</a> complained that if it failed to take timely delivery of its consignment, it would be sent to a CFS not of its choice but one designated by the port.</li><li>Threat to CFS? When DPD was introduced in 2016, the 33 CFSs at JNPT feared loss of business and employment. Some cut down staff strength. However, this problem seems to have worked out as CFSs remain a critical component of India’s global trade. According to<a href="https://economictimes.indiatimes.com/small-biz/startups/direct-port-delivery-failing-to-deliver-cos/articleshow/57723260.cms?from=mdr" target="_blank"> JNPT</a>, increasing cargo volumes at ports will ensure a fair share of business for CFSs. Also, a good volume of DPD cargo is still shifted post-delivery to CFSs for storage due to limited warehouse space near the cargo owners’ factories.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ul>‍<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a><h2>Four years on, how is DPD model faring?</h2>Despite its shortcomings, Direct Port Delivery is gaining in popularity and has made improvements: &nbsp;<ul><li>India’s DPD percentage stands at<a href="https://www.thehindubusinessline.com/economy/logistics/payment-of-thc-directly-to-terminals-will-be-extended-to-export-customers-by-next-week-cbic-chairman-joseph/article30640973.ece" target="_blank"> 56%</a>. At JNPT, this has steadily risen from 30% in August 2017 to 40.67% in July 2018 to 57.9% in October 2020.</li><li>In January, a <a href="https://www.facebook.com/816002985108757/posts/direct-port-delivery-system-is-a-boon-for-importers-as-it-reduces-the-import-dwe/4741641985878151/" target="_blank">CBIC directive</a> allowed DPD importers to pay handling charges directly to terminals instead of through shipping lines. It was acting on <a href="https://www.joc.com/article/jnpt-customs-joins-indian-crackdown-carrier-terminal-pricing_20200121.html" target="_blank">complaints by shippers</a> that shipping lines overcharge customers. The CBIC estimates this would save importers at least Rs 5,000 per container.</li><li>As of September 15, DPD customers at PSA Mumbai, one of the terminals at JNPT, can pay terminal handling charges digitally through the online shipping documentation platform ODeX.</li></ul>At a time when <a href="https://www.joc.com/article/jnpt-customs-joins-indian-crackdown-carrier-terminal-pricing_20200121.html" target="_blank">port congestion and high logistics costs</a> continue to challenge importers and exporters, the DPD model holds out hope for more reforms in India’s international trade and shipping industry.

Impact of India's Direct Port Delivery ?

In India, the Make in India movement launched by the Modi government has seen favourable changes in imports and as well as exports. &nbsp;In FY 2017-18, Indian exports increased by <a href="https://indianretailsector.com/news/indias-export-increases-9-98-year-2017-18/" target="_blank">9.98 per cent</a>. The total value of goods exported in the year 2016-17 was $ 275,852 million, while in the FY 2017-18, the exports increased to $ 303,376 million.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>In consideration of the current economic scenario of the country, starting an export business can be extremely profitable. Discussed below is a step-by-step guide to starting an export business in India-<ul><li>Establishing an Organization – The first step is to set up a company, proprietary concern or a partnership firm so that there is a business setup to work with. Choose a suitable name and logo, that is comprehensible in the international market. </li><li>Opening a Bank Account – &nbsp;Open a current account with a bank that is authorized in Foreign Exchange.</li><li>Obtaining Permanent Account Number – It is mandatory for all businesses participating in international trade to obtain a Permanent Account Number (PAN) from the Income Tax Department.</li><li>Obtaining IEC Number – An Importer-Exporter Code (IEC) is a 10-digit number which is issued against the PAN from the Regional Authority of the Directorate General of Foreign Trade (DGFT). IEC number is mandatory for businesses to operate with the import and export of goods.</li><li>Obtaining the RCMC – A Registration cum Membership Certificate (RCMC) &nbsp;is essential for availing benefit or concession under the Foreign Trade Policy 2015-2020. In addition to this, an RCMC also gives the exporters the access to services and guidance by the concerned Export Promotion Councils, Community Boards, and other respective authorities.</li></ul><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" alt="" width="300px"><ul><li>Product and the Market – Before deciding products and their destination countries, make sure that it is not listed under the prohibited or restricted list of the concerned authorities. Decisions should only be made after understanding current export trends, market size, competition, and other factors.</li><li>Finding Buyers – &nbsp;Explore prospective buyers through trade fairs, buyer-seller meets, exhibitions and B2B portals. Seeking help from Indian Mission Abroad and Indian Chamber of Commerce are other ways of finding buyers. </li><li>Sampling – Establish brand authenticity by providing customized samples in accordance with the demands. </li><li>Pricing/Costing – &nbsp;Take into account all expenses incurred from production to marketing, Offer the best quality products at competitive prices, with a maximum profit margin. To ensure successful deals, be open to negotiations.</li><li>Covering risks through ECGC – The Export Credit Guarantee Corporation Limited (ECGC) covers the risks associated with international trade. The ECGC policies cover exporters against non-payment by the buyers.</li></ul>The current economic scenario is conducive to export businesses in India. Make the most of it by intelligently participating in International Trade. This will not only open up new avenues for business but also for the country.

How to Start an Export Business in India?

35 Digital Resources you Need For I/E Business

In a previous <a href="https://www.cogoport.com/blogs/complete-guide-to-lcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">blog</a>, we discussed less-than-container load (LCL) shipping or the mode of shipping moderate quantities of goods in shared containers. In India, closely linked to LCL shipping is a facility called container freight station (CFS).
A CFS is a space, usually a large warehouse, that specialises in the consolidation and de-consolidation of LCL cargo. Consolidation is the process of combining multiple LCL shipments to form a <a href="https://www.cogoport.com/blogs/complete-guide-to-lcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">full container load (FCL)</a> while de-consolidation is its reverse. This does not mean a CFS deals only with LCL cargo. It handles CFS-stuffed FCL cargo too (FCL being the mode of shipping one large consignment that takes up an entire container and belongs to a single shipper).
<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto"></a>
A CFS is also a place where goods for import and export are stored temporarily. It is an extension of a port or terminal and was conceived with the objective of clearing congestion at India&rsquo;s ports and terminals. While CFS might have started off as an Indian concept, it is now part of the international shipping vocabulary.&nbsp;&nbsp;
This blog throws light on the importance of container freight stations in the shipping logistics supply chain and will touch on the following subjects:
<ul>
<li>Meaning of CFS</li>
<li>Functions and importance of CFS</li>
<li>Role in export and import</li>
<li>CFS charges</li>
<li>Difference between CFS, container yard (CY), inland container depot (ICD) and bonded warehouse</li>
<li>CFS/CFS shipping and more</li>
</ul>
<img title="A storage area for shipping containers in Singapore. (Photo by chuttersnap on Unsplash)" src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f64560e879c886ecdd77c82_lXLn1g0c-7M6GQy8X0gTJYoaH1TGWa7b4PYGlazUkGN-isoFc_ObTRxvcu-gpV-P6erlp722kwOlVpAvM2LIqpw-HZB60XjZlpBIRxU3FN9_v9M4HowwZkI7mpIO8HFO9HW7HmNK.jpeg" alt="5f64560e879c886ecdd77c82_lXLn1g0c-7M6GQy8X0gTJYoaH1TGWa7b4PYGlazUkGN-isoFc_ObTRxvcu-gpV-P6erlp722kwOlVpAvM2LIqpw-HZB60XjZlpBIRxU3FN9_v9M4HowwZkI7mpIO8HFO9HW7HmNK.jpeg">
A storage area for shipping containers in Singapore. (Photo by<a href="https://unsplash.com/@chuttersnap?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener noreferrer"> chuttersnap</a> on<a href="https://unsplash.com/@chuttersnap?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener noreferrer"> Unsplash</a>)
<h3>What is a CFS and Why is it Important?</h3>
To expand on the description above, a CFS is located close to a port, terminal or inland container depot (more on this later). It might sometimes be found near a major railway hub as well. Container freight stations are owned by shipping lines and terminals or are privately owned. A CFS is involved in the import-export business at the points of origin and destination. Container freight stations are, thus, categorised as &ldquo;origin CFS&rdquo; and &ldquo;destination CFS&rdquo;.
In recent years, container freight stations have become a sought-after facility in import-export, thanks in part to an <a href="https://www.joc.com/article/changing-nature-trade-increasing-demand-lcl-shipping_20180526.html" target="_blank" rel="noopener">increasing demand for LCL shipments</a>. This is because they provide a centralised location where exporters and importers can have their LCL shipments sent, secure in the knowledge that their goods will be securely stored, handled and sent on the next leg of their journey.
India had <a href="https://www.joc.com/article/changing-nature-trade-increasing-demand-lcl-shipping_20180526.html" target="_blank" rel="noopener">168 container freight stations </a>as of March 2017, according to the latest available government data. This report by the Comptroller and Auditor General of India says container freight stations were the preferred destination for Indian exports, handling a greater value of exports than their attached ports between 2012-2013 and 2016-2017. However, ports were the preferred choice for imports in the same period.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To clearly understand what a CFS is and its part in India&rsquo;s import-export industry, it is important to know about its functions.
<img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto">
<h3>Functions and Responsibilities of CFS</h3>
<ul>
<li>Receives and consolidates LCL shipments for export</li>
<li>De-consolidates container at destination and dispatches shipment for final delivery</li>
<li>Prepares container load plan&nbsp;</li>
<li>Stuffs and de-stuffs containers (for both LCL and FCL cargo)</li>
<li>Marks and seals containers for identification</li>
<li>Serves as temporary storage space for cargo, empty and laden containers</li>
<li>Moves empty containers from container yards (CY) and laden containers to port/terminal&nbsp;</li>
<li>Stacks, sorts, tracks and tallies containers before and after shipping</li>
<li>Maintenance and repair of containers</li>
<li>Transit operations by road/rail to and from port/terminal</li>
<li>Organises <a href="https://www.hugedomains.com/domain_profile.cfm?d=msmementor.com" target="_blank" rel="noopener noreferrer">customs clearance procedures</a> such as classification, examination and assessment of goods</li>
<li>Keeps goods safe till they are shipped or picked up</li>
<li>Deals with <a href="https://www.hugedomains.com/domain_profile.cfm?d=msmementor.com" target="_blank" rel="noopener noreferrer">break bulk</a> (loose, non-containerised) cargo originating or terminating in the immediate hinterland of the port or terminal and with rail-borne traffic to and from inland locations&nbsp;&nbsp;</li>
</ul>
<h3>Export Process at CFS</h3>
<ul>
<li>Exporter loads goods on truck, delivers it at CFS with <a href="https://www.cogoport.com/blogs/mandatory-documents-for-import-export" target="_blank" rel="noopener noreferrer">shipping bill</a></li>
<li>Goods are unloaded and received by CFS custodian</li>
<li>Goods undergo customs clearance procedures</li>
<li>After customs authorities endorse shipping bill with &ldquo;let export order&rdquo;, CFS stuffs goods into the container</li>
<li>CFS seals container hands it over to port/terminal for export</li>
</ul>
<h3>Import process at CFS</h3>
<ul>
<li>Importer/carrier/steamer agent files import general manifest (IGM) &ndash; with details of cargo, exporter, importer, ship/aircraft &ndash; at port/terminal to move cargo to CFS&nbsp;&nbsp;</li>
<li>Container received at port/terminal is forwarded to CFS&nbsp;</li>
<li>Cargo is offloaded, stacked and de-stuffed at CFS</li>
<li>Cargo owner or their clearing agent files bill of entry, proceeds with cargo clearance and duty payment&nbsp;</li>
<li>Customs endorses bill of entry with &ldquo;<a href="https://www.cogoport.com/blogs/mandatory-documents-for-import-export" target="_blank" rel="noopener noreferrer">out of charge</a>&rdquo; order</li>
<li>CFS custodian issues gate pass to release cargo to the importer&nbsp;&nbsp;</li>
</ul>
<h3>Why CFS is Important</h3>
<ul>
<li>It decongests ports and terminals</li>
<li>Frees them of several customs clearance procedures</li>
<li>Assigns unique identification number to vessels, facilitating easy tracking of cargo and containers&nbsp;&nbsp;</li>
<li>Maintains records of shipments, including names of exporter, importer and customs agent, cargo details, origin and destination ports, carrier name, truck number and so on</li>
<li>Provides all the benefits of containerised shipping such as greater cargo security, timely and efficient loading, unloading, stuffing and de-stuffing, and a variety of containers to suit your needs.</li>
</ul>
<h3>CFS Charges&zwj;</h3>
A CFS charges a fee for each activity it performs. Exporters and importers must pay attention to these charges. Failure to do so can result in:
a) increased logistics costs, b) shipment delays, and c) poor relations with customs authorities, which is never good for business.&nbsp;&nbsp;
<h3>Export activities that attract a fee</h3>
<ul>
<li>Container stuffing. A composite fee is charged, which includes the cost of cargo carting, placing of the empty container, moving of laden container and the labour involved in these activities&nbsp;&nbsp;</li>
<li>Cargo storage</li>
<li>Per-day ground rent for empty and laden containers</li>
</ul>
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<h3>Import activities that attract a fee</h3>
<ul>
<li>De-stuffing and delivery: This fee includes the cost of transporting laden containers to CFS and grounding for customs examination&nbsp;&nbsp;</li>
<li>Cargo handling for customs examination</li>
<li>Cargo storage</li>
<li>Per-day ground rent for laden containers</li>
<li>Container scanning: This cost is incurred when customs authorities select a consignment for image scanning for any number of reasons &ndash; for example, to detect radiation or to check if the goods are as declared</li>
</ul>
<h3>General and additional charges</h3>
<ul>
<li>Port entry</li>
<li>Transportation to and from CFS/port</li>
<li><a href="https://www.cogoport.com/en-IN/knowledge-center/resources/shipping-terms/lift-on-lift-off-lo-lo-15" target="_blank" rel="noopener">Lift on/ lift off (LoLo)</a>. This charge is incurred when LoLo ships &ndash; vessels equipped with cranes for loading/unloading containers &ndash; are involved or when containers have to be lifted on and off truck-trailers&nbsp;&nbsp;</li>
<li>Weighment, or <a href="https://www.cogoport.com/en-IN/knowledge-center/resources/shipping-terms/lift-on-lift-off-lo-lo-15" target="_blank" rel="noopener">weight verification</a> of a packed container before it is loaded on a vessel&nbsp;&nbsp;</li>
<li>Reworking, which is the shifting of cargo from damaged containers to other empty containers</li>
<li>Shifting of cargo within CFS</li>
<li>Container sweeping</li>
<li>Container repairs</li>
<li>Provision of labour for cargo segregation, unpacking and repacking packages for customs examination, restacking and other activities</li>
<li>Chocking, lashing and dunnage to secure cargo</li>
<li>Reefer handling, such as plugging and monitoring of reefers</li>
<li>Amendments in documents</li>
</ul>
Note: Charges vary for 20-foot, 40-foot and 45-foot containers. In addition, charges for reefer, hazardous and <a href="https://www.cogoport.com/en-IN/knowledge-center/resources/shipping-terms/over-dimensional-cargo-odc-23" target="_blank" rel="noopener">over-dimensional cargo (ODC)</a> are higher.
<img title="Stacked containers in Antwerp, Belgium. (Photo by 2427999 from Pixabay)" src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f64560e7bb66b4bc057e5cc_7gCQM50v9ncUgiw2lwCOz2g0X_D8wZaWiI0uidtsQjYbGGWM1NO6taZ46f2oYTIEyK4gxTtJ-pdBMePFb5YPCcyFLFP8P0DG9sQX8jo0w4H_yf-XZydr89_Dvry1MLAZ-L-KCOvI.jpeg" alt="5f64560e7bb66b4bc057e5cc_7gCQM50v9ncUgiw2lwCOz2g0X_D8wZaWiI0uidtsQjYbGGWM1NO6taZ46f2oYTIEyK4gxTtJ-pdBMePFb5YPCcyFLFP8P0DG9sQX8jo0w4H_yf-XZydr89_Dvry1MLAZ-L-KCOvI.jpeg">
<h3>CFS, CY, ICD and Bonded Warehouse &ndash; Differences and similarities&nbsp;&nbsp;</h3>
Like a CFS, a container yard (CY), inland container depot (ICD) and bonded warehouse are container handling and storage facilities that facilitate the import and export of goods. However, there are marked differences between them.
<h3>Container Yard (CY)</h3>
<ul>
<li>A container yard is a dedicated area for <a href="https://www.cogoport.com/blogs/complete-guide-to-fcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">full container load (FCL) containers</a> whereas a CFS caters to both LCL and FCL shipments.</li>
<li>A CY is located within the port, unlike a CFS, which is located close to a port or terminal. A CFS picks up empty containers from a CY for FCL and LCL export shipments.&nbsp;</li>
<li>A <a href="https://www.cogoport.com/blogs/complete-guide-to-fcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">CY&rsquo;s functions</a> include aligning containers for loading on ships and storing off-loaded containers until they are transferred to a CFS or rail yard or handed over to the importer.</li>
<li>Both CY and CFS have cut-off dates by which the container must be delivered in order to make the scheduled sailing.&nbsp;&nbsp;</li>
</ul>
<h3>Inland Container Depot (ICD)</h3>
<ul>
<li>Like a CFS, an inland container depot (ICD) is an Indian concept. But unlike a CFS, which is located close to ports and terminals, an ICD is found further inland. The idea behind an ICD is to help exporters/importers handle their shipments closer to their factories and warehouses, especially if these are quite far from ports and terminals. It is for this reason that they are also called dry ports.&nbsp;</li>
<li>An ICD is an independent customs station like those at ports, airports and on land. It has its own automated system that allows it to examine goods and assess and process documents. On the other hand, the customs infrastructure at a CFS is an extension of the parent customs station at the port/terminal. A CFS examines goods but the processing and assessing of documents takes place at the customs house or customs station to which the CFS is attached.</li>
</ul>
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<h3>Bonded Warehouse</h3>
<ul>
<li>A bonded warehouse is the most different of all these facilities. It is a space authorised by customs (under a customs bond) to store import and export goods (local and foreign) on which duty payment has been deferred.</li>
<li>Bonded warehouses were conceived with the idea of insulating traders from cash flow problems. They give importers time to come up with the money for duty payment or find buyers for the goods. By transferring the title of goods to the buyer, the importer can push the duty payment on to the buyer.</li>
<li>If the importer is unable to find a buyer, they can export the imported goods without paying duty on it.&nbsp;</li>
<li>Goods can be stored at a bonded warehouse indefinitely. Doing the same at ports/terminals would result in huge demurrage fees. (Demurrage is the per-day fee a shipper pays the carrier for use of a container within a port beyond an allotted free time).</li>
<li>Another area in which a bonded warehouse is different from a CFS, CY or ICD is that the goods stored in it have already undergone customs clearance procedures.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
</ul>
<h3>What is CFS/CFS&nbsp;Shipping?</h3>
This is a term you might find on a <a href="https://www.cogoport.com/blogs/types-and-usage-of-bill-of-lading-meaning" target="_blank" rel="noopener noreferrer">bill of lading</a>. It stands for container freight station to the container freight station. In a CFS/CFS shipment, the goods are received and consolidated at the origin CFS and delivered and de-consolidated at the destination CFS. This is also called CFS/CFS (Pier to Pier). There are other CFS-related shipping terms you might want to familiarise yourself with:
<ul>
<li>CFS/CY (Pier to House): Here, cargo is consolidated at the origin CFS but at the destination, delivery takes place from a container yard. Such a shipment is also called an LCL/FCL shipment as it is characterised by multiple exporters and a single importer.</li>
<li>CY/CFS (House to Pier): Reversely, this kind of shipment is collected from the container yard of the port of origin and delivered at the destination CFS for de-consolidation. It is also called an FCL/LCL shipment as it has a single exporter and multiple importers.&nbsp;&nbsp;</li>
</ul>

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Container Freight Station (CFS): Meaning, Functions And Role

Those in the export or import business will often come across the term Bill of Lading or its abbreviations &ndash; BL, BoL or B/L &ndash; during the course of their work.
For those new to the business, a <a href="https://www.cogoport.com/en-IN/knowledge-center/resources/shipping-terms/bill-of-lading-13">Bill of Lading</a> is an important legally-binding document that details the type, quantity, and destination of the goods being carried as well as details of the shipper (consignor), carrier (transporter), and consignee (buyer/receiver) among other things. By spelling out these details, it helps prevent the risk of any miscommunication or communication gap amongst the parties involved in the transaction.
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The term &ldquo;Bill of Lading&rdquo; comprises two key words. While &ldquo;bill&rdquo; refers to a statement&nbsp; &ndash; be it hand-written, printed, or digital &ndash; containing the cost of items delivered or services offered, &ldquo;lading&rdquo; refers to the act of putting cargo on a ship, aircraft or a truck for transport.&nbsp;
In this blog we will talk about the:
<ul>
<li>Definition of a Bill of Lading</li>
<li>Its purpose</li>
<li>The information it contains</li>
<li>The different types of Bills of Lading</li>
<li>The risks of not filing a Bill of Lading accurately</li>
</ul>
<h3>Bill of Lading Meaning</h3>
According to the Business Dictionary, a Bill of Lading is:
&ldquo;A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination.&rdquo;
<h3>What is the Purpose of a Bill of Lading?</h3>
A Bill of Lading has three primary functions:
<ul>
<li>It is a contract of carriage between the carrier and the shipper.</li>
<li>It is a receipt for shipped goods.</li>
<li>It serves as a document of title of the goods.</li>
</ul>
A Bill of Lading ties the sending and the receiving parties by law and, as a result, protects them from false claims and losses. Because it is an agreement whose terms all involved parties have agreed to, it can act as a lawful statement in case of disputes.
<h3>What Information Can You Find On A Bill Of Lading?</h3>
A Bill of Lading contains detailed information about the shipper (consignor), carrier (transporter), consignee (buyer/receiver) and the goods being carried. These the details that you will find in the document:
<ol>
<li>Bill of Lading number</li>
<li>The complete name and official address of the shipper and the receiver</li>
<li>Details of the shipping line</li>
<li>Details of the freight forwarder</li>
<li>The pick-up date</li>
<li>Name of the vessel used for transport</li>
<li>Details of the goods (including the number of units, weight, and dimensions)</li>
<li>Nature of the goods transported</li>
<li>The packaging material used such as pallets, crates or drums</li>
<li>If the items transported are hazardous, the BL must be tagged as such and also have the necessary certification to allow such transport</li>
<li>Any specific instructions for the carrier</li>
</ol>
<h3>Image Of A Sample Bill Of Lading</h3>
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center">
<div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5ed208efc64677c9c4bd6d9f_ei7_xTJlWV9r0I7Zt6KyebMqWYaBqXbDOegOtWGVH7LiRnyC8d9srzzMpC6u4xILyk4XXW75dbc4uoATag2Zk-23wEvuMtpREuLqsqHB09lRODHllYwOKEy7hPGFEMdbUEuq9Pyz.jpeg" alt="Sample image of a Master Bill of Lading" width="auto" height="auto" loading="auto"></div>
</figure>
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<h3>Types of Bills of Lading</h3>
Here are the primary types of Bills of Lading:
<h3>1. Based on the Carrier&nbsp;</h3>
<ul>
<li>House Bill of Lading</li>
</ul>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A House Bill of Lading is a document issued by the freight forwarder or NVOCC (Non-Vessel Operating Common Carrier) operator. In this document, the. &ldquo;consignor&rdquo; is the actual seller/sender/exporter and the &ldquo;consignee&rdquo; is the actual buyer/receiver/importer. Like all Bills of Lading, this also contains details of the cargo, carrier, destination and so on.
<ul>
<li>Master Bill of Lading</li>
</ul>
The Master Bill of Lading is issued by the shipping line or carrier. It is also known as the Ocean or Carrier Bill of Lading.
In the Master BL, details of the cargo and carrier must be identical to that of the House BL barring one crucial difference. The &ldquo;consignor&rdquo; in the Master Bill of Lading is the agent, freight forwarder or NVOCC of the actual seller while the &ldquo;consignee&rdquo; is the agent freight forwarder or NVOCC of the actual buyer.&nbsp;
But it&rsquo;s not as straightforward as that.
Shippers can decide if they want to move shipments directly using a Master BL. Whether they opt for this is determined by the trade terms the shipper and the consignee have agreed upon.&nbsp;
Details on the Master BL therefore depend on whether the freight forwarder has introduced a House BL for the shipment or not. If the shipment is being executed directly using a Master BL, the &ldquo;consignor&rdquo; is the actual shipper and the &ldquo;consignee&rdquo; is the actual receiver. But if a House BL has also been introduced, the &ldquo;consignor&rdquo; in the Master BL changes to the agent/freight forwarder/NVOCC as mentioned above.&zwj;
<h3>2. Based on Payment and Consignee&nbsp;</h3>
<ul>
<li>Straight Bill of Lading</li>
</ul>
A Straight Bill of Lading is issued when the customer has made the complete payment for the shipment in advance, and gets the right to receive the consignment directly. The consignee must receive the delivery, and has no way to renounce the right to another person. This is why it is known as a non-negotiable instrument.
<ul>
<li>Order Bill of Lading</li>
</ul>
This is the most common kind of Bill of Lading. Unlike the Straight Bill of Lading, it is a negotiable instrument that allows the consignee named in the document to renounce their right to receive the goods to a third party.
<ul>
<li>Bearer Bill of Lading</li>
</ul>
A Bearer Bill of Lading is one that promises delivery to whomsoever holds the document. The name of the consignee in this document may be &ldquo;bearer&rdquo;. It is a negotiable instrument allowing a third party to accept the goods on arrival.&zwj;
<ul>
<li>Clean Bill of Lading</li>
</ul>
This Bill of Lading is issued by the carrier after it inspects the goods. The document declares that the shipment was received in good condition, in the right quantity and packaging and that there was no damage during transport.
<ul>
<li>Foul/Dirty or Claused Bill of Lading</li>
</ul>
This document is a Bill of Lading that contains clauses regarding quality defects or quantity shortcomings in the shipment. The carrier outlines the damages and other discrepancies to the cargo in these clauses or notations on the Bill of Lading, allowing the consignee to refuse to accept it and/or their bank to refuse to release payment.
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<h3>3. Based on Transportation</h3>
<ul>
<li>Inland Bill of Lading: For domestic shipments</li>
<li>Ocean Bill of Lading: For overseas shipments</li>
<li>Through Bill of Lading: When the carrier moves the goods across several destinations using single or multiple modes of transportation</li>
<li>Multimodal Bill of Lading: Used when goods will move across at least two modes of transport</li>
</ul>
<h3>&zwj;4. Other Important Bills of Lading&zwj;</h3>
<ul>
<li>Seaway bill</li>
</ul>
A Seaway bill, also known as the Express Release Bill of Lading or Straight Bill of Lading, is not technically a Bill of Lading. It is similar to the Bill of Lading because it acts as a receipt of the goods as well as a contract of carriage. The key difference, however, is that it is not a document of title.
A Seaway bill is used when there is a high level of trust between the shipper and the owner of goods. The receiver doesn&rsquo;t need to present it for cargo delivery; they will only have to establish their identity to take possession of the goods once it arrives at the port.
<ul>
<li>Received for Shipment Bill of Lading</li>
</ul>
The carrier issues the RFS or Received for Shipment Bill of Lading to confirm the receipt of the container at the port for loading purposes. It does not indicate that the goods have been placed on board the ship. This document is replaced by a Shipped on Board Bill of Lading when the goods are placed on the ship.&nbsp;
The Received for Shipment BL is generally used for shipments with shorter transit times. Usually, a Bill of Lading is couriered to the consignee so that they can take delivery of the shipment when it arrives at the port. But when transit times are short, sometimes the consignee doesn&rsquo;t get the Bill of Lading in time to receive the cargo. Carriers usually release a Received for Shipment Bill of Lading to give the shipper more time to courier the document to the consignee.
<ul>
<li>Shipped on Board Bill of Lading</li>
</ul>
The Shipped on Board Bill of Lading is an acceptance from the carrier that it has received the goods and loaded the goods onto the ship. It is released post the sailing of the vessel.
<ul>
<li>Switch Bill of Lading</li>
</ul>
A Switch Bill of Lading helps in the smooth conduct of triangular shipments &ndash; a common scenario today, where one transaction can involve three different parties based in three different countries.
It is used when an importer makes an international purchase from a middleman or trader and not from the actual manufacturer. This middleman or trader usually wants to conceal the identity of the manufacturer to prevent the buyer from contacting the manufacturer directly, and eating into their business.
In this scenario, the parties involved create two BL sets. The first BL will contain the details of the first sale between the original consignor/manufacturer and the consignee/middleman. The second BL set &ndash; the Switch Bill of Lading &ndash; will cover the sale between the middleman and the actual customer/importer. This BL will be an edited version of the first document. Here, the details of the manufacturer will be removed and replaced with the details of the trader. The consignee will be the end customer/importer. Switch BLs are usually issued only when the first set is surrendered to prevent multiple parties from claiming the same cargo.
To know more about the Switch Bill of Lading, read our detailed blog <a href="https://www.cogoport.com/en-IN/blogs/switch-bl" target="_blank" rel="noopener">here</a>.
<h3>Tips on Filling Up a Bill of Lading Correctly</h3>
You must be careful before signing on any legal document, and the Bill of Lading is no different. Here are the details you must double-check before signing it:
<ul>
<li>Identity of the shipper</li>
<li>Port, and the date of loading of goods</li>
<li>Discharge port</li>
<li>The present condition of the goods</li>
<li>Weight and type of cargo</li>
<li>Freight terms</li>
</ul>
Ensure there are no ambiguous statements in the document. The terms should be crystal clear and not disadvantageous to you.
<h3>Implications of filing a Bill of Lading Incorrectly</h3>
If you fail to file a Bill of Lading, omit information or file inaccurate information, you may suffer grave consequences. This is why it is advisable to take the help of a freight forwarder to fill out any paperwork regarding Bills of Lading. Here are all the possible implications of filling a bill of lading incompletely or inaccurately:
<ul>
<li>Claims from the receiver of goods: A completed Bill of Lading will have details that the goods were delivered in a good condition to the transporter. A document that has incomplete or inaccurate information will leave you vulnerable to claims by the receiver. These can include claims of damage or receipt of a lesser quantity than was agreed upon. If your documentation is inaccurate or incomplete, the transporter will get an opportunity to refute your claims that you had handed over an undamaged consignment to the carrier, making you directly liable to compensate the receiver</li>
<li>Loss of P&amp;I insurance cover (protection and indemnity insurance)</li>
<li>Loss of right of indemnity from the charterer</li>
<li>Possibility of criminal prosecution</li>
<li>Losing the right to exercise limitation of liability clause</li>
</ul>
Also read <a href="https://www.cogoport.com/blogs/complete-guide-to-freight-shipping-what-exporters-importers-need-to-know" target="_blank" rel="noopener">A Complete Guide to Ocean Freight: What Exporters/Importers Need To Know</a>

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Bill of Lading | Meaning, Types & Usage for Importers & Exporters

Documents are a necessary evil in business transactions. Be it sale, purchase or shipping, a single missing or incorrectly prepared document can cause immeasurable trouble for all parties involved. In shipping, goods cannot enter or leave a country unless accompanied by the necessary documents. If the paperwork is incomplete, exporters and importers can neither hand over nor collect their cargo. They might even end up paying a penalty and, worse, suffering a setback to their credibility.
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In this blog we will look at:
<ul>
<li>Three key documents exporters need in order to send cargo by ship</li>
<li>Three key documents importers need in order to receive cargo by ship</li>
</ul>
You may also be interested in reading our blog on <a href="https://www.cogoport.com/blogs/supporting-documents-in-shipping-exporters-and-importers-might-need-for-customs" target="_blank" rel="noopener noreferrer">shipping documents required for both import and export customs clearance</a>.&nbsp;&nbsp;
<h3>How the Government Cut Down Export-import Paperwork&nbsp;&nbsp;</h3>
But first, a short history of import-export documentation requirements in India and the latest government regulations on this subject.&nbsp;
Till five years ago, exporters and importers had to submit seven to eight mandatory documents &ndash; along with any additional paperwork that might be required, depending on the nature of the cargo or rules and regulations specific to the importing/exporting country. This made the process tedious and expensive. It was also cited as one of the factors behind India&rsquo;s poor performance on the World Bank&rsquo;s Ease of Doing Business Index. In 2014,<a href="https://qz.com/india/1734728/india-may-soon-achieve-modis-ease-of-doing-business-goal" target="_blank" rel="noopener noreferrer"> India ranked a lowly 142</a> among 189 countries (it has since <a href="https://qz.com/india/1734728/india-may-soon-achieve-modis-ease-of-doing-business-goal" target="_blank" rel="noopener noreferrer">climbed to 63</a> among 190 countries).&nbsp;&nbsp;&nbsp;
The same year, the Department of Commerce set up an Inter Ministerial Committee to come up with ways to reduce the number of documents required in imports and exports. The objective was to improve the export-import process and India&rsquo;s Ease of Doing Business ranking, and <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/government-unveils-new-foreign-trade-policy-aims-to-raise-exports-to-900-billion-by-2020/articleshow/46771317.cms?from=mdr" target="_blank" rel="noopener noreferrer">double exports to $900 billion by 2020</a>. The committee suggested whittling down the number of mandatory documents to just three each for imports and exports. The recommendations were approved. In 2015, the <a href="https://www.dgft.gov.in/CP/" target="_blank" rel="noopener noreferrer">Directorate General of Foreign Trade (DGFT)</a> &ndash; the arm of the Ministry of Commerce and Industry that formulates and implements India&rsquo;s Foreign Trade Policy &ndash; announced the changes in a notification. Under the revised Foreign Trade Policy, effective from April 2015, the following are the three key shipping documents for exports and the three key documents for imports.
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<h3>Must-have Shipping Documents for Exports</h3>
<h3>1. Bill of Lading</h3>
The most important document in the shipping process for exporters. A bill of lading (lading is the act of putting cargo on a ship) is a legal document that must be signed by the exporter, the shipping line and the importer. For smooth transportation of goods from origin to destination, the exporter must obtain a correct and complete bill of lading from the shipping line/<a href="https://www.cogoport.com/blogs/export-process-from-india" target="_blank" rel="noopener noreferrer">freight forwarder</a> and send it to the importer. This bill includes details such as:
<ul>
<li>Description, quantity, weight of goods&nbsp;</li>
<li>Name and address of recipient</li>
<li>Terms of sale</li>
</ul>
To know more about the bill of lading, read our detailed blog<a href="https://www.cogoport.com/blogs/types-and-usage-of-bill-of-lading-meaning" target="_blank" rel="noopener noreferrer"> here</a>.&nbsp;
<h3>2. Commercial Invoice cum Packing List</h3>
A commercial invoice is a contract of sale issued by the exporter to the importer. It helps customs determine the value of the goods to assess the duties and taxes due on them. A commercial invoice carries details such as:
<ul>
<li>Name, address of seller (exporter)</li>
<li>Name, address of buyer (importer)</li>
<li>Value, quantity of goods</li>
</ul>
A packing list is an itemised list with details of the goods. It helps facilitate their examination and accurate tallying during clearance. It contains:
<ul>
<li>Description of the goods</li>
<li>Quantity and weight (gross and net) of the goods</li>
<li>Number of packages</li>
<li>Type of packaging (pallet, box, crate, drum, etc)</li>
<li>Marks and numbers (symbols/numbers placed on each piece of cargo in a shipment to identify them)</li>
<li>Carrier&rsquo;s (ship) name</li>
<li>Date of export</li>
<li>Export licence number</li>
<li>Letter of credit number</li>
</ul>
Before the rules were changed, the commercial invoice and packing list were separate documents with identical data fields.
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<h3>3. Shipping Bill/Bill of Export</h3>
A shipping bill or bill of export is a document submitted by the exporter in the form of an application to obtain clearance from customs. It informs customs of whether the exporter has availed of government incentives, such as:
<ul>
<li>Exemptions/rebates/refunds on various taxes, duties&nbsp;</li>
<li>Benefits under various<a href="https://economictimes.indiatimes.com/small-biz/trade/exports/pre-exports/trading-with-the-world-export-promotion-schemes-provided-by-government-of-india/articleshow/70639514.cms?from=mdr" target="_blank" rel="noopener noreferrer"> government export schemes</a></li>
</ul>
Read our detailed list of benefits under India&rsquo;s export promotion schemes<a href="https://www.cogoport.com/blogs/export-incentives-types-benefits-and-everything-else-you-need-to-know" target="_blank" rel="noopener noreferrer"> here</a>&nbsp;
If the goods are a re-export of previously imported goods, then these details must also be included.
<h3>Must-have Shipping Documents for Imports</h3>
<h3>1. Bill of Lading</h3>
This is the most important document not only for exporters but for importers too. The exporter must share the bill of lading with the importer, who cannot receive the goods at his end without it.
<h3>2. Commercial Invoice cum Packing List</h3>
Again, the importer needs this document just as much as the exporter. This is because the commercial invoice cum packing list comes into play at the all-important time of customs clearance.
<h3>3. Bill of Entry&nbsp;</h3>
The third must-have document for importers is a bill of entry. It is a declaration by the importer on the basis of which customs authorities at the port of entry inspect and clear the goods. The information in this bill is tallied with the sales invoice or insurance policy. The information includes:
<ul>
<li>Type of cargo</li>
<li>Value of the goods</li>
<li>Quantity of the goods</li>
</ul>
That was a quick rundown of the three documents exporters and importers absolutely need to ship their goods. That does not mean these are the only documents they require. Shipping is all about paperwork. For their goods to get the go-ahead from customs, importers and exporters might be required to submit additional supporting documents, which are dependent on various factors and vary from case to case. Read our second blog <a href="https://www.cogoport.com/blogs/supporting-documents-in-shipping-exporters-and-importers-might-need-for-customs" target="_blank" rel="noopener noreferrer">here</a> to find out about the supporting documents importers and exporters might need for customs clearance.

Streamline your shipping documentation process with a centralized digital platform, simplifying access and management of crucial shipping documents.

3 Mandatory Shipping Documents Required for Import And Export

Did you know that over 80% of international trade by volume, or 11 billion tonnes, is done by sea? In terms of value, maritime trade accounts for goods worth $4.5 trillion annually, according to industry estimates. It is, therefore, only right to say that shipping is the backbone of international trade, as it connects countries, markets, businesses, products and people across the globe. It also allows for timely and efficient transportation of goods on a scale that might not otherwise be possible.
This blog serves as a detailed guide to the process of exporting goods by sea. Moving goods internationally is usually done by sea or by air. When shipping by sea, exporters can pick one of two shipping modes &ndash; Full Container Load (FCL) or Less than Container Load (LCL). When the consignment takes up an entire shipping container, it is called FCL shipping. This mode is suitable for large consignments that need to be transported in the shortest possible time by sea. Exporters with smaller consignments can share a container with other exporters and pay only for the volume they occupy. This is called LCL shipping and it is suitable for cargo of low or moderate volume that is not time-sensitive. Alternatively, exporters looking for the fastest mode of transportation may ship by air. Air freight is particularly suitable for time-critical and valuable cargo, though it is more expensive than shipping by sea.
Check out Cogoport&rsquo;s FCL shipping guide <a href="https://www.cogoport.com/blogs/complete-guide-to-fcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">here</a>, LCL shipping guide <a href="https://www.cogoport.com/blogs/complete-guide-to-lcl-shipping-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">here</a>, and air freight guide <a href="https://www.cogoport.com/blogs/complete-guide-to-air-shipments-everything-exporters-importers-need-to-know" target="_blank" rel="noopener noreferrer">here</a>.
Read on to know about:
<ul>
<li>The main players in the export shipping process and their roles&nbsp;</li>
<li>A step-by-step guide to how the export process works</li>
</ul>
<h2>Main players in the shipping process</h2>
1. Importer: The importer is the buyer. He identifies the need for a product at a specific location, searches for the best supplier globally, and places an order for purchase. There are three types of importers:
<ul>
<li>Actual user, who utilises the imported goods for himself. An actual user can be industrial (uses the goods for manufacturing in his own industrial unit) or non-industrial (utilises the goods for his own use in a commercial unit, lab, research institute, university, hospital, etc)</li>
<li>Established importer, who, as the name suggests, is granted a quota to import a product on the basis of past imports&nbsp;</li>
<li><a href="https://www.yourarticlelibrary.com/export-management/procedure-and-steps-involved-in-import-of-goods/42106#:~:text=In%20order%20to%20obtain%20an,treated%20as%20an%20established%20importer." target="_blank" rel="noopener noreferrer">Registered exporter</a>, who imports under the <a href="https://economictimes.indiatimes.com/small-biz/trade/exports/pre-exports/trading-with-the-world-export-promotion-schemes-provided-by-government-of-india/articleshow/70639514.cms?from=mdr" target="_blank" rel="noopener noreferrer">government&rsquo;s export promotion schemes</a>&nbsp;</li>
</ul>
2. Exporter: The exporter is the seller. He manufactures or procures the product required by the buyer. The various types of exporters are:
<ul>
<li>Merchant exporter, who procures the product from the market or manufacturer and exports it in his name</li>
<li>Manufacturer exporter, who procures raw material, manufactures the goods and exports the finished product&nbsp;&nbsp;</li>
<li>Service exporter, who exports services (software, consultancy services, etc)</li>
<li>Third-party exporter, who exports goods and services on behalf of another exporter (manufacturer exporter)&nbsp;&nbsp;</li>
<li>Project exporter, who provides goods and services on contract (designing, manufacturing, etc) and earns foreign exchange&nbsp;&nbsp;</li>
<li>Deemed exporter, who supplies goods that don&rsquo;t leave the country and receives payment in Indian currency. Such a transaction qualifies as an export because the goods are meant for <a href="https://cleartax.in/s/exports-under-gst" target="_blank" rel="noopener noreferrer">specific projects</a> (UN agency projects, power projects, nuclear projects, etc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
</ul>
3. Bank: Banks play multiple roles in international trade. They act as financiers, providing loans and trade finance products such as Letters of Credit and Documentary Collections. A Letter of Credit is a promise by a bank on behalf of the importer to pay the exporter an agreed-upon sum. A<a href="https://www.trade.gov/documentary-collections" target="_blank" rel="noopener"> Documentary Collection</a> is when a bank takes charge of collecting the payment due to an exporter from the importer&rsquo;s bank. In addition, banks negotiate trade contracts and are custodians of goods and documents. Documents are vital to the import-export business. To know about the key documents required for a hassle-free shipping experience, read our other blog<a href="https://www.cogoport.com/blogs/mandatory-documents-for-import-export" target="_blank" rel="noopener noreferrer"> here</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4. Insurance Company: Shipping goods comes with risks, including but not limited to lost or damaged cargo, delays and additional costs due to factors such as natural disasters, human error, theft, piracy and more. Insurance companies help cover these risks.
5. Freight Forwarder: Freight is the cargo carried by ships and a freight forwarder is an agent who, on behalf of the importer or exporter, coordinates with all the other players (port and customs authorities, shipping company, etc) in the ocean freight business. His responsibilities include negotiating for better routes and rates, handling paperwork and other formalities, organising land transportation, being an advisor to the importer/exporter, and much more.&nbsp;&nbsp;&nbsp;&nbsp;
6. Shipping Company: The company that owns the carrier (ship) that transports the goods from the port of loading to the port of destination.
7. Customs House Agent (CHA): A customs house agent assists exporters and importers in getting clearance for the cargo from customs authorities.
8. Customs Authorities: In international trade, the customs authorities of at least two countries &ndash; the country of export and country of import &ndash; are involved. They provide clearance for goods to leave the country of export and to enter the country of import.
9. Port Authorities: Like customs authorities, the port authorities of at least two countries are involved in the shipping process. In the exporting country, they provide clearance for goods to be loaded on to the ship. In the importing country, they provide clearance for goods to enter that country.&nbsp;
10. Intermodal Transport Providers: Rail and road transport providers facilitate the movement of goods from the factory/warehouse to the port of loading and from the port of destination to the final destination.
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<h2>From Exporter to Importer: How the Shipping Process works</h2>
Contrary to popular belief, the international shipping process does not start when a product is loaded onto a ship. It starts much earlier, when an importer identifies the need for that product and floats an enquiry to procure it. As such, the shipping process covers the flow of goods and documents from the place of origin to the place of destination. For the process to be completed successfully, the transfer of goods and documents from one party to another must be highly synchronised.
This infographic is a step-by-step guide to the international shipping process (for a shipment exported from India):
&nbsp;
&nbsp;
<img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f0c32dc1ed37f28682e005b_Cogoport_Article%2520mailer%2520%2528Shipping%2520process%2529-04%2520%25281%2529.png" alt="shipments from india">
<h3>Hurdles in the shipping process&nbsp; &nbsp;</h3>
The shipping process can be troublesome and intimidating for importers and exporters, given the number of steps, players and documents involved. These are some of the most <a href="https://www.liveabout.com/pitfalls-with-importing-and-exporting-1953289" target="_blank" rel="noopener noreferrer">common problems</a> they can face:
<ul>
<li>Filing incorrect, incomplete information in the required documents</li>
<li>Lack of knowledge of exchange rates, packaging and marking rules, restrictions on certain products, etc</li>
<li>Failure to verify the reputation of a supplier (exporter) or customer (importer)</li>
<li>Lack of clarity on payments and how to secure them</li>
<li>Failure to establish good ties with customs authorities</li>
<li>Failure to find the right intermediaries (freight forwarders, customs house agents) who can ensure a smooth transaction</li>
<li>Blind dependence on middlemen/intermediaries&nbsp;&nbsp;&nbsp;</li>
</ul>
<h3>Cogoport for smooth shipping</h3>
Online services have eased the shipping process to a great extent. We at<a href="https://www.cogoport.com/" target="_blank" rel="noopener"> Cogoport</a> strive to make it even smoother and simpler. To do so, we have created an integrated supply chain platform that brings together some of the main participants in the international trade ecosystem &ndash; all under one roof. We urge you to<a href="https://cogoport.com/signup" target="_blank" rel="noopener"> register</a> on Cogoport to build your own international shipping dashboard. This comes with instant access to transparent ocean freight rates, customs agents and trucking services, and cargo tracking from pick-up to delivery.

Export & International Shipping in India: Step-by-Step Guide

Business is as much about communication as it is about closing deals and finding new customers. This is especially true for importers and exporters, who are constantly in contact with buyers, suppliers and other trading partners across the world. While business communication comes in many forms, the humble email remains an important tool. It is perhaps the easiest, simplest and most direct way to make a product pitch, send a business proposal or quote, update your client on an ongoing transaction, deal with queries, trouble shoot, and so on.&nbsp;&nbsp;
But just sending an email isn&rsquo;t enough. It must be done right. This blog explores the importance of writing professional yet simple emails for your import-export business. You&rsquo;ll find:
<ul>
<li>Tips on writing emails</li>
<li>Easy email templates you can use</li>
</ul>
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<h3>The importance of effective communication</h3>
Your written words tell your buyer or supplier a lot about you:
<ul>
<li>A prospective customer will most likely form their first impression of you from your emails&nbsp;</li>
<li>If you respond quickly, it shows them you are attentive and that their queries matter to you</li>
<li>If you are not afraid to tell them about a problem, it shows them you are willing to take responsibility. They might be annoyed with you initially but they will appreciate a business partner who keeps them informed and deals with problems promptly&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>Emails give you the opportunity to tell potential clients about your business/company. But instead of writing only about yourself, write about what you can do for their specific needs</li>
</ul>
<h3>Writing tips you need to know&nbsp;&nbsp;</h3>
Given the importance of a business email, writing one calls for some expertise. Thankfully, it&rsquo;s not that difficult. Here are some useful tips:&nbsp;
<ul>
<li>Be concise and precise. Most of us don&rsquo;t have the time or patience to read long, rambling letters. Keep your email short but include all the information relevant to you and your prospective client.&nbsp;&nbsp;</li>
<li>Be professional. You can be politely friendly but not too familiar. Avoid jargon, emoticons and fancy fonts that might distract from your topic.</li>
<li>Be informative. If you are making a product pitch, include photographs, infographics and video clips.&nbsp;&nbsp;</li>
<li>Include a subject line. The more specific it is, the greater the chance of your email being read.&nbsp;&nbsp;&nbsp;</li>
<li>Put some thought into your greeting line. Find out how greetings work in your chosen market/country. Usually, addressing the client by their second name preceded by a Mr/Ms is a safe bet. In India, it is acceptable to use Sir or Madam. Don&rsquo;t address a client by their first name unless you are on very familiar terms.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>End your email with a call to action. You can set a flag on your calendar to make contact on a later day and encourage your reader to do the same.&nbsp;</li>
<li>Edit. No one likes to read a sloppy email. Check for typos, spelling and grammatical errors, inappropriate language and other mistakes. There are many free<a href="https://www.cogoport.com/blogs/35-digital-resources-you-need-to-run-an-export-import-business"> digital tools</a>, such as Grammarly, to help you clean up your email.</li>
</ul>
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center">
<div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/608142743218701f781a29e3_220421_Cogoport_Infographics_Infographic%201.jpg" alt="Ready-to-use email templates to grow your Import-Export Business" width="auto" height="auto" loading="lazy"></div>
</figure>
<h3>Cogoport&rsquo;s ready-to-use email templates to grow your import-export business</h3>
&zwj;
Following these tips, we have prepared 10 email templates for common situations in the import-export process. Pick them up, fill the blanks with your details and you&rsquo;re ready to go.
<h4>I. Pre-quotation emails</h4>
1. Embassy email
Subject: Company introduction to establish business ties in COUNTRY NAME&nbsp;&nbsp;&nbsp;&nbsp;
To,
The Indian Embassy,
&lt;COUNTRY NAME&gt;&nbsp;
Dear SIR/MADAM,
We are &lt;COMPANY NAME&gt;, a company that specialises in the manufacture, supply and export of &lt;PRODUCT NAME&gt;. We would like to introduce ourselves to you as we wish to do business in &lt;COUNTRY NAME&gt; and require your help in this.
As a representative of India, the Indian embassy in &lt;COUNTRY NAME&gt; is known to help entrepreneurs from India build trade ties with businesses there. Therefore, we would be grateful if you could provide us with the details of prominent buyers, importers, wholesalers and traders of our product. We would also appreciate your help in making contact and getting acquainted with those businesses.
Over the past &lt;XX&gt; years, our company has built a reputation for quality products, ethical practices and trustworthy service. You will not regret helping us gain a foothold in &lt;COUNTRY NAME&gt;.
Included here are our company details:
<ul>
<li>Company name: &lt;COMPANY NAME&gt;</li>
<li>Business type: &lt;Manufacture/supply/export&gt;&nbsp;</li>
<li>Year of establishment: &lt;DATE/MONTH/YEAR&gt;</li>
<li>Product: &lt;PRODUCT NAME&gt;</li>
<li>Production capacity: &lt;XX tons/month&gt;</li>
<li>Registration/affiliation: &lt;NAME OF GOVT/TRADERS&rsquo; BODY&gt;&nbsp;</li>
<li>Target customers: &lt;Importers/wholesalers/traders/suppliers&gt;</li>
</ul>
We look forward to your cooperation.
Thank you,
&lt;YOUR NAME&gt;
Note: You may replicate this email to request similar assistance from the Export Promotion Councils in India, which help Indian exporters overseas.
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2. Introduction email
Subject: Business introduction&nbsp;
Dear MR/MS &lt;NAME&gt;,
We, &lt;COMPANY NAME&gt;, are a company that manufactures, supplies and exports &lt;PRODUCT NAME&gt;. Since its establishment in &lt;DATE/MONTH/YEAR&gt;, our company has made a name for itself in the &lt;PRODUCT NAME&gt; market. That is because we believe in making only the highest quality products and supplying the same to our valued customers. We are proud of our skilled workforce, our knowledge of the market in India and abroad, and our commitment to providing the very best in customer service.
As we look to take our business to greater heights, we hope to be able to work with your esteemed organisation/company. Attached below is a detailed business proposal. You may also visit our website &lt;LINK&gt; to find out more about us.
Feel free to contact us if you have any queries. We can also schedule a meeting at a time of your convenience. Looking forward to hearing from you.
Thank you,
&lt;YOUR NAME&gt;
<h4>II. Quotation emails</h4>
1. Quotation
Subject: Quotation and product specifications
Dear MR/MS &lt;NAME&gt;,&nbsp;
Thank you for your interest in our &lt;PRODUCT NAME&gt;. As requested by you, we, &lt;COMPANY NAME&gt;, have put together relevant details of our product, including the price. You will find our price reasonable and our quality of the highest level. We also assure you of the best service.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<ul>
<li>Product: &lt;PRODUCT NAME (HS CODE)&gt;</li>
<li>Price per unit: &lt;$XX&gt;</li>
<li>Total price: &lt;$XX&gt;</li>
<li>Price valid for: &lt;XX days&gt;</li>
<li>Payment terms: &lt;XX% advance, balance on delivery&gt;&nbsp;</li>
<li>Delivery time: &lt;XX days&gt;</li>
<li>Port of origin: &lt;NAME&gt;</li>
<li>Port of destination: &lt;NAME&gt;</li>
</ul>
Feel free to contact us for clarifications and/or queries, or if you wish to receive a product sample. We would appreciate your response by &lt;DATE/DAY&gt;.
Thank you,
&lt;YOUR NAME&gt;
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto"></a></figure>
2. Invoice for sample
Subject: Sample shipped, invoice attached
Dear &lt;SIR/MADAM&gt;,
As requested, we are pleased to provide you with samples of our &lt;PRODUCT NAME&gt;. We are confident that you will not be disappointed with the quality.
The samples have been shipped to the address provided by you and are scheduled to reach you within &lt;XX days&gt;. We charge &lt;$XX&gt; per sample and have included the invoice for this with this email. Some invoice details follow:
<ul>
<li>Invoice number: &lt;XXXX&gt;</li>
<li>Invoice date: &lt;DATE/MONTH/YEAR&gt;</li>
<li>Product sample: &lt;PRODUCT NAME&gt;</li>
<li>Number of pieces: &lt;XX&gt;</li>
<li>Price per sample: &lt;$XX&gt;</li>
<li>Total sample price: &lt;$XX&gt;</li>
<li>Country of origin: &lt;NAME OF YOUR COUNTRY&gt;</li>
<li>Country of destination: &lt;NAME OF BUYER&rsquo;S COUNTRY&gt;&nbsp;&nbsp;</li>
</ul>
Kindly acknowledge receipt of the samples once delivered. We look forward to your feedback and to taking this partnership further.
Thank you,
&lt;YOUR NAME&gt;
3. Negotiation
Subject: Discussion regarding terms of purchase
Dear MR/MS &lt;NAME&gt;,
Thank you for your interest in our &lt;PRODUCT NAME&gt;. You have conveyed your requirement for &lt;XX&gt; pieces of our product by &lt;DATE/MONTH/YEAR&gt;. We would be delighted to fulfil this order and can guarantee that the required number of goods will be delivered to you by your stated date. However, the price per product you are willing to pay, which is &lt;$XX&gt;, does not meet our manufacturing and shipping costs. We can sell you the products for &lt;$XX&gt; a piece. You will not find a more competitive rate for the quality we are offering. Therefore, we humbly urge you to reconsider your price.
We look forward to a deal that is favourable to both parties. Feel free to contact us at any time for further discussions. You can call us at &lt;CONTACT NUMBER&gt;.
Thank you,
&lt;YOUR NAME&gt;
<h4>III. Shipment updates to customers</h4>
1.&nbsp; Shipment advice&nbsp;
Subject: Shipment advice&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Dear MR/MS &lt;NAME&gt;,
We are pleased to inform you that your consignment of &lt;PRODUCT NAME&gt; was dispatched by ship on &lt;DATE/MONTH/YEAR&gt; as per our contract &lt;(CONTRACT NUMBER)&gt;. It is scheduled to reach the port of destination in &lt;XX&gt; days. Please find below the shipment details:
<ul>
<li>Consignee: &lt;NAME, ADDRESS, CONTACT DETAILS&gt;&nbsp;&nbsp;&nbsp;</li>
<li>B/L No: &lt;XXXXXX&gt;</li>
<li>Carrier: &lt;CARRIER NAME&gt;</li>
<li>Port of origin: &lt;NAME&gt;</li>
<li>Port of destination: &lt;NAME&gt;</li>
<li>Product: &lt;PRODUCT NAME&gt;</li>
<li>Quantity: &lt;XX PIECES/TONS&gt;</li>
<li>Weight: &lt;XX kg&gt;</li>
<li>Price: &lt;$XX&gt;</li>
<li>Invoice No: &lt;XX&gt;</li>
</ul>
Our team will send you regular status updates of your shipment. You may also track it on the &lt;CARRIER NAME&gt; website &lt;(LINK)&gt;. We are available for any further queries.
Thank you,
&lt;YOUR NAME&gt;
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2. Apology for shipment delay/transhipment delay/shutout
Subject: Shipment delay/Transhipment delay/Shutout
Dear MR/MS &lt;NAME&gt;,
We regret to inform you that your shipment of &lt;XX PIECES/TONS&gt; of &lt;PRODUCT NAME&gt; has been delayed due to &lt;CAUSE OF DELAY&gt;. Your shipment will now reach you by &lt;DATE/MONTH/YEAR&gt;.&nbsp;
We apologise for the delay and for any problem this might cause your business. In our sincere effort to soften the blow, we have arranged &lt;MENTION MITIGATION ACTION TAKEN BY YOUR COMPANY&gt;.
Please accept our apologies once again. We hope we can look past this setback and continue doing business together.&nbsp;
Thank you,
&lt;YOUR NAME&gt;
<h4>IV. Post-shipment emails</h4>
1. Acknowledgement of receipt of goods
Subject: Goods received
Dear MR/MS &lt;NAME&gt;,
We at &lt;COMPANY NAME&gt; acknowledge the receipt in full of the &lt;PRODUCT NAME&gt; detailed under &lt;INVOICE NUMBER&gt;. Furthermore, the &lt;PRODUCT NAME&gt; has been found to meet our standards.
We appreciate the care taken by you to meet our conditions. We look forward to the same prompt service in our future dealings.
Thank you,
&lt;YOUR NAME&gt;
2. Proof of delivery
Subject: Proof of delivery
Dear MR/MS &lt;NAME&gt;,
We trust you are doing well. I have received a proof of delivery statement from the &lt;SERVICE PROVIDER NAME&gt; and am forwarding the same to you. From the statement, which has been signed by you, we gather that the shipment of &lt;PRODUCT NAME&gt; reached you on the scheduled date and in good condition.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please acknowledge by email that you have received a copy of the proof of delivery. We also request you to share the copy with the issuing bank so that it can proceed with the payment for the goods under the terms of the Letter of Credit &lt;(MENTION LETTER OF CREDIT NUMBER)&gt;.
We thank you for your business and hope to be of service to you again.
Thank you,
&lt;YOUR NAME&gt;
3. Settlement of outstanding balance
Subject: Request for payment of outstanding balance
&lt;DATE OF EMAIL&gt;
Dear MR/MS &lt;NAME&gt;,
We trust you are doing well. Our records indicate that you have an outstanding balance of &lt;$XX&gt; towards a consignment of &lt;PRODUCT NAME&gt; shipped by us on &lt;SHIPMENT DATE&gt; and received by you on &lt;DELIVERY DATE&gt;. The due date for this payment was &lt;DUE DATE&gt;. Please find attached a copy of the invoice &lt;(MENTION INVOICE NUMBER)&gt;.
Please make the payment by &lt;NEW DUE DATE&gt;. If not, we will be compelled to STATE LATE PAYMENT ACTION TO BE TAKEN BY YOUR COMPANY. If you have already made the payment, ignore this email and accept our apologies for any inconvenience caused.
Thank you for your cooperation. We hope to continue to do business with you.
Thank you,
&lt;YOUR NAME&gt;
&nbsp;
While you brush up on your writing skills, just follow these easy email formats and your import-export business communication will certainly benefit. And don&rsquo;t forget to try <a href="https://www.cogoport.com">Cogoport</a> for a range of other services, including <a href="https://www.cogoport.com/rate-discovery">instant freight rates</a> and <a href="https://cogoport.com/signup">bookings</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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