Do you want to reach customers outside of the United States? With cross-border shipping, you can expand your small business’s reach to new markets. But shipping from one country to another means you will need to comply with customs regulations and supply additional documentation for your shipments.
Learn more about cross-border shipping and the documentation you need to ship your products globally.
How Does Cross-Border Shipping Work?
Cross-border shipping is when goods are shipped across borders from one country to another. In cross-border logistics, products must go through customs, and you may have to pay duties or taxes to import legally. Every country has its own requirements regarding which products can be imported, applicable duties and customs regulations.
Documents Needed for Cross-Border Shipping
Depending on where you want to ship, there are different documentation requirements for cross-border shipping. Read on to learn more about shipping to Mexico, Canada, Asia and Europe.
America to Mexico
If you would like to ship from the United States to Mexico, there are a few documents that need to accompany your shipment. Some documents can be in English, but some must be translated into Spanish. You also will want to ensure that the importer, or customer receiving the goods, is registered with the Servicio de Administración Tributaria (SAT).
The following documentation must be submitted to a Mexican customs broker or an American customs broker before sending cross-border freight into Mexico
- Bill of lading: A bill of lading (BOL) contract between the shipper and carrier must be completed. The BOL must list the mode of transportation and details regarding all of the goods in a shipment in either English or Spanish
- Commercial invoice: The invoice must include an accurate description of the shipment, the address of the seller and buyer, the tax ID number of the seller, the Mexican tax Registro Federal de Contribuyentes (RFC) number of the buyer and the international commercial terms (incoterms) agreed upon by both parties.
- Packing list: A packing list including detailed product information must be included. It’s also important to note that Mexican customs do not accept product codes.
- Shipper’s export declaration: The U.S. Customs Form 7525-V is required for all exports of over $2,500. It includes a declaration of what is being exported, its destination and the shipper and receiver’s details.
- Import Pedimento: This official Mexican customs form is necessary to import into Mexico and must be completed in Spanish.
- NAFTA Certificate of Origin: It’s required to have a document certifying that the exported goods qualify as originating goods for the preferential tariff. The North American Free Trade Agreement (NAFTA) certificate can cover a single importation or multiple importations and needs to be kept on file by the shipper.
America to Canada.
Thanks to NAFTA, cross-border logistics from the U.S. to Canada are straightforward and similar to shipping to Mexico. Here are all the documents you will need to successfully import to Canada:
- Bill of lading: A BOL contract between the shipper and carrier must be completed listing the mode of transportation and details regarding all of the goods in a shipment.
- Commercial invoice: The invoice must include an accurate description of the shipment, the address of the seller and buyer and the seller’s tax ID. Two copies are needed — one to accompany the bill of lading and one to go with the shipment.
- Packing list: A packing list including detailed product information such as order date, products and quantities must be included.
- Shipper’s export declaration: The U.S. Customs Form 7525-V is required for all exports of over $2,500. It includes a declaration of what is being exported, its destination and the shipper and receiver’s details.
- Canadian Customs Invoice (CCI): This official Canadian customs form is necessary to import into Canada. Two copies are needed, one to accompany the bill of lading and one to go with the shipment.
- NAFTA Certificate of Origin: It’s required to have a document certifying that the exported goods qualify as originating goods for the preferential tariff. The NAFTA certificate can cover a single importation or multiple importations and needs to be kept on file by the shipper.
Across Asia
International shipping to countries across the Asian continent can represent an excellent growth opportunity for many U.S.-based shippers. Countries throughout the region all have their own conditions, so business owners should check the specific requirements of each country before they begin shipping.
At a minimum, shippers will need the following documents to ship to Asia:
- Bill of lading: A BOL contract between the shipper and carrier must be completed listing the mode of transportation and details regarding all of the goods in a shipment.
- Commercial invoice: The invoice must include an accurate description of the shipment, the address of the seller and buyer and the seller’s tax ID.
- Packing list: A packing list including detailed product information such as order date, products and quantities must be included.
- Shipper’s export declaration: The U.S. Customs Form 7525-V is required for all exports of over $2,500
- Country-specific documentation: Additional paperwork is likely required by the importing country.
Across Europe
Whether you’re looking to ship to a country within the European Union or elsewhere in Europe, you will need the proper documentation. Here are the documents you will need to clear European customs successfully:
- Bill of lading: A BOL contract between the shipper and carrier must be completed listing the mode of transportation and details regarding all of the goods in a shipment.
- Proforma invoice: The proforma invoice is part of customs clearance documentation and must include the export type, total weight of the shipment and the reason for import. A detailed description of each item, including its value, quantity, origin and harmonized system (HS) code also must be included.
- Commercial invoice: The commercial invoice must include an accurate description of the shipment, the address of the seller and buyer and the HS codes and details for each item.
- Packing list: A packing list including detailed product information such as order date, products and quantities must be included.
- Certificate of Origin: This document proves in what country each item was obtained, produced, manufactured or processed.
- Shipper’s letter of instruction: This transport document details the necessary instructions for export and can give authority to a freight forwarder to act on behalf of contracting parties in international trade.
- Shipper’s export declaration: The U.S. Customs Form 7525-V is required for all exports of over $2,500
- Custom’s Declaration CN22/CN23: Similar to a commercial invoice, this document is used by authorities to determine customs duties and taxes that apply to a shipment.
- Country-specific documentation: Additional paperwork may be required by the importing country.
Types of Documentation Needed
Several main types of documentation are necessary for cross-border shipping. Here is an overview of some of the most commonly required documents.
Bill of Lading
A bill of lading is a legal contract between a shipper and carrier that describes the type, quantity and destination of goods being shipped. It lays out the agreed terms and conditions for transporting goods and serves as a receipt for your shipment. A BOL is legally required in cross-border logistics and must accompany international shipments.
Country of Origin
International shipments often must include a certificate of origin (COO) that proves where each item in the shipment was obtained, produced, manufactured or processed. Customs agents use the COO document to determine what duties apply to the shipment.
Commercial Invoice
A commercial invoice is a document that acts as proof of sale between a seller and an international buyer and is necessary for a shipment to clear customs. This invoice must include:
- A detailed description of the goods
- Name and address of both the buyer and seller
- Country where the goods were manufactured
- HS codes for products being shipped
- Value of each item in the shipment
- Incoterms or terms of sale
Export Licenses
The U.S government doesn’t require an export license for the majority of products shipped internationally. But there are still laws and regulations regarding whether you can sell your product to international buyers and to which countries you can export.
It is up to the exporter to determine whether they need an export license. The Bureau of Industry and Security or the U.S. Department of State’s Directorate of Defense Trade Controls is the licensing agency for most U.S. exports.
Why is Cross-Border Shipping Beneficial?
Cross-border shipping can help you grow your business beyond U.S. borders and reach new customers. Expanding into new international markets can not only help improve your return on investment but diversifying also can help mitigate the risk of economic fluctuations of a single market
What Are the Challenges of Cross-Border Shipping?
Cross-border freight shipping is more complex than domestic shipping. When shipping internationally, you must consider the regulations of both the export and import country. More documentation is involved, and delays are more likely as goods have to clear customs.
Not every product can be imported into every country. Depending on what you want to ship and where, there may be added considerations and limitations that can create significant challenges.
Expand Internationally with Cross-Border Shipping
International shipping involves a bit more planning than shipping domestically but can allow your company to reach new customers around the world. By following the cross-border shipping rules and regulations of both the U.S. and the importing country, you can ensure that your shipments clear customs and reach the hands of happy customers around the world.
FAQ
Cross-border documentation refers to the paperwork shippers must include to import a shipment to another country legally.
Cross-border trade is essential for the global economy. With cross-border shipping, companies can reach new markets and compete internationally.
A cross-border fee refers to the taxes or duties that must be paid on an imported shipment.
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