Every import travels with paperwork, and two documents are read more often than any other: the bill of lading, which is the carrier's record of the shipment, and the packing list, which describes what is inside. A mistake on either can hold up your cargo for days. Importers who know what to look for can catch problems before the goods arrive. This guide walks through both.

What a bill of lading does

The bill of lading is issued by the shipping line or its agent. It serves as a receipt for the goods, a contract of carriage and, in some forms, a document of title that controls who can collect the cargo. Your clearing agent needs it to release the goods, and customs uses it to identify the consignment. For air freight, the equivalent is the air waybill.

The key fields on a bill of lading

Read each of these carefully:

  • Shipper is the exporter, usually your supplier; check the name and address.
  • Consignee is the party to whom the goods are to be delivered; it must match your registered name exactly.
  • Notify party is who the carrier contacts on arrival, often your clearing agent.
  • Vessel and voyage, ports of loading and discharge show how the goods are travelling and where they will arrive.
  • Description of goods, number of packages, gross weight and volume must agree with your invoice and packing list.
  • Container and seal numbers identify the container.
  • Freight terms show whether freight is prepaid or to be collected, linked to the delivery terms explained in Incoterms for importers.

Types of bill of lading

An original set of bills may need to be surrendered to release the cargo, while a telex or electronic release avoids waiting for paper. A "straight" bill names a consignee, while an "order" bill can be transferred by endorsement. Confirm with your supplier and agent how the release will happen, so cargo does not sit waiting for a document in the post.

What a packing list does

The packing list describes how the goods are packed: the number of cartons, pallets or items, the contents of each, the weights and the dimensions. It helps customs and the port inspect the cargo and helps you check that what arrived is what you ordered. It must match the commercial invoice in quantities and descriptions.

Fields to check on the packing list

  • The supplier and buyer names and addresses.
  • The invoice number and date it refers to.
  • A line for each item with description, quantity and unit.
  • Net and gross weights, and the dimensions or volume of each package.
  • Package marks and numbers that match those on the cartons.

Cross-check the documents

The most useful step is to read the bill of lading, the packing list and the commercial invoice side by side. Check that the descriptions, quantities, weights and values agree, and that names and addresses match. If the invoice shows 500 pieces and the packing list shows 480, customs may query the difference. Ask the supplier to correct errors before the ship sails, as amendments after arrival cost money. The import documents checklist lists the other documents to review.

Watch the description of goods

A vague description such as "general cargo" invites questions. The description should be specific enough to classify the goods; see HS codes and customs classification. Misdescription can lead to the wrong duty or a penalty. If the goods are subject to standards, make sure the certificates are consistent with the description; KEBS, PVoC and import standards explained covers the checks.

Weights, volumes and freight

Freight is charged on weight or volume, whichever is greater, so errors affect your cost. Check that the figures are realistic. For sea freight, compare the container size and the load; for air freight, the chargeable weight. Air freight vs sea freight explains how charges differ.

Use the documents to cost the shipment

The values and weights feed into your duty and landed cost. Use the import duty calculator and the landed cost calculator with the figures on the documents, and keep them in the import duty and landed cost workbook. For vehicles, the car import duty calculator uses the vehicle details on the documents.

Keep copies

Scan every document as soon as you receive it, name the files by shipment and keep them with your payment and clearing records. They support your VAT claim and your cost of goods; see import VAT: how to claim it back. If you read the documents as carefully as you read the price, most clearing problems never reach the port.