The Most Common Documentation Mistakes and How to Avoid Them
Export documentation is a crucial part of any international trade transaction, providing the necessary paperwork for customs clearance, payment, and insurance purposes, not to mention meeting any regulatory compliance requirements. As such, it is essential that mistakes are not made when completing this paperwork, as this can result in expensive delays and other adverse consequences, from customs penalties to contractual disputes.
Below we look at some of the most common mistakes that can be made in the preparation of export documentation, and how best to avoid these costly and time-consuming errors.
1. Inaccurate or incomplete information
One of the most common mistakes when creating export documentation is providing inaccurate or incomplete information, such as commodity codes being incorrectly assigned or discrepancies in the details on different documents for the same consignment. These types of errors or omissions can result in a shipment being delayed or even rejected. It can also lead to inflated customs charges or financial penalties, both from the authorities and buyers, not least where a consignment is not delivered on time.
For example, if the commercial invoice does not match the packing list or other export documentation, such as the certificate of origin, this can cause confusion and even raise doubts about the authenticity of a document. In turn, this could result in customs duties being levied in full, where preferential tariff treatment ought to have been applied. It could also result in costly delays, as well as hefty charges for the handling and storage of cargo, known in shipping terms as demurrage fees, plus non-delivery of the goods in question.
2. Missing or incorrect documentation
In addition to inaccurate or incomplete information on the export documentation itself, another common mistake is the use of incorrect documents or omitting documents altogether. Exporting from the UK or Europe can require all kinds of different export documents to ensure the smooth transition and successful delivery of a shipment, although much will depend on the nature of the consignment and country of destination.
The most commonly used documents needed to export goods include commercial invoices, packing lists, certificates of origin, bills of lading, customs declarations, export licences, certificates of free sale, and health or insurance certificates. Failing to include any of these documents is an oversight that could again result in delays, demurrage, or rejection.
3. Non-compliance with regulatory requirements
A third common mistake in export documentation is noncompliance with the regulatory rules and requirements of the country of origin and destination countries, as those responsible for shipping goods out of a country are legally obliged to comply with all export regulations applicable to any jurisdiction where they choose to conduct business.
The challenge for exporters is to identify and understand what regulations apply in each country, including any transit countries, and to fully understand how to comply with the relevant statutory requirements. This can include anything from assigning the correct classification for goods to meeting any permit, licensing, and certification requirements.
As with other common documentation mistakes in the context of exportation, regulatory noncompliance can result in all kinds of delays and delivery problems. This can also result in both civil and criminal sanctions, including the confiscation of goods or prosecution.
How can common export documentation mistakes be avoided?
There are various ways in which common mistakes can be avoided when preparing export documentation. For example, to avoid the potentially adverse consequences of inaccurate or incomplete information, the exporter should always double-check and verify the data on their documents, such as the description of the goods, as well as their quantity, weight, value, origin, and destination. It is also important to use standard formats and terms consistently across all documents, and to cross-reference each document to minimise the risk of discrepancies between different documents for the same consignment.
Equally, common mistakes can be avoided by ensuring that those responsible for dealing with the documentation process are not only trained in customs formalities, but fully understand the correct use of terminology and tariff classification. They must also be able to accurately identify the documentation needed for any given shipment and destination, so that documents are not missing or incorrect, and that any regulatory requirements are met.
How Blair can help you avoid documentation mistakes
Outsourcing export documentation to a reliable and reputable service provider can help to ensure that each document is complete and correct, and that shipments are not delayed or rejected because of oversights or inaccuracies. By relying on the experience and expertise of a documentation specialist, exporters can have the peace of mind—and time—needed to focus on other essential aspects of their business.
As the European market leader in providing specialist export documentation services, here at Blair we will deliver the documents needed quickly, without compromising on quality. We have a wealth of expertise, with experienced staff able to prepare the necessary paperwork to facilitate the successful shipment of goods. In this way, clients can minimise the risk of costly and time-consuming delays, or other consequences caused by documentation errors.
At Blair, we will be happy to answer any enquiries about your export documentation needs by telephone on +44 (0)1784 254123 or via our online contact form.
Legal disclaimer
The matters contained within this article are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, either express or implied, is given as to the accuracy of the blog contents, and no liability is accepted for any errors or omissions. Before acting on any of the information contained herein, expert advice should be sought.