Preparing Export Documents: Commercial Invoice, Packing List, Bill of Lading, Certificate of Origin
Four Core Documents
When a machine is exported, everything from customs clearance and transport to the buyer collecting the goods and clearing import customs is linked by documents. The four core ones are:
- Commercial Invoice
- Packing List
- Bill of Lading (the legal term in Taiwan is 載貨證券)
- Certificate of Origin
In addition, customs clearance requires an export declaration, shipping order or booking note, and proof of warehouse entry, plus a power of attorney when using a customs broker. These are mostly handled with the help of the customs broker and freight forwarder; for the process, see An Overview of the Machinery Export Process.
Commercial Invoice
The commercial invoice is the transaction statement the seller issues to the buyer, and it's also the basis on which customs in both countries determine the value of the goods. It generally includes:
- Names and addresses of the seller and buyer
- Invoice number and date
- Description, model, quantity, unit price, total price, and currency
- Trade term, for example FOB Kaohsiung
- Payment terms
- Shipping marks and number of packages
Under Article 10 of the Regulations Governing the Declaration, Inspection, and Release of Export Goods, goods exempt from export permits are declared at actual value with an invoice or other proof of value attached. The description should be specific; for example, "Automatic Encrusting Machine" is clearer than "Machine" and less likely to trigger requests for more documents in the importing country.
Packing List
The packing list shows what's in each package. Under Article 8 of the Regulations Governing the Declaration, Inspection, and Release of Export Goods, the packing list must state the specifications and the gross weight, net weight, and quantity of each package. A complete machine is often split into a main unit crate, an accessories box, and a parts box, and each one should clearly state its dimensions and weight so the freight forwarder can calculate volume and the buyer can check the delivery. Under Article 6 of the same regulations, the packing list may be omitted for a single package, or for goods of a single type packed uniformly.
Bill of Lading
The bill of lading is a document issued by the carrier after receiving the goods, and it serves three functions: a receipt for the goods, evidence of the contract of carriage, and a document of title for collecting the goods. Under Article 53 of the Maritime Act (海商法), after goods are loaded, the shipper may request a bill of lading from the carrier or master; Article 54 lists the items it must state, including the vessel name, shipper, description and number of packages, port of loading and port of discharge, freight, number of originals, and date of issue.
Practical points:
- Original bills of lading usually come in a set of three, and the buyer collects the goods with an original, so whoever holds the original effectively holds the goods.
- Telex release: After confirming payment has been received, the seller tells the shipping line to release the goods by telex, and the buyer can collect them without an original; this is common in telegraphic transfer transactions.
- With a letter of credit, the consignee, notify party, description, and so on in the bill of lading must follow the L/C terms exactly.
How to Apply for a Certificate of Origin
A certificate of origin proves the country where the goods were produced; the buyer may use it to claim tariff preferences, or the importing country's customs may require it.
Legal basis: Article 20-2 of the Foreign Trade Act authorizes the Ministry of Economic Affairs' International Trade Administration to issue certificates of origin, and allows it to delegate this to foundations and industry associations. The details are in the Regulations Governing the Issuance of Certificates of Origin and Certificates of Processing (原產地證明書及加工證明書管理辦法).
What counts as made in Taiwan: Under Articles 3 and 5 of these Regulations, origin is determined by the "last substantial transformation," meeting either of the following:
- After processing, the first 6 digits of the tariff code of the raw materials change; or
- The value-added ratio exceeds 35% (calculated as the export FOB price minus the CIF price of imported materials and parts, divided by the export FOB price).
Simple assembly, packing, and similar operations don't count as substantial transformation.
How to apply:
- The applicant is the exporter named on the export declaration (Article 11)
- All applications go through the International Trade Administration's online certificate of origin system or the Customs-Port-Trade Single Window (Articles 12 and 13), and you can log in with a business certificate (MOEACA)
- In principle, apply after customs release; exceptions allow applying first when the importing country requires it or the certificate must travel with the goods (Articles 16 and 21)
- The fee is NT$250 per certificate; beyond 3 originals and 6 copies, each extra copy costs NT$50 (Article 29)
The online system divides certificates of origin into "non-preferential" (general certificates) and "preferential" (under free trade agreements, ECFA, and so on). When a customer wants to claim tariff preferences, first confirm whether an applicable agreement exists between the two countries and which format is required.
Other Documents Customers Often Request
- Insurance policy: Under CIF and CIP, the seller arranges insurance and provides it
- CE declaration of conformity: For sales to the EU; see CE marking
- Food contact material declaration: See EU food contact material rules
- ISPM 15 treatment proof for wooden crates: Most countries just check the mark stamped on the crate
- Manual and parts list
FAQ
Q: Which documents are needed to export a machine?
A: The core documents are the commercial invoice, packing list, bill of lading, and certificate of origin; customs clearance also requires an export declaration, shipping order or booking note, and proof of warehouse entry, plus a power of attorney when using a customs broker.
Q: How do we apply for a certificate of origin?
A: The exporter named on the export declaration applies through the International Trade Administration's online certificate of origin system or the Customs-Port-Trade Single Window; the fee is NT$250 per certificate.
Q: What counts as made in Taiwan?
A: Under the Regulations Governing the Issuance of Certificates of Origin and Certificates of Processing, the last substantial transformation must take place in Taiwan: either the first 6 digits of the tariff code change, or the value-added ratio exceeds 35%.
Q: What is a telex release bill of lading?
A: The seller tells the shipping line to release the goods directly, and the buyer can collect them without an original bill of lading; it's common in telegraphic transfer transactions where payment has already been received.
Q: Is a packing list always required?
A: In principle, yes; it may be omitted only for a single package, or for goods of a single type packed uniformly.