Avoid These Common Shipping Documentation Mistakes

Shipping goods internationally can be a complex process, fraught with potential pitfalls. One of the most critical aspects of this process is ensuring that your shipping documentation is accurate and complete. Mistakes in documentation can lead to delays, fines, and dissatisfied customers. Join us as we explore some of the most common shipping documentation mistakes and, more importantly, how to avoid them.

Mistake 1: Incorrect or Incomplete Shipping Addresses

An incorrect or incomplete shipping address can cause significant delays and even result in the loss of your shipment. Shipping carriers rely on accurate addresses to deliver goods efficiently. If an address is wrong, your shipment may end up in the wrong location or be returned to you, incurring additional costs.

This may seem basic, but in our experience we have seen too many shipments waylaid because the documentation read ‘Mable Street’ instead of ‘Maple Street’.

Tips to Avoid This Mistake

  1. Double-Check Addresses: Always double-check the shipping address for accuracy. Ensure that it includes all necessary details, such as street name, building number, city, state, and postal code.
  2. Use Standardized Formats: Follow standardized address formats for the destination country. This helps avoid confusion and ensures that the address is easily understood by local carriers.
  3. Confirm with the Recipient: Whenever possible, confirm the address details with the recipient. Keep in mind that even in English speaking countries there are often localized spellings of common words.  This step can help catch any errors before the shipment is sent out.

Mistake 2: Incorrect Product Descriptions and Quantities

Incorrect product descriptions and quantities can lead to issues with customs. Customs officials rely on accurate information to assess duties and taxes. If the descriptions or quantities are incorrect, your shipment may be delayed for inspection, or you may face fines for non-compliance. Customs officials are not trying to make your life difficult. A simple clarification of ‘Laptop Computers’ instead of ‘Electronics’ can save everyone a lot of stress.

If you are interested in more information about what triggers a customers exam, check out our full write-up here.

Tips to Avoid This Mistake

  1. Use Clear and Detailed Descriptions: Provide clear and detailed descriptions of your products. Include information such as material, size, and intended use.
  2. Verify Quantities Against Order: Double-check the quantities listed on your shipping documents against the actual order. Ensure they match to avoid discrepancies.
  3. Use HS Codes: If applicable, use Harmonized System (HS) codes for your products. These codes help customs officials classify goods accurately and speed up the clearance process.

 

Mistake 3: Inaccurate Weight and Dimensions

Inaccurate weight and dimensions can lead to unexpected shipping costs and surcharges. Carriers base their rates on the weight and size of packages. If these are incorrect, you may be charged more than expected or face delays as the carrier remeasures your shipment. 

Tips to Avoid This Mistake

  1. Use Accurate Scales and Measuring Tools: Invest in reliable scales and measuring tools to ensure accurate measurements of your packages.
  2. Package Items Securely for Measurement: Ensure that items are securely packaged before measuring. This prevents any changes in weight or dimensions during transit.

 

Mistake 4: Missing or Incorrect Customs Documentation

Customs documentation is crucial for international shipments. Missing or incorrect documents can lead to delays, fines, and even the confiscation of your goods. 

Each country has specific requirements, and failing to comply can be costly. It can help to work with a freight forwarding company like SiShips. We have decades of combined industry experience and have sent exports to over 121 countries.

Tips to Avoid This Mistake

  1. Research Specific Requirements for Each Destination: Different countries have different documentation requirements. Research these requirements thoroughly before shipping.
  2. Consult Customs Brokers if Needed: If you’re unsure about the documentation needed, consult with a customs broker. They can provide expert guidance and ensure your paperwork is in order.

Mistake 5: Failure to Properly Insure Shipments

The only time insurance is not a good idea is at the blackjack table. Shipping goods internationally carries inherent risks, including loss, damage, and theft. Without proper insurance, you may be left covering these losses out of pocket, which can be financially devastating.

Tips to Avoid This Mistake

  1. Determine the Value of Your Goods: Assess the value of your shipment accurately. This helps determine the appropriate level of insurance coverage.
  2. Choose Appropriate Insurance Coverage: Select insurance that covers the full value of your goods and any potential risks during transit.

 

Mistake 6: Overlooking Special Handling or Hazardous Material Requirements

Special handling and hazardous material shipments require strict adherence to regulations. Non-compliance can result in severe penalties, environmental harm, and safety risks.

Not only can a mistake with labeling put other people in harm’s way, your shipment might be stopped indefinitely. Even if the shipment ultimately gets through, you will face hefty fines for misrepresenting hazardous materials.

Tips to Avoid This Mistake

  1. Research Specific Requirements for Your Products: Understand the regulations for shipping hazardous materials. Ensure your documentation and packaging comply.
  2. Clearly Label Packages: Properly label packages to indicate any special handling requirements or hazardous materials. This ensures carriers handle them appropriately.

 

Mistake 7: Choosing the Wrong Incoterms

Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international trade. Choosing the wrong Incoterm can lead to misunderstandings, unexpected costs, and disputes.

Note: Incoterms were originally introduced in 1936 in order to facilitate international trade. We are currently following the 9th version of the system, Incoterms 2020, which went into effect on January 1, 2020. Following historical precedent, it is likely the next set of Incoterm rules will be released ahead of 2030.

Tips to Avoid This Mistake

  1. Understand the Different Options: Familiarize yourself with the different Incoterms and what they entail. This helps you make informed decisions.
  2. Choose the Incoterm That Best Suits Your Needs and Responsibilities: Select an Incoterm that aligns with your business model and the specific shipment. This ensures clear responsibilities and reduces the risk of disputes.

Container ships docked in a row at the port.Bonus Shipping Documentation Tips

  1. Use a Reliable Shipping Software or Platform: Invest in a shipping software or platform to streamline documentation and reduce errors.
  2. Establish Clear Internal Processes for Documentation and Review: Create and follow clear processes for preparing and reviewing shipping documents. This helps catch mistakes before they become costly.
  3. Stay Updated on Changing Regulations and Requirements: International shipping regulations can change frequently. Stay informed to ensure compliance.
  4. Build Relationships with Trusted Shipping Partners and Carriers: Working with reliable partners can help ensure smooth and efficient shipping operations.

 

By implementing the tips outlined in this article, you can minimize risks and ensure your shipments arrive on time and without issues. Remember, a little extra effort in preparing your documentation can save you a lot of trouble down the line. Happy shipping!

 

How SiShips Gives You the Advantage

Sheltered International combines expertise with state of the art desktop and mobile software to bring you the highest quality domestic and international shipping solutions. With the world constantly changing, SiShips puts the shipper in control, offering efficient and cost effective ways to ship your product.

To learn more about managed transportation with SiShips, or to view a demo of our software and new mobile app, contact us today.