Introduction

An essential feature of all import sales transactions is import documentation. There are various categories of documents required in international trade transactions. This section lists the basic documentation required for an import shipment. Not all the documents listed below are required for every import transaction; many of them are applicable to specific products or circumstances.

Enquiry Documents

Quotation/offer to the importer

Pro-forma invoice: After receiving a quotation from the exporter, the importer may request a pro-forma invoice. This is a preliminary invoice and is prepared prior to shipment or even before a firm order has been received. The purpose is to enable the importer to obtain an import license (if required) or a letter of credit prior to entering into the contract of sale.

Instruction Documents

Forwarder's instruction: Most freight forwarders have a printed forwarder's instruction form, but the required information may also be printed on the exporters company letterhead. Information required includes instructions for booking of cargo, information for completing transport documents, description of goods as per the letter of credit etc.

Shipping instruction: Where a shipping company has a computerized bill of lading system, it provides pre-printed shipping instruction forms which must be completed by the exporter/freight forwarder. The bill of lading is drawn up from the information provided on this form. If the exporter/freight forwarder prepares the bill of lading independently, then a shipping instruction must be attached. However, many independent shipping lines do not insist on the shipping instruction document.

Bank instruction: When the exporter is selling on the basis of a letter of credit, the instructions stipulated in the letter of credit must be followed. However, if selling on the basis of sight or usance draft under documentary collection, bank instructions must be generated to secure payment for the goods. Information supplied would include description of cargo, name of vessel, date of shipment etc; a detailed list of all documents submitted; payment method etc.

Transport Documents

1. Bills of lading

   The bill of lading is a contract of carriage and has three functions:

   i)		It defines in detail, the terms of the contract between the shipper and the shipping line for the carriage of goods from one specified port to another.
   ii)		It is a formal, signed receipt for a specified number of packs e.g. crates, drums etc. which is given to the shipper by the shipping line when the shipping line receives the consignment. (It should be noted that the shipping line denies all knowledge of quantity, quality, value or condition of the contents of the packs.)
   iii)		It is a document of title (i.e. a certificate of ownership) to the goods. As such, it must be produced at the port of final destination by the consignee in order to claim the goods. As a document of title, the bill of lading is also a negotiable document and the consignee may sell the goods by endorsing or handing over the bill of lading to another authorized party, even while the goods are still at sea. Although negotiable bills of lading are in common use, some countries do not allow them or make it difficult to be used and exporters should enquire whether it is accepted in the buyers country.

   1. Bills of lading may be negotiable or non-negotiable: With a negotiable bill of lading, ownership of the goods may be transferred to a third party. The shipper marks the bill of lading, 'to order' to ensure that the bill of lading may be negotiated by a third party, e.g. the bank, through blank endorsement i.e. by signing on the reverse side of the bill of lading. The third party is then able to take ownership of the goods. The shipper can also ensure that the bill of lading is only negotiated by the buyer by entering the name of the consignee on the document, instead of 'to order'. The buyer then has the option of transferring title of the goods to a third party by endorsing in blank or to a named third party. Bills of lading can become highly negotiable documents. All original bills of lading are thus negotiable documents to some extent - it is only the copy bills of lading that are absolutely non-negotiable.

       

   2. A shipped bill of lading indicates that goods have been loaded on board the vessel. This bill is required if payment is being made on the basis of a letter of credit. (also known as an on board bill of lading). A received for shipment bill of lading acknowledges that the carrier has received the goods and are in the custody of the carrier, but have not actually been loaded on board the vessel. This may be used when there is congestion at the port or in the case of dock strikes. Once the goods are on board, the bill of lading is stamped 'on board', in accordance with the International Chamber of Commerce (ICC) rules.

       

   3. Clean and caused bills of lading: If the cargo is apparently in good order and properly packed when received by the shipping line, the bill of lading which the shipping line issues, is termed 'clean'. The ship-owner thus admits full liability for the cargo described in the bill. If, however, a defect is noted such as a bale is torn or a cask is leaking, a clause will added to the bill. The bill then becomes 'unclean', 'dirty', or 'claused'. When an export transaction is conducted on the basis of a letter of credit, banks will refuse shipping documents bearing such clauses, unless the letter of credit specifically states that they are acceptable, e.g. it may be the custom of the trade to use second-hand packing, an aspect may be noted as a defect.

       

   4. Freight pre-paid or freight collect bills of lading: When an exporter pays freight to the shipping line in advance, for example on a c.i.f. basis, the exporter will acquire a bill of lading marked freight pre-paid. However in instances when freight is paid on arrival of goods, e.g. under an f.o.b. contract, the bill of lading is marked freight collect.

       

   5. Stale bills of lading: This is a bill of lading which has been presented so late after the due date of delivery of goods to the port, that as a result of the delay in its presentation, the consignee/buyer has become involved in legal or administrative complications. According to Uniform Customs and Practice for Documentary Credits of the ICC, banks may refuse a transport document that is presented more than 21 days after the date of shipment. The bank may accept a stale bill of lading 'with recourse' if the buyer repudiates payment on the basis of non -confirming documents, the exporter must return the funds received. Preferably the shipper should approach the buyer to have the letter of credit amended to permit the presentation of a stale document, or indicate that the documents will be accepted when presented.

       

   6. There are different categories of the bill of lading:

       

      	Charter party bill of lading: Normally if commodities are to be transported in bulk (e.g. grain, coal, oil etc), a shipper may charter (hire) a whole vessel by entering into a contract of carriage with the ship-owner, the terms of which are embodied in a legal document called the charter party. As this type of bill of lading does not contain all the essential terms of the contract of carriage, banks will refuse to accept it under a letter of credit unless instructed to the contrary by the buyer.
      	Through or transshipment bill of lading: It is often necessary to employ two or more carriers to transport a consignment of goods to its final destination. Shipping lines issue bills of lading which cover the whole transit and the shipper need only deal with the first carrier. Normally, a through rate is quoted.
      	Container bills of lading: These are issued by a shipping line which engages in combined transport.
      	Groupage/House bill of lading: Freight forwarders are permitted to group various compatible consignments from different consignors together, and to dispatch the cargoes as one containerized consignment. The shipping line issues a 'master' bill of lading to the forwarder once the full container has been loaded. The freight forwarder cannot hand the original shipping line's bill of lading and therefore issues a house bill of lading to the individual shippers. At the destination, an agent of the forwarder breaks down the consignment and distributes the goods subject to an original house bill of lading being presented. Under letter of credit, the banks may reject this form of bill of lading unless it is specifically stated that this type of bill of lading is acceptable.

       

      A FIATA or other freight forwarder's combined transport bill of lading can be used in the place of a forwarder's house bill of lading. This is recognized by the ICC and according to UCP (1993 revision), will be accepted by banks in letter of credit transactions. (FIATA translated from French, stands for International Federation of Freight Forwarders Associations.)

       

   7. Mate's receipt: Associated with the bill of lading in respect of break-bulk consignments, is the mate's receipt. When goods are loaded on board, they are inspected by tally clerks who record the date of loading, number of individual packs etc and note any defect or comment about the condition in which the goods are received. On completion of loading, the ships officer signs the mate's receipt based on the note of the tally clerks. If there are adverse observations, the mate's receipt is qualified and is said to be claused or unclean. If there are no adverse observations, the mate's receipt is termed clean. The qualifications of the mate's receipt are later embodied in the bill of lading which in turn is also claused clean or unclean. A signed copy of the mate's receipt is given to the shipper/freight forwarder once the goods have been loaded on board ship, in exchange for the original bill of lading. The full particulars of all bills of lading are entered on the ship's manifest which contains the details of total cargo carried by the ship and is a requirement of naval, port, customs and on occasion, consular authorities.

       

   8. Non-negotiable liner waybill: Containerization increased the speed with which cargo was transported and goods tended to arrive before the importer received the bill of lading required to take delivery of the goods. As a result, certain shipping lines introduced an alternative to the bill of lading, the non-negotiable liner waybill. This document provides for the automatic delivery of cargo to a named consignee. In contrast, the bill of lading document must reach the destination of the goods and be surrendered to the carrier before delivery can be authorized.

       

      NOTE: The non-negotiable liner waybill is not a document of title and must be made out to the consignee. It acts only as a receipt for the cargo and as evidence of the contract of carriage.

    

2. Air waybill: This transport document serves as:

    

   	documentary evidence of the conclusion of a contract of carriage
   	proof of receipt of the goods for shipment
   	an invoice for the freight
   	a certificate of insurance
   	guide to airline staff for the handling, dispatch and delivery of the consignment.

   The document consists of three originals and nine copies and is only issued in a non-negotiable form. The first original is intended for the carrier and is signed by the shipper; the second original, the consignee's copy, is signed by the shipper and accompanies the goods; the third original is signed by the carrier and is handed to the shipper as a receipt for the goods after they have been accepted for carriage. The copies are dispatched by the airline authorities as required to on-carriers, airport authorities, etc or they serve as delivery receipts, invoices etc. The standard IATA air waybill applies to the carriage of goods over any distance and by as many airlines as are required to convey the goods to their final destination.

    

   The air waybill is a fairly complex document and is seldom completed by the exporter. The services of an airfreight forwarder are usually engaged for this purpose and clear instructions should be provided by the shipper noting any specific requirements if the transaction is under a letter of credit. Most airlines and forwarders have a standardized form for this purpose, the shipper's letter of instruction.

    

   With the recent development of Electronic Data Interchange (EDI), it is now possible for documents to reach the consignee before the goods have even left the exporter's premises. This enables the consignee of air freighted goods to prepare customs clearance documentation in advance of the goods' arrival and consequently avoids incurring storage charges at the airport of destination.

    

3. Rail waybills:

    

   Spoor net Combined Consignment Note and Truck Label (c.c.t.): This is the official transport document in respect of carriage of bulk cargo by rail. The c.c.t. consists of two stick-on labels and two identical tear-off pages which constitute copies for the exporter and Spoornet respectively.

    

   Spoornet Freight Transit Order (f.t.o.): This is the official transport document in respect of carriage of containers by rail. The f.t.o. consists of five identical tear-off pages comprising a pricing copy, a checking copy, a receiver's copy, a delivery note and a sender's receipt.

    

   The c.c.t. and f.t.o. documents apply to transport within the borders of South Africa and serve both as evidence of the contract of carriage and as a receipt of goods. Unlike air or sea transport documents, the Spoornet documents do not incorporate comprehensive conditions of carriage. The provisions contained in the Spoornet tariff book form part of the carriage contract and transportation is offered at 'railway's risk' or at 'owner's risk', according to the particular circumstances of the transaction. Exporters should therefore ensure that the relevant conditions are carefully noted.

    

4. Road waybill

    

   There is no standard transport document for road haulage. Road haulers usually design their own waybills which serve as evidence of a contract of carriage and as receipts for consignment of goods.

Insurance Documents

Marine insurance policy document

Certificate of insurance

See sections Credit Insurance and Marine Insurance for detailed information.

Customs Documents

The Department of Customs and Excise requires the following documents to clear imports:

Bill of Lading/Air Waybill/ Road Haulers Certificate

Commercial Invoice

Customs Worksheet

Bill of Entry (DA500)

A certificate of origin (DA59) is required for imports of certain strategic commodities or imports of goods involved in anti-dumping charges (e.g.: shoes from Hong Kong, T-shirts from China)

Payment Documents

Transport documents

Marine insurance documents

Draft (bill of exchange)

Pro-forma invoice Inspection certificates

Commercial invoice (c/i): This should be virtually the same as the pro-forma invoice and should contain all the final and accurate details relating to a particular order. The import licence number and the l/c number should all be stated on the commercial invoice. Also the price and the delivery term should be consistent with the sales contract. The commercial invoice need not be signed unless a signature is specifically called for in the l/c.

Certificate of origin (c/o) if it is a required document

Packing declaration: The packing list indicates the number of packs involved, the contents of each pack and the individual weights, dimensions and HS numbers. This list enables the customer to check that the correct number of units has been received. Customs authorities can also easily identify a specific pack they wish to inspect.

Specific South African Documentary Requirements

Examples of South documentation that may be required depending on the product being imported include:

Import permits: Import permits are required for certain goods and commodities as specified in Schedule 1 of the Import Control Regulations Act. Permits are obtainable from the controlling authority, which includes:

	Department of Agriculture
	Department of Water Affairs
	Department of Sea Fisheries
	Department of Trade and Industry
	Department of Mineral and Energy Affairs
	Department of Health

Phytosanitary certificate: South Africa requires these certificates for imports of plant and plant products e.g. seeds, bulbs, cut flowers, etc. The Ministry/Department of Agriculture in the country of origin usually issues Phytosanitary certificates. A copy of the import permit should be forwarded to the exporter as conditions regarding the importation of plants are stipulated in the permit.

Veterinary health certificates: These are usually required for imports of live animals, fresh, chilled and frozen meat and certain canned products, in order to control the spread of animal diseases. A copy of the import permit specifying the conditions of importation will be required in order to obtain the certificate. South Africa has many agreements with many countries regarding the conditions under which food products must be traded, for example, meat may only be imported from approved abattoirs in certain countries.

Fumigation certificate: This document is required as proof that the packing materials e.g. wooden crates, wood, wool etc), second-hand clothing or certain commodities have been fumigated or sterilized. Certificates are issued by specialists and contain details such as purpose of treatment, articles concerned, temperature range used, chemicals and concentration used etc.

It is important that shipments be packed in cases or crates that are free of insect or fungus infestation. If these requirements have not been met the consignee may be required to apply treatment to the wood at his own expense in a manner indicated by the authorities.

The South African regulations in this regard stipulate that No person shall introduce into the Republic any hay, straw, flax combings, palm packing fibre, or brown coconut fibre, used for the packing of merchandise unless (a) it is kept in bond at the port of entry for four months from the date of shipment; or (b) it is accompanied by a certificate signed by an official authorized by the government of the country of origin, stating that the hay or straw:

(1)		Has been kept in store free from contact with any animal likely to be affected with foot and mouth disease, contagious bovine pleuropneumonia, sheep-pox or rinderpest for a period of four months immediately prior to its use; or
(2)		has been subjected to the action of live steam in a closed compartment at a temperature of 185 degrees F for at least ten minutes; or has been placed loosely in a closed compartment and
(3)		sprayed with formaldehyde solution; or
(4)		Subject to the action of heat in the presence of moisture.

Inspection certificate: Although South Africa does not require pre-shipment inspection on imports, certain importers, particularly those in the food sector, will stipulate a clean report of finding from a well-known inspection company when purchasing from a new supplier. The requirement generally falls away once a relationship has been established.

Quality certificate: May be a required document in respect of imports of fruit, vegetables and processed fruit and vegetable products. Inspection is carried out prior to export.

South African Bureau of Standards: The South African Bureau of Standards maintains certain compulsory standard specification on specific products or groups of products. For example Under the Standards Act of 1993, compulsory standards are maintained and inspection is compulsory for the importation of: -

	canned fish, canned fish products and canned marine molluscs
	canned crustaceans
	canned meat products
	frozen fish, frozen marine molluscs and frozen fish and frozen marine mollusc products
	frozen rock lobster products
	frozen shrimps (prawns), langoustines and crabs
	smoked snoek

All imports falling into these categories require inspection by the Port Health Officer at the port of entry into South Africa. With specific regard to canned products, the SABS prefers exporters to work through local agents. A potential exporter can provide the SABS with samples of each product intended for export to South Africa, the SABS will submit a written report on the suitability of the product.

There are numerous other documentary requirements depending on the product concerned, and the importer and exporter should always conduct a thorough investigation into the documentary requirements before shipping consignments.

Dangerous Goods Documentary Requirements

There are a number of special shipping instruction forms and transport documents that are required in respect of dangerous goods. Special documentation is usually required for all shipments of dangerous goods, regardless of the mode of transport used. Dangerous goods documents are normally characterized by red chevrons framing them.

All goods declared for consumption must be landed and entered within 7 days after the arrival of the importing ship or within such additional time as the Secretary for Customs may allow. Failure to do so will result in them being conveyed to a custom warehouse. If the goods are not properly entered and all duties and charges are not paid within 3 months after the goods have been placed in a customs warehouse, they may be sold at public auction.

Goods may be stored in bond, without payment of duties, in any bonded warehouse or in an unbonded warehouse approved by the Secretary for Customs. State warehouses are also available.

Irrespective of the mode of transport used when importing goods, the importer or his freight forwarder is required to present the following documents to the customs authorities:

Bill of entry: Goods may not be imported into South Africa unless a bill of entry is submitted to and accepted by the customs authorities. An original of the form, a DA500 is required by Customs.

Customs Worksheet: This is a customs document which details rates of exchange and conversion of rates of the foreign currency amounts into South African Rands.

Commercial invoice: The commercial invoice must be presented to customs with the bill of entry as well as relevant transport documents to be stamped by customs. This enables customs to check the validity of the value of a consignment of goods as stated in the DA500.

Import permit (if necessary): This document is required for certain goods and commodities only in terms of import control regulations. If an import permit is required, the import permits number and the expiry date should appear on the DA500.

Special import certificates or permits: Apart from those goods requiring an import permit, a number of products are subject to inspection and/or to the issue of special permits by certain authorities prior to the goods being imported.

Transport documents: i.e. the Bill of Lading (sea), the air waybill (air), the freight transit order (rail), and the road 'waybill'.

If all documentation is in order, the documents will be stamped by customs and excise and, once the import duties, excise duties (if applicable), and VAT have been paid, the goods will be cleared through customs.

Certificate of Origin (DA59): Certain strategic commodities and goods facing anti-dumping charges require a certificate of origin. Goods claiming preferential treatment in respect of tariffs also require proof of origin.

When goods are seafreighted, customs clearance is performed at the port of entry or in the case of cargo destined for the inland province of Gauteng, at the Customs Depot in Johannesburg.

When goods are being airfreighted, customs clearance is performed at:

Johannesburg or Cape Town International Airport, if an international airline is being used

Lanseria Airport in the case of small consignments from, for example Zambia, DRC, etc.

BLNS Countries: As the BLNS countries (Botswana, Lesotho, Namibia and Swaziland) form part of the Southern African Customs Union, goods imported from the BLNS states do not require a Bill of Entry and no customs duties are payable. VAT is payable at the point of entry into South Africa on goods originating in BLNS states.

South Africa applies the ATA Carnet system for the entry of commercial samples, advertising material and professional equipment. Note that while goods imported on a temporary basis for subsequent re-export are exempt from import control, ATA carnets cannot confer immunity from other conditions of temporary importation. Persons importing under cover of a carnet should ensure that the goods are adequately marked for identification purposes so as to facilitate their passage through customs.

The purpose of the ATA Carnet

'ATA' is an acronym of the French and English words 'Admission Temporaire/Temporary Admission'. The ATA Carnet is an internationally recognised and accepted uniform Customs document to allow for the temporary importation of goods, whether accompanied or not, into a member country without the need to raise Customs bonds, payments of duty and the fulfilment of other Customs formalities in one or a number of foreign countries. ATA Carnets are issued by affiliates of the International Bureau of Chambers of Commerce (IBCC) in Paris, France. The ATA Carnet system is used by 51 authorised Chambers of Commerce worldwide.

The ATA Carnet System

The ATA Carnet System was drawn up by the Brussels based Customs Cooperation Council (CCC), now known as the World Customs Organisation (WCO), with the assistance of the ICC's International Bureau of Chambers of Commerce (IBCC) and is subject to International Conventions which govern the requirements for the temporary duty-free admission of a reasonable number of goods from participating countries. These international conventions are as follows:

GATT Convention on Samples (1952)

Fairs and Exhibitions Convention of the World Customs Organisation (WCO)(1961)

Professional Equipment Convention of the World Customs Organisation (WCO)(1961)

The advantages of using the ATA Carnet system

The ATA Carnet system eliminates the need for a Customs declaration, as the ATA Carnet system gives instant recognition and acceptability by foreign Customs Officials at border points thus avoiding the necessity for a deposit or guarantee by the forwarder and exporter to the foreign country of temporary importation. It permits commercial or professional travellers to make Customs arrangements in advance locally, quickly and at a predetermined cost.

It enables travellers the use of a single ATA Carnet for goods accompanied or unaccompanied to visit an unlimited number of countries which will pass through several Customs authorities during the course of one trip.

Users of the ATA Carnet document

Companies and individuals may apply for a Carnet.

Travelling business/sales executives

Technicians

Fair exhibitors

Professional individuals and teams: film crews, surgeons, architects, artists, educationalists, entertainers and engineers.

Items covered by the ATA Carnet system

Commercial samples and advertising film (16mm)

Goods for international exhibition

Professional equipment which includes: Articles for meetings for a charitable purpose, or to promote any branch of learning: art, craft, sport, religion, etc.; equipment for the press; also sound and television broadcasting equipment, musical instruments, costumes, and other stage properties, cinematographic equipment, professional equipment for testing machinery etc.; equipment for use by surgeons, archaeologists, zoologists, entertainers, lecturers, etc. and vehicles by professional bodies/international racing - this excludes all private individuals, private companies, agents for new or used vehicles.

Note: While the ATA carnets will be issued in the exporters home country, it is the obligation of the holder of the ATA to comply with South Africa laws and regulations of importation. Goods intended for processing or repair shall not be imported under cover of ATA carnets.

Goods excluded from the ATA Carnet system

Perishable goods and items such as paint, cleaning materials, food, oils, leaflets and brochures, which are considered "consumable items" and intended to be given away, disposed of, or utilised abroad, are excluded from the system as they would not ordinarily be re-exported.

Also excluded from the ATA Carnet system are the following:

Goods intended for processing or repair;

Items already sold or offered for sale. Such items are not considered samples;

Unmounted gems or gemstones;

Theatrical make-up;

Alcoholic beverages, tobacco, fuels and foodstuffs etc.;

Postal traffic; and

Livestock.

Conditions to be observed by the ATA Carnet holder

Goods imported under an ATA Carnet should not be sold. Such goods must be re-exported by the ATA Carnet holder within the period approved for their temporary admission by the foreign Customs. It is therefore, particularly important to obtain the correct Customs verification of entry and exit from each country visited. Failure to do so may well lead to Customs duty and penalty or tax being imposed.

Note: The use of the ATA Carnet does not absolve the holder from observing the Customs regulations of the countries that participate in the ATA Carnet system. For example, in certain circumstances an import license may also be required.

Validity period of ATA Carnets and liability of ATA Carnets holders

The ATA Carnet is a temporary importation document and the holder must comply with the Customs regulations of the country into which the goods are being imported. Exporters must take careful note of the authorised period of temporary importation allowed by Customs upon entry, as this may differ. It is usually 12 months for commercial samples, 6 months for exhibition goods and professional equipment, but sometimes only a few hours or days for goods in transit through a country. If the stipulated period for temporary admission is exceeded, duties and penalty charges will be payable even though proof of eventual re-exportation is provided. Any such charges incurred will be the liability of the ATA Carnet holder.

It is also important to bear in mind that if any goods covered by an ATA Carnet are destroyed, lost or stolen whilst in a foreign country, they will automatically become liable for Customs duty. This will be the liability of the ATA Carnet holder. In addition, the Carnet holder will also be responsible to the Chamber for any costs that the Chamber may incur in meeting its obligation as guarantor.

If the ATA Carnet itself is destroyed, lost or stolen, a similar situation could well arise. In this event the ATA Carnet holder should immediately notify the local police and/or customs of the mishap and obtain a covering statement from them. An application for a new ATA Carnet is then required.

The guarantee period

The primary purpose of the ATA Carnet is to give an acceptable guarantee to the Customs authorities of a foreign country into which the goods are temporarily imported, that all duties and taxes will be paid to them if the conditions under which they allow these goods into their country, are breached. The Chambers of Commerce participating in the ATA Carnet system provide this guarantee to the Customs authorities. It follows, therefore that the issuing Chamber must in turn receive equivalent security from the ATA Carnet holder. The 31-month guarantee period is essential, as this is the period during which the Chamber itself remains liable. There is of course no need for the security to be given 'at risk', throughout this period. If an ATA Carnet is used for four weeks and is returned to the Chamber without delay and found to be in order, a 'conditional discharge', may be given at the Chambers discretion and the deposit/guarantee will be returned within a shorter time.