Two things decide how smoothly a raw-material import goes: the documents that travel with the goods, and the Incoterm that sets who pays for and is responsible for each part of the journey. Agree both in the offer, before the order.
Product documents
- TDS (technical data sheet): the producer’s typical properties for the grade. Use it to check the grade suits your process.
- SDS (safety data sheet): hazards, handling, storage and transport information. Needed for customs and for your plant.
- COA (certificate of analysis): measured values for the actual lot shipped. This is the document to check against your specification on arrival.
Shipping and trade documents
- Commercial invoice and packing list: what was sold, quantities, weights and packages.
- Bill of lading: the carrier’s receipt and, in its original form, the document of title to the goods.
- Certificate of origin: proves where the goods were made; it can affect the import duty you pay.
- Other documents your country may require, such as import licences or registration.
Common Incoterms (2020)
- FOB (named port of shipment): the seller loads the goods on the vessel; you arrange and pay for sea freight and insurance.
- CFR (named port of destination): the seller pays sea freight to your port; risk passes to you when the goods are loaded at origin.
- CIF: as CFR, plus the seller buys minimum marine insurance for you.
- DAP (named place): the seller delivers to your named place, ready for unloading; you pay import duties and taxes.
Under CFR and CIF, risk moves to the buyer at loading even though the seller pays the freight. Check the insurance level, and add cover if the minimum is not enough.
Payment and timing
Payment terms (for example advance payment, payment against documents, or a letter of credit) and the shipment period should be written in the offer, together with the Incoterm and the named port.
What to send for a quote
- Product, grade or specification, and quantity
- Destination port or delivery place, and the Incoterm you prefer
- Documents your customs and plant require
- Preferred payment terms and shipment period