The Crucial Role of the Shipper’s Letter of Instruction
Posted: Wed Feb 12, 2025 3:32 am
Since SLI lists the shipping terms, it enables the transport company to issue a bill of lading (BOL) or an airway bill (AWB). It’s done on the behalf of the exporter. The SLI also contains important information for the carrier. This information enables the carrier to effectively load, handle, store, and unload the shipment. In the end, it prevents any physical damage to the products.
SLI also enables logistics partners to file Electronic Export Information (EEI) and send it to the Automated Export System (AES), facilitating export control.
All exports require the shipper’s letter of instruction. However, it’s not a legally binding or mandatory requirement. Its requirements can vary from one country to another based on foreign trade regulations and other dominican republic phone number list factors. It enables freight forwarders and exporter’s agents to act as authorised agents of the shipment. If there are any queries or actions required regarding customs, insurance, and post carriers, they are communicated directly to the freight forwarder. Eventually, the freight forwarder becomes responsible for the shipment when it’s in transit from the country of origin to its final destination.
Delegating authority to the exporter’s agent or the freight forwarder to act on behalf of the exporter is one of the most important roles of the shipper’s letter of instruction. Unless the logistics partner has the SLI, they will not be aware of the shipment details. It will lead to challenges during the customs process, delaying the shipment.
Structure and Layout of Shipper’s Letter of Instruction
The original format of the SLI enabled exporters to list all transportation instructions to the freight forwarder. However, some exporters add further instructions on special delivery location (SDL) to the freight forwarder. Here’s the layout and structure of the traditional SLI:
Name, address, and exporter identification number (EIN) of the exporter
Validated export license number
Details of handling and packaging requirements of the shipment
Point of origin and the final destination of the shipment
Detailed descriptions of the goods, including quantity, value, and weight
It also contains details of the following parties:
Forwarding agent: They are responsible for handling and organising the shipment and related processes on the exporter’s behalf.
Inland carrier: It’s a transportation line that’s responsible for carrying the shipment between inland points and ports.
Intermediate consignee: They act as an agent responsible for delivering the shipment to the importer or customer.
Ultimate consignee: In simple terms, they are the customer or the end-user of the product.
SLI also enables logistics partners to file Electronic Export Information (EEI) and send it to the Automated Export System (AES), facilitating export control.
All exports require the shipper’s letter of instruction. However, it’s not a legally binding or mandatory requirement. Its requirements can vary from one country to another based on foreign trade regulations and other dominican republic phone number list factors. It enables freight forwarders and exporter’s agents to act as authorised agents of the shipment. If there are any queries or actions required regarding customs, insurance, and post carriers, they are communicated directly to the freight forwarder. Eventually, the freight forwarder becomes responsible for the shipment when it’s in transit from the country of origin to its final destination.
Delegating authority to the exporter’s agent or the freight forwarder to act on behalf of the exporter is one of the most important roles of the shipper’s letter of instruction. Unless the logistics partner has the SLI, they will not be aware of the shipment details. It will lead to challenges during the customs process, delaying the shipment.
Structure and Layout of Shipper’s Letter of Instruction
The original format of the SLI enabled exporters to list all transportation instructions to the freight forwarder. However, some exporters add further instructions on special delivery location (SDL) to the freight forwarder. Here’s the layout and structure of the traditional SLI:
Name, address, and exporter identification number (EIN) of the exporter
Validated export license number
Details of handling and packaging requirements of the shipment
Point of origin and the final destination of the shipment
Detailed descriptions of the goods, including quantity, value, and weight
It also contains details of the following parties:
Forwarding agent: They are responsible for handling and organising the shipment and related processes on the exporter’s behalf.
Inland carrier: It’s a transportation line that’s responsible for carrying the shipment between inland points and ports.
Intermediate consignee: They act as an agent responsible for delivering the shipment to the importer or customer.
Ultimate consignee: In simple terms, they are the customer or the end-user of the product.