In our last post sponsored by Gemini Global Express, we have explained the functions and roles of a licensed clearing agent. We assume you have understood how to import and export into and out of Kenya. Away from your research, chit-chatting, the travel, and all the marketing and sales stuff, now is your turn to know about the key documents you need for clearing cargo at the port.
Generally, these documents conform to international standards of shipping, although every country has some additional procedures and permits. The list is not exhaustive but it is a generous compilation of the most fundamental documents used here in Kenya.
- Proforma Invoice
In a typical import or export sale, everything starts when you would like to enquire about certain products of your interest. In domestic enquires you will receive an ordinary quotation, however, in international transactions, your quote would be provided as a proforma invoice.
A proforma invoice is required to arrange for financing, to open a letter of credit, to apply for appropriate import licenses, and much more. A proforma invoice looks a lot like a commercial invoice. It specifies the buyer and seller in this transaction, a detailed description of the goods, the price, the terms of sale, the currency and some delivery details.
- Import Declaration Form (IDF)
If you are importing into Kenya, IDF is a must-have document. An IDF must be applied for and obtained from the Kenya Revenue Authority for any commercial importation. The importer is responsible for applying for IDF but must use a clearing and forwarding agent to consult or input this into the KRA system.
Once the IDF is passed, the importer through the shipper may proceed to arrange inspection of the cargo and once completed ship the cargo. An IDF contains key information such as value of the cargo for tax calculation, quantity, commercial description of goods, harmonized goods code among other important details.
- Certificate of Conformity (if applicable)
Certificate of Conformity, COC as is commonly referred to in clearing and forwarding parlance, is a key document that protects the quality of goods imported into the country. The Kenya Bureau of Standards has appointed certain agents (INTERTEK, SGS, and Bureau Veritas, etc) for quality inspection of imports.
These agents will issue to the shipper or the supplier a Certificate of Conformity and the test results. It is important to plan ahead for this requirement especially for time-critical shipments as testing and issuing of the certificate can take some time.
Find here a list of KEBs agents dealing with COC.
- Commercial Invoice
Once you have received your proforma invoice, confirmed your order and paid for the goods, your supplier will prepare the goods for shipping, including the paperwork that must accompany the goods. Of those documents is the commercial invoice which is one of the most important and final documents.
The commercial invoice includes most of the details of the entire transaction, from start to finish. It may look similar to the proforma invoice, although it should include additional details you didn’t know before. For example, once you have the commercial invoice, you probably have an order number, purchase order number, or some other customer reference number; you may also have additional banking and payment information.
- Packing List
An import or export packing list may be more detailed than a packing list or packing slip you provide for your domestic deliveries. Your clearing and forwarding agent may use the information on the packing list to create the bills of lading for the shipment.
The packing list shows how the goods have been packaged, showing the quantity and the weight of goods, plus extra details such as container number. Customs officials may use the packing list to identify the location of certain packed items they want to examine. It’s much better that they know which box to open or pallet to unwrap rather than have them search the entire shipment.
- Bill of Lading
A bill of lading (BL or BoL) is a legal document issued by a carrier (shipping line or airline) to a shipper that details the type, quantity and destination of the goods being carried. A bill of lading also serves as a shipment receipt when the carrier delivers the goods at a predetermined destination.
This document must accompany the shipped products (especially in air cargo) and must be signed by an authorized representative from the carrier, shipper and receiver. It further shows more details of the shipment, nature of cargo, the net weight, the gross weight and the quantity of packages. When issuing the bill of lading, the shipping line indicates the consignee and the consignor, with full postal and physical addresses.
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This information is brought to you by Gemini Global Express, a licensed clearing and forwarding agent in Kenya. For more details contact them on info@geminiglobal.co.ke or call on 0705 20 36 36
