United States Department of Agriculture Agricultural Export Agricultural Marketing Service Transportation Agriculture Handbook 700 Handbook United States Department of Agriculture Agricultural Export Agricultural Marketing Service Transportation Handbook by Ellen M. Welby and Brian McGregor Transportation Services Branch Transportation and Marketing Programs Agricultural Marketing Service Web site: http://www.ams.usda.gov/tmd/export/index.htm Revised February 2004 Acknowledgments The authors are grateful to Robert Neenan and Kate Healey, formerly of AMS, Transportation and Marketing Programs; Mary E. Lassanyi, U.S. Department of Agriculture (USDA), Agricultural Research Service, National Agricultural Library; David Enberg, J.E. Lowden & Co.; Karen Lowe, Firstar Bank; and Oscar A. Lopez, Overseas Shipping Company. The authors acknowledge the Agriculture Ocean Transportation Coalition, Air Transport Association of America, Bureau of the Census, Marine Office of America Corp., Maersk Sealand, Inc., U.S. Department of Transportation, and USDA’s Foreign Agricultural Service and Animal and Plant Health Inspection Service for their assistance. This handbook provides a compilation of best industry practices, and its recommendations have been shown to be effective under normal conditions. Mention of companies or commercial products does not imply recommendation or endorsement by the U.S. Department of Agriculture over others not mentioned. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alterna- tive means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer. Contents Subject Page Introduction . .1 Overview . .2 Price Quotation . .6 Freight Forwarding . .7 International Freight Forwarder . .7 Non-Vessel Operating Common Carrier . .8 Shippers’ Association . .8 Customs Broker . .8 Ocean and Air Transportation . .9 Ocean Cargo . .9 Air Cargo . .12 Transport Documentation . .16 Pro Forma Invoice . .16 Commercial Invoice . .17 Inspection Certificates . .17 Weight Certification . .18 Packing List . .19 Shipper’s Letter of Instruction . .20 Dock Receipt . .20 Certificate of Origin . .20 Consular Invoice . .20 Insurance Certificate . .20 Automated Export System. .20 Bill of Lading. .22 Air Waybill . .22 Sample Transport Documents . .23 Methods of Payment . .40 Cash in Advance . .40 Commercial Letters of Credit . .40 Standby Letter of Credit . .41 Documentary Collection . .42 Open Account . .42 Mixed Methods . .42 Additional Methods of Payment . .42 Currency of Payment . .43 Insurance . .50 Cargo Insurance . .50 Coverage . .50 Filing a Claim . .51 iii Subject Page Maintaining Product Quality During Transportation . .53 Effective Packaging and Labeling . .53 Stacking . .55 Packing Methods . .55 Standardization. .56 Unit Loads . .57 Pallets . .57 Slipsheets . .57 Labeling and Branding . ..