A Shipper’s Letter of Instruction (SLI) is a vital document in the field of international trade and shipping. It serves as a comprehensive guide provided by the exporter (shipper) to their freight forwarder. The SLI contains detailed instructions on how the goods should be handled, transported, and delivered to the final destination. It essentially communicates the exporter’s specific requirements and ensures that the forwarding process aligns with legal and safety standards.

Purpose of the SLI:

Instructions for Handling: The SLI provides explicit instructions on how to handle, package, and ship the goods. This includes specifications on routing, picking, packing, labeling, and delivery.
Documentation Guidance: It guides the freight forwarder on what documents are required for the shipment, such as commercial invoices, packing lists, bills of lading, certificates of origin, and other necessary export or import documents.
Compliance with Regulations: The SLI helps ensure compliance with both the exporting and importing countries’ regulations. It includes instructions regarding the necessary customs procedures, which aids in avoiding delays and penalties.
Insurance and Liability: It can specify details regarding insurance coverage and liability in case of loss or damage during transportation.
Emergency Contact Information: The SLI usually contains contact information for use in case of emergencies during the transit of goods.

Components of an SLI:

Exporter and Consignee Information: Details about the shipper and the recipient of the goods.
Carrier Information: Information about the selected carrier or freight forwarder.
Type and Quantity of Goods: Detailed descriptions of the items being shipped, including HS codes and any hazardous material information if applicable.
Shipping and Delivery Instructions: Preferred shipping method, route, and delivery timelines.
Insurance Instructions: Instructions regarding whether the freight should be insured, and if so, to what value and against what risks.
Customs Handling: Instructions for handling customs clearance, including documents required for the process.
Special Instructions: Any other specific requirements or instructions related to the shipment.

Importance of SLI:

The SLI plays a crucial role in international shipping by ensuring that all parties involved have clear, written instructions that minimize the risk of miscommunication. It facilitates the smooth operation of exporting goods, from handling and documentation to compliance and delivery. Additionally, it serves as a reference for resolving any disputes that may arise during the shipment process.

In summary, the Shipper’s Letter of Instruction is an essential document that guides the entire process of shipping goods internationally. It helps to streamline operations, ensure compliance with international trade regulations, and provides a clear communication channel between the exporter and the freight forwarder.

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Logistics 101 | Shipper’s Letter of Instruction in International Trade | FreightAmigo