Who Uses the Shipper’s Letter of Instruction?
A freight forwarder is the primary utilizer of the Shipper’s Letter of Instruction (SLI). The SLI, an essential export document in the U.S., is generally completed by the exporter and then given to their freight forwarder. The SLI is crucial for both ocean and sli air shipping, ensuring that all vital instructions are provided for the shipment.
What Should an SLI Include?
To standardize the data required for regulatory and transportation compliance, the National Customs Broker and Freight Forwarders Association of America (NCBFAA) launched a model Shipping Letter of Instruction (SLI) in 2014. While not compulsory, this format seeks to ensure consistency in the information provided by exporters to forwarders. Fields like those in the SLI are required to authorize forwarders to transmit Electronic Export Information (EEI) to the Automated Export System (AES) on behalf of the shipper.
Shipper’s Letter of Instruction Format
The traditional Shipper’s Letter of Instruction (SLI) is sent by exporters to convey transportation instructions to their freight forwarders. Here’s a typical format:
- Exporter’s name, address, and EIN (Exporter Identification Number)
- Shipment’s starting point and destination
- Packaging and handling details
- Commodity descriptions: quantity, weight, and value
- Information on the following parties:
- Ultimate consignee: the end user or customer
- Intermediate consignee: the agent delivering products to the importer or customer
- Forwarding agent: organizes and handles the shipment for the exporter
- Inland carrier: transports the shipment between ports and inland locations
- Validated license number: export license number
Understanding the SLI meaning in shipping helps ensure accurate and comprehensive shipment documentation.
How to Fill a Shipper’s Letter of Instruction?
An exporter fills out the Shipper’s Letter of Instruction (SLI) once a logistics partner has been selected. The Shipping SLI should include the following:
- Recipient and Forwarder Details: Accurate and current information about both the exporter (shipper) and importer (consignee) of the shipment.
- Reporting Party: If a specific logistics partner is used by both the shipper and recipient, include their details in this section of the shipping SLI document.
- Departure and Arrival: Specify the port of destination along with the logistics partner’s proposal and transit details.
- Special Instructions: Attach specific instructions, such as:
- Non-bulk cargo
- Specific transportation methods required
- Compliance with special instructions
Once exporters fill the SLI correctly, they ensure a trouble free and efficient transportation process.