What is a Shippers Letter of Instruction (SLI)?
A Shippers Letter of Instruction (SLI) is a document that is used in the shipping industry to provide instructions to a freight forwarder and/or carrier regarding the preparation and shipment of goods. It contains details such as description of goods, quantity, packaging, pick-up and delivery addresses, loading and unloading instructions, and so on. The purpose of an SLI is to ensure that the shipment is handled according to the shippers instructions and specifications.
Definition
A Shippers Letter of Instruction (SLI) is a document that is used in the shipping industry to provide instructions to a freight forwarder and/or carrier regarding the preparation and shipment of goods. It contains details such as description of goods, quantity, packaging, pick-up and delivery addresses, loading and unloading instructions, and so on. The SLI is a critical communication tool that ensures the smooth and efficient handling of the shipment process.
Purpose
The primary purpose of an SLI is to ensure that the shipment is handled according to the shipper’s instructions and specifications. It serves as a comprehensive guide for the freight forwarder and carrier, outlining all the necessary details for a successful shipment. This includes everything from the type of goods being shipped and their packaging to the delivery address and any special handling requirements.
Key Information
An SLI typically includes essential information about the shipment, such as the shipper’s name and contact details, the consignee’s name and address, the description of the goods being shipped, the quantity and packaging, the mode of transport, the port of origin and destination, and any special instructions for handling or storage. The SLI also often includes details about the shipping documents required, such as the bill of lading or the export declaration.
The Importance of an SLI
An SLI acts as a vital reference point throughout the shipping process, ensuring smooth and accurate handling of the goods.
Reference Point
The SLI serves as a comprehensive guide for all parties involved in the shipment, from the exporter to the freight forwarder and the carrier. It outlines all necessary details, ensuring everyone is on the same page regarding the shipment’s specifics. This eliminates confusion and potential errors that could arise from conflicting information or lack of clarity. By providing a clear and concise reference point, the SLI streamlines the shipping process and minimizes any potential delays or complications.
Accuracy is Crucial
The SLI is a critical document that impacts the smooth flow of goods. Inaccurate information can lead to significant problems, such as delays in delivery, incorrect customs declarations, and even the rejection of the shipment at the destination. To avoid these issues, it is essential to ensure that all details on the SLI are accurate and complete. This includes the description of goods, packaging details, shipping address, and any specific instructions for handling the shipment.
Filling Out an SLI
Completing an SLI accurately is essential for a smooth and efficient shipping process.
Essential Information
The SLI should include details like the shipper’s and consignee’s information, the goods being shipped (description, quantity, weight, and dimensions), the desired mode of transport, and the intended port of departure and arrival.
It’s crucial to specify the packaging type and any special handling requirements, such as temperature control or fragile goods handling.
Template Structure
A typical SLI template will include sections for identifying the shipper and consignee, details about the goods, shipping instructions (including mode of transport, port of departure and arrival, and special handling requirements), and the exporter’s authorization for the freight forwarder to act as the authorized forwarding agent for U.S. export control and customs.
The template might also include spaces for additional notes or specific instructions.
Available Templates
Numerous free and paid SLI templates are readily available online. Many websites offer downloadable templates, often in customizable formats like Word or Excel. Some industry organizations like the National Customs Brokers & Forwarders Association of America (NCBFAA) also provide SLI templates tailored to meet specific regulatory requirements. These templates can serve as a starting point for creating accurate and compliant SLIs.
SLI and Export Regulations
The SLI plays a crucial role in adhering to export control and customs regulations, ensuring compliance with U.S. export laws.
Export Control and Customs
The SLI serves as a vital document for complying with export control and customs regulations. It provides essential information to the freight forwarder, enabling them to act as the authorized forwarding agent for U.S. export control and customs. The SLI outlines the details of the shipment, allowing for proper documentation and clearance through customs. By accurately completing the SLI, exporters ensure compliance with applicable laws and regulations, facilitating smooth and efficient export processes.
Electronic Export Information (EEI)
The SLI often includes instructions related to the Electronic Export Information (EEI), which is a mandatory electronic filing required for most U.S. exports. Exporters may delegate the responsibility of filing the EEI to their freight forwarder through the SLI. The SLI details the information required for EEI filing, such as the export declaration number, consignee details, and shipment description. This ensures the accurate and timely submission of EEI, crucial for complying with U.S. export regulations.
Consequences of Late Filing
Late filing of an SLI can lead to penalties, delays, and even shipment cancellation.
Penalties
The penalty for late filing of a Shippers Letter of Instruction (SLI) varies depending on the shipping company and the specific circumstances. Generally, the penalty may include additional fees, delayed delivery, or even the cancellation of the shipment. In some cases, the shipper may also be subject to fines or other penalties from the government.
Impact on Shipment
Late filing of an SLI can have a significant impact on the shipment. It can cause delays in the loading, unloading, and transportation of goods. This can lead to missed deadlines, increased costs, and damage to the goods. In some cases, late filing can even result in the shipment being rejected by customs officials.
Who Uses an SLI?
The Shippers Letter of Instruction is completed by the exporter in advance and is sent to the freight forwarder with the other export paperwork.
Exporters
Exporters often prepare a Shippers Letter of Instruction (SLI) that provides shipping instructions to their freight forwarders. In cases where they don’t do their own AES filing, the SLI can also give forwarders authority to submit the electronic export information (EEI) through AESDirect. Exporters use a Shippers Letter of Instruction (SLI) to provide shipping instructions to their freight forwarders. It’s a letter that tells your agent/forwarder how and where they need to send your products.
Freight Forwarders
Freight forwarders rely heavily on SLIs to understand the specific requirements of each shipment. They use the information contained in the SLI to plan the logistics of the shipment, including booking transportation, arranging for customs clearance, and ensuring the goods are handled properly. The SLI serves as a crucial communication tool between the exporter and the freight forwarder, ensuring that both parties are on the same page and that the shipment is handled efficiently and effectively.
Where to Find SLI Templates
Several resources offer free SLI templates, including online platforms, industry organizations, and specialized trade document providers.
Online Resources
Many websites offer free downloadable SLI templates. These platforms often provide user-friendly templates that can be easily customized with specific shipment details. IncoDocs, for example, offers a free SLI template designed to create a detailed, accurate document for import and export purposes. The platform also provides helpful guides and resources to ensure accurate completion of the SLI.
Industry Organizations
Industry organizations like the National Customs Brokers & Forwarders Association of America (NCBFAA) provide valuable resources for exporters and freight forwarders. The NCBFAA has developed a new SLI model that meets current export regulatory reporting requirements. This model ensures compliance with export control and customs regulations, simplifying the process for exporters and freight forwarders.
The SLI is a vital document for streamlining the shipping process, ensuring accuracy and compliance with regulations.
Importance of SLI
The Shippers Letter of Instruction (SLI) is a critical document in international trade, serving as a central reference point for the entire shipping process. It provides clear instructions to freight forwarders, ensuring that goods are handled according to the exporter’s specifications. The SLI also plays a vital role in export control and customs compliance, minimizing delays and potential penalties. A well-prepared SLI helps to streamline the shipping process, ensuring a smooth and efficient movement of goods from origin to destination.
Streamlining the Shipping Process
The Shippers Letter of Instruction (SLI) plays a crucial role in streamlining the shipping process by providing a clear and comprehensive guide for all parties involved. By outlining specific instructions for handling, documentation, and customs clearance, the SLI minimizes misunderstandings and delays, ensuring that goods move efficiently through the supply chain. This clarity helps to eliminate unnecessary communication and potential errors, contributing to a smoother and more cost-effective shipping experience.