Meaning of COO, CI, PL, MSDS - Let's Learn About Shipping Documents | Global Trade Word

Types and meanings of various shipping documents

 

Global trading is all about documents. Naturally, logistics, one of the central tasks of trade transactions, is also composed of various documents and processes. Shipping documents, in particular, play a crucial role among them and are essential elements for effective logistics management and the success of international trade.

In this article, let's take a detailed look at the important shipping documents such as Commercial Invoice (CI), Packing List (PL), Material Safety Data Sheet (MSDS), and Certificate of Origin (COO).

 

 

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Commercial Invoice (CI): Meaning and Function

 

Typically referred to as CI, the commercial invoice is a core document for the purchase and sale of goods, defining the financial aspects of transactions. This document contains monetary information about the traded items such as price, quantity, and items ordered, serving as the basis document for customs to set taxation criteria during clearance and payment processes.

In theory, the invoice in trade transactions also serves to confirm the agreement between the parties involved. However, depending on the nature of the transaction, a Proforma Invoice (PI) or a separate Purchase Order (PO) may be prepared, and the CI often remains limited to its role as a shipping document.

 

 

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Packing List (PL): Meaning and Function

 

The packing list, referred to as PL, describes how goods are packaged and is theoretically essential for identifying and handling goods in logistics and transportation processes.

In practical terms, it is treated as a set with the CI, and it is a basic document required when sending or receiving products abroad through a forwarder.

Although there is no standardized form for preparing a PL, specifying information such as the size, weight, and packaging method of the products helps to effectively handle the goods. This information also plays a crucial role in optimizing the movement of goods in the logistics network, serving as a document providing basic information on the movement of goods.

 

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Material Safety Data Sheet (MSDS): Meaning and Function

 

The MSDS provides safety information for specific substances or chemicals. It is a basic shipping document required when transporting various liquid products such as paint and chemicals, and is essential for preparing for safety issues that may arise during logistics and transportation.

The MSDS is issued by the manufacturer of the chemical substance and contains information on the composition, proportion, and various hazards and handling precautions of the product.

It plays an even more important role when dealing with hazardous materials such as chemicals, acting as a key indicator for transportation companies, along with the HS Code, to determine whether the material can be transported. In addition to the transportability, it can also serve as a criterion for determining the need for additional special packaging.

 

 

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Certificate of Origin (COO)

 

The origin of products traded in logistics and international trade is an important piece of information. It serves as a criterion for determining various conditions required for authenticity, stability, and other international order aspects, affecting various aspects such as customs clearance, tariff application, and information provided to consumers.

One of the documents used to accurately record and verify this information is the Certificate of Origin (COO).

In practice, obtaining an FTA Certificate of Origin is often used as an essential document to apply FTA tariff rates.

 

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As these shipping documents play a crucial part in international trade and logistics processes, understanding their meanings and purposes and utilizing them appropriately is important not only for logistics transportation but also for customs clearance processes.

Let's delve into the specific characteristics and uses of each document in another article.

 

 

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Like all other documents, it is important to clearly understand the meaning and purpose of shipping documents and to use them accurately.