Packing List

Packing List and Weight List

Ozgur Eker (CDCS) Letter of Credit Documents, Packing List, Weight Lİst , ,
packing list and weight list

Packing list, is an international trade document, used to identify details of the shipment in terms of packaging.

The packing list is a detailed listing of the contents of the shipment and acts as a supporting document.

The packing list may provide a means of quickly identifying merchandise required for customs inspection, give a means of determining accurate weights and measurements, and give a means for inspectors to unpack quickly to check a piece count of the contents.

As a supporting document, the packing list is essential in the event of pilferage and/or
damage, to support an insurance claim. (1)

Packing list normally should not disclose any financial information regarding the shipment such as total amount of the cargo, unit price of the items or payments terms.

The weight list may contain the same details as the packing list but must, as a minimum, indicate the weight of the goods and usually the weight of each packing unit.(2)

Contents of the Packing List

There is no standard format exists for preparation of a packing list. However, a packing list that will be used in an international trade transaction should cover below points;

  • Name of the Exporter, address and contact details. : “consignor”
  • Name of the Importer, address and contact details : “consignee”
  • Title of the document, packing list number, packing list date : “Packing List Date : 26.June.2012”, “Packing List No : PL 26062012”
  • Definition of goods : “Crushing and Screening Machine” etc…
  • Delivery term : “FAS ANTWERP PORT, Incoterms 2010”, “FOB PORT OF SINGAPORE, Incoterms 2000” etc…
  • Quantity : “10Mtons of “Titanium Dioxide Rutile”
  • The type of package (such as pallet, box, crate, drum, carton, etc.)
  • Total number of packages (such as pallets/boxes/crates/drums, etc.)
  • The contents of each package
  • The package markings, if any, as well as shipper’s and buyer’s reference numbers
  • Reference to the associated commercial invoice such as the invoice number and date
  • A purchase order number or similar reference to correspondence between the supplier and importer
  • An indication of the carrier (sea line, airline, shipping line or road hauler)
  • Reference to the transport document, bill of lading or air waybill number
  • Reference to the vessel name, container number, truck plate number or air waybill number according to mode of transport
  • Signature and stamp (not required under letter of credit rules but it is asked by most of the custom authorities and government institutions.)

Converting a Packing List into a Weight List:

By adding details of the weight, it is possible to use a packing list as a weight list or weight certificate without any problem.

Following details should be added to the packing list to be used it as a weight list or a weight certificate:

  • Net Weight of the shipment
  • Gross Weight of the shipment
  • Weight of the each package (such as pallets/boxes/crates/drums, etc.)

How to Use Packing List and Weight List in Letters of Credit Transactions:

  • Documents may be titled as called for in the credit, bear a similar title, or be untitled. For example, a credit requirement for a “Packing List” may also be satisfied by a document containing packing details whether titled “Packing Note”, “Packing and Weight List”, etc., or an untitled document. The content of a document must appear to fulfill the function of the required document.
  • Documents listed in a credit should be presented as separate documents. If a credit requires a packing list and a weight list, such requirement will be satisfied by presentation of two separate documents, or by presentation of two original copies of a combined packing and weight list, provided such document states both packing and weight details.

Sample Packing List:

packing list sample
Image taken from https://www.advancedontrade.com/ with permission.

Sample Weight List:

weight list sample
Image taken from https://www.advancedontrade.com/ with permission.

References:

  1. Transportation Best Practices Manual, PF Collins International Trade Services, 2003, Page:22
  2. Documentary Credits, Nordea Trade Finance, Page:173

Letter of Credit Documents

Ozgur Eker (CDCS) Air Waybill, Bill of Exchange, Bill of Lading, Certificate of Origin, Charter Party Bill of Lading, Commercial Invoice, Featured, Inspection Certificate, Insurance Policy, Letter of Credit Documents, Packing List, Road Transport Document, Sea Waybill , , , , , ,
letter of credit documents

After reading this post, you should understand why documentation is very important under letters of credit.

Additionally, most frequently used document links have been supplied on later parts of this article.

There are many important points in a typical letter of credit transaction that need to be taken care of professionally.

However, documentation is much more important than any other aspects of the letters of credit transactions, because the documentation forms the backbone of the letters of credit structure.

In order to understand the importance of the documentation, please assume that you are an exporter, whom has just shipped an order.

How can you prove to the issuing bank that you have make the shipment according to the letter of credit terms?

Which means that;

  • you have shipped the goods on time, not late
  • you have shipped the right goods, not wrong ones
  • you have shipped the goods in good condition, no apparent defect on the packing
  • you have delivered the goods to the carrier for transportation from port of loading to the port of discharge indicated in the credit etc.

In order to prove above points to the issuing bank, you have to supply a relevant transport document.

Furthermore, let us also consider that the delivery term was CIF Incoterms 2010, which obligates the exporter, which is you, to arrange and pay the insurance for the shipment.

Once again, you have to supply an insurance policy to fulfill your insurance responsibility.

The examples can be extended, but perhaps the main idea is very clear. Letters of credit transactions are related to the documents only, not actions.

importance of letter of credit documentation

The importance of the documentation is stated in UCP 600 article 5 as follows:

Banks deal with documents and not with goods, services or performance to which the documents may relate.

In addition, every condition stated in the letter of credit must be connected to a document. This point is also clearly indicated in UCP 600 article 14 as below.

If a credit contains a condition without stipulating the document to indicate compliance with the condition, banks will deem such condition as not stated and will disregard it.

Documents Most Frequently Used Under Letters of Credit Transactions:

Transport Documents:

Insurance Documents:

Financial Documents:

Commercial Documents:

Official Documents:

Packing List Discrepancies

Ozgur Eker (CDCS) Letter of Credit Discrepancies, Packing List Discrepancies , ,
packing list discrepancies

Packing list is a commercial document, in broad perspective.

It is a detailed listing of the contents of the shipment and acts as a supporting document of both commercial invoice and bill of lading.

The packing list (abbreviated as P/L) gives great deal of information regarding the incoming cargo without mentioning the value of the goods.

Gross weight, net weight, packing type, container number, seal number, number of packages, description of goods are the key points of an ordinary packing list.

It is required for customs clearance and most of the times accompanying the commercial invoice.

A packing list is expected to be issued by the exporter.

Packing list is one of the key documents in a typical commercial letter of credit. It is requested under almost all of the letters of credit.

On this page you can find most common discrepancies related to a packing list.

Packing List Discrepancies

Important Definitions Regarding the Packing List under Latest Letter of Credit Rules:

  • According to letter of credit rules the content of the document is much more important than the title of the document. As an example, a requirement for a “Packing List” will be satisfied by a document containing packing details whether it is titled “Packing List”, “Packing Note”, “Packing and Weight List”, etc., or bears even no title.
  • A packing list is to be issued by the entity stated in the credit. When a credit does not indicate the name of an issuer, any entity may issue a packing list.
  • Banks only examine total values, including, but not limited to, total quantities, total weights, total measurements or total packages, to ensure that the applicable total does not conflict with a total shown in the credit and on any other stipulated document.
  • When a credit contains a non‐documentary condition, compliance with such condition need not be evidenced on any stipulated document. However, data contained in a stipulated document are not to be in conflict with the non‐documentary condition. For example, when a credit indicates “packing in plastic cases” without indicating that such data is to appear on any stipulated document, a statement on the packing list indicating a different type of packing is considered to be a conflict of data.

Container Number not in Accordance with the Bill of Lading Discrepancy

Ozgur Eker (CDCS) Letter of Credit Discrepancies, Packing List Discrepancies , , ,
container number discepancy

Container number is a unique reference number assigned to a freight container so that the container can be traced and tracked by the government authorities, carriers, shippers and freight forwarders throughout its journey.

Determining the correct container number which belongs to a specific shipment is very important to the custom authorities and other governmental institutions.

As a result a container number will be mentioned on several documents including commercial invoice, consular invoice, bill of lading, packing list, health certificate and other shipping documents.(1)

In a commercial letter of credit transaction the container number indicated on the packing list and bill of lading must not conflict with each other.

The mention of a wrong container number on the packing list, which is inconsistent with the container number indicated on the bill of lading, is a reason for a valid discrepancy and rejection of the presentation.

According to the latest version of letter of credit rules a data in a document must not conflict with, data in that document, any other stipulated document or the credit.

As a result every container number indicated on each document must be identical to one another.

If the issuing bank finds out that the container number indicated on the packing list and bill of lading do not match, then the issuing bank will raise a discrepancy, which is known as packing list and bill of lading show different container number discrepancy.

Discrepancy Example: Container Number on the Packing List is not in Accordance with the Container Number on the Bill Of Lading

A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:

Letter of Credit Conditions

Field 45A: Description of Goods and or Services: 20 mtons of Pure Polyester Powder Coating. Delivery Terms: CIF Port Metro Vancouver, Canada Incoterms 2010.

Field 46A: Documents Required:

  • Signed commercial invoice in triplicate issued by the beneficiary
  • Certificate of origin issued by a local chamber of commerce or any official trade organization confirming that goods are new brand and first hand and originated in China plus 3 copies.
  • Packing list in triplicate indicating quantity and gross weight, net weight, vessel name and container number.
  • Full set clean on board port-to-port marine bill of lading marked freight prepaid issued or endorsed to the issuing bank’s order in 3 originals and 3 non-negotiable copies.

The beneficiary presented a Packing List as shown on the below picture.

Packing List

packing list container number discrepancy

Discrepancy : Packing list states “Container Number: MSCU 120870-8”. On the other hand bill of lading states “Container Number: CMAC 400300-6”. Packing list and bill of lading are indicating different container numbers.

Reason for Discrepancy: The mention of wrong container number on the packing list which is inconsistent with the container number indicated on the bill of lading is a reason for discrepancy and rejection of the presentation.

Sources:

  1. What is a container number? | www.advancedontrade.com

Packing List and Certificate of Origin Show Different Net Weight or Gross Weight Discrepancy

Ozgur Eker (CDCS) Letter of Credit Discrepancies, Packing List Discrepancies , , ,
packing list discrepancy example related to gross weight

Packing list and certificate of origin are two important trade documents.

The packing list is a detailed listing of the contents of the shipment and acts as a supporting document.

The certificate of origin verifies the country in which the goods to be exported were originally manufactured.

According to the letter of credit rules, the documents that reference to net weight or gross weight must not conflict with each other.

Along with a packing list and a certificate of origin, bill of lading, commercial invoice, weight list, inspection certificate, vessel certificate and insurance policy are the documents that are expected to contain a reference to the weight of the cargo.

According to the latest version of letter of credit rules a data in a document must not conflict with, data in that document, any other stipulated document or the credit.

As a result every gross weight and net weight values indicated on each document must be identical to one another.

If the issuing bank finds out that the gross weight or net weight indicated on the packing list and certificate of origin do not match, then the issuing bank will raise a discrepancy, which is known as packing list and certificate of origin show different net weight or gross weight discrepancy.

Discrepancy Example: Packing List and Certificate of Origin Show Different Net Weight or Gross Weight 

A letter of credit has been issued in SWIFT format, subject to UCPURR latest version, with the following details:

Letter of Credit Conditions

Field 45A: Description of Goods and or Services: 500 pieces of Touch Screen LCD Monitors. Delivery Terms: FOB Port of Kaohsiung, Taiwan Incoterms 2010.

Field 46A: Documents Required:

  1. Signed commercial invoice in three originals and three copies indicating the L/C no. and contract no. 20140418.
  2. Certificate of origin in one original and one copy issued by chamber of commerce or any other competent authority.
  3. Packing list in three originals and three copies issued by beneficiary indicating quantity and gross and net weights.
  4. Full set 3/3 of clean on board ocean bills of lading marked “freight payable at destination” made out to order and blank endorsed notifying applicant with its full name and address.

The beneficiary presented a Packing List as shown on the below picture.

Packing List
packing list discrepancy gross weight not matching

Discrepancy: The packing list states that “Net weight: 10.000 KGS” and “Gross Weight: 12.000 KGS”. On the other hand, the certificate of origin states that “Net weight: 12.500 KGS” and “Gross Weight: 15.000 KGS”.

The packing list and the certificate of origin show both different net weight and gross weight.

Reason for Discrepancy: According to the latest version of letter of credit rules a data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.

Description of Goods is in Conflict with Other Documents Discrepancy

Ozgur Eker (CDCS) Letter of Credit Discrepancies, Packing List Discrepancies , , , ,
Description of Goods is in Conflict with Other Documents Discrepancy

The packing list is a trade document, which shows the contents of the shipment in detail and acts as a supporting document of the commercial invoice.

The packing list may provide a means of quickly identifying merchandise required for customs inspection, give a means of determining accurate weights and measurements, and give a means for inspectors to unpack quickly to check a piece count of the contents. (1)

A packing list should state description of goods in line with letter of credit and other documents presented under the same L/C.

It should be stressed that only commercial invoice must contain exact description of goods stated in the letter of credit.

Other documents including the packing list may indicate a description of goods in general terms but not in conflict with the goods description in the letter of credit.

If the issuing bank finds out that the packing list is showing different description of goods than any other document presented, then the issuing bank raises a discrepancy, which is known as description of goods on the packing list is in conflict with other documents.

Discrepancy Example: Description of Goods is in Conflict with Other Documents

A letter of credit has been issued in SWIFT format, subject to UCPURR latest version, with the following details:

Letter of Credit Conditions

Field 45A: Description of Goods and or Services: 2500 Kgs Mild Dutch Cheese with 25% less salt content. Delivery Terms: FOB Amsterdam Port, Holland Incoterms 2010.

Field 46A: Documents Required:

  • Hand signed commercial invoice in three originals all duly stamped indicating description of goods as per proforma invoice no COMINV12345 dated 05.06.2014.
  • Certificate of origin ‘EUR.1’ in one original and one copy issued by competent authority showing Netherlands origin of the goods.
  • Packing list in three folds evidencing the content of each package of the shipped goods.
  • Full set clean on board bill of lading, issued to the order of applicant (with full address), marked freight collect, notify applicant (with full address – phone ++3122190700) (Bill of lading showing additional freight charges is not acceptable).
  • The beneficiary presented a Packing List as shown on the below picture.

Packing List

packing list description of goods discrepancy

Discrepancy: The letter of credit requires shipment of “Mild Dutch Cheese with 25% less salt content”, but the packing list describes the goods as “Light White French Cheese, Desalted”, the description is representing a change in nature, classification or category of the goods.

Reason for Discrepancy: Description of goods on the packing list should be shown in general terms but not in conflict with that stated in the letter of credit or another document.

Sources:

  1. Transportation Best Practices Manual, Canadian Manufacturers and Exporters Newfoundland and Labrador Division, prepared by PF Collins International Trade Services, 2003, Page:22

Gross Weight is Different on Documents Discrepancy

Ozgur Eker (CDCS) Bill of Lading Discrepancies, Letter of Credit Discrepancies , , , , ,
gross weight discrepancy

In a letter of credit transaction, the gross weight must show the same value on all presented documents.

As an example, the gross weight on the bill of lading must not conflict with the gross weight stated on the packing list, weight list or any other document.

According to the letter of credit rules, a data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.

If the issuing bank finds out that the gross weight on bill of lading and packing list do not match, then the issuing bank will raise a discrepancy, which is known as the gross weight is different on the bill of lading than the gross weight stated on the packing list.

Discrepancy Example: Gross Weight is Different on the Bill of Lading Than the Gross Weight Stated on the Packing List under a Letter of Credit:

A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:

Letter of Credit Conditions

Field 43P: Partial Shipments: Allowed

Field 43T: Transhipment: Allowed

Field 45-A: Description of Goods: 24,000,00 KGS Textile Dyeing Chemicals

Field 46A: Documents Required:

  • Full set of original bill of lading laden on board marked freight collect made out to the order of Citibank, USA notify applicant.
  • Packing list one original and one copy.
  • Commercial invoice in three originals.

The beneficiary presented a bill of lading and a packing list among other documents with the following data:

Gross weight on bill of lading and packing list are inconsistent
Discrepancy Example: Bill of Lading and Packing List Details

Discrepancy: Gross weight on the bill of lading and packing list is inconsistent.

Reason for Discrepancy: Data in a document, when read in context with the credit, the document itself and international standard banking practice, need not be identical to, but must not conflict with, data in that document, any other stipulated document or the credit.