shipper’s letter of instruction template

Shippers Letter of Instruction Template: A Comprehensive Guide (Updated 12/17/2025)

Today, December 17, 2025, this guide provides essential instructions for executors and heirs, acting as a crucial cheat sheet for settling affairs efficiently.

What is a Shipper’s Letter of Instruction (SLI)?

A Shipper’s Letter of Instruction (SLI) is a critical document facilitating the smooth execution of international shipments. Unlike a standard purchase order, the SLI doesn’t involve a financial transaction; instead, it provides detailed instructions to a freight forwarder, empowering them to act on the shipper’s behalf.

Essentially, it’s a ‘cheat sheet’ outlining how the shipment should be handled, encompassing everything from cargo details and declared value to specific routing preferences and insurance requirements. It ensures all parties – shipper, forwarder, carrier, and consignee – are aligned, minimizing potential delays and complications.

The SLI clarifies the shipper’s wishes regarding their goods, acting as a vital communication tool for efficient and compliant international trade. It’s a cornerstone of successful logistics.

Why Use a Shipper’s Letter of Instruction Template?

Employing a Shipper’s Letter of Instruction (SLI) template dramatically streamlines the shipping process, reducing errors and ensuring consistency. Templates guarantee all essential information is captured, preventing costly delays caused by incomplete or inaccurate documentation.

They are particularly valuable for businesses engaged in frequent international trade, offering a standardized format for repeatable efficiency. A template acts as a checklist, prompting users to consider crucial details like Incoterms, insurance, and handling instructions.

Furthermore, templates promote clarity and minimize miscommunication between shippers and freight forwarders, fostering stronger business relationships and smoother transactions. Utilizing a template is a best practice for organized, compliant shipping.

Key Components of an SLI

A comprehensive Shipper’s Letter of Instruction fundamentally comprises several key components. These include detailed shipper and consignee information, ensuring accurate contact details for both parties involved in the shipment. A precise cargo description, outlining the goods being shipped, is also vital.

Crucially, the SLI must contain invoice details and a clear value declaration for customs purposes. Shipping terms and conditions, specifically the agreed-upon Incoterms, define responsibilities. Finally, explicit documentation requirements, such as the need for a commercial invoice and packing list, complete the core structure.

These elements work in concert to provide a clear, concise guide for the freight forwarder.

Essential Information to Include

A robust Shipper’s Letter of Instruction demands meticulous detail. Begin with complete shipper and consignee details – names, addresses, and contact numbers are paramount. A detailed goods description is crucial; avoid vague terms, specifying quantity, type, and any special characteristics.

The invoice information, including invoice number and date, alongside an accurate value declaration for customs, is non-negotiable. Don’t overlook specifying the transportation mode (sea, air, land) and any specific insurance requirements.

Including the Harmonized System (HS) code further streamlines customs clearance, ensuring a smooth shipping process;

Shipper and Consignee Details

Accurate shipper and consignee details form the bedrock of a successful shipment. The SLI must clearly state the full legal name of both parties, avoiding any abbreviations. Complete physical addresses, including building numbers, street names, and postal codes, are essential for delivery.

Furthermore, include reliable contact information: phone numbers and email addresses for both the shipper and consignee. Specifying a contact person within each organization streamlines communication. Tax identification numbers (TIN) or VAT numbers may be required for international shipments, ensuring compliance with local regulations.

Double-check all details for accuracy!

Detailed Goods Description

A detailed goods description is paramount for customs clearance and accurate handling. Avoid vague terms like “parts” or “merchandise.” Instead, provide specific descriptions – for example, “Stainless Steel Kitchen Sink, Model KS-2024.” Include the quantity, unit of measure (e.g., pieces, kilograms, liters), and the nature of the packaging (e.g., cartons, pallets).

Specify the goods’ material composition and intended use. If the goods are samples or have no commercial value, clearly state this. Accurate descriptions minimize delays and potential issues with customs authorities. Harmonized System (HS) codes should be included for international shipments, facilitating tariff classification.

Precision prevents problems!

Invoice Information & Value Declaration

Invoice details are critical for customs valuation and duty assessment. Include the invoice number, date of issue, and a complete breakdown of costs. The value declaration must accurately reflect the transaction value – the price actually paid or payable for the goods. Avoid under- or over-valuation, as this can lead to penalties.

Specify the currency used on the invoice. Clearly state if the declared value includes freight, insurance, and other charges. Provide a detailed description of any discounts or commissions applied. Accurate and transparent invoice information streamlines customs processing and ensures compliance with international trade regulations. Supporting documentation may be required.

Honesty is the best policy!

Shipping Terms and Conditions

Clearly defined shipping terms are vital for a smooth transaction. This section outlines responsibilities for costs, risks, and liabilities during transit. Incoterms (like FOB, CIF, EXW) specify who pays for what – freight, insurance, duties, and taxes. Selecting the appropriate transportation mode (sea, air, or land) impacts cost and delivery time.

Detail insurance requirements; specify coverage levels and who is responsible for obtaining insurance. Outline payment terms – whether prepaid or collect. Address potential delays and dispute resolution processes. A well-defined section minimizes misunderstandings and protects both shipper and consignee. Legal counsel can help ensure compliance.

Precise terms prevent problems!

Incoterms Explained (e.g., FOB, CIF, EXW)

Incoterms – International Commercial Terms – are standardized trade definitions clarifying responsibilities. FOB (Free On Board) means the seller delivers goods to the ship, with the buyer responsible for freight and insurance. CIF (Cost, Insurance, and Freight) requires the seller to cover these costs to the destination port.

EXW (Ex Works) places maximum responsibility on the buyer, who handles all costs from the seller’s premises. Other terms include DDP, DAP, and CPT. Clearly stating the Incoterm avoids disputes regarding costs, risk transfer, and insurance obligations. Understanding these terms is crucial for accurate cost calculations and smooth international trade.

Choosing the right Incoterm is key!

Transportation Mode Selection (Sea, Air, Land)

Selecting the optimal transportation mode – sea, air, or land – significantly impacts cost, speed, and cargo suitability. Sea freight is cost-effective for large volumes and non-urgent shipments, but transit times are longer. Air freight offers speed for time-sensitive goods, but at a higher cost. Land transportation (truck or rail) is ideal for shorter distances and offers flexibility.

The SLI must specify the chosen mode and any preferences for carriers or routes. Consider cargo dimensions, weight, value, and delivery deadlines. Combining modes (multimodal transport) can optimize efficiency. Accurate mode selection ensures timely and cost-effective delivery.

Careful consideration is paramount for success!

Insurance Requirements

Clearly outlining insurance requirements within the SLI is crucial for protecting your cargo against loss or damage during transit. Specify the desired insurance coverage level – typically a percentage of the cargo’s value – and any specific risks to be covered, such as theft, fire, or natural disasters.

Indicate whether the shipper will arrange insurance independently or if the freight forwarder should obtain coverage on their behalf. Provide the insurance policy number and contact information if applicable. Accurate valuation is essential for adequate coverage. The SLI should detail claim procedures and responsibilities.

Proper insurance safeguards your financial interests!

Documentation Requirements

Accurate and complete documentation is paramount for smooth international shipping. The Shipper’s Letter of Instruction (SLI) must clearly specify all required documents, including a commercial invoice detailing the transaction, a comprehensive packing list outlining contents, and precise bill of lading instructions.

Specify the number of copies needed for each document and any specific formatting requirements. Indicate if any documents require legalization or certification. Ensure all information aligns across documents to avoid delays. Proper documentation facilitates customs clearance and minimizes potential issues. The SLI serves as a checklist to ensure nothing is overlooked.

Meticulous documentation is key to successful shipments!

Commercial Invoice Details

The commercial invoice is a critical document for customs valuation and duty assessment. Your Shipper’s Letter of Instruction (SLI) must detail its requirements. Include a precise description of the goods, harmonized system (HS) codes for accurate classification, and the transaction value in the specified currency.

Specify the invoice number, date of issue, and Incoterms used. Clearly state the country of origin. Ensure the invoice matches the packing list and other shipping documents. Any discrepancies can cause delays and penalties. The SLI should emphasize the need for a detailed and accurate commercial invoice to facilitate seamless customs clearance.

A well-prepared invoice streamlines the shipping process!

Packing List Specifics

A comprehensive packing list is vital for verifying shipment contents and ensuring accurate handling. Your Shipper’s Letter of Instruction (SLI) should mandate its inclusion. Detail each package’s dimensions, weight (gross and net), and markings. Specify the total number of packages and their contents, using clear and concise descriptions.

Include package numbers for easy identification. The SLI should instruct the shipper to provide a packing list that corresponds precisely with the commercial invoice. This avoids discrepancies during customs inspection. Accuracy is paramount; errors can lead to delays and additional costs. A detailed packing list aids efficient inventory management.

Proper packing lists guarantee smooth logistics!

Bill of Lading Instructions

The Bill of Lading (B/L) is a crucial document confirming receipt of cargo. Your Shipper’s Letter of Instruction (SLI) must clearly outline B/L requirements. Specify whether a ‘straight’ or ‘order’ B/L is needed, and to whom it should be consigned. Include precise instructions regarding the number of originals required.

Detail any specific notations needed on the B/L, such as freight payment terms or special handling instructions. The SLI should authorize the shipper to sign the B/L on your behalf, if applicable. Accuracy in B/L details is critical for smooth cargo release at destination. Ensure the shipper understands all instructions to avoid delays.

Correct B/L instructions streamline the shipping process!

Template Sections: A Deep Dive

A robust SLI template is segmented for clarity and efficiency. Section 1, Shipper Information, demands complete contact details – name, address, phone, and email. Section 2, Consignee Information, mirrors this, detailing the recipient’s data.

Section 3, Cargo Details, is the core, requiring a precise description of goods, quantity, weight, dimensions, and declared value. This section also includes Harmonized System (HS) codes for accurate customs classification. Each section should have clear prompts and sufficient space for detailed entries. A well-structured template minimizes errors and ensures all vital information is captured.

Detailed sections create a streamlined shipping process!

Section 1: Shipper Information

This initial section meticulously captures the exporter’s complete details. It requires the full legal name of the shipper, encompassing any “doing business as” (DBA) names. A comprehensive physical address, including street, city, state/province, and postal code, is essential.

Crucially, include a reliable contact phone number and a professional email address for immediate communication. The shipper’s Tax Identification Number (TIN) or Employer Identification Number (EIN) may also be requested for customs purposes. Accurate shipper information is foundational for a smooth export process, ensuring proper documentation and avoiding delays.

Complete and accurate details are paramount for efficient shipping!

Section 2: Consignee Information

This section details the ultimate receiver of the shipment, demanding precision. Begin with the consignee’s complete legal name, mirroring the shipper’s section. A full and accurate delivery address – street, city, state/province, and postal code – is vital for successful delivery.

Include a direct contact phone number and a professional email address for the consignee. Providing this facilitates communication regarding delivery scheduling and potential issues. Any specific delivery instructions, like gate codes or receiving hours, should be clearly noted here. Accurate consignee information prevents misdeliveries and ensures a seamless import process.

Verify all consignee details for a trouble-free delivery experience!

Section 3: Cargo Details

This crucial section meticulously describes the goods being shipped, forming the core of the SLI. Begin with a comprehensive list of all items, specifying quantity, description, and any relevant identifying marks. Accurate Harmonized System (HS) codes are essential for customs clearance, so include them for each item.

Detail the total gross weight and volume of the shipment. Specify the packaging type – cartons, pallets, crates, etc. – and whether goods are palletized or loose. Declare the cargo’s value for insurance and customs purposes, ensuring accuracy to avoid complications. Clear cargo details minimize delays and ensure proper handling throughout transit.

Precise cargo information is key to a smooth shipping process!

Special Instructions & Handling

This section outlines unique requirements beyond standard shipping procedures. If the cargo includes hazardous materials, a detailed declaration adhering to IATA or IMDG regulations is mandatory, specifying the proper shipping name, hazard class, and UN number.

For temperature-sensitive goods, clearly state the required temperature range and any monitoring needs. Fragile items necessitate specific handling instructions – “Handle with Care,” “Do Not Stack,” etc. – and appropriate packaging details. Any special loading or unloading instructions should also be included here, ensuring the carrier understands and accommodates these needs for safe transport.

Detailed special instructions prevent damage and ensure cargo integrity!

Hazardous Materials Declaration (if applicable)

When shipping dangerous goods, a precise Hazardous Materials Declaration is legally required. This declaration must include the proper shipping name as defined by regulations (IATA for air, IMDG for sea), the hazard class (e.g;, flammable liquid, corrosive), the UN number identifying the substance, and the packing group indicating the degree of danger.

Accurate packaging instructions and the total quantity of hazardous material are also essential. The shipper certifies that the declared information is truthful and the shipment complies with all applicable regulations. Failure to comply can result in severe penalties and safety risks.

Complete and accurate declarations are paramount for safe transport!

Temperature Control Requirements

For temperature-sensitive goods, clearly specify the acceptable temperature range throughout the entire shipping process. Indicate whether refrigeration, heating, or controlled room temperature is needed. Detail specific temperature limits – for example, “Maintain between 2°C and 8°C” – and the consequences of exceeding these limits, such as product spoilage or damage.

Specify monitoring requirements, including the frequency of temperature checks and the type of recording device used. Include instructions for handling temperature excursions and emergency contact information for immediate action. Proper documentation of temperature control is crucial for maintaining product integrity.

Maintaining the cold chain is vital for product safety and efficacy!

Fragile Goods Handling Instructions

When shipping delicate items, meticulous handling is paramount. Clearly mark packages with “Fragile” labels and utilize appropriate protective packaging materials like bubble wrap, foam inserts, and sturdy boxes. Specify handling precautions such as “Do Not Stack” or “Handle with Care” to minimize the risk of damage during transit.

Detail specific instructions for loading, unloading, and securing the cargo. Request gentle handling from carriers and avoid rough transportation methods. Include information about potential vulnerabilities and the importance of avoiding shocks or vibrations. Proper labeling and clear instructions are essential for safeguarding fragile goods.

Careful handling ensures your delicate items arrive safely at their destination!

Legal Considerations & Disclaimers

The Shipper’s Letter of Instruction (SLI) relies on the accuracy of provided information; the shipper assumes full responsibility for its veracity. Incorrect details can lead to delays, fines, or legal complications. This template is a guide, not a substitute for professional legal advice.

Governing law and dispute resolution mechanisms should be clearly defined, typically referencing the laws of the shipper’s jurisdiction. Template modification is permitted, but any alterations must be documented and agreed upon by all parties. We disclaim liability for losses resulting from inaccurate information or unauthorized template changes.

Consult legal counsel to ensure full compliance with applicable regulations.

Accuracy of Information Responsibility

The shipper bears sole responsibility for the complete accuracy of all information contained within the Shipper’s Letter of Instruction (SLI). This encompasses details regarding cargo description, value declaration, Incoterms, and consignee/shipper contact information. Errors or omissions can result in significant delays, financial penalties, and potential legal repercussions.

Verification of data before submitting the SLI is paramount. Carriers rely on this document for customs clearance and transportation logistics; inaccuracies directly impact these processes. We strongly advise a thorough review and cross-referencing with supporting documentation like invoices and packing lists. The carrier assumes no liability for issues stemming from inaccurate shipper-provided data.

Governing Law & Dispute Resolution

This Shipper’s Letter of Instruction (SLI) template, and its usage, shall be governed by and construed in accordance with the laws of [Specify Jurisdiction ー e.g., the State of Delaware, USA]. Any disputes arising from or relating to this template, or the shipment instructions it contains, will be subject to the exclusive jurisdiction of the courts located within that jurisdiction.

Parties agree to first attempt resolution through good-faith negotiation before pursuing formal legal action. Mediation may be considered as a non-binding alternative. The shipper acknowledges that the carrier’s liability is limited by applicable laws and the agreed-upon Incoterms. This clause does not waive any rights either party may have under those terms.

Template Modification Rights

The creator or provider of this Shipper’s Letter of Instruction (SLI) template reserves the exclusive right to modify, update, or amend this document at any time, without prior notice. Users are responsible for ensuring they are utilizing the most current version available. Regularly check for updates to maintain compliance and accuracy.

While users are permitted to customize the template for their specific needs, any alterations must not compromise the core functionality or legal validity of the document. Modifications should be clearly documented and tracked. The template provider assumes no liability for issues arising from unauthorized or improper modifications made by the user.

SLI Template Best Practices

To maximize the effectiveness of your Shipper’s Letter of Instruction (SLI) template, prioritize clarity and conciseness in all instructions. Avoid ambiguous language and ensure all details are easily understood by all parties involved. Implement regular template updates, reflecting changes in regulations, carrier requirements, or internal procedures.

Crucially, practice secure document handling. Protect the SLI from unauthorized access and maintain a clear audit trail of all versions. Consider digital signatures for enhanced security and verification. A well-maintained and secure SLI template minimizes errors, streamlines shipping processes, and fosters strong relationships with your logistics partners.

Clarity and Conciseness

Achieving clarity and conciseness within your Shipper’s Letter of Instruction (SLI) is paramount for smooth shipping operations. Utilize straightforward language, avoiding industry jargon that may confuse recipients. Each instruction should be direct and unambiguous, leaving no room for misinterpretation.

Brevity is also key; keep sentences short and to the point. Eliminate unnecessary details that don’t directly impact the shipping process. A concise SLI minimizes the risk of errors and delays, ensuring efficient handling of your cargo. Prioritize clear communication to foster trust and collaboration with all stakeholders involved in the shipment.

Regular Template Updates

Maintaining a current Shipper’s Letter of Instruction (SLI) template is crucial for reflecting evolving shipping regulations and internal procedures. Regularly review and update the template – at least annually, or more frequently if changes occur; This proactive approach ensures compliance and minimizes potential disruptions to your supply chain.

Consider updates related to Incoterms, carrier requirements, or internal contact information. Document all revisions with date stamps and version numbers for easy tracking. An outdated template can lead to errors, delays, and increased costs. Embrace continuous improvement to optimize your SLI and streamline your shipping processes effectively.

Secure Document Handling

Protecting the confidentiality of your Shipper’s Letter of Instruction (SLI) is paramount. Implement robust security measures to prevent unauthorized access, modification, or disclosure of sensitive information. Utilize secure file storage, password protection, and access controls to limit visibility to authorized personnel only.

Consider encryption for SLIs transmitted electronically. Establish clear protocols for document retention and disposal, adhering to relevant data privacy regulations. Regularly audit security practices to identify and address vulnerabilities. A compromised SLI could lead to fraud, cargo theft, or disruptions in your supply chain, emphasizing the need for diligent security protocols.

Common Mistakes to Avoid

Numerous errors can undermine the effectiveness of a Shipper’s Letter of Instruction (SLI). Incomplete or incorrect information, such as inaccurate product descriptions or values, causes delays and potential penalties. Ambiguous instructions regarding handling or shipping terms lead to misinterpretations and disputes.

Failing to update the template with current Incoterms, carrier details, or regulatory changes renders it obsolete. Overlooking crucial details like insurance requirements or hazardous material declarations creates significant risks. Poor document control, including lack of versioning or secure storage, compromises its integrity. Diligence in avoiding these pitfalls ensures a smooth and compliant shipping process.

Incomplete or Incorrect Information

Providing insufficient details within a Shipper’s Letter of Instruction (SLI) is a frequent error. Missing data, like complete addresses or accurate product weights, causes significant delays and increased costs. Incorrect declarations regarding the cargo’s value or nature can lead to penalties and legal issues.

Typos and inaccuracies in documentation, even seemingly minor ones, disrupt the shipping process. Failing to specify all relevant Harmonized System (HS) codes hinders customs clearance. Omitting essential information about the shipper or consignee complicates communication and delivery. Thorough verification of all details is paramount for a seamless shipment.

Ambiguous Instructions

Vague wording within a Shipper’s Letter of Instruction (SLI) creates confusion and potential errors. Unclear directives regarding handling, routing, or documentation requirements lead to misinterpretations by carriers and customs officials. Using imprecise language, such as “as soon as possible,” lacks definitive timelines and can cause delays.

Ambiguity in Incoterms or payment terms generates disputes. Failing to clearly define special handling needs – like temperature control or fragile cargo – risks damage. Avoid open-ended phrases; instead, provide specific, measurable instructions. Precise communication is vital for a smooth and compliant shipping process, minimizing misunderstandings.

Failure to Update the Template

An outdated Shipper’s Letter of Instruction (SLI) template introduces significant risks. Changes in regulations, carrier requirements, or internal procedures necessitate regular updates. Neglecting to revise contact information, Incoterms, or commodity classifications can lead to delays and penalties. Using an old template may not reflect current insurance policies or hazardous materials declarations.

Periodic reviews – at least annually, or whenever changes occur – are crucial. Maintaining a current template ensures compliance and efficient shipping. Failing to adapt to evolving industry standards can result in costly errors and disruptions to your supply chain. Proactive template management is essential.