Importance of export documentation
Export documentations are required by both the exporting and importing customs authorities to complete the shipment. Exporters are advised to correctly fill in the documentation and declaration to avoid expensive fines and delays. Whilst it is possible to complete the documentation alone, you may also decide to employ the services of a freight forwarding company, which will act as your agent in performing various functions. It is pertinent to work with the Kenya Trade Network Agency (KenTrade) a state Agency under the National Treasury that is mandated to facilitate cross border trade and establish, manage and implement the National Electronic Single Window System (Trade Facilitation Platform).
Basic export documentation
Several documents are commonly used in the export process:
Commercial Invoice (certified invoice)- This is the “charge” document, containing details of the seller, buyer, goods, price, terms of sale (e.g., FOB, CIF), etc. It must follow the requirements of the importing country, where it is used for clearing goods through Customs. Goods being sold under a letter of credit must be described on the invoice exactly as in the letter of credit. This invoice must also meet any other requirements stipulated in the letter of credit and show marks and numbers of packages as on the bill of lading or other transport documents.
Bill of Lading (B/ L) - This is a legal document that is issued by the shipping company or carrier to the exporter also known as a shipper that tracks the shipment of the good to the importer. This document details the exporter (consignor) and the consignee (importer), the type of goods being exported, quantity, specific handling instructions, and destination port. It is a contract between the carrier and the shipper, but it also serves as a receipt of goods shipped when the carrier delivers the goods to the importer.
Airway Bill (AWB) - The AWB is equivalent to a bill of lading for goods sent by air. Note: courier companies often have their own documentation that travels with the goods which is unique to that transaction.
Certificate of Origin - The origin of goods has a direct bearing on the rate of customs duty to be charged. The exporter is responsible for applying for certification of origin with Kenya Revenue Authorities and sharing this certification with importers who are members of the same customs union, regional economic community or free trade agreement (FTA). To learn more about which countries Kenya has preferential or duty arrangements with, and whether your product is eligible for preferential or duty-free treatment, visit https://infotradekenya.go.ke/
Freight insurance - Freight insurance is vital to protect your company from financial losses that may happen due to any number of risks involved in international (and even domestic) shipping. These risks include a container being lost at sea, privacy, lost or damaged merchandise, road accidents and the list goes on!
Packing List- This document details weight, volume, content, and packaging for each separate export package and for total shipment. It is often required by customs in the country of import for inspection of a shipment. Banks often require a packing list when a letter of credit is the chosen form of payment.
Pre- shipment Inspection Certificates - As a mechanism for the authentication of quality, quantity, value and compliance with export requirements, most products exported from Kenya undergo pre- shipment inspection. The pre-shipment process that a product is subjected to depends on the type of product and the requirements by the importing country. In addition, certain governments require that the Kenya Competent Authorities on phytosanitary and sanitary (public health) certify quality and safety of products to be exported to their countries. Such Competent Authorities include:
- Department of Fisheries – for fish and fish products;
- Ministry of Health - for public health on food products;
- Kenya Plant Health Inspectorate Service (KEPHIS) – for phytosanitary certification;
- Directorate of Veterinary Services – for animal products; and
- Kenya Bureau of Standards – for manufactured products.
Some products may require certification from more than one of the Competent Authorities.
Export Licenses - The products subject to export licenses in Kenya are: military equipment and munitions of war; engines, vessels, aviation and transportation equipment; antiques and works of art; bullions and coins; live animals other than livestock and domestic pets; archives; wood - charcoal and timber; shells, cowries and corals; ivory, rhino horn s and other products related to endangered species; and human bones.