A good share of the problems in pulse exports come from paperwork rather than product quality. A weight on the invoice that does not match the packing list, or a typo on the phytosanitary certificate, can keep the cargo waiting at the destination port for days. Waiting means port storage and container demurrage charges.
Below we explain, in plain terms, the documents you will meet on every shipment and how the delivery terms (Incoterms) split costs between the parties. Details vary by destination, so always confirm the exact document list with the buyer's customs broker.
Commercial invoice and packing list
The commercial invoice is the official record of the sale. It shows the seller, buyer, product description, HS code, quantity, unit price, total value, delivery term and payment term. Customs at destination calculates duty from this document. The packing list is the physical breakdown of the cargo: how many sacks or big-bags there are, the net and gross weight of each, and the container and seal numbers. Quantities and weights on the two documents must match exactly. Under a letter of credit this matters even more, because the bank can hold payment over a small discrepancy.
Certificate of origin
The certificate of origin shows the country where the goods were produced, and in Turkey it is issued by the chambers of commerce and industry. Because some countries set duties or import permits by origin, it is requested on most shipments. For sales to countries that have a free trade agreement with Turkey, a preferential origin document such as the EUR.1 may be needed so that the buyer can benefit from a lower duty. Which document applies is set by the agreement with the destination country. For product that is imported and then processed in Turkey, the origin rules need a separate look, because packing alone may not change origin.
Phytosanitary certificate
Pulses are a plant product, so most countries ask for a phytosanitary certificate. In Turkey it is issued by the provincial directorates of the Ministry of Agriculture and Forestry after the goods have been inspected. Inspectors look for pests, quarantine organisms and foreign matter, and take samples where needed. Some countries require additional declarations, or details of fumigation, on the certificate. You need to know these requirements before the loading date, because fumigation and inspection take time. The consignee name, product description and quantity on the certificate must match the invoice and the bill of lading.
Other documents: B/L, analysis, declaration
For sea freight, the bill of lading (B/L) is both the contract of carriage and the document that represents title to the goods; it is issued by the shipping line or a freight forwarder. To leave Turkey, an export declaration is filed through a licensed customs broker. Depending on the buyer or the destination, the file can also include pesticide residue and aflatoxin analysis, a weight and quality report, a fumigation certificate or an insurance policy. Some of these are ready before loading and some only after the vessel sails. On the customs side, FM Port can follow the declaration and the paperwork on your behalf.
Incoterms: EXW and FOB
Incoterms define the point at which cost and risk pass from seller to buyer. Under EXW (Ex Works) the seller makes the goods available at its own premises; loading, inland transport, export clearance, freight and insurance are for the buyer. A foreign buyer can rarely file an export declaration in Turkey, so the seller often handles customs even on EXW, which blurs who pays for what. Under FOB (Free on Board) the seller brings the goods to the port of shipment, clears them for export and covers costs until they are on board. Freight and insurance are for the buyer. For containers the Incoterms rules recommend FCA rather than FOB, but FOB is still common in the pulse trade.
Incoterms: CFR and CIF
Under CFR (Cost and Freight) the seller pays the FOB costs plus sea freight to the destination port. Risk, however, passes to the buyer once the goods are loaded on board at the port of shipment. So if damage happens at sea, the loss is the buyer's even though the seller paid the freight, which is why the buyer arranges insurance. Under CIF (Cost, Insurance and Freight) the seller also takes out the insurance. The cover the seller has to buy under CIF is minimum cover; a buyer who wants wider cover needs to write that into the contract. Under both terms, unloading at destination, import clearance and duties are generally for the buyer.
