Essential Terminology for the Auto Transport Industry

What is SED – Shippers Export Declaration?

A shipper’s Export Declaration (SED) is an official and legal document needed to export goods from one country to another, particularly from the United States. They defined it as a legal document that the exporter offers to Customs and Border Protection of the USA to offer details about the items and services contained, as well as the worth and location of the shipment.

Purpose of the SED

The SED fulfills several essential functions in international trade:

• Export Compliance: It ensures compliance with the export laws and regulations, licensing, and trade restrictions.
• Statistical Data: This is valuable information for export monitoring and assessing economic operations.
• Valuation and Duty Assessment: Responsible for arriving at the correct tariffs and charges or, in other words, the proper number of customs duties and taxes to impose on the exported goods.
• Trade Controls: Tracking and Implementing trade policies like export controls and sanctions.

Information Included in an SED

A typical SED includes the following information:

• The exporter’s name and address, together with their contacts.
• The consignee’s name is where the goods are being delivered to, the complete address, country of the consignee.
• The product descriptions of the exported goods include the quantity of products exported, the value of the exported goods, and the HTS codes.
• The mode of transport by which shipment will be made is ocean, air, or even land transportation.
• Incoterms (international trade terms)
• The export license or permit numbers are needed if a license/permit is required to export the goods to the country.
• Approximate value of the consignment

SED Filing Process

The SED can be submitted electronically or manually where the value of goods exceeds $2,500 or where the goods are described by more than one HTS number. The Electronic Export Information (EEI) system is the electronic version of the filing process applicable for most shipments. The delivery of the SED rests on the exporter’s discretion to ensure that the provided data is correct and detailed before forwarding it to the CBP before the shipment departs the United States.

Importance of Accurate SED Filing

Therefore, the SED must be adequately filled out and submitted to customs on time to avoid being penalized or having their goods held back. If incorrect or incomplete information is provided, the exports may be delayed, may attract fines, or even seizure of the shipment. Exporters should consult the customs brokers or forwarders responsible for writing the SEDs to ensure the requirements are met.

Summing up, it can be stated that the SED is an essential document for trading internationally. Through it, the export of goods can be eased while observing the legal provisions on export and generating beneficial data in the trade study. In carrying out this task, the authors have understood the significance of the SED and that when exporters adhere to the filing procedures, there would be reduced risks or complications in exporting.

Do you want more information on the various forms of SEDs or the consequences for non-observance of these rules?