Explainer: Shipper's Letter of Instruction (SLI) for U.S. exports

At Cole International, we believe that the more you know, the better your goods will go. Our Explainer posts provide valuable information you should know about before making your next move.

We understand that the logistics industry involves complex processes, regulations, and definitions that can be overwhelming to navigate. Cole's Explainer series breaks down key concepts into bite-size knowledge that's easy to consume. 

In this Explainer, we’ll explore the Shipper’s Letter of Instruction (SLI) for U.S. exports, including the value of providing a SLI and the requirements for filling out SLI forms.

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

A Shipper’s Letter of Instruction (SLI) is a document that provides key compliance and delivery details for your freight forwarder. The SLI ensures compliance with U.S. customs regulations while providing all the info needed to correctly handle the shipment. SLIs aren’t a mandatory part of U.S. exporting, but filling out an SLI can greatly reduce the risk of compliance issues, miscommunication, errors, and delays at the border.

A SLI serves as an authorization for your freight forwarder to act as an agent on your behalf. When dealing with U.S. customs and export controls, the SLI enables freight forwarders to submit documentation to the Automated Export System (AES) using Electronic Export Information (EEI) protocols.

Why is the Shipper's Letter of Instruction important?

Filling out an SLI is a proactive step that exporters can take to ensure a smooth shipping process while avoiding issues such as compliance problems and unexpected obstacles. The main benefits of SLIs include:

Clarity and standardization

SLIs give freight forwarders all the necessary information they need at a glance, reducing the potential for miscommunication or confusion.

Compliance with U.S. export regulations

Exporters must comply with Foreign Trade Regulations (FTR) for AES filings. The SLI helps to ensure that requirements for customs, export control, and licensing are taken care of.

Reduced risk

Inaccurate or incomplete information can result in holds, inspections, or even fines. Giving your freight forwarder a complete SLI minimizes delays and extra costs.

What are Shipper's Letter of Instruction requirements?

The purpose of filling out a SLI revolves around providing key shipping details up front while authorizing your freight forwarder to act on your behalf when dealing with customs at the border. A range of details should be supplied to facilitate accurate customs documentation, proper handling, and smooth transportation. The main details and pieces of information to include consist of the following:

Consignee and shipper details

Your company information and the consignee’s full contact details should be provided, including any applicable intermediate consignees.

Forwarding agent contact details and information

If you’re working with a freight forwarder, make sure to list their contact information to prevent any routing confusion.

Shipment details

A clear product description of the goods you’re exporting, including details such as dimensions, packaging, quantity, and weight, can help transport and customs officials to process and clear your goods with better efficiency.

Export control information

If your shipment includes restricted or controlled items, make sure to provide permits, license numbers, or Export Control Classification Numbers (ECCN) for information relevant to the Commerce Control List (CCL) or the U.S. Munitions List (USML).

HTS or Schedule B numbers

These classification numbers are required for the U.S. Customs and Border Protection (CBP) to quickly and accurately identify your goods.

Total value of goods

The SLI should have information on the total value of the goods in the shipment, taking into account the selling price, freight charges, and insurance costs.

Instructions for handling hazardous or fragile goods

If the shipment contains goods considered hazardous or fragile, clear instructions should outline specific needs and requirements, such as careful handling or temperature control.

Power of attorney for AES Filing

When authorizing your freight forwarder to file an EEI on your behalf, don’t forget to check the power of attorney (POA) box when filling our the SLI.

An experienced customs broker can guide you through the process of filling out an SLI and complying with a variety of U.S. export regulations. Connect with Cole now to learn more. 

The more you know!

We invite you to continue growing your knowledge base by exploring our earlier Explainer posts:

Explainer: What is a customs entry?

Explainer: Why businesses work with Customs compliance consultants

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