Shipper’s Letter of Instruction (SLI): What Exporters Need to Include

A complete Shipper’s Letter of Instruction (SLI) gives a freight forwarder clear directions for an export shipment. It can reduce documentation errors and clarify routing and release instructions. It can also support Electronic Export Information (EEI) filing when the exporter provides appropriate written authorization. However, an SLI does not replace the exporter’s responsibility to provide accurate information or determine applicable export-control requirements.

What Is a Shipper’s Letter of Instruction?

An exporter or U.S. Principal Party in Interest (USPPI) provides a Shipper’s Letter of Instruction to a freight forwarder or authorized agent. The document explains how the forwarder should handle the shipment. It also supplies information for transportation documents, carrier bookings, export filings, and destination coordination.

No single universal SLI format fits every shipment. The required fields depend on the cargo, transportation mode, destination, transaction structure, licensing requirements, and requested services. Therefore, exporters should prepare shipment-specific instructions instead of reusing a generic form without review.

Is a Shipper’s Letter of Instruction Required?

U.S. regulations do not prescribe one mandatory SLI form for every export shipment. Nevertheless, freight forwarders commonly require written shipping instructions because they create a clear record of the shipper’s information and operational directions.

An SLI may authorize an agent to prepare and file EEI, but it must specifically grant that authority. A general instruction to move cargo does not automatically authorize AES filing. The Census Bureau explains that an authorized agent must obtain a power of attorney or written authorization to file EEI on behalf of the principal party. Review the Census Bureau Quick Guide to the Foreign Trade Regulations.

Information to Include in an SLI

The exporter should provide complete and consistent information in the Shipper’s Letter of Instruction. The details should match the invoice, packing list, booking, licenses, and other shipment records. Important fields commonly include:

• USPPI or exporter information: Legal name, physical address, contact person, telephone number, email, and Employer Identification Number when applicable.
• Foreign parties: Ultimate consignee, intermediate consignee when applicable, purchaser, and other relevant parties, with complete names, addresses, and contact details.
• Shipment references: Purchase order, commercial invoice, customer reference, booking number, or other internal identifiers.
• Commodity information: Accurate description, Schedule B or HTSUSA classification when applicable, quantity, unit of measure, weight, dimensions, package count, and domestic or foreign origin indicator.
• Export value: The value required for EEI purposes, which may differ from an amount shown elsewhere for accounting or insurance purposes.
• Routing details: Origin, port or airport of export, destination, requested mode, carrier, service level, and delivery instructions.
• Export-control information: ECCN when applicable, license number, license exception or exemption citation, export information code, and hazardous-material indicator.
• Document instructions: Shipper, consignee, notify party, freight prepaid or collect status, number of originals, release method, and any letter-of-credit requirements.
• Special services: Cargo insurance, warehousing, temperature control, dangerous-goods handling, inspection, consolidation, or final-delivery requirements.
• Authorization and signature: The authorized signer’s name, title, signature, date, and specific authority granted to the forwarder or filing agent.

The SLI, EEI, and AES Filing

Exporters and authorized agents transmit EEI through AES and access the system through the Automated Commercial Environment. In a standard export transaction, the USPPI may file directly or authorize a U.S. agent. The USPPI must provide accurate, timely information and determine the applicable export-control requirements.

In general, exporters must file EEI when one classification exceeds $2,500 for one USPPI, one ultimate consignee, and one exporting conveyance. Some shipments require filing regardless of value. Examples include certain licensed commodities, ITAR-controlled items, rough diamonds, and used self-propelled vehicles. The exporter and authorized agent must evaluate all exemptions and special rules for the actual transaction.

After filing, the carrier normally needs an Internal Transaction Number (ITN) or another authorized AES citation. Alternatively, the shipper must provide a valid exemption or exclusion legend before the carrier moves the cargo. If shipment data changes, the filer must correct the AES record as soon as the updated information becomes known.

Standard vs. Routed Export Transactions

In a standard export transaction, the USPPI controls the movement. The USPPI either files the EEI or authorizes a U.S. agent to file. In a routed export transaction, the Foreign Principal Party in Interest (FPPI) controls the movement. The FPPI authorizes a U.S. agent to facilitate the export and file the EEI, unless it authorizes the USPPI.

The Incoterm or commercial term does not by itself determine whether a transaction is standard or routed. The parties should identify who controls the movement and who selected the filing agent. They should also confirm who provided the required written authorization. The Bureau of Industry and Security freight forwarder guidance also emphasizes clear communication, accurate documentation, and screening responsibilities among the parties.

How the SLI Supports the Bill of Lading

A complete Shipper’s Letter of Instruction often supplies the information that a forwarder uses to prepare a draft bill of lading or air waybill. However, the documents serve different purposes. The SLI communicates the shipper’s instructions, while the bill of lading records the transportation arrangement and incorporates the carrier’s terms and conditions.

The parties should keep names, addresses, cargo descriptions, package counts, weights, and ports consistent across all records. They should also verify payment terms and release instructions in the SLI, export filing, commercial documents, and transportation documents. Exporters should review Freight180’s Ocean Bill of Lading Guide for additional document checks.

Common Shipper’s Letter of Instruction Mistakes

• Using an abbreviated or vague commodity description.
• Providing a classification number without confirming that it matches the product.
• Confusing the purchaser, intermediate consignee, and ultimate consignee.
• Reporting a value that does not follow the applicable EEI valuation rule.
• Leaving license, ECCN, hazardous-material, or country-of-origin information incomplete.
• Using outdated party addresses or contact information.
• Sending instructions that conflict with the invoice, packing list, booking, or letter of credit.
• Assuming that freight-forwarder involvement transfers the exporter’s compliance responsibilities.
• Authorizing cargo movement without specifically authorizing EEI filing when filing authority is required.
• Submitting or changing instructions after carrier documentation and filing deadlines.

Best Practices Before Sending the SLI

• Use a current shipment-specific Shipper’s Letter of Instruction rather than copying an old form without review.
• Confirm the information with the commercial invoice, packing list, purchase order, and booking.
• Have the appropriate compliance personnel verify classifications, license requirements, restricted parties, and destination controls.
• Clearly identify whether the transaction is standard or routed and who is authorized to file EEI.
• Send the completed SLI before the documentation and AES filing deadlines.
• Review the draft transportation documents and promptly communicate corrections.
• Retain the SLI, authorization, filing records, and supporting export documents for the applicable retention period. The Foreign Trade Regulations generally require records to be retained for five years from the date of export.

How Freight180 Uses Shipping Instructions

Freight180 uses a complete Shipper’s Letter of Instruction to coordinate bookings, routing, transportation documents, and shipment-specific services. When the exporter properly authorizes an agent to assist with EEI filing, the exporter retains important responsibilities. The exporter must provide accurate, timely information and make the required export-control determinations.

Providing the SLI early allows the operations team to identify missing information before carrier cutoffs and documentation deadlines. Freight180 coordinates ocean freight services and air freight services for businesses shipping from the USA to Latin America and the Caribbean.