Shipper's Letter of Instruction: Why Skipping the SLI Puts You at Risk

You send your commercial invoice to the freight forwarder. They file the Electronic Export Information (EEI) on your behalf. Months later, U.S. Customs sends you a penalty notice for incorrect classification.

Your forwarder filed it wrong. But you're the one paying the fine.

This guide explains what the Shipper's Letter of Instruction (SLI) is, why skipping it creates risk, and what information you need to include.

What is a Shipper's Letter of Instruction?

A Shipper's Letter of Instruction is a document that provides your freight forwarder with the information and authorization needed to handle your export shipment. It tells the forwarder how to process the shipment, what to file with customs, and who is responsible for what.

According to the U.S. Export-Import Bank (EXIM), the SLI serves multiple purposes:

• Provides cargo weights and dimensions for proper handling

• Contains information required for AES export filing

• Enables the forwarder to prepare the Bill of Lading

• Grants limited Power of Attorney for document signing

The SLI is not legally required by any U.S. regulatory agency. But most freight forwarders will ask for one because it provides them with the data they need to file accurately on your behalf.

What happens if you don't send an SLI?

Without an SLI, your forwarder has limited information to work with. They will use whatever you provide, typically a commercial invoice, to complete the EEI filing. If the invoice lacks required details, the forwarder must either contact you for clarification or make assumptions.

According to the U.S. Census Bureau, more than half of all paper Shipper's Export Declaration (SED) filings contained errors before the transition to electronic filing. The SED has been replaced by EEI, but the underlying problem remains: incomplete information leads to inaccurate filings.

Common issues that arise without an SLI:

• Wrong Schedule B or HS code classification

• Incorrect export value declaration

• Missing ECCN (Export Control Classification Number)

• Inaccurate ultimate consignee information

Each of these errors can trigger penalties, delays, or both.

Who is responsible for EEI accuracy?

Under the U.S. Foreign Trade Regulations (FTR), the U.S. Principal Party in Interest (USPPI) is responsible for the accuracy and timeliness of EEI filings. In most export transactions, the USPPI is the exporter, which means you.

According to 15 CFR 30.71, penalties for inaccurate or late EEI filings include:

• False or misleading information: Up to $16,971 per violation (2025 adjusted)

• Late filing: $1,696 per day, up to $16,971 maximum

• Willful violations: Up to $10,000 fine and 5 years imprisonment

Your forwarder may file the EEI, but you bear the legal responsibility. If the forwarder makes a mistake based on incomplete information you provided, the penalty still comes to you.

What are the 10 data elements the USPPI must provide?

Even in a routed export transaction where the foreign buyer arranges shipping, the U.S. exporter (USPPI) must still provide specific data elements to the authorized agent. According to 15 CFR 30.3(e), these include:

• USPPI name and address

• USPPI Employer Identification Number (EIN)

• Ultimate consignee name and address

• Intermediate consignee (if applicable)

• Authorized agent name and address

• Country of ultimate destination

• Commodity description and Schedule B number

• Quantity and unit of measure

• Value

• Export Control Classification Number (ECCN) or indication that no license is required (NLR)

The Bureau of Industry and Security (BIS) guidance states that freight forwarders should question and resolve any discrepancies between the commercial invoice and the SLI. But they can only do this if you provide an SLI in the first place.

What does a B/L error cost?

The SLI also affects your Bill of Lading. The forwarder prepares the B/L based on the information you provide. If that information is wrong, the B/L will be wrong.

Correcting a Bill of Lading after the vessel has sailed is not free. According to MSC's fee schedule effective February 2025, the B/L Amendment Fee is $75 per correction for U.S. export shipments after sailing. Maersk notes that manual B/L corrections can take up to 8 hours to process.

A single typo in the consignee name can trigger a Letter of Credit rejection, a customs hold, or both.

How do you create an effective SLI?

The National Customs Brokers and Forwarders Association of America (NCBFAA) provides a standardized SLI template that includes all data fields required for AES filing. Using this format ensures your forwarder has everything they need.

Key sections to complete:

• Shipper and consignee details: Full legal names, addresses, contact information

• Transportation information: Mode, carrier, port of export, port of destination

• Commodity details: Description, Schedule B code, value, weight, ECCN

• Special instructions: Hazardous materials, insurance, packing requirements

• Authorization: Power of Attorney for EEI filing

Before sending your SLI, verify that all information matches your commercial invoice and packing list. Inconsistencies between documents are a common source of customs delays.

Quick reference: SLI checklist

• Use the NCBFAA SLI format for complete data fields

• Include all 10 USPPI data elements required under 15 CFR 30.3

• Verify Schedule B code matches your product classification

• Confirm consignee name matches exactly across all documents

• Include ECCN or NLR designation for export control compliance

• Sign the Power of Attorney section if authorizing EEI filing

• Retain a copy for five years as required by FTR

The Shipper's Letter of Instruction is optional. The responsibility for accurate export information is not.