Shipper’s Letter of Instruction (SLI): Filing, ITN, and Penalties

A Shipper’s Letter of Instruction is the document a U.S. exporter gives to a freight forwarder telling the forwarder how to handle, classify, and report a shipment — and, just as importantly, authorizing the forwarder to file Electronic Export Information (EEI) with the government on the exporter’s behalf. There is no mandatory federal form. The National Customs Brokers & Forwarders Association of America publishes a widely used model template, and most forwarders provide their own version built on it.¹ Whichever version you use, the data it collects is dictated by 15 CFR 30.6, so the fields are effectively the same everywhere.²

Where to Get the Form

You have three practical sources. The NCBFAA model is designed as a starting point and is meant to be customized with your own fields and numbering.¹ Your freight forwarder will usually send you a branded version when you open an account. Many forwarders also offer a digital portal where you enter the same information online.

Identifying the Parties

The first block asks for details on the U.S. Principal Party in Interest (USPPI) — the person or company in the United States that receives the primary economic benefit from the export. Enter the USPPI’s full legal name, street address, and Employer Identification Number. The EIN is a nine-digit IRS number, and even individuals who do not run a business need one to export goods from the United States.³

Next comes the ultimate consignee, the party abroad who will actually receive the goods at the final destination.² Enter the full name and address. Before you write anything in that field, screen the consignee and every other party against the Consolidated Screening List published by the Departments of Commerce, State, and Treasury. The International Trade Administration hosts a free search tool.⁴ Shipping to a denied or restricted party can create criminal liability, so run the check before the form ever reaches the forwarder.

Classifying and Describing the Goods

Commodity classification is where the most SLI errors happen, and where the downstream consequences bite hardest. Under 15 CFR 30.6, each commodity line requires a 10-digit Schedule B classification number, the Census Bureau’s statistical code for exported goods.² You may substitute the equivalent 10-digit Harmonized Tariff Schedule (HTSUSA) number, except where the HTSUSA headnotes say otherwise. The Census Bureau’s free Schedule B search tool walks you through narrowing the correct code.⁵

If your item appears on the Commerce Control List and carries an Export Control Classification Number (ECCN), include that five-character code in the product description area. ECCNs are what the Bureau of Industry and Security uses to determine whether a license is required. Items not described by any ECCN default to “EAR99,” which generally means no license is needed unless the end user or end use is restricted.⁶

Complete each commodity line with the mandatory EEI data:²

Shipping weight in kilograms, including normal packaging.
Value in U.S. dollars — the selling price or cost of the goods at the U.S. port of export.
Primary quantity and unit of measure, matching the unit prescribed in Schedule B or the HTSUSA for that commodity.
A plain-English commodity description detailed enough for a customs officer to verify the Schedule B code.

Routing, Freight Terms, and Insurance

The SLI also captures the physical path of the shipment: the U.S. state of origin (two-letter postal code for the state where the goods start their journey to the port), the port of export, the mode of transport (ocean, air, rail, or truck), and the country of ultimate destination.²

Most forms include a Prepaid or Collect field for freight charges. Prepaid means the shipper pays; Collect means the consignee pays the carrier at delivery. That choice appears on the bill of lading and determines who controls carrier selection, scheduling, and claims.⁷ If the sales contract uses an Incoterms rule (FOB, CIF, EXW, and so on), note it. The Incoterms rule defines which party arranges carriage, bears transport risk, obtains insurance, and handles export and import customs formalities, and your forwarder needs it to know the boundaries of what they are arranging.

A separate field usually asks about cargo insurance. Under the Carriage of Goods by Sea Act, an ocean carrier’s liability is capped at $500 per package unless you declare a higher value on the bill of lading before shipping. For high-value cargo, that default cap leaves you badly undercompensated if something goes wrong. Note the declared value and insurance request on the SLI so your forwarder can arrange coverage.

Authorizing the Forwarder to File EEI

The authorization section is what turns the SLI from a set of shipping instructions into a legal grant of agency. Under 15 CFR 30.3, any agent filing EEI in the Automated Export System must hold a power of attorney or written authorization from a principal party in interest. The authorization must spell out the agent’s responsibilities and state that the agent is the principal’s “true and lawful agent for purposes of creating and filing EEI in accordance with the laws and regulations of the United States.”⁸

Who signs depends on whether the export is standard or routed, and this is a point where the wrong box creates real problems.

In a standard (non-routed) transaction, the USPPI controls the shipment, provides the power of attorney or written authorization to the forwarder, and is responsible for the accuracy of all EEI reported.
In a routed transaction, the foreign buyer (the Foreign Principal Party in Interest, or FPPI) directs the movement of goods and selects the U.S. agent. The FPPI must provide the power of attorney or written authorization to that agent. The USPPI is not required to give authorization to the FPPI’s agent in a routed transaction.⁹⁸

The SLI will typically have a checkbox indicating whether the shipment is routed or non-routed. Check the correct one. The relationship it establishes decides who bears legal responsibility for accuracy.

Getting the SLI to Your Forwarder in Time

Once complete and signed, transmit the SLI to your forwarder. Most forwarders accept uploads through a digital portal, though a signed PDF emailed with the commercial invoice and packing list is still common. The forwarder cross-references the SLI against those documents before entering the data into AESDirect, the free web-based portal on the Automated Commercial Environment (ACE) platform that the Census Bureau uses to collect EEI.¹⁰

The EEI must be filed and its proof-of-filing citation given to the carrier before hard deadlines set in 15 CFR 30.4:¹¹

Vessel cargo: 24 hours before the cargo is loaded onto the vessel at the U.S. port of lading.
Air cargo, including express couriers: no later than 2 hours before the aircraft’s scheduled departure from the U.S. port of export.

Because your forwarder needs time to review the SLI, reconcile it with your commercial documents, and file before those cutoffs, get the completed form over well in advance. Two to three days ahead of the vessel date is a comfortable margin for ocean freight. Air moves faster, and a same-day submission leaves almost no room for corrections.

After Filing: ITN, Corrections, and Records

Internal Transaction Number

When AES accepts the filing, it issues an Internal Transaction Number (ITN). The ITN is your proof of filing, and it must be provided to the exporting carrier before departure.¹² Ask the forwarder to confirm the ITN as soon as it comes back. If something is wrong, you want to know while there is still time to fix it before the cargo deadline.

Correcting Filed Information

If you discover an error after the EEI has been transmitted, the USPPI or the authorized agent must submit electronic corrections to AES as soon as the error is known. Failing to correct inaccurate EEI is itself a regulatory violation, so a filed record is not permanently locked.¹³ Common corrections include updated values, revised Schedule B codes, and changes to the date of export or port of loading.

Recordkeeping

Every party to the export must keep the SLI, EEI filing records, commercial invoices, packing lists, purchase orders, and related correspondence for five years from the date of export.¹⁴ A Census Bureau or CBP audit can request these records years after the shipment cleared the port, and gaps make defending the accuracy of your filing much harder.

Penalties for Filing Errors and Violations

Two federal statutes drive the penalty exposure. Under 13 USC 305, knowingly filing false or misleading export information — or knowingly failing to file at all — carries a criminal fine of up to $10,000 per violation, imprisonment for up to five years, or both. Civil penalties under the same statute can also reach $10,000 per violation.¹⁵

Where an export violation also triggers the International Emergency Economic Powers Act, such as shipping controlled goods to a sanctioned destination or a denied party, the penalties jump. A willful violation under 50 USC 1705 can result in a criminal fine of up to $1,000,000 per violation, imprisonment for up to 20 years, or both.¹⁶ Civil penalties under IEEPA can reach the greater of $250,000 or twice the value of the underlying transaction. CBP and the Bureau of Industry and Security pursue civil penalty cases against ordinary commercial exporters who file carelessly or skip restricted-party screening, so the ceilings are not reserved for arms traffickers.

1
National Customs Brokers & Forwarders Association of America. Shipper’s Letter of Instruction Model
2
eCFR. 15 CFR 30.6 – Electronic Export Information Data Elements
3
U.S. Census Bureau. Employer Identification Numbers: Guidance for Exporting Goods From the United States
4
International Trade Administration. Consolidated Screening List
5
United States Census Bureau. Schedule B
6
Bureau of Industry and Security. Classify Your Item
7
International Trade Administration. Know Your Incoterms
8
eCFR. 15 CFR 30.3 – Electronic Export Information Filer Requirements, Parties to Export Transactions, and Responsibilities of Parties to Export Transactions
9
United States Census Bureau. Understanding Routed Export Transactions
10
U.S. Census Bureau. Export Filing AES
11
eCFR. 15 CFR 30.4 – Electronic Export Information Filing Procedures, Deadlines, and Certification Statements
12
U.S. Census Bureau. Filing in AESDirect: How Do You Find Your Internal Transaction Number?
13
eCFR. 15 CFR 30.9 – Transmitting and Correcting Electronic Export Information
14
U.S. Census Bureau. Record Retention
15
Office of the Law Revision Counsel. 13 USC 305 – Penalties for Unlawful Export Information Activities
16
Office of the Law Revision Counsel. 50 USC 1705 – Penalties