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

Modified on Mon, 17 Mar at 2:35 PM

TABLE OF CONTENTS

What is an SLI?
When is an SLI Form Required?
Types of SLI Forms
Understanding Common SLI Terminology

What is an SLI?

The Shipper’s Letter of Instructions (SLI) is a shipping document, completed by the shipper/exporter, that provides transportation and documentation instructions for a freight forwarder or carrier. It can also authorize the forwarder to act on behalf of the shipper and to transmit Electronic Export Information (EEI) to the Automated Export System (AES).

When is an SLI Form Required?

Important: An SLI form is required for all United States (US) exported shipments. A shipment will not get transported without proper and accurate documentation.

When you book an export shipment from the US using the UPS^® Forwarding Hub (UFH), a SLI is auto populated and available for your final completion, review, and signature. in your documents area. Even though the forms are pre-populated you still need to:

Review the form for accuracy
Complete any additional required fields
Acknowledge Terms and digitally sign

Read article How to Access, Complete, and Upload an SLI to learn how to navigate completing and uploading your SLI online.

Types of SLI Forms

There are two types of SLI forms UPS Supply Chain Solutions uses, Air and Ocean Freight.

1) Air Freight: This form is required for all US exports of shipments by air freight transportation.

Example of Air Freight Form

(click images to enlarge)

2) Ocean Freight: This form is required for all US exports of shipments by ocean LCL or FCL freight transportation.

Example of Ocean Freight Form

Understanding Common SLI Terminology

Here is a breakdown of terms used in the SLI document descriptions. All definitions are sourced from either the United States Census Bureau website or UPS Supply Chain Solutions’ Glossary section.

Automated Export System (AES)

• System for collecting, processing, and storing Electronic Export Information (EEI) for exports from the U.S., Puerto Rico, or the U.S. Virgin Islands.

Electronic Export Information (EEI)

• The electronic declaration of goods being exported from the U.S. to a foreign destination.

Exporter Identification Number (EIN)

• A unique number issued by the Internal Revenue Service, required for exporting goods from the U.S., and filed via the AES.

Foreign Trade Zone (FTZ)

• A United States Foreign Trade Zone is a physical, secure area within the US, often located in or close to a Port of Entry. An FTZ is considered outside of the Customs territory of the United States, and so shippers can avoid paying customs duties on items while they remain inside a zone.

Forwarding Agent

• The person in the United States who is authorized by the principal party in interest to facilitate the movement of the cargo from the United States to the foreign destination and/or prepare and file the required documentation

Intermediate Consignee

• The person that acts as an agent for a principal party in interest and takes possession of the items for the purpose of effecting delivery of the items to the ultimate consignee.

International Traffic in Arms Regulations (ITAR)

• Regulations administered by the Directorate of Defense Trade Controls (DDTC) within the U.S. State Department that provides for the control of the export and temporary import of defense articles and defense services.

Routed Export Transportation

• A transaction in which the Foreign Principal Party in Interest (FPPI) authorizes a US agent to facilitate export of items from the United States on its behalf and file the EEI.

Schedule B

• The Schedule B is maintained by the U.S. Census Bureau and is based on the 4- and 6-digit headings and subheadings of the international Harmonized System (HS).

Ultimate Consignee

• The person, party, or designee that is located abroad and receives the export shipment. This party may be the end user.

U.S. Principal Party in Interest (USPPI)

• The person in the United States that receives the primary benefits, monetary or otherwise, of the export transaction. Person is normally the U.S. seller, manufacturer, order party or foreign entity.

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