What is Shipper’s Letter of Instruction?
A shipper's letter of instruction (SLI) is the document in which an exporter gives its forwarder the data and instructions needed to book, document and clear an export shipment. It typically lists the parties (exporter, consignee, intermediate consignee, notify party), commodity description, Schedule B or HTS code, value, weights and dimensions, Incoterms rule, routing preferences, insurance instructions, licence or exemption details, and who pays freight. In US exports the SLI is the usual vehicle for the data the forwarder files as Electronic Export Information (EEI) in AES under the Foreign Trade Regulations, 15 CFR Part 30. It often contains the written authorization that the regulations require before an agent may prepare and file EEI on behalf of the USPPI or FPPI. In air freight, forwarders also use the SLI as source data for completing the air waybill.
Why it matters for forwarders
A complete, signed SLI documents that the filed data came from the principal party, which protects the forwarder if a filing is later questioned. EEI is required when goods are valued over $2,500 per Schedule B or HTS code, or when a licence or other mandatory filing rule applies, and the deadlines range from 24 hours before loading for vessel cargo to 2 hours before scheduled departure for air. In a routed export transaction the foreign principal party authorizes the US agent, but the USPPI must still supply accurate export information, and the agent must file it exactly as provided. Common SLI errors include missing ECCN or licence data, values that do not match the commercial invoice, and outdated Schedule B codes. Keep the SLI and supporting records for five years from the date of export, as the regulations require.