Shipper’s Letter of Instruction (SLI) – Explained

A Shipper’s Letter of Instruction (SLI) is an optional but useful document that allows exporters to give clear instructions about a shipment to their freight forwarder or shipping agent.

Even though your goods can still be shipped without an SLI, providing one helps ensure that your consignment is handled smoothly and accurately.

What Is an SLI Used For?

Think of an SLI like a recipe for your freight forwarder. It tells them exactly what the shipment contains and how it should be handled.
An SLI helps:

  • Give clear instructions to the forwarder
  • Provide a declaration of the shipment’s contents
  • Authorize the forwarder to handle customs filings (like EEI in the USA, or relevant Nepali customs requirements)

Who Prepares the SLI?

The shipper prepares the SLI and sends it to the freight forwarder before the shipment. Accuracy is very important, as the instructions guide how your goods will be transported.

What Should Be Included in an SLI?

There is no fixed format for an SLI. For shipments from Nepal, your letter can include:

  • Shipper’s name and address
  • Forwarder’s name and address
  • Receiver’s name and address
  • Pickup and delivery locations
  • Contact person for shipment-related queries
  • Details of the goods (quantity, weight, value, license if applicable)
  • Whether the goods are hazardous
  • Shipper’s signature

When Should You Use an SLI?

  • First-time exporters or first-time use of a freight forwarder
  • When shipping goods that require special handling
  • To clearly communicate expectations and instructions to the forwarder

Benefits of Using an SLI

  1. Prevents mistakes: Clear instructions reduce errors in handling your goods.
  2. Avoids delays: Proper instructions ensure timely delivery.
  3. Protects goods: Forwarders know if items are fragile, perishable, or require special conditions.
  4. Provides written evidence: Helps avoid misunderstandings that can occur with verbal instructions.
  5. Supports customs documentation: Can provide details needed for customs clearance in Nepal or abroad.