Who is a freight forwarder?
A freight forwarder is an agent for the exporter in moving cargo to an overseas destination and can be an integral part of your logistics plan. Their expertise in ocean freight and air freight as well as all of the paperwork involved can make your export and import business run smoothly. These agents are familiar with the import rules and regulations of foreign countries, the export regulations of different nations, the methods of shipping, and the documents related to foreign trade.
Who is a freight forwarder?
A freight forwarder is an agent for the exporter in moving cargo to an overseas destination and can be an integral part of your logistics plan. Their expertise in ocean freight and air freight as well as all of the paperwork involved can make your export and import business run smoothly. These agents are familiar with the import rules and regulations of foreign countries, the export regulations of different nations, the methods of shipping, and the documents related to foreign trade.
Freight forwarders can help exporters prepare price quotes by advising on freight costs, port charges, consular fees, costs of special documentation, insurance costs, and their handling fees. They recommend the packing methods that will protect the merchandise during transit or can arrange to have the merchandise packed at the port or containerized. If the exporter prefers, freight forwarders can reserve the necessary space on a vessel, aircraft, train, or truck. They can even help arrange for warehouse space and storage of products at destination. The costs for their services are legitimate export costs that should be included in the price charged to the customer.
Freight forwarders should review all documents to ensure that everything is in order. This is very important when dealing with letter of credit payment terms. They may also prepare the bill of lading and any special required documentation. After shipment, they can route the documents to the seller, the buyer, or to a paying bank. Freight forwarders can also make arrangements with customs brokers overseas to ensure that the goods comply with customs export documentation regulations.
Essentially, the Freight Forwarder secures the business of various exporters and importers and has the ability/facility to:
• Store the cargo belonging to the clients at their warehouse (usually all big forwarders have their own warehouses)
• arrange the distribution or “forwarding” of the cargo as per the instructions of their client.. This could be a regular routing or various routings
• negotiate freight rates with the shipping line to cover the interest of their clients
• book the cargo with the shipping line as per the requirement of the client
• prepare bills of lading and associated shipping/negotiating documentation (F178, Certificate of Origin, etc)
• issue their approved house bill of lading as applicable
• MAY or MAY NOT also do Customs Clearance
• may or may not be accredited to customs, port etc and cannot do customs clearance if not accredited
• almost viewed by clients as an alternative shipping line
Who is a customs broker?
A customs broker is an individual or company that is licensed to transact customs business on behalf of others. Customs business is limited to those activities involving transactions related to the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected; or the refund, rebate, or drawback thereof.
In other words, an importer, hires a customs broker to guide their goods into a country. Like the forwarder, the broker will recommend efficient means for clearing goods through the customs entry rules and regulations. In the USA for instance, the broker can also estimate the landed costs for shipments entering the country.
Both freight forwarders and customs brokers are an integral part of international logistics and are worth the fees for all the time and headaches they will save you.
Essentially the Clearing Agent takes care of the customs clearance aspect of the business. It:
• is a company accredited with the local customs authorities, border agencies, port etc
• arranges to pass the relevant documents at customs
• arranges for customs inspections as required
• checks and processes Duty and VAT payments as applicable
• applies for refunds etc where applicable
• cannot issue own bills of lading if not registered or acting as a freight forwarder
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