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Freight Forwarder

 

 

Frequently Asked Questions

What is a Freight Forwarder?  

Freight forwarders are agents who arrange transportation of goods.The freight forwarder advises and assists clients on how to move goods most efficiently from one destination to another.

They complete all procedural and documentation formalities involved in custom and post clearance on behalf of the shipper and arrange for warehousing of cargo before shipment of export cargo. This can include the correct filing of export documentation, all arrangements with carriers, packing, crating, and storage needs. 

Freight forwarders are licensed by the International Air Transportation Association for air cargo and by the Federal Maritime Commission for handling ocean-bound cargo.  

Why Use a Freight Forwarder?  

Freight forwarders assist the exporter in selecting economic shipping routes, arranging packaging and marking of shipments, preparing shipping and regulatory documents, delivery goods to carriers, collecting transport documents, arranging insurance and processing claims, booking shipping space and providing advice on the relative costing of sending goods by sea and air.

What is a Customs Broker?  

A customs broker performs transactions at ports on behalf of other parties. In other words, an importer hires a customs broker to guide the importer's goods into a country. Like the freight forwarder, the customs broker will recommend efficient means for clearing goods through the maze of customs entry protocol. 

The transactions negotiated for the importers will include the entry of goods into a customs territory, payment of taxes and duties, and duty drawback or refunds of any kind. The broker has knowledge of regulations not only from the corresponding customs authority, but also form other regulating agencies involved in imports.

Customs House Agent 

(CHA) is a person who is licensed to act as an agent for transaction of any business relating to the entry or departure of conveyances or the import or export of goods at any Customs station. He will help you clear the destination charges .

In general these charges include: 

1 - Destination Country Government (Customs) related charges, i.e. duty and taxes (if any), harbor fees, fee on entry filing by a destination Customs Broker etc.; 

2 - Destination terminal(s) handling charges and fees (THC); 

3 – Service fee from carrier's destination agent on handling and delivery (if you requesting delivery to your door) of your container. 

Destination charges vary depending on a destination country and ocean freight carrier. 

Frequently Asked questions on Export & Import 

For a comprehensive export guide, you can purchase The Export Handbook. The handbook takes you through the practical aspects of exporting essential for both experienced and novice exporters. It covers Export Procedures and Documentation, Customs Export Regulations, Internet Commerce, Banking and Finance, Export Risk and Credit Insurance, Marine Insurance, Shipping and Air Cargo, Freight Forwarding, Export Packaging and Resources for International Trade.

 


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