The Freight Forwarders in commercial aspects

-
An agent is probably best described as a person who is entrusted with the business of another (principal) and act on the others' (principal's) behalf. The term "Freight Forwarders" further qualifies this definition limiting the activities of those areas of commerce that deal primarily with importing, exporting and clearance of vessel and aircraft cargoes.

The freight forwarder does not normally import or export on his own account but he handles the movement of goods from or to the port and attends to all the necessary documentation required for the inward or outward clearance of goods and carries through "Forwarding".

The freight forwarder is in a unique intermediary position acting as a "go-in-between" for his client in dealings with shipping companies, insurance companies and government agencies of all kinds but predominantly of course the Customs Department.

It is from this unique standpoint that he can most efficiently act in the best interest of his clients ensuring at all time adherence to Customs regulations and requirements. The Customs Act places certain obligations on owners of goods particularly in correct and accurate declaration and classification of goods imported.

The owner or his employee may choose to deal directly with the Customs Department in such matters. However, in many instances these obligations requires specialized expertise which is sometimes go beyond the competence of an owner and the use of freight forwarders is often more convenient for the importer.

In many countries, the Customs Act provides for the licensing of freight forwarders who provide vital services to the business community in representing owners of goods in complying with the provisions of the Customs Act and what ever regulations that governs the trade.

Popular posts from this blog

Value-Added Role of Logistics

-
Image
Form Utility . It refers to the value added to goods through a manufacturing, production or assembling process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for instance, when a bottling company adds together syrup, water and carbonation to make a soft drink. The simple process of adding the raw materials together to produce the soft drink represents a change in product form that adds value to the product. In today's economic environment, certain logistics activities can also provide form utility. For example, breaking bulk and product mixing, which typically take place at distribution centres, change a product's form by changing its shipment size and packaging characteristics. Thus, unpacking a pallet of breakfast cereal into individual customer size boxes form utility to the product. However, the two principal methods in which logistics adds value are in place and time utility
Read more

Various Basic Shipping Charges on Landside and Waterside

-
Landside Stevedoring - cargo handling charges for loading / discharging cargo on / from conventional breakbulk vessels. LCL Service Charge - charge for stuffing and unstuffing LCL (Less than Container Load) cargo into or from a container at the freight station. Equipment Transfer Charge (ETC) - charge for lifting an empty or loaded container onto / from the trailer. Also called Lift-on / Lift-off (LOLO) charge. This charge is applicable on FCL (Full Container Load) containers only. Terminal Handling Charge (THC) - charge for handling (receiving and delivering) FCL containers at the container yard (CY). Waterside Bunker Adjustment Factor (BAF) - surcharge for offsetting changes in fuel prices. Congestion Surcharge - surcharge levied on cargo that are discharge at a port where ships are experiencing delays in turnaround time. Currency Adjustment Factor (CAF) - surcharge for offsetting fluctuations in currency exchange rates of various currencies against the US Dollar. In Asia and Japan t
Read more

Multimodalism - Definition and Concept

-
Image
A global scenario is developing whereby: a) production, manufacturing, distribution and consumption is becoming increasingly sophisticated in order to ensure products are available in the global market place at the correct time, for the correct price and in good condition. b) transport services are changing in nature to meet the demands of buyers and sellers involved in the global production and consumption cycle. c) transportation services demanded by buyers and sellers increasingly involve collection of goods at a place in one country for delivery to a place in another country within specified time frames and with contractual agreement clearly setting out areas of responsibilities and liability. d) results of containerization. e) new technologies in transport (including communication systems). The name commonly applied to this all embracing transport service is Multimodal Transport. What is Multimodal Transport? The United Nations Convention on International Multimodal Transport of G
Read more