Shipping goods in bulk across oceans sounds like a daunting task.  However, if you’re able to find the right logistics partner, it should be a seamless and simple process.  Importing goods from one country to another require two types of services: 1) Freight Forwarding and 2) Customs Clearance.  Here’s a quick overview of what these two services entail.

1) Freight Forwarding

• Freight forwarding facilitates the physical movement of goods.  Many compare forwarders to travel agents, but forwarders ship cargo vs. people.
• Methods of transportation include all types of carriers.  The most common are planes, ocean containers, trucks and/or trains.
• Shipping terms (aka incoterms) determine who pays for forwarding fees.  This is negotiated between the importer and the supplier.
• The following is required to determine forwarding freight fees:
  • Weight
  • Dimensions
  • Origin
  • Destination
  • Description of the commodity
• Carriers have very limited liability from $0.50/lb to $0.50/kg.  If importers prefer not to purchase annual cargo insurance, forwarders offer insurance on a per shipment basis.

2) Customs Clearance

• Before goods can leave or enter a country, the shipments need to be declared with Customs.  Without clearance, shipments cannot be picked up from the carrier.
• Duties and taxes are determined at the time of entry.
• Depending on the commodity, other government agencies may also need to review your shipment prior to the release of your goods.
• The following is required to determine Customs clearance fees:
  • Description of the commodity
  • Value paid to the manufacturer
  • Number of pieces
  • Weight of each piece
• If Customs decides to inspect a shipment, there may be fees incurred at the examination site for each container, depending on how intensive they want to examine the goods.

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