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.
Don’t get overwhelmed with the above as Cargocentric simplifies the process. Sign up to get started.