Starting a business is nerve-wracking in and of itself, especially if the firm involves import and export in some way. Since the globe has become a global village, this industry has seen significant expansion in the last decade. For a new entrant, whether entering a new market, establishing a firm in a foreign country, or simply extending out in the industry, recognizing and dealing with the entailments is critical.
Even though international shipping presents a massive business opportunity, the overall procedure may seem a bit daunting. You may have heard of the term freight forwarder or custom clearance company. But let’s understand what is it that they do? Let's get you out of the muddled state and help you understand the logistics of the logistics.
What Is a Freight Forwarder?
A freight forwarder is a company that, in addition to arranging shipments on behalf of shippers, offers you a multitude of supply chain services. The forwarder is responsible for everything from arranging storage, shipping merchandise, tracking inland transportation, preparing shipping and export documents, filling insurance, bargaining, booking cargoes, warehousing, and other services to receiving documents verifying and confirming delivery and freight collection at the destination by their agent or associate. To put it in simpler terms, a freight forwarder is a company that organizes the import and export of cargo and handles the complete process, including document filing and other paperwork.
- Freight forwarders handle the entailments of international shipping.
- The forwarder stands as an intermediary between a shipper and various services you would require for your goods to be moved.
- A freight forwarder company that has been in the market for decades are aware of the intricacies; they specialize in this and has established acquaintances and relations that would help them acquire the best bid for you.
- The process of exporting can be pretty stressful too, to document the criteria, shipping costs and assisting with other economic factors such as banking practices. In such situations, a freight forwarder takes care of it and functions as a consultant and guides you through it.
Key Services of a Freight Forwarder
- Freight transportation by sea or air.
- Inland transit from the point of origin to the point of destination.
- Documentation preparation.
- Services for warehousing and storage.
- Consolidation and deconsolidation.
- Customs compliance and cargo insurance.
What Is Custom Clearance?
Import and export procedures include customs clearance. It is required when importing or exporting internationally, regardless of the route or mode taken. Before the cargo leaves the port or airport, the shipper must obtain export clearance; also, you must obtain import clearance before receiving the consignment, depending on the mode of transit. The shipper must produce paperwork verifying the payment of customs duties only after the shipment has been cleared, following which the shipment can proceed.
Key Functions of Custom Clearance Company
- Aiding throughout the custom clearance process and filing documents for paperwork verification such as commercial invoice.
- List of things.
- Origin certificate.
- Letters of credit or other types of payment conditions if required Airway bill or bill of lading.
- Import-export licenses.
- Inspection certificates.
- Dangerous goods declarations permits.
- And other customs clearance documents.
Benefits of Hiring Freight Forwarding & Customer Clearance Company
The custom laws often keep changing globally and thus its quite difficult to carry out the import export on the international waters and requires a lot of documentation. The freight forwarder and custom clearance company are always updated with these and file the documentation easily.
They take care of the entire process right from paperwork to delivering and collection of the consignment.
You don’t have to invest additionally in warehouse and storage fees etc. They help get you the best bid and guide you to maximize the profit.
An experienced freight forwarder in Dubai ensures that there’s no delay in delivery or custom clearance which may have negative impact on your business.