What do clearing and forwarding agents do

A mistake at any point can have your shipment held until corrections are processed. A good forwarder will ensure that paperwork is checked and that customs declarations are made promptly and accurately.

With over 2 million tonnes of air freight shipped per year in the UK alone, airports and freight terminals are processing a lot of cargo every day and importers have to make sure that everything is in order with their consignments if they are to be handled as quickly and efficiently as possible.

A forwarder will make sure that goods are entered in advance, that the right paperwork is in place and that the process runs more smoothly. Goods moved by air are typically urgent and customers cannot afford to incur delays and additional charges from the airlines. A good freight forwarder will oversee the whole process, track shipments, minimize delays, and liaise closely with customs authorities and airlines on your behalf.

With such little time allowed at airports for customs and for connecting flights these movements are time critical throughout every stage of shipment. Clearing agents will be required to liaise and coordinate with the relevant authority for the destruction of such goods. They will have to work closely with the consignee, the concerned regulatory body or bodies, and sometimes the carrier to complete this task and a certificate of destruction is issued by the authority.

Some goods may have serious labelling errors on them. These could be errors in the label format or certain details could be missing. Some of the information that is shown on product labels is the name of the product, its ingredients if applicable , date of manufacture, date of expiry, country of origin, statutory warnings, etc. In the case of a labelling error, the required modifications may be allowed by the concerned regulatory body after which the import procedures can be completed.

One big advantage in using dedicated clearing agents to clear cargo shipments is that they can do it easily as they usually have a good rapport with port and customs authorities as well as with transport and labour unions. What are the documents that a clearing agent will need, to affect the smooth clearance of goods from the port through customs?

Which are the documents prepared by the clearing agent? Let us look at some of the important documents that are handled by the clearing agent. The bill of entry is usually prepared by the clearing agent and submitted to the customs authority before the arrival of goods at the destination port. The agent has to ensure that the correct description and value of goods are shown on the bill of entry and that goods come under the correct HS Classification Harmonized Systems code.

The HS Classification system is an internationally accepted system of classification and coding of goods. The customs duty calculation will be based on the HS code. Most of the ports these days have the facility to prepare bills of entry digitally. The clearing agents only have to input the correct data through the relevant customs portal.

A signed bill of lading is issued by the ocean carrier as proof of receipt of cargo from the shipper, onboard the ship. It also gives title over the cargo, normally to the consignee. It shows the name and address of the consignor, consignee, and notify party if applicable.

The clearing agent has to ensure that the bill of lading accompanies other documents for clearance of the cargo. Another document that must be submitted by the clearing agent for the clearance of goods is the commercial invoice. A commercial invoice is issued by the seller or consignor and must accompany the goods.

It gives the full name and address of the seller and the buyer. It will have the details of the goods that are being shipped, the quantity shipped of each item, their respective costs, and the total amount due from the customer. At a glance, a packing list may look very similar to the commercial invoice. But the similarity ends there.

The packing list gives a complete picture of what is contained in the shipment, their packing, and weight. All the parties involved in the carriage and clearance of the consignment such as the carrier, the freight forwarder , the clearing agent, port and customs authorities and the customer require the packing list. A certificate of origin is usually issued by the Chamber of Commerce CoC of the country from where the product originates.

It shows the country where the product or commodity is manufactured or produced. In some countries, certain other government bodies also issue this certificate to its exporters. In India, for example, the certificate of origin is issued by two government bodies which are the Chamber of Commerce and the Trade Promotion Council of India. The import license is the permission given to the consignee by the relevant government authority to import the specified goods into the country.

If your business is anticipating shipping a large number of goods from one point to another, you need to think about how your shipping line will work. The logistics of your shipping service is an essential asset in your business. Two key entities in your supply line are freight forwarders and clearing agents. In the simplest terms, a freight forwarder manages the motion of your cargo from point A to point B, whereas a customs agent clears the way for the shipments. In very few instances, freight forwarding and clearing agent positions are held by a single person.

In most cases, however, these two positions are separate and for a good reason. A freight forwarding agent is integral in the international shipping trade.