What is a freight forwarder?When trying to ship globally you need to start by working out who to contact, a Customs or a Freight Broker. A freight broker usa, freight forwarder , or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. A Freight Forwarder will use their knowledge in ocean freight and specialised commodities, various components of the paperwork to ensure your export and import business run smoothly. We are familiar with the import export rules and regulations of foreign countries, the various options for shipping, and the documents related to foreign trade. Export freight forwarders and freight Brokers are licensed by the Federal Maritime Commission to handle ocean freight and liase directly with shipping lines.

Freight forwarders can help exporters prepare price quotes by advising on freight broker costs, port charges, costs of special documentation, insurance costs, and their handling fees. They recommend the packing methods that will protect the merchandise during transit or can arrange to have the merchandise packed at the port or containerized. If the exporter prefers, a freight broker who is a freight forwarder, can reserve the necessary space on a vessel, aircraft, train, or truck. They can even help arrange for warehouse space and storage of products at destination.

A Freight Broker who is a licensed Freight forwarders can also make arrangements with customs brokers overseas ensure that the goods comply with customs export documentation regulations. Imagine if your cargo has been on the way to the client for 6 weeks, your customer eagerly awaiting all that time, only to discharge it from the ship at destination port to find out you didn’t get a certificate of origin and now the cargo is held at the port while you sort the mess out. It doesn’t just effect the bottom line because of additional port storage and detention costs, it directly effects your ability to continue doing business going forward with your client.

WHAT IS A CUSTOMS BROKER?

A Customs Broker role is limited to activities involving the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected; or the refund, rebate, or drawback thereof to the local government in the geographic region you are entering. Sometimes it is better to have one point of contact manage all the aspects and hire a freight Broker.

To simplify the explanation an Importer hires a Customs Broker to properly complete entry documents and payments on your behalf on behalf. Who has recently tried to put in their own council or government application to simply build a shed, complex right ! I don’t even understand half the measurements they are asking me for, let alone navigating different Tariff and duties codes of a foreign country and being liable to pay the government back if I get it wrong. This is where a freight broker can help navigate the process though their long term relationships with service providers throughout the supply chain.

The customs broker will recommend the most suitable classification for clearing goods on your customs entry. Generally freight fbrokers partner with customs brokers both locally and overseas so you have wide coverage internationally.