Freight Forwarding and Customs Clearance

If you are importing or exporting goods from overseas using a freight forwarding company, you will also need to ensure that they can also handle the custom clearance element of shipments so that your goods are cleared quickly and easily, keeping your supply chain running smoothly.

First off, let’s look at the difference between a freight forwarder and a customs agent:

Difference between a freight forwarder and a customs agent

Freight forwarders act as an intermediary between the company who is shipping the goods and ensuring that the goods arrive at their final destination. They will source the most appropriate transport mode such as sea/ocean freight, rail or air freight shipment through their network of trusted contacts with carriers and partners.

A Customs agent will ensure that you have all the relevant paperwork for the local customs authorities so they can reach their final destination. This might include specific functions such as:

Completing required documentation for export shipments
Clearing shipments of imported goods from the customs area and delivering them to the final destination
Ensuring the right classification of goods
Using relevant free trade agreements

The main difference between the two are that a freight forwarder handles only the logistics, whereas a Customs agent deals with the documentation involved, including liaising with various government agencies, depending on the destination and what goods are being shipped.

Custom regulations

Each country has its own import and export regulations for different products. These rules are always changing, and more recently there has been a new Customs Declarations Service that allows businesses to make declarations electronically using software provided by HMRC.

INCOTERMS

A good freight forwarding company will be familiar with INCOTERMS, a set of internationally accepted terms that set out which parties are responsible for various costs and details throughout the shipping process such as freight, insurance, duties, customs clearance and documentation. If it is uncertain which party is contracting transportation or providing insurance, for instance, a shipment could be delayed, damaged, or lost without a clear indication of responsibility.

Prevent packages getting ‘held at customs’

If you are shipping goods internationally on a regular basis, you may have experienced items being held at customs. This is usually due to incomplete documents, unpaid customs duties or the wrong classification of goods. When goods are held at customs it can cause a lot of unnecessary delays to your supply chain that can be prevented by having a company who can handle your customs clearance for you.

Not every freight forwarding company can handle your customs clearance, so it’s important to check. Having someone to guide you through the process, prepare the relevant paperwork, understand export regulations and import requirements, and provide advice to make sure the goods are properly packed and insured will save you lots of time.

At Blacksmith Freight, we combine both freight forwarding and customs clearance for all our clients, giving them the peace of mind that everything is taken care of whilst adhering to the complex rules of international shipping. We are an Authorised Economic Operator (AEO) with electronic links to HM Customs & Excise, allowing us to get faster clearance on imports.