The role of a clearing and forwarding agent in exports is to assist in the transfer of goods from the point of origin to their final destination. In order to do this a C&F agent needs to understand the requirements of the various parties involved. This involves the arranging of labour for loading and off-loading as well as HS classification and Bill of lading.
HS Classification
A Harmonized System (HS) is a coding system that is used to classify goods. It is a global economic language that helps governments, private sectors and international organizations track and manage goods in international trade.
The HS is an integral part of many customs clearance systems. The HS code system is updated every five years, to reflect changes in the international trade environment. Among other things, the HS code is used to provide a basis for the duties on imported goods and to collect international trade statistics.
For example, the HS code for iron or steel articles is 7302. Likewise, the HS code for a non-organic caffeinated coffee is 0050.
Depending on the country of import, the HS code can be used to determine the duties and the permissibility of import. This information is critical in closing deals in international trade.
Incorrect HS classifications can result in penalties, overpayment of duty and confiscation of imported goods. Therefore, it is essential to understand the HS code.
Bill of lading
If you’re in the business of transporting goods around the world, you need to understand the role of the bill of lading. This document is a legal contract between the seller and the buyer of a shipment, which outlines the terms of payment. It’s like a boarding pass for international transportation.
In a nutshell, the Bill of Lading is a document that details the name and address of the shipper, the destination, the type of goods being carried, and the terms of the forwarder. These details can be useful to both parties in the event of a dispute. The documents are also often used for tracking and insurance purposes.
There are a few different types of bills of lading, including the master bill of lading, the house bill of lading, and the clean bill of lading. Each of these is different in its own way, but each of them has the same purpose.
Duties of a C&F agent
A clearing and forwarding agent is responsible for the movement of goods from the point of origin to the point of destination. These agents are registered with the local port and customs authorities. They prepare the customs documentation required for the import and export of goods. The documents are submitted to the customs officer, who then clears the shipment.
There are several types of clearing and forwarding agents. These include freight forwarders, cargo middle men, and customs brokers. Each type has specific duties.
Depending on the country and the type of import and export, the duties of a C&F agent can differ. But in general, clearing and forwarding agents are tasked with preparing and submitting customs documents, preparing shipping bills, and ensuring timely delivery.
It is important for a clearing and forwarding agent to be knowledgeable about the laws of the country in which he operates. He should also know how to use different types of software to process shipments.