If you are in the business of exporting or importing goods and other tangible items from overseas countries, then you must be familiar with the term custom freight. This is one of the ways the government applies to collects revenue to finance its projects to benefit the citizens of a particular country. This article is meant to provide a clear explanation of what the term means and how it applies to inter-country trade.
Customs duty is a form of tax that is applied to good and services at the port to ensure that the tax on them is paid for before they leave or enter a country. Goods whose freight is not accounted for are at risk of being frozen at the port until the custom obligations are met. Each country will have laid down regulations and procedures about how the collection exercise is to be carried out.
To begin the process of customs clearance, you need to be in possession of a few key documents to present to the authorities at the port. The bill of lading is first on the list; it serves as the receipt of the consignment when delivery is made to the intended destination. It is a legal document between the shipper and the carrier, and it provides details of the goods and the final destination.
Another standard documentation needed at the point of entry is the packaging slip otherwise known as packing slip. The attachment is made on the consignment at a portion that is visible to the customs brokers. It provides more information that might not have been captured by the bill of lading. It is meant to satisfy all the parties such as government officials, the transit agencies about the contents of the shipment.
Though this type of freight documentation is standard for all consignments, there is a slight difference in requirements between exporters and importers. If you are the latter, then you will have to furnish the customs broker with a purchase order, a sales invoice as well as a certificate to indicate the exact origin of the shipment. In some cases, more clearance documents may be requested depending on the nature of your consignment.
If you are in the business of imports, then it will be mandatory to present a sales invoice from your overseas supplier, purchase order from the buyer and a certificate of origin indicating the source location of the commodities. Bill of lading or otherwise known as air waybill, packaging lists and the bill of shipping is standard for all import transactions. Additional requirements may be needed by the regulatory agencies if further clarification is necessary.
Each state has a way in which they conduct their customs clearance process; it is advisable that you familiarize yourself with the regulations that apply in your country. The experts who assist in this field are known as customs brokers. They have in-depth knowledge and skills the area of customs brokerage and clearance.
The entire process will involve a few costs to ensure your commodities are handles in the right way. Warehousing cost is necessary since your good will are received and stored in this chambers awaiting clearance. Custom prices and freight costs will vary depending on the type of goods you have and the duration your package spends at the port.
Customs duty is a form of tax that is applied to good and services at the port to ensure that the tax on them is paid for before they leave or enter a country. Goods whose freight is not accounted for are at risk of being frozen at the port until the custom obligations are met. Each country will have laid down regulations and procedures about how the collection exercise is to be carried out.
To begin the process of customs clearance, you need to be in possession of a few key documents to present to the authorities at the port. The bill of lading is first on the list; it serves as the receipt of the consignment when delivery is made to the intended destination. It is a legal document between the shipper and the carrier, and it provides details of the goods and the final destination.
Another standard documentation needed at the point of entry is the packaging slip otherwise known as packing slip. The attachment is made on the consignment at a portion that is visible to the customs brokers. It provides more information that might not have been captured by the bill of lading. It is meant to satisfy all the parties such as government officials, the transit agencies about the contents of the shipment.
Though this type of freight documentation is standard for all consignments, there is a slight difference in requirements between exporters and importers. If you are the latter, then you will have to furnish the customs broker with a purchase order, a sales invoice as well as a certificate to indicate the exact origin of the shipment. In some cases, more clearance documents may be requested depending on the nature of your consignment.
If you are in the business of imports, then it will be mandatory to present a sales invoice from your overseas supplier, purchase order from the buyer and a certificate of origin indicating the source location of the commodities. Bill of lading or otherwise known as air waybill, packaging lists and the bill of shipping is standard for all import transactions. Additional requirements may be needed by the regulatory agencies if further clarification is necessary.
Each state has a way in which they conduct their customs clearance process; it is advisable that you familiarize yourself with the regulations that apply in your country. The experts who assist in this field are known as customs brokers. They have in-depth knowledge and skills the area of customs brokerage and clearance.
The entire process will involve a few costs to ensure your commodities are handles in the right way. Warehousing cost is necessary since your good will are received and stored in this chambers awaiting clearance. Custom prices and freight costs will vary depending on the type of goods you have and the duration your package spends at the port.
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