A Guide To Freight Forwarding

Customs Clearance & Controls- The air waybill - for air freight
Many organizations have an interest in UK border- The bill of lading - for sea freight
controls. These include HM Revenue &- The CMR consignment note - for road freight
Customs (HMRC), the Rural Payments AgencyHow these documents are issued may differ; as
(RPA) and the Department for Environment, Foodsuch the freight forwarder needs to be familiar
and Rural Affairs (Defra). Cerain products enteringwith each different type of document and their
the UK are subject to licensing and control –respective procedures. They should also
one of the main roles of the freight forwarder isunderstand the different types of documentation
to ensure that these controls are adhered torelating to customs clearance at the point of
when arranging customs clearance.import and export.
In order to be able to do this effectively, theExport Packaging & Materials
freight forwarder needs sufficient funds availableEnsuring that the goods for export are packed
to handle duty and taxes payments, as well ascorrectly requires specialist knowledge and is a
specific software in order to communicate withservice often offered by freight forwarders.
HMRC, as nearly all the HMRC functions areWhen deciding on the type of packaging to be
electronic.used, as well as ensuring that the goods are
Some freight forwarders will subcontract out thereceived in the same condition as when they left
customs clearance of goods to specialistthe consignor, factory or warehouse, the freight
organizations; for those who wish to offer it asforwarder also needs to consider the ease of
part of their services it is essential that they havehandling, the potential risks during transit, plus
an annual subscription to the Integrated Tariff ofprotection from unauthorized access.
the United Kingdom. This is a 3 volume publicationThe freight forwarder also needs to consider the
available either in printed format, on disc, or online.materials used in packaging the consignment.
The Tariff provides guidance on customsWood for example is subject to international
procedure, the necessary documentation and thelegislation, with many countries requiring
classification of different types of goods in the UKcertificates proving that the wood has been
and is available from The Stationery Office (TSO),fumigated. Countries such as New Zealand,
as well as major libraries and customs adviceAustralia and China have particularly strict controls
centres.on the use and type of packing materials used.
In addition to the Tariff there is also the EuropeanNot being aware of these controls could prove
Union Customs Code and the Official Journal ofextremely costly if a consignment has to be
the European Communities which are thereturned to the point of origin for repackaging. A
definitive legislation regarding international tradefreight forwarder will be able to advise you of
regulations and have precedence over UKany restrictions on the use of packaging as well
regulations.as any legislation regarding the safe disposal of
The UK Trade Tariffany packaging materials used.
The UK Trade Tariff is an online tool thatRegulations For The Movement Of Dangerous
provides free access to information on taxes andGoods
levies, rebates, restrictions and other relevantThe transportation of dangerous or hazardous
information imports to and exports from the EU.goods is governed by both national and
For further information, refer to our guide oninternational legislation. Although a freight
using the UK Trade Tariff.forwarder might not actually come into contact
Documentation For International Tradewith the actual goods, they need to recognize
Well ordered, accurate documentation is anthem when presented for carriage and
essential requirement for international trade. Theunderstand the necessary documents required
freight forwarder will know the exactand packaging standards.
documentation required depending upon the goodsDue to the number of products which have a
to be moved and the origin and destination.danger classification it is not always possible to
When organizing the movement of goods, therecognize them from their product name alone.
freight forwarder will require clear instructionsAs such it is the manufacturer or shipper who has
from the importer or exporter well in advance ofprime responsibility for the correct classification,
the goods being moved. To avoid dispute thesepacking and documentation of dangerous or
should be provided in writing via email or fax. Anyhazardous goods. If however the freight
documentation will normally be handed over toforwarder is handling the products then they
the driver collecting the goods, which is standardshould be aware of the various classifications and
practice for both sea freight and air freight.procedures surrounding their movement.
Other documentation required will includeThe British International Freight Association (BIFA)
commercial invoices, packing lists and anyconducts a number of specialist training courses
appropriate licenses, particularly with respect toon the legislation and procedures regarding
any hazardous goods.dangerous goods, a list of which is available on the
Each mode of transport has its own specificBIFA website.
document of carriage: