Essentials of Freight Forwarding 5.2.pptx

Essentials of Freight Forwarding 5.2.pptx

1. Essentials of Freight Forwarding

2. REFERENCE

3. IMPORTANT DATES ASSSIGNMENT S – May 3 (Fri) MIDTERM – May 10 (Fri) FINAL EXAM: May 17 (Fri)

4. PURPOSE OF CONTAINERS General- purpose containers General- purpose containers are THAT we can take anything we want, which is in the dimension limits of the containers.

5. Open top containers Open top containers are those whose cargo is out of the garage, with the height of the cargo. Example : Animals, Machinery.

6. VESSEL A craft for traveling on water, now usually one larger than an ordinary rowboat, a ship or boat.

7. Every Stop a Shipping Container Makes from China to Chicago

8. Difference between RO- RO and Breakbulk Cargo RO- RO : Roll- on roll- off vessel is designed to carry wheeled cargo such as cars, trucks, semi- trucks off the ship with their heels such as self-propelled modular transporter.

9. BREAKBULK Breakbulk : Break bulk cargo are goods that must be loaded individually are not in an intermodal container this sort of cargo is called general cargo ships.

10. Difference between Bulk and Containerized Vessel B ulk : A bulk carrier, bulk freighter specially designed transport raw material shipped in cargo unpacked cargo. Containerized Vessel: Containerized is a system of intermodal freight transport containers where the cargo is shipped in a container.

11. Difference between Feeder Vessel & Mother Vessel Feeder Vessel: Feeder vessel normally small in size. Feeder vessel used to take goods from small ports to major parts. It has a capacity to carry small container.

12. Difference between Feeder Vessel & Mother Vessel Mother Vessel : Mother vessel normally big in size. Mother vessel only severe major parts. It has a capacity to carry thousand containers.

13. Life Inside Gigantic Tanker Ships Transporting $150 Million Worth of Oil

14. REVIEW: Definition and Purpose of key documents in International T r a d e

15. QUOTATION An offer to sell goods or services in international trad e. A request for quote (RFQ) is a process in which a company solicits select contractors to submit bids for the chance to fulfill certain projects. Also called an invitation for bid (IFB), it's especially important to companies that need a consistent supply of standard products.

16. Purchase Order A purchase order is a commercial document and the first official offer issued by a buyer to the seller indicating types and providing, agreed price detail to be purchased include quantity price and other detail.

17. Commercial Invoice The commercial invoice is a legal document between the supplier and the customer that clearly describes the amount due to the customer seller and buyer record the details which are sold out unit price quantity the total sum of goods.

18. Packing List Itemize a list of articles each shipping package given quantity description weight of the contents. Prepared by the shipper item number and dimension.

19. Certificate of Origin Certificate of origin is an important International trade the document confirms that the goods particular shipment the cargo and cargo details which be reassured of destination.

20. Shipping Instruction A shipping instruction is a document advising detail of cargo and exporter’s requirements and physical movement freight forwarder to issue the bill of lading.

21. Shipping Bill and Bill of Lading It is a document filed by the exporter and value of goods qualified customs it is examined on customs authorities Tariff and regulations.

22. Pre- Alert documents When your cargo is ready for shipping before the departure of cargo. Free alert aloes final checking for all shipping documents for the filling with the custom at the destination.

23. Cargo Arrival Notice CAN be given by a carrier or agent the conscience (and to the notify party) e- income about the arrival of shipment number package goods and weight and collection charges on the bill.

24. SALES INVOICE Sales Invoice is a written document used by a seller to inform the detail of the transaction to their customers. It includes all factors about the due date, number of products, seller, buyer and also total price. A receipt will be sent after the seller received payment from their customer. It is prepared by the shipper and provided to the consignee. It contains product name cargo details total number of units.

25. CIFFA offers three courses comprising the following topics:

26. ESSENTIALS OF FREIGHT FORWARDING PART 1: COMMERCIAL DOCUMENTATION AND REGULATORY COMPLIANCE

27. There are three types of documents in international transportation:

28. 3 TYPES OF DOCUMENTATION IN INTERNATIONAL TRANSPORTATION TRANSPORTATION COMMERCIAL FINANCIAL

29. Transportation documents Transportation documents , such as the bill of lading or air waybill are issued by carriers. Financial documents will be outlined in the sections on international payments in this textbook.

30. Commercial documents Commercial documents are issued by exporters. They are, for example, the commercial invoice and the packing list. Regulatory documents are required when shipping goods into and out of Canada to/from a foreign country (issued for Customs’ or other organizations’ purposes, e.g., the import permit, certificate of origin, etc.).

31. EXPORT DOCUMENTATION Most commercial documents are prepared in the country of export. Preparing the documentation for an export shipment is more demanding than the mere processing of import documents. The exporter always issues a commercial invoice; determining who is responsible for the rest of the documentation depends on the Incoterm® governing the transaction.

32. IMPORT DOCUMENTATION The challenges of import documentation are different from those of export documentation, as we find ourselves at the receiving end of what was created at origin. We often have little control or input, plus we sometimes receive the documentation late. This Photo by Unknown author is licensed under CC BY- SA .

33. IMPORT DOCUMENTATION The number of types of documents we have to handle is limited, but they come from all over the world and can be subject to misunderstandings due to differences in culture, language, political systems, business climate, etc. Our challenge, as import forwarders, is to advise the customer (importer) of the import documentation requirements and to guide the overseas shipper (usually through our overseas office or agent) on the required documents so that they are complete and correct in order to meet all of the Canadian entry requirements of Canada Customs (CBSA) and the other government departments involved (OGDs).

34. One of the importer’s challenges is to have all required documentation available on time, and our role as a freight forwarder is to proactively facilitate that, thereby avoiding delays, penalties, demurrage, storage charges and other problems.

35. COMMERCIAL INVOICE The commercial invoice is one of the most important documents in a trade transaction and serves the following purposes: This Photo by Unknown author is licensed under CC BY- SA .

36. In Canada, the commercial invoice should be in English or in French.

37. No matter what the language or languages of the document are, complete accuracy of the information on the Commercial Invoice is essential to avoid excessive duties and/or penalties.

38. We prepare the Canadian export declaration on behalf of a cu s t ome r , it must mirror the information contained in the commercial invoice.

39. This document is generally prepared by the seller/exporter and, as freight forwarders, we can play an essential role in guiding customers so that the commercial invoice is complete and accurate and meets requirements.

40. This is an example of the minimum requirements for a commercial invoice

41. certificate of origin (C.O.O.) The certificate of origin (C.O.O.) is an important trade document attesting that goods in a specific export shipment are wholly obtained, produced, manufactured or processed in a particular country or meet the rules of origin of a preferential treatment or a Free Trade Agreement. The C.O.O. constitutes a declaration by the exporter and is a legally binding document.

42. There are two main types of certificates of origin:

43. There are two main types of certificates of origin:

44. Consular invoices and Consular visas are two different things. Some countries used to require Consular invoices to be purchased from their Consulates or Embassies in the country of dispatch, filled out by the exporter, stamped or consularized at origin, then dispatched to the importer, who then needed to present it to local Customs

45. While the economic benefits of free- flowing trade are one of Canada’s greatest assets, controls have been judged essential for a variety of reasons:

46. What Makes U.S. Shipping So Difficult

47. There are two types of permits: a general export permit and an individual Export Permit.

48. GENERAL EXPORT PERMITS General export permits (GEP) were introduced to minimize the administrative burden of export controls on exporters and to streamline export licensing procedures. GEPs enable an exporter to export certain specified goods that are subject to control to eligible destinations without the necessity of submitting an export permit application. These are generally applicable for less- sensitive goods, removing the need to apply for an individual export permit.

49. Any Canadian resident can use GEPs.

50. A GEP is a valid export permit that is used to minimize the administrative burden for exporters and to streamline licensing procedures.

51. INDIVIDUAL EXPORT PERMITS When an export permit is required and a GEP cannot be used, an individual export permit (IEP) must be obtained; this is done on- line via the Export Controls On- Line (EXCOL) process. EXCOL is an internet-based system that allows applicants to apply for export control documents electronically.

52. An export declaration is not required for goods with a final destination in the U.S. for U.S consumption.

53. There are three methods of filing an export declaration: Canadian Export Reporting System (CERS): G7 EDI Export Reporting: Export Summary Reporting (filed through the CERS):

54. 1. Canadian Export Reporting System (CERS):

55. 2. G7 EDI Export Reporting:

56. 3. Export Summary Reporting (filed through the CERS):

57. 2. Communications Regarding the Customer and the Freight

58. Managing the costs of doing international trade in 2023

59. Reference Essentials of Freight Forwarding (8th Edition) [Texidium version]. (2019). Retrieved from http://texidium.com