Freight forwarders
The freight forwarder is responsible for organizing and coordinating the shipment of goods on behalf of a shipper. Their main tasks include planning the most efficient route for transporting goods, organizing the necessary transport documents, handling customs and regulatory formalities, and coordinating the various service providers involved in the transport (transport companies, warehouses, insurance companies, etc.).
The freight forwarder acts as an intermediary between the shipper and the carrier to ensure fast, safe and efficient delivery of goods.
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Learn more about the Freight Forwarder ...
It is a freight forwarder responsible for managing the successive transportation of goods imported or exported on behalf of its client. It thus plays an essential role in trading and international commerce. Its skills go beyond the simple notion of commercial management: an international freight forwarder must master logistical, legal, and customs aspects, and prepare all the necessary documents. This freight transport agent also has dedicated tools to assist them and ensure the trust of their clients.
The tasks of the freight forwarder
Administration
On an administrative level, he manages all the documents, forms, and papers necessary for the formalities related to the transport of goods: customs, shipping documents, and various certificates (perishable goods, hazardous materials, fragile items...).
Logistics
From a technical perspective, he concretely organizes the transport in the strict sense: routes, modes of transport (train, truck, boat, plane, mixed...), destinations, deadlines, prices...
The freight forwarder is responsible for the proper delivery of goods. He organizes and coordinates shipments through multimodal transport: mainly road transport, navigation by sea or by air. He will also group different goods within the same shipment to make the costs incurred with a carrier more economical by purchasing a large volume of freight transport.
Commercial
In business terms, he prepares quotes based on the client's requirements of which he is the contact person. In the event of a complaint or dispute, he follows up on the matter until its resolution.
An additional advantage offered by an international freight forwarder: by managing a high volume of freight transport, they are in a position to lower prices against carriers (In our 'Transportation' section, our partner SAFE manages transport brokerage operations to obtain the best price/quality conditions possible).
The administrative formalities and obligations of the freight forwarder
Freight forwarders acting as customs agents must comply with the new Union Customs Code (UCC), which came into force on 1 May 2016. This Code modernises customs procedures and strengthens security measures: current technologies make it possible to harmonise rules and simplify a number of declarations. Before addressing the issue of tools, let us review the formalities and obligations that a freight forwarder must fulfil.
The bill of lading
The bill of lading is a document that serves as a shipping document and proof: it is the transport contract that binds the freight forwarder and the carrier.
This contract stipulates the nature of the goods and the carrier's liability. With this contract in hand, the freight forwarder can demand delivery of the goods: this document is an official title of ownership transferred by endorsement.
The packing or the 'packing list'
The "packing list" indicates all the goods that need to be transported. The packing list is an official document that must be included in the documentary file that the freight forwarder must have on hand: it lists and specifies the number of packages, pallets, boxes, weight, volume, cubic footage, dimensions, as well as brand names and the nature of the packaging.
It is used to accurately track goods at a transit stage and especially upon final receipt of the order by the recipient, in order to verify that all the merchandise has arrived at its destination and meets expectations.
The certificate of origin of each commodity
It is also an official document that certifies the place, the country where the goods were manufactured, or even processed. For each commodity, a certificate of origin is issued by a Chamber of Commerce and Industry.
The certificate of origin must be presented to customs officers so that they can authenticate the origin of the goods and apply the current rules. The buyer can also request it to ensure the origin of the goods.
The freight forwarder will have to pay the corresponding fees for the applicable customs duty rate.
The 7 mandatory fields that must appear on a certificate of origin :
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the recipient,
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the sender,
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the country of origin,
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the different successive means of transportation,
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the customs designation,
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the weight of the merchandise,
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the specificities if applicable.
The commercial invoice
The commercial invoice serves as proof of transaction between the buyer and the seller, that is, between the exporting company and the importing company. The custom is that a copy of the invoice in English is sent to the buyer.
To be valid and acceptable, the commercial invoice must not be altered (stained, illegible, etc.) and must necessarily include the following information :
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the complete contact details of the seller and the buyer (address, company name, etc.),
the date of issue of the invoice,
the invoice number,
the currency used for payment,
the units of measurement to evaluate the criteria of the merchandise,
the precise inventory and naming of the items,
the quantity of goods delivered,
the unit value of the merchandise,
the total value of the items,
the total price of the invoice including any applicable taxes,
the payment terms (30 days, upon receipt of invoice, etc.),
the discount or reduction granted by the seller if it exists,
the delivery conditions by applying the required Incoterm,
the successive means of transport used.
The list of obligations of the licensed customs broker
Here is a non-exhaustive list of the obligations of a customs broker :
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Documentary monitoring,
International regulatory monitoring,
Control and enforcement of regulations,
Integration of the DELTA G procedure,
Self-assessment of VAT,
Management of letters of credit or documentary credits,
Export and import declarations,
Monthly Declaration of Exchange of Goods or Services,
Transmission of declarations,
Possession of ATA carnets for facilitated customs clearance,
Approval of Chambers of Commerce,
Visas and certificates of origin,
Calculation of import duties and taxes,
Management of multimodal freight,
Management of transport documents,
DEB/DES Management,
Management of documents related to community transits,
Management of insurance documents,
Administrative management: certificates, visas, and licenses,
Declaration with the possibility of pre-clearance
Simplified customs clearance at approved sites,
Transit and customs interventions,
Customs representations,
Customs management and payment of duties, taxes, and VAT.