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Unformatted text preview: 0à Freight forwardingr V D I ntroduction There is no internationally accepted definition of the terms“freight forwarder" h As commonly understood the freight forwarder procures transport of goods on behalf of his customer without himself assuming the role of a carrierh He is known by different names in different countriesh customs house agenth clearing agenth customs brokerh shipping and forwarding agent etch His essential role is“cargo intermediary"h acting between the consignor or consignee on the one hand and the carrier on the otherh The freight forwarder may also be dealing with public authorities such as customs and ports or organizations such as insurersh It is estimated that some 75 per cent of liner cargoes are handled by forwarding agentsh The importance of the freight forwarding industry varies h however h from one country to anotherh Indigenous freight forwarders have a significant role to play in promoting the economy of developing countriesh They promote tradeh particularly export tradeh by procuring economic and efficient means of transporth By lending support to national carriers and insurersh they effect savings in foreign exchangeh and help improve the balance of payments positionh They also make contributions in the field of trade facilitation by simplifying trade procedures h including documentation h in order to effect savings in the total cost of transporth h The task of freight forwarders The primary task of forwarding agents is to arrange international transport of general cargo on behalf of othersh They work with all kinds of transport modesh and their services may be summarized ash 1h Advice to customers on the quickest and most economical means of transporth 2h Advice to customers on packing problems; 3h Customs clearanceh 4h Compliance with foreign trade regulations and letter of credit instructionsh 5h Choice of the most suitable carriers and conclusion of the contract of carriageh 6h Cargo consolidationh 7h Insurance coverage during transporth 8h Advice to customers on warehousing and distributionh 9h Provision of carriers’ and forwarders’ documentsh 10. Supervision of the movement of goodsh In additionh the forwarder may advice his customer on consumer needsh new markets and all matters connected with export strategy h He may act as a consultant in decisions regarding sale and purchase of goodsh While acting as customs house agenth and attending to the customs formalities pertaining to exports and importsh the freight forwarder acts not only on behalf of his customers but also on behalf of the customs authorities h In many countries he is licensed by such authorities to attend to customs formalities and accountable to themh He is responsible to those authorities for declaration of the correct valueh quantity and description of the goods in the statutory documents so that there is no loss of fiscal revenue on these accountsh The role played by him in processing the goods at different stages in the export/import trade and in co-coordinating the...
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This note was uploaded on 03/04/2011 for the course ECON 532 taught by Professor Qingcheng during the Fall '08 term at Tsinghua University.
- Fall '08