FREQUENTLY ASKED QUESTIONS
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Some frequently asked questions about logisco’s cargo services from logisco transportation
Difference between Export and Import?
The difference between import and export is that import refers to the bringing of goods and services from other countries while export refers to the taking/selling of goods and services to other countries.
Customs Clearance documents : What is a commercial invoice?
The supplier of the goods issues the commercial invoice to the buyer. This is a legal document that serves as proof of sale between the two parties. When importing, the customs representative uses the commercial invoice to determine the true value of the goods and to evaluate the duties and taxes payable. Listed below are some of the details that customs authorities look for on commercial invoices:
Invoice number and date
Prices, quantities, descriptions and HS codes of the products being sold
Information about the seller and buyer, including their tax identification numbers
Agreed incoterms
Customs authorities in some nations may permit pro forma invoices (preliminary invoices) to govern the import duties and taxes. Other nations may need a separate customs invoice, which basically has the same information as a commercial invoice, but in a specified format. Regardless, the customs broker can help you clarify what type of invoice is needed to clear your shipment.
Customs authorities in some nations may permit pro forma invoices (preliminary invoices) to govern the import duties and taxes. Other nations may need a separate customs invoice, which basically has the same information as a commercial invoice, but in a specified format. Regardless, the customs broker can help you clarify what type of invoice is needed to clear your shipment.
What is a Packing List?
The packing list consists of all specifics about the contents of a shipment and plays an important role in the shipping procedure. As well as being used by the customs broker for the clearance, freight forwarders need the details to create a booking with a carrier and issue the bill of lading. Listed below are some of the details that frequently appear on packing lists:
Detailed information about the seller, buyer, and shipper
The invoice numbers
The date of shipment
The mode of transport
Important information about the carrier
The description of the goods
Type of packaging (e.g., box, crate, drum, or carton)
The quantities
The dimensions
The total net and gross weights
The package marks (e.g., container and seal numbers)
The certificate of Origin
The certificate of origin states which country a material has originated in or a product was manufactured. This document typically contains information about the goods themselves, their destination, and country of origin. In certain countries, it’s required in every case and in others only for specific products. The certificate of origin helps determine whether your goods are eligible for import, subject to duties, and entitled to any preferential treatment.
There is no standardized form for a certificate of origin. Usually, the exporter or the manufacturer prepares the document. It might require an official certification by an authorized third party, such as a chamber of commerce. It is recommended that the exporter verifies with the buyer and/or an experienced freight forwarder whether a certificate of origin is compulsory.
There is no standardized form for a certificate of origin. Usually, the exporter or the manufacturer prepares the document. It might require an official certification by an authorized third party, such as a chamber of commerce. It is recommended that the exporter verifies with the buyer and/or an experienced freight forwarder whether a certificate of origin is compulsory.
A Letter of Credit (L/C) or other payment terms
A letter of credit is basically a letter from a bank ensuring that the seller will receive his payment on time and will receive the correct amount. If the buyer is unable to pay, the bank will be obligated to cover the full or remaining amount of the purchase, hence protecting the seller. While letters of credit are still extensively used, other payment systems are obtainable including:
Advance payment – The exporter will receive the payment via wire transfer or telegraphic transfer (T/T), or credit card prior to the delivery of the goods.
Open account (O/A) – The goods are shipped and delivered before payment is due, this system is preferable for buyers but can be risky for shippers.
Documentary collection (D/C) – A bank in the nation of the importer will act on behalf of the shipper and collect the payment for the goods.
Advance payment – The exporter will receive the payment via wire transfer or telegraphic transfer (T/T), or credit card prior to the delivery of the goods.
Open account (O/A) – The goods are shipped and delivered before payment is due, this system is preferable for buyers but can be risky for shippers.
Documentary collection (D/C) – A bank in the nation of the importer will act on behalf of the shipper and collect the payment for the goods.
A Bill of Lading or Airway Bill
The bill of lading is a legally binding document supplied by a carrier to a shipper. Its frameworks details such as the type, quantity, and destination of the goods being carried. The bill of lading serves as a contract between the freight carrier and the shipper. It’s a document of title and can be transferred by endorsement. No matter what the mode of transportation is this document must always accompany the shipped goods. The term bill of lading is typically used for goods transported via sea. For air cargo transport, the term airway bill is more common. Both documents serve the same purpose.
Miscellaneous other documents
Occasionally, customs authorities request other documents to complete the procedure. Here below is a list of some of them:
Import and export licenses
Inspection certificates
Dangerous goods declarations
Permits
What does incoterms stand for?
“Incoterms” is an acronym standing for international commercial terms.
11 incoterms and their meanings:
7 for any mode of transport:
1.ExWorks (EXW)
Seller delivers by making goods available to buyer.
2.Free Carrier (FCA)
Seller delivers goods to carrier or buyer-appointed agent.
3.Carriage Paid To (CPT)
Seller delivers goods to carrier or buyer-appointed agent and pays for international carriage.
4.Carriage & Insurance Paid To (CIP)
Seller delivers goods to carrier or buyer-appointed agent and pays for international carriage and insurance.
5.Delivered at Place Unloaded (DPU)
New to 2020, formerly called Delivered at Terminal (DAT). Seller delivers by making goods available to buyer by unloading goods at a named place.
6.Delivered at Place (DAP)
Seller delivers by making goods available to buyer at a named place.
7.Delivered Duty Paid (DDP)
Seller delivers by placing goods at buyer’s disposal, cleared for import with duties paid and ready for unloading at named place.
4 for ocean and inland waterway transport:
1.Free Alongside Ship (FAS)
Seller delivers by placing goods alongside a vessel nominated by buyer.
2.Free on Board (FOB)
Seller delivers when goods are on board a vessel nominated by buyer.
3.Cost & Freight (CFR)
Seller pays for costs and freight to named destination and delivers when goods are on board a vessel nominated by buyer.
4.Cost, Insurance & Freight (CIF)
Seller pays for costs, freight, and insurance to named destination and delivers when goods are on board a vessel nominated by buyer.