The country of origin refers to the country where goods are manufactured or produced. The country of origin is essential in effectively applying tariffs, preferential trade status, trade sanctions, and import quotas. Country of origin information is also vital for informing end users about a product’s origin. US Customs and Border Protection (CBP) closely monitors…
In international freight, the consignee is the person to whom ownership of a shipment transfers upon arrival at its destination. The consignee can be considered as the shipment receiver, and their name will be listed on a shipment’s bill of lading, as they are responsible for picking up shipments from ports. While consignees are generally…
A commercial invoice is an important customs declaration document used in international shipping for import and export clearance. Customs officials use commercial invoices to determine the value of a shipment and the amount of import duties and taxes owed. Commercial invoices contain vital shipment information, such as: If you have to fill out a…
A blank sailing, also called a void sailing, is when a carrier cancels a scheduled call into port. This can refer to a single port cancellation or multiple cancellations across an entire string of calls to port. For shippers, a blank sailing means a vessel will not stop at its scheduled port to load/offload cargo….
A bill of lading (either BOL or B/L) is a legal document issued by a carrier that acts as the contract between the carrier and the shipper, the shipper’s receipt, and the document of title. BOLs are also used to aid in the tracking of shipments to their final destination. How do Bills of Lading…
An air waybill (AWB) is a required legal document that accompanies international air cargo. It serves as a receipt of goods, a carriage contract between carrier and shipper, and a tracking document. What Does an Air Waybill Include? Sometimes referred to as air consignment notes, AWBs: Other information included in AWBs: Unlike a typical ocean…
Freight forwarding is a logistics service in which a freight forwarder acts as the shipper’s agent to coordinate and manage the transportation of goods from origin to final destination. Rather than physically transporting cargo, the freight forwarder arranges movement with carriers and oversees the operational, regulatory, and documentation requirements associated with the shipment. In this…
Transloading is the process of transferring a shipment from one mode of transport to another. For example, think of a shipping container being removed from a vessel and then transferred, or transloaded, into the back of a truck. There are a couple of reasons why shipments will need to be transloaded, such as: Because long-haul…
A Non-Vessel Operating Common Carrier (NVOCC) fulfills all of the functions of a Vessel Operating Common Carrier (VOCC) regarding cargo transportation, essentially, except that NVOCCs do not own their own vessels like typical carriers. Instead, an NVOCC will lease space on another carrier’s vessel, which it then sells to its customers under its own House…
Incoterms® (short for International Commercial Terms) are terms of agreement between the seller and buyer regarding who is responsible for payments, insurance, customs clearance, and handling goods throughout the freight process. Incoterms® are defined and revised by the International Chamber of Commerce (ICC), setting internationally recognized rules for sellers and buyers in export transactions. Incoterms®2020…
Duty Drawback, also called Drawback, is a refund of the shipper’s paid customs duties, fees, and certain taxes. The refund is made by U.S. Customs and Border Protection (CBP) in cases where duty-paid import cargo is subsequently exported or destroyed. To receive duty drawback on a shipment, shippers must lodge a claim within 5 years…
Drayage refers to the transportation of a container from an ocean port to a subsequent destination in the supply chain. This is also often referred to as “the first mile” and usually involves a short-distance trip to a nearby warehouse. Drayage generally involves transporting a container by truck, while intermodal drayage may involve truck, sea,…
Demurrage is the fee the terminal charges for cargo that remains on-site past the last free day. Demurrage fees are charged daily per container left at a terminal until its pickup, whether at an ocean or rail terminal. Each port of entry can have its own rules for calculating demurrage and determining a container’s allotted…
Customs clearance is the authorization granted by a government’s customs department to a shipment to enter or exit the country’s borders. Customs clearance is a vital procedure for the international shipping of goods. Once customs have cleared a shipment, shippers must produce the necessary documentation showing what duties and other expenses they have paid before…
Customs Brokerage is a professional service that facilitates the clearance of imported and exported goods through U.S. Customs and Border Protection and other government agencies. A customs brokerage firm represents importers and exporters in meeting regulatory requirements, filing entry documentation, and ensuring that duties, taxes, and fees are properly assessed and paid. Because customs regulations…
The Customs Trade Partnership Against Terrorism program, or CTPAT, is part of the U.S. Customs and Border Protection’s (CBP) cargo enforcement strategy to strengthen international supply chains while maintaining U.S. border security. Through CTPAT, CBP works with freight and logistics organizations, including freight forwarders, customs brokers, and importers. The program is voluntary and facilitates stronger…