Question: What is a freight forwarder?

Answer: To comply with export documentation and shipping requirements, many exporters utilize a freight forwarder to act as their shipping agent. The forwarder advises and assists clients on how to move goods most efficiently from one destination to another. A forwarder’s extensive knowledge of documentation requirements, regulations, transportation costs and banking practices can ease the exporting process for many companies. The Federal Maritime Commission http://www.fmc.govlicenses U.S. forwarders for ocean operations, and some U.S. forwarders are affiliated with global organizations like the International Air Transport Association http://www.iata.org.

Question: Why should I use a freight forwarder?

Answer: Whether the firm is large or small, the weight of the cargo light or heavy, the freight forwarder will take care of cargo from “dock to door” if requested to do so. This can include the correct filing of export documentation, all arrangements with carriers, packing, crating and storage needs. So, the small and medium-size exporter need not deal with many of the details involved with the logistics of exporting their goods. In addition, freight forwarders typically have access to shipping discounts. Given the years of experience and constant attention to detail provided by the forwarder, it may be a good investment. Please keep in mind, however, that while a freight forwarder may handle much of the paperwork of an export transaction, the exporter remains legally responsible for adherence to relevant U.S and foreign export legislation.

Question: How can I find a freight forwarder?

Answer: Freight forwarders are located in most metropolitan areas. Local business telephone listings often feature a freight forwarder or transportation heading. Additionally, the National Customs Brokers and Forwarders Association of America will provide exporters with information on their members. More information is available at http://www.ncbfaa.org.

Question: What is a customs broker?

Answer: A customs broker performs transactions at ports on behalf of other parties. In other words, an importer, whether into the United States or another country, hires a customs broker to guide their goods into a country. Like the forwarder, the broker will recommend efficient means for clearing goods through the maze of customs entry protocol. The broker can also estimate the landed costs for shipments entering the country. U.S. exporters typically do not book shipments directly with a foreign customs broker, because freight forwarders often partner with customs brokers overseas who will clear goods that the forwarder ships to the overseas port. Conversely, those same foreign customs brokers contract the services of the domestic freight forwarder when the goods are headed in the opposite direction.

The transactions negotiated for the importer will include the entry of goods into a customs territory, payment of taxes and duties and duty drawback or refunds of any kind. Furthermore, the broker has knowledge of regulations not only from the corresponding customs authority, but also from other regulating agencies involved in imports.