Question

In: Operations Management

Desiring fast customs clearance upon arrival of your shipments, what can a buyer do to try...

Desiring fast customs clearance upon arrival of your shipments, what can a buyer do to try to eliminate documentation delays on ocean shipments? Where might the buyer have to give in to the seller in exchange?

Solutions

Expert Solution

Documents required to eliminate demurrage charges on ocean international shipments are.

BoL (bill of lading).

As the bill of lading is a documented evidence generated by the carrier, as it is considered as an evidence of the carriage contract between the shipper and the carrier for the transportation of the goods. As ocean carriers issues three copies each, one of them is the master copy that can be used to obtain the goods to be released when presented. The exporter obtains the BoL from the carrier; and forwards it to the buyer via mail or banking channels once the payment is successfully made by the buyer.

Main details covered in BoL are-

The details of shipper and consignee.

Additional information needed for successful transit.

Carrier issuing BoL with detailed information of them.

Name of ship on which cargo is travelling.

Origin and destination ports details.

Biodata of shipment such as weights, measurements etc.

How the shipment has been packed and sent and what is shipment containing.

Shipment freight as decided by buyer and seller in their agreements.

CoO (certificate of origin)

It's important to identify where the shipment is made with the help of CoO. As country of origin is important for determining tariffs and duties as they differ from place to place as per their trade policies.

Authentication has to be done by local chamber of commerce which has to be written by exporter.

CI (commercial invoice)

It is the invoice requested for payment has to be generated by manufacturer or seller to the buyer or exporter as bill of purchase to prove the authenticity of bought services. It is the detailed invoice of everything to manufacturing and getting goods till shipment every precise details has to be mentioned in it. As the duties and fees will be calculated upon this.

Packaging list

As it is not mandatory because manufacturer or factory oftenly attaches it with commercial invoice and bill of lading. It is important for claiming insurance in case of need for any damages of defects. Shows the packaging and labeling of shipment. If both of them are mentioned properly it will be easy for custom clearance and their aspects examination minimises delay from their release.

As the freight forwarders will need those documents to get moving with your shipments. As gathering these documents is not that easy.


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