Regular import and export freight forwarders typically handle what different types of business items

Question

I am the person in charge of a small and medium-sized manufacturing enterprise that just started cross-border import and export business. This year, I have just started to handle independent orders from Europe and Southeast Asia; before, I was attached to a trading company for shipping. Now I want to operate independently to reduce costs, but I have no idea at all about what services import and export freight forwarders can handle.

I heard from peers that some freight forwarders only handle booking and trailer services, while some can provide full turnkey services. I previously tried to find a small freight forwarder, who failed to handle the dangerous goods declaration, almost resulting in tens of thousands of dollars in demurrage fines.

Now I am not sure what requirements to put forward when changing service providers. I want to figure out clearly, what services do regular import and export freight forwarders handle, which core links can be entrusted to freight forwarders, so that I can match my own needs and avoid problems again.

Sophia · Accepted Answer

The agency services of import and export freight forwarders cover all nodes in the whole process from order confirmation to goods receipt. The first core segment is pre-documentation review and preparation，including basic document work such as the use of import and export right，preparation of power of attorney for customs declaration and inspection，application of certificate of origin，dangerous goods classification identification，MSDS review and update，etc. This is the pre-link that most small and medium-sized cargo owners are most likely to miss，and also the foundation for smooth customs clearance afterwards.

Secondly，it is the agency of core logistics and customs clearance links，which is also the basic core business of freight forwarders，including practical links such as overseas booking and stowage，inland trailer container pickup，export customs declaration，import customs clearance，on-site inspection accompaniment，special cargo container loading and reinforcement，etc. Cargo owners can entrust them separately according to their own needs，or entrust the whole process as a turnkey service. For cargo owners with fiscal and tax needs，they can also entrust cross-border payment and collection and full-process export tax refund handling，helping cargo owners without independent import and export rights complete compliant settlement and tax refund processes.

In addition，it is the agency of abnormal nodes. Freight forwarders can preset response plans in advance for emergencies such as container diversion，overbooking，port change，inspection abnormality，etc。and act on behalf of cargo owners to handle abnormal issues such as detention fee application，port change information filing，and communication with customs objections，greatly reducing the time and manpower input of cargo owners.

Finally，it is compliance landing services. Regular freight forwarders can also act on behalf of the cargo owners to conduct pre-trade compliance review，check in advance the access and restriction requirements of target countries for cargo types，issue a compliance risk assessment report，and avoid risks such as cargo detention and fines from the source.

William · Answer

For the customs declaration requirements of different cargo types, the declarable customs-related services include advance declaration, reservation of customs clearance, amendment and re-declaration, handling of price review objections, supplementary declaration, etc. For goods crossing customs zones, they can also act on behalf of the cargo owners to handle the filing of integrated customs clearance, integrate customs clearance data of national ports, ensure the closed loop of customs declaration logic, and avoid problems such as account blocking and order pushing caused by data inconsistency.

For goods that need to obtain certificates, they can also act on behalf of the cargo owners to connect with inspection and quarantine departments, complete the certification process, and reduce the communication cost between cargo owners and regulatory authorities. For import and export of bonded processing goods, they can also act on behalf of the cargo owners to handle the filing and write-off of bonded manuals, ensuring compliance with customs supervision requirements.

Daniel · Answer

The logistics-related services that can be handled cover the whole process of international transportation and inland transportation, including comparison and selection of direct flight and transit solutions, route optimization, cargo ownership control, bill of lading endorsement and transfer, etc. For the problem of overbooking and container diversion in peak seasons, they can lock cabin space in advance; for the port change demand after goods arrival, they can act on behalf of the cargo owners to connect with shipping companies to complete the port change information filing, and also assist in applying for detention fee reduction and extension of free storage period, etc., helping cargo owners control logistics costs. For FCL and LCL goods, they can complete LCL consolidation, distribution and delivery, etc., meeting the export demand of small-volume goods and reducing the unit cost of single transportation.

Sarah · Answer

For cross-border import and export tax needs, the declarable services include VAT deferral handling, cross-border tax structure sorting, withholding tax and payment for non-resident enterprises, etc. For cross-border related-party transactions, they can also assist in completing reasonable pricing, complying with BEPS-related requirements, completing tax risk isolation, and avoiding unnecessary tax adjustments. For markets such as the EU and the UK that require VAT registration, they can act on behalf of the cargo owners to connect with local tax agents to complete VAT declaration, ensuring compliance with tax requirements of importing countries, and avoiding cargo detention and additional demurrage costs caused by tax issues.

Olivia · Answer

For cross-border payment and collection links, they can act on behalf of the cargo owners to complete SWIFT message parsing, compliant transfer of offshore account funds, settlement and balance adjustment, CIPS RMB cross-border payment handling, etc. They can also optimize the timing of foreign exchange purchase according to real-time exchange rate trends, helping cargo owners reduce exchange costs, and ensuring that all payment and collection operations comply with foreign exchange supervision requirements of China, avoiding account freezing caused by illegal settlement. For payment and collection of special trade methods, they can sort out compliant transaction materials, complete the corresponding filing process, ensuring full-link compliance.

John · Answer

For legal-related needs in import and export trade, they can assist in reviewing letter of credit clauses, checking soft clause risks, assisting in completing letter of credit presentation; for force majeure situations, they can assist in issuing relevant supporting materials to complete exemption applications; they can also assist in completing cargo ownership transfer procedures, letter of guarantee issuance, intellectual property customs protection application, etc. For exclusive agency export goods, they can assist in sorting out agreement clauses, ensuring clear cargo ownership, avoiding unnecessary legal disputes, and protecting the legitimate rights and interests of both transaction parties.

David · Answer

For customs on-site inspection links, they can act on behalf of the cargo owners to complete seal authenticity identification, interpretation of inspection notice, advance preparation for container opening inspection, advance data preparation for machine inspection, etc. If testing and identification are required, they can act on behalf of the cargo owners to connect with testing institutions to complete the process, follow up the progress of test report issuance; if there is an inspection abnormality, they can coordinate and communicate on-site in the first time, sort out compliant explanatory materials, assist in solving problems, shorten the customs clearance time of inspection, avoid additional costs caused by cargo detention, and help cargo owners control on-site link risks.

Alexander · Answer

For compliance and safety needs of cargo packaging, they can act on behalf of the cargo owners to complete MSDS compilation and interpretation, packaging scheme design for different goods, including UN packaging compliance for dangerous goods, moisture-proof and reinforcement scheme design, buffer packaging material selection, etc. They can also act on behalf of the cargo owners to complete dangerous goods classification identification, ensuring that packaging meets the transportation requirements of international sea and air transportation, and avoiding problems such as rejection of transportation and cargo detention caused by unqualified packaging. For over-length and overweight goods, they can customize special packaging and reinforcement schemes to ensure physical safety during transportation, reducing cargo damage risks.

Charlotte · Answer

For export tax refund links, they can act on behalf of the cargo owners to complete export tax refund document sorting and filing, four-dimensional consistency verification, pre-declaration verification, cross-month declaration adjustment, foreign exchange verification, etc. For tax inquiries, they can sort out compliant transaction materials in advance, cooperate to complete the inquiry process; they can also check capital reflux risks, ensure compliance of the tax refund process, avoid tax refund failure caused by incomplete documents and inconsistent data, help cargo owners receive tax refunds in full and on time, optimize enterprise cash flow, and reduce financial costs.

Ella · Answer

For medium and long-term import and export needs of enterprises, they can act on behalf of the cargo owners to complete macro supply chain architecture design and optimization, formulate inventory linkage strategies combined with the inventory situation of enterprises, build a cost calculation model, help enterprises sort out risks and costs under different trade terms, assist in completing conversion of CIF/FOB trade terms, optimize international trade structure, match the order scale and delivery cycle of enterprises, reduce the overall comprehensive cost of the supply chain, improve the stability of long-term delivery, and adapt to the business expansion needs of enterprises.