Recently, I received a call from a prospect who wished to understand our freight service rates. This time, a team member handled the call, explaining our work mode and how we come in regarding Both Freight forwarding and Customs Brokerage.
This article is created to address the simple misunderstanding between these two fields.
Let’s just say, you’re at the end of a long, stressful sourcing trip. You’ve found all the suppliers you need for your production plan and are about to leave with signed contracts in hand. Then one of your vendors drops a bombshell – they will only deal with you directly from now on, and you must use their freight forwarding company as your intermediary or they won’t have anything to do with you.
Red tape and customs brokers are part of life for anyone who imports or exports goods. But while you understand that brokerages are an important cog in the machinery of international trade, it can be hard to tell which service is right for you.
So let’s take a look at the advantages of using a freight forwarding company vs using a customs brokerage firm or using both.
Who’s a Freight Forwarder?
A freight forwarder is a company that specializes in logistics and shipping.
The main responsibility of a freight forwarder is to arrange the transportation of goods from one location to another. These logistics companies can also assist with other aspects of the shipping process, like customs clearance and insurance.
There are several different types of freight forwarding services. The most common types are air freight forwarding, ocean freight forwarding, and road freight forwarding.
A freight forwarder can provide you with door-to-door service or just part of the process.
For example, a freight forwarder can arrange for your goods to be picked up from your factory and delivered to the port where they will be put on a container and shipped to your overseas location.
The freight forwarder can then arrange for the shipment to be unloaded and transferred to a truck that is going to your final destination.
This is known as a multimodal shipping service, where the goods are transferred to a different mode of transportation at each stage of the journey.
Who’s a Customs Broker?
Customs brokers are companies that assist importers and exporters with the required paperwork and duties associated with importing and exporting goods.
A customs broker can arrange for your shipments to undergo an inspection at the customs office and assist with the completion of all necessary paperwork.
The broker can also help you with the clearance of your goods when they arrive at their destination. Customs brokers can be generalists or specialize in a particular industry.
A general customs broker will assist importers and exporters with all types of products. Customs brokers who specialize in industries like automobiles, electronics, etc., will be familiar with the regulations and paperwork specific to those industries.
Customs brokers will often have relationships with freight forwarders and be able to help you with your logistics as well as the paperwork required for customs clearance.
The Benefits of Using a Freight Forwarding Company
One advantage of using a freight forwarding company is that they can provide door-to-door service.
This means that they can arrange for the pickup of your goods from your manufacturing plant, and deliver them to your customer. A freight forwarding company can also provide insurance cover on the goods while they are in transit, and they will be familiar with the documentation required for your shipment to be cleared through customs.
Customs brokers specialize in the customs and documentation side of international trade. If you are importing goods into your country, then a customs brokerage firm can help you with that side of the process and save you time. However, a customs brokerage firm cannot pick up your shipments from your factory and deliver them to your final destination.
Both a freight forwarding company and a customs brokerage firm can provide you with door-to-door service. The main difference is that the customs brokerage firm will help you with the paperwork involved in clearing your goods through customs, while the freight forwarder will help with the logistics of your shipment.
The Benefits of Using a Customs Broker
Customs brokers specialize in the customs and documentation side of international trade.
If you are importing goods into your country, then a customs brokerage firm can help you with that side of the process and save you time. A customs brokerage firm can handle all the necessary documentation for both your import and export shipments.
Customs brokers can help you estimate your duty and tariff liability.
They will be familiar with the tariffs and duties charged on the goods that you import into your country, as well as the tariffs that your country charges on goods that you export. Customs brokerage firms are familiar with the rules and regulations that apply to importing goods into your country. This can help you save time by ensuring that you do not commit any mistakes that could cause your shipment to be held up by customs officers.
Which Option is Right for You?
If you find any freight forwarder in NAHCO and SAHCOL in Lagos, Nigeria, most individuals into freight forwarding are in one way or the other, also into customs clearing.
And then you wonder if these can do both perfectly well.
Well, yes, experience is a good teacher, so you want to choose wisely which company handles your job.
Reliable freight forwarders can provide door-to-door service effectively if they are well-equipped to handle all the paperwork associated with your shipments.
They can also help you with your logistics. However, the main purpose of a customs brokerage firm is to help you complete the required customs and paperwork for your shipments.
Customs brokerage firms can help you with all your import and export shipments. This means that you can use the same customs brokerage firm for all of your shipments, which will make your job easier and save you time.
Again, the need to ensure you look out properly for one that will take your business as you would.
If you choose to use a freight forwarding company, you will have to find a customs brokerage firm that can help you with your paperwork. This can be time-consuming, and you could end up using different customs brokerage firms for different shipments.
Finding the best freight service provider around
Finding the best freight service provider is essential for your business.
You will want to make sure that the company you choose is reliable, has a good reputation, and offers high-quality service. The best way to find a reliable freight forwarder is to ask for recommendations from people in the industry.
Check out our review page for recommendations.
You can also check online reviews to get an idea of what other customers are saying about a particular company. For customs brokerage firms, you can ask the same people you asked for freight forwarding recommendations.
You can also check online reviews to see if any customs brokerage firms have a bad reputation. Keep in mind that some companies offer both freight forwarding and customs brokerage services.
If you want to use one company for everything, then you can choose a company that offers both types of services.
Conclusion
Logistics and shipping are crucial aspects of international trade, but they can also be incredibly stressful. With so much riding on your shipments arriving on time and with the correct documentation, you can’t afford to leave anything to chance.
A freight forwarder or customs brokerage firm can help you with your logistics and paperwork and make international trade much less stressful. For more information about our services, please visit our website and feel free to contact us via email or phone.
