Introduction:-

When a business firm wants to import goods from another country or export

goods to another country a lot of legal formalities are to be completed before

sending goods or receiving goods. It is here that the businessman takes the

help of clearing and forwarding agents.

Prof Alan E.Branch defines, “An entity /company responsible for

undertaking export/import cargo arrangements on clients/shippers behalf

at a seaport, airport and so on. At seaport it would include collection of

freight; collection and issuing bills of lading; notification of arrival and

loading of goods; customs, import & export documentation; certificates of

shipment; arranging sorting of cargo, cold storage etc.

1. A Commissionerate of Customs

& Central Excise was formed at

Visakhapatnam with effect from

6.apr.1990 .

2. A separate Commissionerate of

Customs was formed at

Visakhapatnam in July, 1997 .

3. The Custom House is headed by the Commissioner of Customs.

All the different functions of the Custom House are attended to by its

various departments Vishakhapatnam Import-Export, Appraising,

EDI, Cash & Accounts, Internal Audit, Docks, M.C.D., Statistics,

Preventive (Rummaging, Intelligence Unit, Warehouse, Docks ),

Establishment, Vigilance, Records etc.

Vishakhapatnam Custom House

How clearing and forwarding of the goods is done ?

Bill of Lading

Bill of Entry

Documents required for Clearing and forwarding

Role in international trade

1.Provides strategic solutions of long distance product

sourcing and movement.

2.Provides capabilities interfaced across a range of

different transport modes.

3.Offers supply chain management solutions.

4.Delivery and customs clearance.

5.Cargo handling and distribution management.

Standard Trading Conditions under clearing and

forwarding agents:-

1. Usually formulated in accordance with the commercial practice or legal system prevailing in each country.

2.In some countries they are based on the FIATA model founded in 1926.

3.One of the essential means of improving and

maintaining professional standards of the forwarding

industry.

Although conditions vary from country to country, a

forwarder is expected to:

a) Take reasonable care of goods entrusted to him.

b) Comply with instructions of his customer in matters.

Rights, duties and responsibilities of the forwarder as an

agent:-

As agent forwarder generally accepts liability of:

•Own fault and his employees/servants.

•Routing to the wrong destination.

•• Errors during customs operations.

• Delivery of goods contrary to instructions.

Objectives of clearing and forwarding agent:-

1.Identification of scope of agents.

2. Documents of export and import.

3.Appreciate outcomes of international conventions and

their application.

4.Identify procedures relating to clearance a forwarding cargo in

international trade.

5. Outline and illustrate the constituents of freight rates under

different transport modes.

Functions of clearing and forwarding agents

1.Warehousing before transportation.

2. Local transportation

3. Container arrangement

4. Reservation of shipping space

5. Selection of mode of transportation

6.Packaging ,marking and labelling

7.Completing customs and port facilities.

8.Cargo insurance

9.Advicing exporters on trade laws

10.Educating exporters

11.Coordination with other agencies

12.Processing documents

13.Other services

FUNCTIONS OF CLEARING AND FORWARDING

AGENTS

Relating to Imports Relating to Exports

(a) Managing delivery from the ports (a) Obtaining the custom permit

(b)Preparation and submission of Bill of Entry (b) Obtaining shipping order

(c) Payment of dock dues (c) Submission of shipping bill and

(d) Managing custom clearance payment (d) Payment of dock dues

Of export dues. (e) Receiving mate’s receipt

(e) Dispatching goods by rail or road

(f) Sending advice documents to the importer

(f) Obtaining Bill of Loading

(g) Sending advice and other documents to the

exporter.

Conclusion:-

The clearing and forwarding agents are essentially the

transportation experts who hold immense information

associated to the actual rank of the import and export

industry. It is also well knowledgeable of the rules and

regulations that manage it. The manager is also well familiar

with and fully understands all the vital rules and regulations

suitable for the procedure of international clearance and

forwarding.