Freight Forwarding, Customs Brokerage

and Logistics

By : Danna Nicole Ma

rañaLouvie Dieron

Chris Alibangbang

Freight Forwarding

Freight Forwarding

a service used by companies that deal in international or multi-national import and export.

services guarantee that products will get to the proper destination by an agreed upon date, and in good condition.

What is a Freight Forwarder?

It is a commission agent performing on behalf of the exporter and importer routine tasks such as loading / unloading of goods, storage of goods, storage of goods, arranging local transport obtaining payment for his customer, etc..

It renders may often range from routine and basic tasks such the booking of space or customs clearance to a comprehensive package of services covering the total transportation and distribution process.

Freight Forwarder

Undertakes the process of movements of goods through the various stages involved.

Provide these services directly or through sub- contractors

Role as Cargo Consolidator

individual or firm who accepts less than container load (LCL) shipments from individual shippers

combines them for delivery to the carrier in full container load (FCL) shipment.

Freight Forwarder also often engages in the consolidation of cargo….

Freight Forwarder differs from a Common Carrier

Common Carrier is a person, corporations and firms engaged in the business of transporting / carrying of goods / passengers both by land, water or air for compensation, offering their services to the public.

Freight Forwarder- does not own any vessel but function as a principal carrier

rParties involved as Freight Forwarder in Consolidation Scheme

Shipper

Delivers good to the carrier

Bears the freight cost / whose behalf

payment is made

Common Carrier

Owns/ chartered a vessel

Transport goods/ people by land, air,

water

Consignee

Owner of consignment

To whose order of consignment will be

delivered at the port of destination

Principal

Delivery Agent

rParties involved whole

shipment

Shipper

Delivers good to the carrier

Bears the freight cost / whose behalf

payment is made

Common Carrier

Owns/ chartered a vessel

Transport goods/ people by land, air,

water

Consignee

Owner of consignment

To whose order of consignment will be

delivered at the port of destination

Owner of Goods

Ultimate Consignee

Procedures :

Freight Forwarder in exporting country as Principal

Freight Forwarder in importing country – as Delivery Agent

Receive e-mail

Notice to Consignees

Print Copies

Prepares Inward Cargo Manifest e2m

Delivery order, Container Guarantee

Billing Invoice

Release House Bill of Lading

Issue House Bill of Lading

Shipper

Documents in Freight Forwarding-• House Air Waybills (AWB)• House Bill of Lading B/L •Commercial Invoice •Certificate of Origin •Packing List

COMMERCIAL INVOICE BILL OF LADING

Examples of Shipping Documents

Airway Bill Certificate of Origin

Examples of Shipping Documents

Customs Brokerage

Customs Brokerage

A corporation, partnership, and association must have a licensed Customs Broker to

transact Customs Brokerage Business at the Bureau of Customs NAIA – POM - MICP.

It facilitates the import and export shipments and delivery of goods across geographical

borders for individuals and organizations from one country to another.

Customs Broker

R.A. 9280: Is any person who is bona fide holder of a valid

Certificate of Registration/ Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation

Commission.

Customs Broker

Preparation of customs requisite documents for imports and exports.

Preparation signing, filing, lodging and processing of import and export entries

Representing importers and exporters before any government agency and private entities

Computation of duties and related taxes

WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?

REPUBLIC ACT NO. 7651

REPUBLIC ACT NO. 7651AN ACT TO REVITALIZE AND STRENGTHEN THE BUREAUOF CUSTOMS, AMENDING FOR THE PURPOSECERTAIN SECTIONS OF THE TARIFF AND CUSTOMSCODE OF THE PHILIPPINES, AS AMENDED

WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?

SEC 1301 (TCCP)

"SEC. 1301. Persons Authorized to Make Import Entry._ Imported articles must be entered in the customhouse at the port of entry within thirty (30) days, which shall not be extendible, from the date of discharge of the last package from the vessel or aircraft either (a) by the importer, being holder of the bill of lading, (b) by a duly licensed customs broker acting under authority from a holder of the bill or (c) by a person duly empowered to act as agent or attorney-in-fact for each holder: Provided, That where the entry is filed by a party other than the importer, said importer shall himself be required to declare under oath and under the penalties of falsification or perjury that the declarations and statements contained in the entry are true and correct: Provided,further, That such statements under oath shall constitute prima facie evidence of knowledge and consent of the importer of violation against applicable provisions of this Code when the importationis found to be unlawful."

WHO ARE AUTHORIZED TO MAKE IMPORT ENTRY?

• Importers and other persons who are holders of the bill of lading.

• Licensed Customs broker acting under authority from a holder of the bill.

Customs Entry

Declaration of information on imported articles, prepared by a customs broker on a prescribed form.

The Customs Entry - KINDS

Formal Entry

Consumption Entryintended for immediate consumption and immediate release of the shipment.

Warehousing Entry - Constructive warehousing & immediate transportation to other ports- Constructive warehousing and immediate exportation

In Formal Entry

Personal and household effects, not in commercial value

Those in passengers baggage / mail for personal use

What are the requirements upon filing of import entry?

Import Entry and Internal Revenue Declaration (IEIRD-BOC Form No. 236)Supplemental Declaration on Value (SDV)B/L or AWBCommercial InvoicePacking ListOther additional documents as may be required

TheGeneral import Procedure

Importer

Letter of Credit

Freely Importable Commodities

Original Documents

Supplier

Government Agency

Modes of Payment

Non -Letter of Credit

covered Not covered

yes

no

Original Documents

Shipping for Processing B/L

AAB for Approval of Bank Guaranty

Seller to the Advising Bank

Duties and Taxes

Release of Shipment

Bank for Payment of Duties and Taxes

BOC

BOC

w/o w/o

with with

yes

no

Logistics

Logistics

a channel of the supply chain which adds the value of time and place utility.

involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security.

The management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements

Logistics Manager

organize the storage and distribution of goods.

ensure the right products are delivered to the right location on time and at a good cost.

Logistics Managed:

food, materials, animals, equipment and liquids

time, information, particles, and energy

Physical Items Abstract Items

Logistics Managed:

Physical items usually involves the integration of :

1. Flow of information2. Handling3. Production4. Transportation5. Inventory6. Packaging7. Transportation

Handling System includes:

Handling

Modern tools which is an essential element in storage and transport throughout the warehouse

Order Processing

Flow of Information

Customer Service , facilitate the information needs: Order Processing, Order Checking and Editing and Order Registration.

Price, Delivery Period, Payment Terms, Taxes etc.

Warehousing

Secured are / building in which dutiable goods may be stored, manipulated/ undergo

manufacturing operations w/o payment of duties and taxes.

Examples of Logistics Company

Process Logistics

ManufacturersFreight Forwarder- Principal Abroad

Customs Brokerage

CommonCarrier

Consumers

Freight Forwarder- Delivery Agent

Logistics

Distribution

By sea/air/ land