“International Shipping Process Guide
Many newcomers to foreign trade, or those who want to contact foreign trade, do not know much about the process of shipping. This article will give you a brief overview.
There are various reasons for the movement of goods between countries, most of course for the reasons of increasing the value of the goods. With the rapid development of e-commerce, a large number of small businesses now require international shipping, here is an attempt to explain the different steps in the shipping of goods.
There are many players involved in international shipping, shipping companies, booking agents, freight forwarders, customs brokers; introduce the four main players of LCL shipping: shippers, consignees, freight forwarders and shipping companies.
A shipping company is a company that transports your cargo at sea. You may never talk to them or even see their documents or letters.
However, the freight forwarder is the logistics provider you will be dealing with. They can arrange shipping from shipper to consignee – you are one of them.
The shipper is the shipper at the origin; it can be you or the factory or seller from which you purchased the product.
The consignee is the recipient of the goods; this could be you or the person you are selling to.
Step 1: Export Shipping
After the shipping company confirms the booking, the goods need to be transported to the port. This process is called export shipping. The freight forwarder will need to obtain an empty container from the shipping company or container yard. Quality inspection and capacity assessment of containers are important as failure to do so may affect the quality of the cargo being transported.
When picking up an empty container from a shipping company or container yard, the consignee needs to provide three documents, which must be presented by the freight forwarder.
power of attorney
ID card
Compensation letter
After obtaining the empty container, the cargo is now loaded into the container, ready to be transported to the terminal for onward loading onto the ship. Transportation can be done by road (via container trucks), rail, barge or intermodal, depending on the terrain or geographic location. Export shipments are usually arranged by local transporters with local expertise or local operations. However, it is highly recommended that an experienced freight forwarder understand the requirements, document processes and be able to determine the best shipping method at a competitive cost within the required time frame.
Step 2: Export customs clearance
Export customs clearance is a basic requirement for international shipping and must be completed before the goods arrive at the terminal for loading. The process varies from country to country and includes important steps and principles that all customs authorities follow. Below are the basic steps and required documents for export clearance.
Basic requirements for export customs clearance
Make sure the business is registered with the government with a certificate of incorporation and a certificate of approval from the TIN NO
Confirm that the goods are not prohibited and can be exported.
Make sure the same goods are not restricted in the importing country
Confirm the export classification code (HS CODE) of the material or product you are exporting.
Obtain an export license or license (if required)
Obtain a cleaning inspection certificate from an inspection agency
Register an export declaration electronically or manually for each shipment.
Required customs clearance documents (export):
Exporter Registration Documents: This includes the Exporter’s Certificate issued by the NEPC
Quality Assurance Documents: This includes documents such as Certificates of Analysis and Test Certificates.
Financial documents: including but not limited to
Nigerian Export Earnings Form (NXP)
commercial invoice
proforma invoice
cargo movement document
Certificate of Cleaning Inspection (CCI)
waybill
packing list
Booking confirmation notice.
Step 3: Terminal Processing
The next step after export clearance is terminal processing, also known as origin processing. At this point, the freight forwarder determines the vessel required for transportation and begins terminal processing, which requires the following.
After customs and shipping company documents are confirmed, the cargo is unloaded from the truck and transferred to the terminal staging area for counting and inspection.
Terminal authorities use customs clearance documents to verify booking details to ensure and verify that the cargo is confirmed for international shipment. A dock handling invoice is issued to certify that the goods have been received at the dock.
Containers are stored in terminal ports, waiting for ships to be ready for loading and shipping.
Step 4: Sea Shipping
The freight forwarder decides to choose a shipping company to perform the ocean freight from origin to destination to meet the schedule required for the shipment. A freight forwarder has a contract for the carriage of containers with a shipping company, in which case the shipper or consignee does not have any direct interaction with the shipping company.
Shipping costs are ultimately borne by the shipper or consignee. However, ocean shipping is never the full cost of shipping from port to port. There are various surcharges imposed in the industry, such as fuel adjustment factors and currency adjustment factors, which are passed on to the shipper or consignee.
5. Import customs clearance
Import clearance can usually begin before the goods reach the destination country. As for export clearance, it is a procedure for making a declaration and submitting it along with the relevant documents so that the authorities can register the goods and collect any duties. Import customs clearance shall be handled by the forwarder or the agent of the forwarder, or the customs broker designated by the consignee.
Import customs clearance procedures must be completed before the goods leave the bonded area of the destination country. Usually, this means before the goods leave the freight forwarder or the freight forwarder’s destination warehouse.
6. Destination processing
As for the origin, the goods also need to be loaded and unloaded at the destination before they can be released to the consignee. Simply put, destination handling involves the transfer of containers from ship to shore and from port to the freight forwarder’s destination warehouse. It also includes unloading the container and preparing the cargo for pickup by the consignee.
Trucks for transporting LCL cargo
Destination processing includes multiple destination charges and is always performed by the freight forwarder or the agent designated by the freight forwarder. A fee can be charged to the shipper or the consignee, but payment in full is always required before the goods are handed over to the consignee. Likewise, if the agreement is that the shipper pays the ocean freight and the consignee pays the destination fee, it is actually the shipper who decides who the consignee has to buy destination processing from. As discussed for origin fees, this can create some friction or surprises for unplanned recipients.
Step 7: Import Shipping
The transfer of goods from the import warehouse to the consignee’s address and the final destination of the goods is called import haulage. Transportation can be done by road (via container trucks), rail, barge or intermodal, depending on the terrain or geographic location.
Import shipments can be handled by forwarders who handle international ocean freight or by local freight companies specializing in import shipping services. If a freight forwarder is responsible for import shipments, they will use their trucks or contract with a third-party freight company to do the job. Alternatively, the consignee can choose to collect the goods at the destination warehouse to save on import shipping costs.”
