Essentials of Freight Forwarding

Freight Forwarding
• A service used by companies that deal in
international or multinational import and
export.
• Services guarantee that products will get to
the proper destination by an agreed upon
date, and in good condition.
Freight forwarding is the coordination
and shipment of goods from one place to
another via a single or multiple carriers
via air, marine, rail or highway.
 Major Documents
• Bill of Lading (BOL) – This is a contract between the owner
of the goods and the carrier.
Bill Of Lading Includes:
• Shipper name and address
• Consignee name and address
• Notify Party name and address
• Carrier Information
• Place of Departure
• Port of Loading
• Destination
• Cargo information - cargo description, weight, etc.
• Classification of the commodity
• Commercial Invoice – The invoice is the bill for
the goods, presented from the seller to the
buyer, often used to determine the true value
of goods when assessing the amount of
customs duty.
• Certificate of Origin (COO) – This signed
statement identifies the origin of the export
item.
• Inspection Certificate – This document may
be required by the customer to certify that
the goods have been inspected and/or tested
and the quality of the goods is deemed
acceptable.
• Export License – This license is a government
document that authorizes the export of goods
in specific quantities to a specific destination.
"Software, aircraft parts and guidance
systems are examples of exports that may
require a license."
• Export Packing List – This detailed packing list
itemizes each item in the shipment, the type
of packaging container used, as well as gross
weight and package measurements.
 Importance of the ‘Packing List”
• count of the product being released and
shipped to the buyer's facility.
• identifies detail required for a certificate of
origin.
• provides the detail required by the law for the
Electronic Export Information filing in the
Automated Export System (AES).
• supports issuance of a Material Safety Data
Sheet if the goods are deemed hazardous.
• It is used to create a booking with the international carrier and
subsequently the issuance of the international bill of lading.

• The importer's customs broker will use it to enter the goods into their
country as it contains required detail.

• In the event of loss or damage to the goods while en-route, it becomes a

document that will be used to support an insurance claim.

• It provides the buyer with the ability to accurately tally the product that
they receive, and subsequently reimburse the exporter (seller) of the
goods.
 The Basis of Export Controls
• The Export Control List identifies specific
goods and technology that are controlled for
export from Canada to other countries,
regardless of their means of delivery
(including, for example, shipment of goods,
electronic transfer or transmission of
information, provision of technical or
consulting services, etc.).
• www.exportcontrols.gc.ca.
 Objectives of Export Controls
• do not cause harm to Canada and its allies;
• do not undermine national or international security;
• do not contribute to national or regional conflicts or
instability;
• do not contribute to the development of nuclear,
biological or chemical weapons of mass destruction, or
of their delivery systems;
• are not used to commit human rights violations
• are consistent with existing economic sanctions’
provisions
 IMPORT PERMITS
• Permit that allows an importer to bring in a specified
quantity of certain goods during a specified period
(usually one year).
• Import licenses are employed
• (1) as means of restricting outflow of foreign currency
to improve a country's balance of payments position;
• (2) to control entry of dangerous items such as
explosives, firearms, and certain substances;
• (3) to protect the domestic industry from foreign
competition.
 Purpose of an ‘Import Permit’
• An Import Permit authorizes the import into
Canada of certain goods that are controlled on
the Import Control List and must be presented to
Border Services Officers of the Canada Border
Services Agency at the time of import.
• Certain military goods and firearms are controlled
by paragraphs 70-73 and 91. Chemical Weapons
Convention items are controlled by paragraph 74
of the Import Control List