Klarissa Morris

From my point of view doing export and import is by no means a simple trial. There are documents to be collected and e-forms to be filled. Depending on the nature of the goods, there are various taxes, duties and excises to be paid. Also, international trade is governed by a whole host of regulations. To maximize compliance, importers/exporters need to be familiar with all applicable laws. As experts in the field, customs brokers help you navigate the sea of changing regulations and understand import specifics related to particular commodities. They are highly knowledgeable in all entry procedures, admissibility requirements, classification, valuation, and the duties and taxes imposed on imported goods.

The insurance is an agreement by which the insured is indemnified in the event of damages caused by a risk covered in the policy. Insurance is all-important in the transport of goods because of their exposure to more common risks during handling, storing, loading or transporting cargo, but also to other rare risks, such as riots, strikes or terrorism. There is a difference between goods transport insurance and the carrier's responsibility insurance. The covered risks, fixed compensation and indemnity of the contract of transport insurance are left to the holder's choice. Nevertheless, the haulier's responsibility insurance is determined by different regulations. Depending on the means of transport, indemnity is limited by the weight and value of the goods and is only given in case the transporter has been unable to evade responsibility. The insurance invoice is required for customs clearance only when the relevant data do not appear in the commercial invoice indicating the premium paid to insure the merchandise. The standard extent of the transporter's responsibility is laid down in the following international conventions: 1. Road freight 2. The rail carrier 3 The shipping company 4. The air carrier

Generally, a Bill of Lading (B/L) has 3 basic functions or roles, as follows: 1) Evidence of Contract of Carriage The B/L is the EVIDENCE of the contract of carriage entered into between the “Carrier” and the “Shipper or Cargo Owner” in order to carry out the transportation of the cargo (not to be confused with the sales contract between the buyer and the seller). 2) Receipt of Goods A B/L is issued by the carrier or their agent to the shipper or their agent as proof of RECEIPT of the cargo. The issuance of the B/L is proof that the carrier has received the goods from the shipper or their agent in apparent good order and condition, as handed over by the shipper..   3) Document of Title to the goods This role of the bill of lading decides who is the owner of the title to the goods based on which cargo is released.

According to the definition of official sources, a Shipper’s Letter of Instruction or SLI is a ‘letter’ from the exporter instructing the freight forwarder on how and where to handle the export shipment. The exporter is granting permission to the forwarder to act as the authorized forwarding agent for U.S. export control and customs. By completing an SLI and sending it to the freight forwarder, you are establishing a best practice for your firm. You have a written record of who received the shipping documents, who to contact for questions, who to contact for proof of export, and who issued the export control documentation that supports the decision to send your products to your foreign customer.

Trade Barriers are obstacles for trade. These are measures that make trade more difficult or less attractive, and thus discourage trade. For example, some of the trade barriers are: 1. Import duties (they increase the price of imported goods, and thus make the import less attractive) 2. Inefficient border controls cause a delay (in clearing goods) at the border, which in turn causes disruptions to the supply chains of companies that rely on the goods. 3. Administrative procedures for import/export, e.g. the need to submit paper-based documents, the need to provide the border control authorities extra information, the need to translate documents for the authorities. All these extra efforts by the exporter/importer cost time and money, and hence they make trade less attractive. 4. Complex IT requirements: if exporters and importers are required to submit data to multiple government agencies, they entail extra IT costs. Also, these costs become “costs of trade”, making trade less attractive.