Customs
The complexity of customs operations is that each country has its own regulations, procedures and agreements.
Customs Brokers are experts advising companies on their internationalization strategy.
Indeed, during an import and export operation, many criterias will depend on customs procedures:
- The amount of customs duties to set the price
- Time spent in customs area must be considerated to fix the delivery time
- The standards of the country where the product will be sell, but also those of the countries crossed by the goods during transport
These elements must be controlled to optimize your approach to international.
Customs brokers help traders turn Customs information into highly useful business intelligence.
Customs Duties
Customs duties are defined according 3 criterias: Origin - Nomenclature - Value
Legal procedures for establishing these 3 parameters of the goods are clearly explained in the documents of the World Trade Organization and the World Customs Organization.
Information: official websites
WORLD CUSTOMS ORGANIZATION: WWW.WCOOMD.ORG
WORLD TRADE ORGANIZATION: WWW.WTO.ORG
You understand the importance of accurate knowledge of procedures in the countries where you work. Customs management is a service often offered by freight forwarders companies. Some of these companies, managing the transportation of goods, have a customs brokerage firm in-house.
Logistics, needed intermediaries
Any Import-Export generates a logistics organization in terms of cost / time / quality of transport. The company must select partners to make maximum profits by its commercial operation; it has to be seen in terms of flows.
If the transaction generates steady flows, the exporting company must implement an organized approach to develop a global solution of transport.
Two options:
- outsource logistics services in the comfort of specialists
- integrate the logistic function in the heart of the activity to stimulate the international flow of the company and maximize its production chain (supply chain management)
For both, it is necessary to refer to professionals in international transport.
A Freight forwarder is a logistics expert. He manages its customers’ transport of goods from the beginning to the end, thanks to a wide range of services such as package tracking, customs clearance, storage services and so on. . A forwarder will advise you in choosing your conditions of sale (Incoterms, delivery...) and you will optimize your transport operation (consolidation, negotiation of freight rates).
After a study of your transportation needs (storage, packaging, transportation, etc.). and the establishment of specifications, you can also work with an international transport company offering services tailored to your needs.
ADVANTAGES & DISADVANTAGES
of continental and intercontinental transport
Many providers offer packages that combine several modes of transport to carry out a "door to door » service. It is important to consider a packaging that supports the multi-modal transport.
Mode of transport |
Features |
Advantages |
Disadvantages |
Shipping |
Diversity and adaptation of different types of vessels (container carriers, Road vessels, multipurpose or specialized) Very high use of the container (time savings and safety) reduces the cost of handling and insurance. |
Interesting Possibility of storage in port areas Ability to serve all over the world |
Long Transport times Port congestion in certain areas Some lines are not containerized Breaks handling charges and source of damages Higher insurance and packaging cost |
Air Transport |
Apparatus and mixed cargo Loading ULD (igloos, pallets, containers) |
Speed, Security for the goods Cheap packaging Lower financial costs and storage |
High price that limit the shipment of dense goods or low values goods Limited capacity Prohibited for some dangerous products Load Out |
Road Transport |
Possibility to use the container and possibility of combining rail and road |
Service door to door, without reloading Quick deadlines |
Safety and deadlines vary by traveled countries and the weather Much used in continental Europe for average distances |
Rail Transport |
Shipping by wagonload between 5 and 60 tons and the possibility of trains for higher tonnages (heavy automotive, aggregate, etc.). Variety of equipment available and use of swap bodies |
Development of combined transport and the possibility of door to door Traffic flow and meet deadlines Adaptation to long distances and large tonnages |
Unsuitable for short distances Limited Network Rail Load Out |
Fluvial Transport |
Use of natural waterways and canals (Northern Europe, Rhine river valley, a few supplies sea-river) |
Good payload capacity, 300 to 2 500 tones depending on convoys Lower cost |
Slow and thus immobilization of the goods during transport Cost of pre- and post-routing Load Out |
Postal Services |
Shipping all over the world of packages and goods in small quantities Simplicity and range of services |
Simplified Customs Formalities Ability to use formulas to guaranteed delivery times |
Priority shipments and services vary according to destination Use limited to small consignments |
Source: G. LEGRAND & H. MARTINI, Management des opérations de commerce international, 4ème édition – DUNOD, Paris, 1999