Freight Forwarders And Clearing Agents: A Guide

In order for a shipment to be transported successfully, several entities are involved. Regardless of the size or type of shipment, two entities stand out due to the importance of their roles. These are a Freight Forwarder and a Clearing Agent.

Freight Forwarders in Dubai and a clearing agent play very different roles in a shipment, so it is crucial to understand their roles and the difference between them.

Freight forwarders and clearing agents are often the same. There are many reputable Clearing And Forwarding Companies in Dubai. Unfortunately, some are not. Before we discuss the differences between a freight forwarder and a clearing agent, let’s first examine the similarities. 

Who Is A Freight Forwarder?

Commonly freight forwarders are defined as multi-function agents or operators. The duty of a freight forwarder is to take care of the transportation of goods from one place to another under the guidance of one of the reputable Clearance and Forwarding Companies in Dubai. 

It is the responsibility of the Best International Shipping Service that the packages are safely picked up and delivered without delays to their respective destinations. It is also the main duty of the Freight Forwarders in Dubai. In addition to that, Clearing and Forwarding Companies in Dubai must also ensure the deliveries are done at the right price and in good condition. For that, they can use the most convenient method, resources and route. 

It is a daunting process to go through all the legal formalities and process of importing and exporting all by yourself. If you don’t know all the legalities it will be an extra headache for you. From collecting documentation, arranging freight contracts, tracking the cargo, port inspections to transportation, and customs clearance with the help of any of the experienced and expert Clearing And Forwarding Companies in Dubai will be easy and fast.   

In the case, you are a beginner or are not completely familiar with the regulations of the area a freight forwarder can be a great help. However, there are certain qualities a freight forwarder of the Best International Shipping Service should possess in order to provide a great service.

A Freight Forwarder Must Have The Following Characteristics:

• Having experience with all modes of transportation – air, rail, and road.
• Delivering cargo shipping solutions that are cost-effective and efficient according to customer needs and preferences.
• The forwarder should be able to arrange storage of the cargo. Even though most of the leading Clearing And Forwarding Companies in Dubai have their own warehouses.
• They should be able to organize the distribution or “forwarding” of the cargo per the instructions of their clients.
• Having the capability of negotiating freight rates with the shipping line.
• Ability to book cargo with the shipping line based on a client’s requirements or under their own contract.
• Documentation such as certificates of origin, customs and port documentation, bills of lading, and associated shipping/negotiating documents.
• Even though they are not an NVOCC, they issue their house bills of lading.
• Organise transportation of the cargo to/from the customer’s premises and to the port.
• An in-depth understanding of cross-border cargo movement
• Customs clearance may also be offered or may not
• They may or may not be accredited to customs, ports, etc. and cannot do customs clearance without accreditation.
• Issues house bills of lading in the role of a carrier.

Who Is a Clearing Agent?

Regulatory requirements relating to customs vary from country to country, but a requirement that is common to all is that clearing agents or customs brokers be certified by the local customs authorities, border agencies, ports, and other authorities involved in the shipment of goods.

In order to clear the goods on behalf of the customer, they should have a valid clearing licence. There are some countries that have very strict licensing requirements that are regularly reviewed, and agents who fail to adhere to them can lose their licenses. Generally speaking, a clearance agent is primarily responsible for the clearance of customs.

The clearing agent has many other equally important responsibilities beyond lodging documentation with customs. These responsibilities can have a direct impact on the clearing agent as well as their clients. Some such duties and responsibilities of a clearing agent from the Clearing And Forwarding Companies in Dubai include, 

• Makes arrangements for the appropriate documents to be passed at customs.
• Expert knowledge of the HS Codes and duties and VAT calculations.
• Processes the payment of all applicable duties and taxes.
• Helps customers with duty drawbacks.
• Provides no freight rate negotiation on its own or on behalf of their clients.
• As a clearing agent, they do not issue their own bills of lading.
• Freight forwarders or customers have the liberty of appointing them.  

The difference between a clearing agent and a freight forwarder is that clearing agents constantly interact and deal with local customs authorities, and they are conversant with the country’s requirements.

On the other hand, Freight Forwarders have a broader global presence because they may be present in several countries, unlike Clearing agents and Customs Brokers who tend to be more localised.

Both the freight forwarder and clearing agent share the goal of advising their customers on the requirements to ensure the smooth shipment and arranging the same on behalf of the BCO. Therefore, although there are some activities overlapping between the two entities, both play an essential role in global trade and are an essential part of all Clearing And Forwarding Companies in Dubai.

About DDU Express

As one of the best Freight Forwarding Companies in Dubai, DDU Express excels. We provide excellent customer service and deliver packages with top-quality and without any delays at an affordable price. This is why we’re gaining more and more clients among the other Clearing And Forwarding Companies in Dubai. All import procedures and formalities can be handled with ease by DDU Express. In addition, the whole process will be safe in our hands, so you do not need to worry about anything.