Freight Forwarder vs. Customs Broker

In the last few years, with the advent of online businesses, the export and import rates have improved. Also, communications barriers have been eradicated thanks to advanced technology. With so much trade going on within countries, the need for a freight forwarder and customs broker has increased. So, if you want to start an export business, then it is vital that you need to understand how you deliver your products to the final customer.

Let’s take an example to make things easier. For example, you are selling goods to customers who are located in the US and Canada. So, how to send your shipments to the final customer at minimum risk? The answer is hiring a professional freight forwarder. There are various logistics company which provide services of a freight forwarder as well. But what exactly is a freight forwarder?

A freight forwarder is the one who takes up the responsibility of transporting your goods overseas. A freight forwarder acts as the middleman who eradicates all the obstacles which you face while sending your goods to a customer who is located in some other country. They deal with the transportation, carriers services, dealing with customs and finally timely delivery of the product to your final customer. Without a proper freight forwarder, you cannot deliver the product on time to your customer. Hence, hiring a professional freight forwarder is always advisable.

What are the roles of a freight forwarder?

By now we know the gist of what a freight forwarder does. Now let’s look into the actual responsibilities which they are entitled to do.

1. Documentation

Just imagine you have packed the goods, loaded on a plane and ship and then it will be delivered to your final customer. Isn't that easy right? Well, we wish if it was that easy, but in reality, it is very difficult to get your goods moved from one country to another. If your paperwork's are not right, then there are high chances that your goods will get confiscated. Hence, while sending your goods, make sure you have a thorough knowledge regarding all the paper required. You have to have COO (Certificate of Origin) from a BOL (Bill of Landing).

If you have no idea regarding these, then it is advisable that you hire a freight company that offers the services of a freight forwarder. Freight forwarders have detailed knowledge of the paperwork that needs to be done a nod; this will help you to get your goods past the customs without any problems. A freight forwarder will ensure that you have completed all the paper works before transporting your goods. This reduces the risk of loss to a great extent.

2. Good relations with customs

Freight companies which have offices located at various locations of the globe, especially in areas near the border, tend to have the upper hand when it comes to clearing your goods at the customs. Maximum export goods get stuck while transitioning at the customs. For example, if you are a seller in India and you are sending goods to countries like the US, then having a freight forwarder office in US customs helps the procedure of clearing your goods in a seamless manner. But do not mistake freight forwarders to be custom brokers. These freight companies have their own in house coordinators who ensure that your goods pass the custom without any major obstacle.

Due to the advent of the internet and the countries opening up for global business, now freight forwarders have access to custom information and procedures of every country via their website. Via these, freight providers can provide accurate data of the entire transition process to the client in real-time. Also, few freight companies offer a separate platform where clients can have access to all the information about the shipments.

Customs Broker

What is a custom Broker?

Since now we know in details what a freight forwarder does, now let’s understand the concept of a customs broker.

For centuries, countries have traded goods and services with each other to meet each other requirements. Earlier, the barter system was prevalent, but now goods and services are also exchanged for money. These international transactions help a country to widen its economy. For example, India is known to produce rice, and there is a shortage of rice in the USA. So, the US buys rice from India to meet its needs.

But these export and import are carried on keeping in mind regulations and restrictions which differ from country to country. Every good that enters a particular country must meet certain standards like packaging, labels, taxation slabs and many more. So, if you are a seller who wants to export your products to a foreign country, you need to be aware of the rules and regulations. So, for the best advice, you can always hire a customs broker who will ensure that your goods meet all the customs regulations.

A custom broker basically looks into the custom regulations part of the entire transition process. He ensures that the products meet the parameter, packaging standards, adequate labeling and duty fees and many more. Overall, a customs broker is a bridge between you and the customs of the country where you were shipping your product to.

A customs broker needs to have a valid license by the authorized government, which allows them to carry on their services. Make sure to hire a reliable and professional customs broker, as these brokers have access to huge data and information which can be fatal if given to the wrong hands.

Basic Difference of Freight Forwarder and Customs Broker

When you are planning to send your goods to another country, you need two services without fail. The services of customs broker and freight forwarder are very much important, and hence without these 2, you cannot ship your products to another country. The basic differences between these two are that custom broker looks into the documentation and the bureaucratic front and freight forwarder looks into the logistics part of the shipment.

CDS Group of Companies (Author Bio)

The CDS Group of Companies offers a full suite of services under one roof, including Warehouse Logistics and Storage, Transportation, Transload, Customs Clearance and Supply Chain services. For more visit our website https://www.cdsltd.ca/

Cds Group of Companies is one of the best warehousing and logistics companies in Canada. We are offering services such as warehousing, transportation, and supply chain management services in Canada. https://www.cdsltd.ca/