Notesale: Turn your study into money

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Shipbrokers
Freight
forwarders

Shipping
agents

Customs
clearance
agents
ITC

Liner agents

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1-2

Traditional role of freight forwarders
Customs
Douane

Transport

Clearance

Insurance

Delivery to the buyer

Freight forwarding and shipping agents are responsible
for concluding contracts of carriage on behalf of the
owner of the goods to be transported
...

ITC

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Arrange reservation of space on a vessel, train or aeroplane
...

Pack products into containers or onto pallets
...

Insure the cargo
...

Prepare loading &, if necessary, transhipments
...

ITC

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Receive and control documents related to the goods
...

Take delivery of the goods
...

Assist with customs clearance
...


ITC

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Customs Zone
There are also land customs zones for overland imports
For air transport, international airports have to be used
ITC

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3-1

The composition of customs rates
Nature of the
goods

Country of
origin

Customs tariff
rate

Usage of the
goods

Ad valorem
(based on the value)

Many countries use the Harmonised System
(HS) which details over 1000 items/categories of
goods
Rates vary widely from country to country

ITC

The person submitting the declaration is
responsible for correctly identifying the goods &
using the right tariff code

Specific

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3-3

Names and addresses of importer, supplier & declarant
Identification of means of transport
Number, nature, marks, gross & net weight of all packages of
goods
Identification of goods by tariff number in tariff classification,
value & origin
Rates of duty and any other information needed to apply
duties/taxes
Method of payment proposed for duties (cash or credit
arrangement)
Tentative estimate of amount of duties/taxes
List of attachments
Date and place of declaration & declarant’s signature
ITC

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)
Certificate of insurance where appropriate
Certificate of inspection by general surveying firm
(required in some countries)
Licenses or other special authorisations may also
sometimes be required
ITC

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4-1

Calculating duties
Imagine that you import a raw material
...

Your country’s tariff currently applies a specific duty to
this material of $0
...

However, the system is about to change and the new duty
will be calculated on the basis of 23% ad valorem
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3-6

Action Point

A
...
For each one, indicate the
following:
• What are the customs tariffs on
these items?
• If they are different, why do you
think this is so?
• Do the tariffs vary depending on
the country of origin? By how
much?
• Do they vary depending on the
use of the item? Which
applications are favoured?

ITC

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4-2 (Cont’d)

• Are there any quantitative
restrictions on imports of these
items (e
...
, quotas)?
• Are there any import bans or
prohibitions?
• Are there any health, safety or
environmental restrictions on such
imports?
• Which supporting documents do
you require for customs
clearance?

ITC

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