Freight Forwarder : Essentially secures the business of various exporters and importers and has the ability/facility to
- storage the cargo belonging to the clients at their warehouse (usually all big forwarders have their own warehouses)
- arrange the distribution or “forwarding” of the cargo as per the instructions of their client.. This could be a regular routing or various routings
- negotiate freight rates with the shipping line to cover the interest of their clients
- book the cargo with the shipping line as per the requirement of the client
- prepare bills of lading and associated shipping/negotiating documentation (F178, Certificate of Origin, etc)
- issue their approved house bill of lading as applicable
- MAY or MAY NOT also do Customs Clearance
- may or may not be accredited to customs, port etc and cannot do customs clearance if not accredited
- almost viewed by clients as an alternative shipping line
Clearing Agent : Essentially takes care of the customs clearance aspect of the business..
- is a company accredited with the local customs authorities, border agencies, port etc
- arranges to pass the relevant documents at customs
- arrange for customs inspections as required
- check and process Duty and VAT payments as applicable
- apply for refunds etc where applicable
- cannot issue own bills of lading if not registered or acting as a freight forwarder
These are the major differences between a Freight Forwarder and Clearing Agent..
