Inbound cargo handling

1. INBOUND CARGO HANDLING
Carry out carrier arrival status check using job file, telephone, fax, carrier schedule,
computers and checklist so that shipping documentation obtained, arrival status checked
and arrival information record in accordance with standard operating procedure (SOP)
and carry out shipment inbound charge confirmation using Bill of lading, inbound invoice,
calculator and checklist so that shipment inbound charge recorded in accordance with
customer satisfaction.
The person who is competent in this competency unit (CU) shall be able to check cargo
arrival status, ensure that the inbound cargos are managed properly and effectively in
accordance to Standard Trading Conditions (STC) and company Standard Operation
Procedure (SOP). Upon completion unit, trainees will be able to:
1. CHECKING CARGO ARRIVAL STATUS
2. CARRY OUT IMPORT CARGO / GOODS INSPECTION
3. PREPARE CUSTOMS IMPORT DECLARATION
4. COMPLETE CUSTOMS DECLARATIONPROCESS
5. CARRY OUT SHIPMENTINBOUND CHARGES / TERMS DOCUMENT
PREPARATION
6. CARRY OUT TRANSFER/ RELEASE CARGOFROM AIRLINE/ LINER
7. CONFIRM IMPORT PACKING AND TRANSPORTATION MODE
TITLE: PERFORM IMPORT CLEARANCE ACTIVITIES
PURPOSE:
This learning experience will providestudent with knowledgeon how to do
import clearance activities for the shipment inbound and how to carry outcarrier
arrivalstatus procedure. Student will able to verify import tax exemption letter.
INTRODUCTION
Importis the process of bringing goods fromone country into another country in
a manner satisfying the legal requirements of the receiving country. An
organization that is licensed to receive their goods in the country is referred to as
an importer.

2. Type of shipmentinformation need to obtain and modes:
Sea
i. Full Container Load (FCL)
Full Container Load (FCL) is a “door to door” concept. Container are sealed at
origin and opened at the destination, offering high security and minimum
handling which the goods / cargo can be safety loaded and transported
ii. Lose Container Load (LCL)
Less Container Load (LCL) is a “Terminal to Terminal” concept. When a shipper
does not enough cargo to load a container to its full capacity, a freight forwarding
running a “consolidated container services” may be contacted and allowed to
add, i.e., using one container for severalloads originating from various shippers.
The loading and stuffing of a container to safely secure the cargo preventing
movement and / or collision inside the container is a specialized procedurethat is
normally carried out by professionals to reduce the risk of cargo damage.
Whether the buyer or the seller carries the cost and risk of stuffing the container
must be decided before bidding is conducted and the correctincoterm used in the
bidding document.
iii. Brake k Bulk Load
In shipping, break bulk cargo or general cargo is a term that can be described as
goods that must be loaded individually and not in intermodal containers. Ships
that carry this sortof cargo are often called general cargo ships. The term break
bulk derives fromthe phrasebreaking bulk the extraction of a portion of the
cargo of a ship or the beginning of the unloading process fromthe ship's holds.
A break-in-bulk pointis a place wheregoods are transferred fromone mode of
transportto another for example the docks wheregoods transfer fromship to
truck.

3. Air
i. Main Deck
Contoured, semi-structuralcovers called Type"A" are used to provideprotection
for cargo and keep cargo within safedimensions for loading in aircraft. These
containers may haveone side (front) open, with cargo secured by nets or have
metal or fiberglass removabledoors, which arecapable of being sealed.
ii. Low Deck
Developed for use in the lower deck cargo spaces of high-capacity air craft, if fully
structured and completely endorsed. Cargo is loaded into container which may be
equipped with shelves for accommodation of smallor irregularly shaped cargo.
The container door of metal, fabric or a container of both are closed and sealed.
Containers are locked directly into air craft restraintsystemwithout need nets or
tie-down. Providedunnage or shelving to prevent crushing of cargo at recessed
end of lower deck container.
iii. Brake Bulk Deck
A break-in-bulk pointis a place wheregoods are transferred fromone mode of
transportto another for example the docks wheregoods transfer fromship to
truck.
iv. AircraftContainer
Developed in standard sizes to facilitate establishment of uniformshipping rates,
they are used to consolidate shipments. Box-typecontainers are often used by
freight forwarders to consolidateshipper's cargo into one easily handled and
rated unit.
These containers are constructed of wood, fiberglass, plywood, fiberboard,metal
or combinations of these materials.
Land
i. Full Truck Load (FTL)

4. Full Truck Load (FTL) is a “services” concept. Truck are sealed at origin and opened
at the destination, offering high security and minimum handling which the goods
/ cargo can be safety loaded and transported
ii. LooseTruck Load (LTL)
A Less Truck Load (LTL) is an import truck with goods / cargo for morethan one
consignee or an export cargo with frommore than one consignor. An importLTL
is delivered to the nearest container freight station for unstuffing and the goods /
cargo are to be delivery to the consignee.
iii. Chartered Truck
Charter truck does not operate on regular routes and schedules and pick up cargo
only when it is charted from the consignee / customer. Charter truck has the
lowest freightrate per unit of weight or measure. A charter-party can be
concluded for a specific load (tonnage) for a journey or for a determined length of
time
iv. Consolidation Truck
Consolidation while this is prized as the mosteconomical and important
contribution of the freight forwarder to the international transportation and
distribution services, itis also the one that the mostabuse taken place. There are
many methods for unscrupulous consolidators to takethe customer for a ride.
However when the consolidator are guided by the rule of consolidation with the
customer in equal understand, and then consolidation can benefit the
international transportation of cargo / goods.
v. Bonded / Non Bonded Truck
Bonded Truck can be approved by the Customs Departmentfor the purposeof
moving goods with duties without having to settle the duties in advance. The vans
can be used for the followings :
a. Moving of duty goods fromthe location of import to licensed warehouses,
to factories within the free trade zones or any warehouse/factory in the country.

5. b. Moving of duty goods fromLicensed Warehouses to another, one free
trade zone to another and warehouse/factory to another.
c. Moving of duty goods fromthe location of import to licensed warehouses,
factories within the free trade zones or any warehouse/factory to a place of
export in the country. Applications for the locked van facility can be made to the
respective customs stations.
vi. Railway
For export or import to / from Malaysia with big amount, rail transportation is a
rarely used option due to lack of a provincialrailways services dueused more
frequently for commodities on costs and traffic
Rail transportation is most suitable for this shipment if:
a. The goods are heavy.
b. The distance to be traveled not economical by truck.
c. The rail line is located fairly close to his premises and to the portof
shipment for goods destined overseas.
vii. Type of cargos carry
- General Cargo
Finishing goods item fromthe manufacturing, and general item.
- Dangerous Goods Cargo
i. Class 1 – Explosive
Explosives are materials or items which have the ability to rapidly conflagrateor
detonate as a consequence of chemical reaction. Explosives are capable by
chemical reaction of producing gases at temperatures, pressures and speeds as to
causecatastrophic damage through force and / or of producing otherwise
hazardous amounts of heat, light, sound, gas or smoke.
ii. Class 2 – Flammable Gases
Gases are defined by dangerous goods regulations as substances which havea
vapor pressureof 300 kPa or greater at 50°c or which are completely gaseous at

6. 20°c at standard atmospheric pressureand items containing these substances.
The class encompasses compressed gases, liquefied gases, dissolved gases,
refrigerated liquefied gases, mixtures of one or more gases with one or more
vapors of substances of other classes articles charged with a gas and aerosols.
Gases are capable of posing serious hazards dueto their flammability potential as
asphyxiates ability to oxidize and / or their toxicity or corrosiveness to humans.
iii. Class 3 – Flammable Liquid
Flammable liquids are defined by dangerous goods regulations as liquids,
mixtures of liquids or liquids containing solids in solution or suspension which give
off a flammable vapor (havea flash point) at temperatures of not more than 60-
65°C liquids offered for transportat temperatures at or above their flash point or
substances transported atelevated temperatures in a liquid state and which give
off a flammable vapor at a temperature at or below the maximum transport
temperature. Flammable liquids are capable of posing serious hazards dueto
their volatility, combustibility and potential in causing or propagating severe
conflagrations.
iv. Class 4 – Flammable Solids
Flammable solids are materials which under conditions encountered in transport
are readily combustible or may causeor contribute to fire through friction self-
reactive substances which areliable to undergo a strongly exothermic reaction or
solid desensitized explosives. Also included are substances which areliable to
spontaneous heating under normal transportconditions or to heating up in
contact with air and are consequently liable to catch fire and substances which
emit flammable gases or become spontaneously flammablewhen in contact with
water. Flammable solids are capable of posing serious hazards dueto their
volatility, combustibility and potential in causing or propagating severe
conflagrations.
v. Class 5 – Oxidizing
Oxidizers are defined by dangerous goods regulations as substances which may
causeor contribute to combustion generally by yielding oxygen as a result of a

7. redox chemical reaction. Organic peroxides are substances which may be
considered derivatives of hydrogen peroxide whereone or both hydrogen atoms
of the chemical structurehavebeen replaced by organic radicals.
vi. Class 6 – Toxic
Toxic substances arethose which are liable either to causedeath or serious injury
or to harmhuman health if swallowed, inhaled or by skin contact. Infectious
substances arethose which are known or can be reasonably expected to contain
pathogens. Dangerous goods regulations definepathogens as microorganisms,
such as bacteria, viruses, rickettsia, parasites and fungi or other agents which can
causedisease in humans or animals. Toxic and infectious substances can pose
significant risks to human and animal health upon contact.
vii. Class 7 – Radioactive
Dangerous goods regulations define radioactivematerial as any material
containing radionuclides where both the activity concentration and the total
activity exceed certain pre-defined values. A radionuclide is an atom with an
unstable nucleus and which consequently is subjectto radioactivedecay. Whilst
undergoing radioactive decay radionuclides emit ionizing radiation, which
presents potentially severerisks to human health.
viii. Class 8 – Corrosive
Corrosives aresubstances which by chemical action degrade or disintegrate other
materials upon contact. Corrosives causeseveredamage when in contact with
living tissue or, in the caseof leakage, damage or destroy surrounding materials.
ix. Class 9 – Miscellaneous
Miscellaneous dangerous goods aresubstances and articles which during
transportpresenta danger or hazard not covered by other classes. This class
encompasses butis not limited to environmentally hazardous substances thatare
transported at elevated temperatures miscellaneous articles and substances
genetically modified organisms and micro-organisms and (depending on the
method of transport) magnetized materials and aviation regulated substances.

8. Miscellaneous dangerous goods presenta wide array of potential hazards to
human health and safety, infrastructureand / or their means of transport.
x. Perishablecargo (Temp. cargo)
Perishablecargo or temperature cargo wherethe cargo has to storage in the
frozen roomwith frozen food must be help at an air temperature of 0 degrees F
and should not exceed 10 degrees F. A shipment going to its destination, the
primary modes of transportation for this stageusing reefer truck / reefer
container and requested temperature setting at time of booking the freight.
xi. Valuable cargo (High Value cargo)
High-valuegoods have always required extra security, but recently severalfactors
have boosted the risk. As the world's appetite for luxury goods grows, sourcing
and marketing locations become more diverse. Longer supply chains add touch
points and, therefore, vulnerability. And crime organizations areincreasingly
focused on goods in transit.
Vulnerable Goods offers expert delivery of goods that are particularly proneto
theft. These items include semi-precious metals, mobile phones, shock-sensitive,
precious works of artor high tech equipment, watches, health drugs, perfumes,
cosmetics, designer wear and computer parts.
xii. Fragile cargo
Fragile cargo is cargo that can break easily if exposed to falls, shocks, and rough
handling during transport. Examples of fragile cargo include but are not limited
to: antiques, ceramics, glass articles (including goods in glass containers),
porcelains and toilet articles, including glass articles, marble, tiles, bricks,
asbestos, bronzeand stonearticles, old furnitureand paintings, laboratory
materials and scientific devices, valves for radios and televisions, X-ray
equipment, neon valves, electronic, musical and optical instruments, photo and
video cameras and their accessories, glass windows and discs.
xiii. Sensitive cargo

9. Moving temperature-sensitiveproducts can be a hassle. Delays and shipping
snafus can wreak havoc on your bottom line. Here are his 10 tips for shipping
temperature-sensitiveproducts.
a. Communicate your needs clearly. Spell out every detail, even ones that may
seem insignificant. Specify the acceptable temperature range in degrees plus or
minus the set point to ensurethe proper parameters are used. Indicate
Fahrenheit or Celsius.
b. Look for experience with your commodity. Temperature-sensitive
commodities can be anything from fresh fish and produceto adhesives and
pharmaceuticals, each with their own shipping characteristics. Evaluateyour
carrier's capabilities and experience with shipments that are similar to those you
tender.
c. Maintain the temperature before and after transit. Itmay seem obvious,
but shippers often stagetemperature-sensitive freighton a dock that is not
temperature-controlled. To ensureproductquality, make sureyour shipments
remain in a temperature-controlled environment until the truck is ready to be
loaded. The drivers should also keep the truck doors closed until the last possible
moment to minimize any effect to the temperature inside the cargo box.
d. Plan for less capacity. Temperature-controlled trucks haveless capacity.
Cubic feet are reduced due to added insulation in the walls of the truck, and the
added weight of temperature-controlequipment affects payload capability.
Review packaging diagrams, dimensions, and weight requirements to avoid last-
minute surprises atthe loading dock.
e. Quality is no accident. Ask aboutyour carriers'temperature-controlquality
system, including training program. Do they have quality manuals or thorough
Standard Operating Procedures in place? What is the age of their equipment, and
do they have an appropriateequipment maintenance program? Arethere
controls in place to handle anomalies and temperature-out-of-tolerancealarms?
Finally, do the carriers havea disaster recovery plan that will protect your assets
while in their control?
f. Understand all your transportation options. Thereare numerous options to
consider when routing temperature-sensitiveshipments, including truckload and
LTL refrigerated carriers as well as exclusive-use, temperature-controlled carriers.

10. Temperature-controlled packaging for smaller shipments that can be routed
through your regular express or ground carrier can also be an appropriate choice.
Some carriers providecompanion temperature-controlled air transportation as a
separate or blended service. Each choice has unique capabilities and limitations
that you need to understand in advance.
g. Consider companion services and special needs. Depending on the nature
of your shipments, you may need to look for a carrier that can provideother
services in addition to temperature control. For instance, a valuable shipment of
pharmaceuticals may requireadditional security services, whiledeliveries to
locations that do not have a dock may necessitate a truck equipped with a lift
gate. Factor in all the capabilities you will need before you select your
temperature-controlled carrier.
h. Factor in availability and responsetime. Ask about the carriers'business
hours. Arethey available 24 hours a day? Are they open on weekends and
holidays? If not, consider the impact this might have on you and your business—
and factor this into your contingency plan.
i. Ensurecompliance with regulations. Your carrier is typically not subjectto
the regulations that apply to your industry, so you should evaluate the company's
programto ensurethat the servicefacilitates your compliance with any cold-chain
requirements, governmentregulations, or agency guidance.
j. Incorporateinto your existing contingency plan provisions for handling
emergencies that affect temperature-controlled items. Be prepared for last-
minute glitches that may affect your plan. Pre-planning and an arsenalof shipping
options can minimize the effect of the inevitable crisis.
xiv. Weapon cargo
xv. Vulnerable cargo
Vulnerable cargo is the cargo with value higher than general cargo and easily to
be pilfered or stolen during transportation, requiring a safely-ensured process of
transportation. Vulnerablecargo usually consists of the following items:
- Cameras;
- Laptops; tablets;
- PDAs;

11. - Mobile phones;
- Phone cards (excluding cards without value);
- Watches;
- Other items as requested by shippers.
Vulnerable cargo excludes special cargo (perishable cargo, wet cargo, live animals,
etc.).
Type of shipping documentation:
i. Commercial documentation
a. Invoice
b. Packing list
c. Deliver order
d. Commencers invoice / commencers note
e. Certification of origin
ii. Transportdocumentation
a. Master Bill of Lading / HouseBill of Lading / Bill of Lading / Ocean Bill of
Lading
b. Master Air Waybill / HouseAir Waybill / Air Waybill
c. Land receipt / commercial notes
d. Railway receipt
e. Arrivalnotice
f. Manifest receipt
iii. Governmentdocumentation
a. ApprovalPermit (AP)
b. Import/ Export license
c. Cargo / goods with Prohibition, Controland Restriction
- Other Government Agency (OGA)
i. Veterinary services
ii. Agriculturaldepartment

12. iii. Fisheries department
iv. Pharmacy department
v. Health department
vi. Department of standards
vii. Polices department
viii. Ministry InternationalTrade and Industry (MITI)
ix. Pesticide Board
x. Department of EnvironmentQuality
xi. Wildlife department
xii. Treasury
xiii. Atom Energy Licensing Board (AELB)
xiv. Constructions Industry DevelopmentBoard (CIDB)
- Customs producer
i. Customs No: 1 – declaration of goods imported
ii. Customs No: 2 – declaration of goods exported
iii. Customs No: 3 – permit to transportduty paid goods within the federation
iv. Customs No: 8 – application / permit / to move / transit duty unpaid goods
v. Customs No: 9 – permit to removegoods fromWarehouse
vi. JKED No. 4 – Inward, outward & transshipmentmanifest
vii. JKED No. 3 – Manufacturewarehouse
viii. ImportDutiable / Export Dutiable / Sales Tax
ix. Licensing Warehouse/ Customs Warehouse (Gudang Berlicens)
x. Free IndustrialZone, Free TradeZone, Free Zone and Free commission
Zone
xi. Inland Dry PortZone
- Exemption listing
i. GovernmentServices Tax (GST)
iv. Other documentation
a. Insurance
b. Bank Grantee

13. c. Letter of credit
d. Cataloged
e. Brusher
f. Fumigation certification
- Safety documentation
i. Material Safety Data Sheet (MSDS)
ii. Fumigation certification
iii. Dangerous goods shipping declaration
iv. Dangerous goods checklist
v. Status tracking referencesystems
a. MAWB / MBL under website internet
b. PortKelang Management
c. Malaysia Airline SystemBhd
vi. Airline tracking system
a. www.redbarry.com
vii. Vesseltracking system
a. www.vesselschedule.com
b. www.wanhai.com
c. www.evergree.com
viii. Seaport/ Airporttracking system
a. PortKelang Management
b. Malaysia Airline SystemBhd
c. Kuala Lumpur InternationalAir portManagement
d. Malaysian AirportBerhad Management
ix. Track and trace method
a. Expected to Departure(ETD) / Ship to Departure(STD)
- Closing date shipment

14. - Closing date transshipment
x. Expected to Arriver (ETA) / Ship to Arriver (STA)
a. Pre alert shipment of arrival
b. Pre shipmentof arriver
c. Arrivalnotices
xi. Discrepancy item / cargo
a. Offload
b. Delay
c. ShortLanded
d. Missing cargo
e. Partial shipment
f. Damage
xii. Cargo arrival(vessel/ flight) status / information / shipment detail
a. Sea freight (Notice of Arrival – NOA)
b. Air freight (airline confirmation)
c. Shipper / Consignor
d. Receiver / Consignee
e. Quantity (pieces, skid, pallets, container, crate, loose cartons)
f. Weight (kilo, tonnage, CBM-volumetric)
g. Dimension ( inc, centimeter)
xiii. Enter point through customs authorizeMalaysia
- By Sea
a. Kelang Port, Selangor (PKG)
b. Tanjung Pelepas Port, Johor Bahru (TPP)
c. Kuantan Port, Pahang
d. Penang Port, Penang
e. Labuan Port, Sabah
f. Kerteh Port, Kuala Tergganu
g. Kemanan Port, Pahang

15. h. Miri Port, Sarawak
i. Melaka Port, Melaka
- By Air
a. Kuala Lumpur InternationalAirport, Selangor
b. Sultan Abdul Aziz Shah Airport, Subang, Selangor
c. Bayan Lepas Airport, Penang
d. Kuala Kerai Airport, Langkawi, Kedah
e. Senai Airport, Johor Bahru
f. Kuching InternationalAirport, Sarawak
g. Kota Kinabalu InternationalAirport, Sabah
- By Land
a. Pengkalan Kubur, Kota Bahru, Kelantan
b. Rantau Panjang, Kota Bahru, Kelantan
c. Bukit Kayu Hitam, Kedah
d. Johor Crossway, Johor Bahru
e. Federal Customs Collection Station of Singapore
f. SungaiTujuh, Miri, Sarawak to Kalimatan, Indonesia
g. Tandungan, Sarawak to Burnai
- By Railways
a. Federal Customs Collection Station of Singapore
b. SungaiWays Inland Container Terminal (ICD)
xiv. Related skills
a. Obtain shipping documentation
b. Commercial documentation
c. Transportdocumentation
d. Governmentdocumentation

16. e. Other documentation
f. Safety documentation
xv. Track and trace MAWB / MBL website
a. Confirmactual arrival(flight / vessel) status
Arrivalflight status:
Flight Stats collects information froma large number of sources (governments,
airlines, airports, reservation systems,and others) and presents an intuitive
display of the data we compile. Registered users can explore details collected
fromthe data sources. For moreinformation, see an in-depth explanation below.
In summary FlightStats:
i. Tracks flight status in near real-time
ii. Reports both runway and gate times
iii. Has global coverage
iv. Provides excellent code sharemapping
v. Links airportdelay information to the affected flight
vi. Stores information historically and calculates on-time performancerating
for flights and airlines