ustoms clearance is a necessary procedure before goods can be imported or exported internationally. If a shipment is cleared, then the shipper will provide documentation confirming customs duties that are paid and the shipment can be processed.

1. INTRODUCTIONTO SHIPPING PRACTICE
Understandthe principlesofmercantile practice
 Processof importing
 Variousstagesinthe importing
 Shippingdocuments
 Incoterms
 Processof Exporting
 Variousstagesof exporting
 Shipmentof the consignmenttothe buyer
 Recordkeeping
Main proceduresof import & exporting
 Importpractice documentation
 Commercial invoice,packinglist,billof lading
 How importdutyiscalculated
Understandthe finance of international trade
 Varioustypesof finance usedininternationaltrade
 Typesof documents(openaccount,letterof credit,cashagainstdocuments)
 The sourcesof such documentation(invoice andpackinglist)
 Importance of each document
Understandthe roles& responsibilitiesofvariousorganisations
 A shippingline
 Shippingagents
 Port health
 Stevedoringagencies
 Freightforwarders
5 Basic Steps on How to Import
For some people international shippingisano brainerhoweverforsome itmightgetreallycomplicated.
There are a lotof variablesinthe international shippingprocess.Itiscomplicatedandthere are many
differentpartiesinvolved,suchaslocal truckers,customsbrokers,steamshiplines,freightforwarders,
rail companiesandmore communicationbarriersandculture differencesmightpresentaproblem, and
rulesandregulationscanslowdownyourfirstshipmentsif youdonothave the experience and
knowledge toensure thatthe processflowsassmoothlyaspossible.

2. DECIDE THE COUNTRY
Space have differentexport/importregulations.Whilethe material itself mightspace froma certain
country,there mightbe otherfactors whichmightaddup to space requirementsforimportingspecific
commoditiesdependonawide varietyof space some information,suchaswhetheranitemissubjectto
quotarestrictionseligible space ratesof duty,or restrictedfromentrybecause theyoriginateinan
embargoedcountrycanbe determinedonlyif youknow the item’sHarmonizedTariff Schedule
classificationnumber.
2 SERCH FOR SUPPLIERS
If you are newimporter,there are governmentagenciesthatare readyto answerthe questions.The
International Trade AdministrationandUSBusiness Space of the many organizationsthatare there to
helpyou.Use online sources space professional associationsandjoindomesticandinternationaltrade
showsspace made the space withan overseassuppliers,itisalwaysgoodideatogo meet space their
space.
3 SEARCHTHE DUTY AND TAXES
Importspace be calculatedina varietyof ways,but mostimportdutiesare space percentspace the
declaredvalue of the commodityimportdutydiffersfrom space dependentonthe commoditybeing
imported,itsdeclaredvalueitscountryof originandotherfactorslike anti-dumpinglegislationand
quotacontrols.Import space can be as low as zeroor as highas 100% (or more) of the product’s
declaredvalue importdutiesare collectedtogeneraterevenue andtoprotectlocal markets.
4 FINDA RELIABLE FREIGHT FORWARDER ANDCUSTOMS BROKER
You alreadyhave toomuch to worryabout. Do not add shippingprocedure anddocumentationtothe
list.Alwaysworkwithareliable freightforwarderorNVOthatwill provide youwithdailyupdatesfrom
the momentyouplace the order withyourshipper.Thiswill giveyoutime toconcentrate more on your
business.
5 SHIPTHE GOODS ON TIME
Do not shipyourgoodslast minute.Thismightcostyoumore than youneedto pay.However,by
shippingearlyyoumayenduppayinginventorycosts.Alwaysconsiderthatdelaysmighthappenduring
the process,such as goodsmightnotbe producedontime,the vessel mightnot sail asschedule.Goods
mightbe heldbythe customsbothinorigincountryand here USA. Be preparedforall thisand plan
accordingly.
First,do yourhomeworkandgo overthe research that isavailable toyouonline.Thenconsultwitha
professionalto understand tounderstandthe processof importinggoodscorrectly.Intoday’sworld
international shippingisalmostamustfor all companiesandyoucan save a lot by choosingthe right
transportationpartner,makingthe rightdecisionsandunderstandingthe process.

3. Types ofImportant ShippingDocuments
Bill of Laden: The BOL isa contract betweenthe ownerof the goodsandthe carrier.There are two
typesof BOL; firstlya straightbill of ladingwhichisnon-negotiableandsecondly,anegotiableor
shipper’sorderbill of lading.The negotiable BOLcanbe bought,soldor tradedwhile the goodsare in
transit.The customerwill usuallyneedanoriginal asproof of ownershiptotake possession of the
goods.
Commercial Invoice:The invoice isthe bill forthe goodsfromthe sellertothe buyer.Itcan be usedto
determine the true value of goodswhenassessingthe amountof customsduty.
Certificate ofOrigin: The COO issignedstatementwhichidentifiesthe originof the exportitem.
InspectionCertificate:Thisdocumentmaybe requiredbythe customerto certify the goodshave been
inspectedortestedandthe qualityof the goodsisacceptable.
Export License:Thislicense isagovernmentdocumentthatauthorizesthe exportof goodsspecific
quantitiestoaspecificdestination.
Shipper’sExport Declaration: The SED isusedforexportstatistics.Itispreparedviathe US Postal
Service (USPS) whenthe shipmentisgreaterthan$500.
Export Packing List: This isa detailedpackinglistthatitemizeseachiteminthe shipment,whattype of
packagingcontainerwasused,grossweightandpackage measurements.
INTRODUCTION
The Inco termsrulesor INTERNATIONALCommercial termsare aseriesof pre-definedcommercialterms
publishedbythe InternationalChamberof Commerce (ICC) widelyusedininternationalcommercial
transactions.A seriesof three-lettertrade termsrelated tocommonsalespractices,the Incotermsrules
are intendedprimarilytoclearlycommunicate the tasks,costsandrisksassociatedwiththe
transportationanddeliveryof goods.The Incoterms rulesare acceptedbygovernments,legal
authoritiesandpractitionersworldwideforinterpretationof mostcommonlyusedtermsin
international trade.Theyare intendedtoreduce orremove altogetheruncertaintiesarisingfrom
differentinterpretationof the rulesindifferentcountries.Firstpublishedin1936, the Incotermsrules
have beenperiodicallyupdated,withthe eighthversion-Incoterms2010-havingbeenpublishedon
January1, 2011.”Incoterms” isa registeredtrademarkof the ICC.
INCOTERMS AND THE EXPORTER
International Commercial Terms,knownas“Incoterms”are internationallyacceptedtermsdefiningthe
responsibilitiesof exportersandimportersinthe arrangementof shipmentsandthe transferof liability
involvedatvariousstagesof the transaction.Incotermsdonotcoverownershiporthe transferof title of
goods.It iscrucial toagree on an Incotermat the start of a negotiation/quotationof asale,asit will
affectthe costs andresponsibilitiesinvolvedin space insurance andtariffs.The new Incoterms2010
ruleswere revisedbythe InternationalChamberof Commerce andwill become effectiveJanuary1,
2011. Fourterms were eliminated(DAF,DEQ,DES,DDU) and twowere added.Deliveredatplace (DAP)
and deliveredatTerminal (DAT).The modificationsaffectobligations,risktransfer,andcostsharingfor

4. the sellerandbuyer,resultinginbetterclarificationandapplicationof the eleven(11) Incoterm, and
consistentwiththe wayglobal trade isactuallyconductedsince the lastupdate in2000.
In anysalestransaction,itisimportantfor the sellerandbuyertoagree on the termsof sale and know
preciselywhatisincludedinthe sale rice Exportersshouldchoose the Incotermthatworksbestfortheir
company,butalso be preparedtoquote on otherterms.
In experiencedexportersmaywanttouse the Incoterm“Ex Works” (EXW),because thistermcarriesthe
leastburdenforthem.UnderEXW, an exporter’sresponsibilityendsattheirfacility’sloadingdock,
whichincludesmakingthe goodsavailableforpickupand providinganyproductinformation neededfor
filingthe ElectronicExportInformation(EEI). The importer’sagent(i.e.theirdesignatedU.S.freight
forwarder) will arrange andpayforthe pre-carriage,shipping,insurance andanyadditionalcostsfrom
the exporter’sdoor.A sale basedon the Incoterm“CIF”,on the other hand,requiresthe exporterto
arrange andpay for the pre-carriage,shipping,andinsurance toanamedport inthiscase,the sale price
(invoice) includesnotonlythe (C)ostof goods,butalso(I)insurance and(F)reightcoststhatthe
importingbuyerpaysthe exportingseller.
Whendesignatingthe Incotermonacommercial invoice oraquotationto the buyer,the termshouldbe
followedbythe cityor port of load/discharge,suchas“EXW Factory,Richmond,VA”or “CIF Rotterdam”,
usingthe actual addressisbettertoavoidany confusionormisinterpretationcommunication
throughoutthe entire processiscrucial.Forexample,underEx Works,the shippershouldnotifythe
importerwhenthe goodsare readyand aftertheyhave beenpickedupbythe importer’sselected
carrier.The exporter’sfreightforwarderoftenprovidesthe vesselandsail date,orair cargo service
used,andany oceanbill of ladingorairwaybill numbertokeepthe partiesinformedof the
arrangementsand statusof the shipment(eventhoughtechnicallyunderEXWorksthe exporter’s
responsibilityendsattheirloadingdock).
The most burdensome Incoterm forthe exporterisDeliveredDutyPaid(DDP),because all
arrangementsandcostsare borne by the exporter,usuallywiththe assistanceof agents(freight
forwardersandcustomshouse brokers) withDDP,the exporterbearsall risksandcostsof
transportation,includingdutiesandtariffs,untilthe goodsare receivedbythe importer.Usuallyatthe
importer’sfactoryorwarehouse,since DDPrepresentsthe maximumobligationtothe seller,itisnot
recommendedforcompaniesthatare new-to-export.
INCOTERM DEFINITIONS/CHANGES
Duringthe processof revision,whichhastakenabouttwoyears,ICC hasdone its besttoinvite views
and response tosuccessive draftsfromawide rangingspectrumof worldtraders,representedasthese
varioussectorsare on the national committeesthroughwhichICCoperates.Indeedithasbeen
gratifyingtosee thatthisrevisionprocesshasattractedfar more reactionfromusers space the world
than anyof the previousrevisionsof Incoterms. The resultof thisdialogue,Incoterms2000,a version
whichwhencomparedwithIncoterms1990 may appear space few changes.Itis clear,however,that
Incoterms nowenjoyworldwide recognitionandICChastherefore decidedtoconsolidateuponthat
recognitionandavoidchange foritsownsake.On the otherhand,seriouseffortshave beenmade to
ensure thatthe wordingusedinIncoterms 2000 clearlyandaccuratelyreflectstrade practice.
Moreover,substantive changeshave beenmade intwoareas:

5. The 11 Incotermsconsistof twogroupsand are listedbelow inorderof increasingrisk/liabilitytothe
exporter.Underthe revisedterms,buyersandsellersare beingurgedtocontractpreciselywhere
deliveryismade andwhatchargesare covered.Thisshouldavoiddouble-billingof terminalhandling
chargesat the port of discharge.Referencesto“ship’srail”were takenouttoclarify thatdeliverymeans
“on-board”the vessel.Insurance,electronicdocumentation,andsupplychainsecurityare addressedin
more detail,andgender-neutral language isnow used.
Rulesfor Sea and InlandWaterway Transport
FAS - Free Alongside Ship:Riskpassestobuyer,includingpaymentof all transportationandinsurance
costs,once deliveredalongside the ship(realisticallyatnamedportterminal) bythe seller.The exporter
clearance obligationrestswithseller.
FOB - Free On Board:Riskpassesto buyer,includingpaymentof all transportationandinsurance costs,
once deliveredonboardthe shipby the seller.A stepfurtherthanFAS.
CFR - Costand Freight:Sellerdeliversgoodsandriskpassestobuyerwhenonboardthe vessel.Seller
arrangesand payscost and freighttothe nameddestinationport.A stepfurtherthanFOB.
CIF - Cost,Insurance andFreight:Riskpassestobuyerwhendeliveredonboardthe ship.Sellerarranges
and payscost, freightandinsurance todestinationport.Addsinsurance costsCFR.
Rulesfor Any Mode or Modesof Transport
EXW - Ex Works:Sellerdeliver(withoutloading) the goodsatdisposal of buyeratseller’spremises.Long
heldasthe mostpreferable termforthose new-to-exportbecause itrepresentsthe minimumliabilityto
the seller.Onthese routedtransactions,the buyerhaslimitedobligationtoprovideexportinformation
to the seller.
FCA - Free Carrier:Sellerdeliversthe goodstothe carrierand maybe responsible forclearingthe goods
for export(Filingthe EEL).More realisticthanEXWbecause itincludesloadingatpick-up,whichis
commonlyexpected,andsellersare more concerned aboutexportviolation.
CPT - Carriage PaidTo: Sellerdeliversgoodstothe carrierat an agreedplace,shiftingrisktothe buyer,
but sellermustpaycostof carriage to the namedplace of destination.
CIP - Carriage andInsurance PaidTo: Sellerdeliversgoodstothe carrierat an agreedplace,shiftingrisks
to the buyer,butsellerpayscarriage andinsurance to the namedplace of destination.
DAT - DeliveredatTerminal:Sellerbearscost,riskand responsibilityuntil goodsare space (delivered) at
namedquay,warehouse,yard,orterminal atdestination.Demurrage space chargesmayapplytoseller.
Sellerclearsgoodsforexport,notimport.DATreplacesDEQ,DES.
DAP - DeliveredatPlace:Sellerbearscost,riskandresponsibilityforgoodsuntil made availabletobuyer
at namedplace of destination.Sellerclearsgoodsforexport,notimportDAPreplacesDAF,DDU.
DDP - DeliveredDutyPaid:Sellerbearscost,riskand responsibilityforclearedgoodsatnamedplace of
destinationatbuyer’sdisposal.Buyerisresponsibleforunloading.Sellerisresponsibleforimport
clearance,dutiesandtaxesso buyerisnot“importerif record”.

6. Exportersshouldseriouslyconsiderhavingthe freightforwarderhandle the formidable amountof
documentationthatexportingrequires;freightforwardersare specialistinthisprocess.The following
documentsare commonlyusedinexporting;whichof themare actuallyusedineachcase dependson
the requirementsof bothourgovernmentandthe governmentof the importing country.
STEPS FOR EXPORTING GOODS
Step 1. Receiptof an order
The exporterhasto get himself registeredwithvariousauthoritieslikeRBI,income tax authorities,etc.
inaddition,he hasto appointagentsor distributorsforcollectionof ordersfromforeigncountries.
ExporterreceivesanorderfromimporterdirectlyorthroughindentHouse
Step 2. Obtaining License and Quota
Afterobtainingorder,exporterhastosecure exportlicensefromthe government.Forthis,he hasto
applyto the Export Trade Control Authorityandobtainthe validlicense.Quotaisthe total quantityof
goodsthat ispermittedforexports.
Step 3. Letter of Credit
Exporterdemandsletterof creditfromimporterorsometimesimportermaysendithimself alongwith
the order.
Step 4. Fixingexchange rate
Exchange rate meansthe rate at whichthe currency of one country isexchangedforthe currencyof
anothercountry.It fluctuatesfromtime totime.Hence the exporterandimporterfix the exchange rate
mutually.
Step 5. Foreignexchange formalities
Here the exporterhasto undergocertainforeignexchangeformalitiesaslaiddownunderexchange
control regulations.AccordingtoFERA (ForeignExchange RegulationActof India) everyexporterhasto
furnishadeclarationinthe formprescribedforthis purpose.
The declarationstates:
1. Foreignexchange earnedbywayof exportswill be disposedinthe mannerandwithinthe
periodspecifiedbyRBI
2. Negotiationsof shippingdocumentswill be throughauthorizeddealersinforeignexchange.
3. The paymentforgoods exportedwill be collectedonlythroughapprovedmethod.
The exportermakesnecessaryarrangementsforexecutingthe order.
In thisrespecthe performsthe followingactivities:
1. Packingand markingof the goodsas per the specificationsof the importer.
2. Arrangingthe pre-shipmentinspectionbythe ExportInspectionAgencyandgettingthe
inspectioncertificate fromit.

7. 3. Securinginsurance policyfromthe ExportCreditGuarantee Corporation(ECGC) toget
protectionagainstthe credit risks.
4. Obtainingasuitable marine insurance policy,consularinvoice andcertificate of origin,if
required.
5. Appointingaforwardingagentforhandlingthe customsandforwardingactivities.
Bill of Entry
Bill of entryisone of the major importdocument forimportcustomsclearance.Asexplainedseriously,
Bill of Entry isthe legal documenttobe filedbyCHA or Importdulysigned. Bill of Entryisone of the
indicatorsof ‘total outwardremittance of country’regulatedbyReserveBankandCustomsdepartment.
Bill of entrymustbe filedwithin thirtydaysof arrival of goodsat a customslocation.
Once afterfilingbill of entryalongwithnecessaryimportcustomsclearance documents,assessment
and examinationof goodsare carriedout byconcernedcustomsofficial.Aftercompletionof import
customsformalities,a‘passoutorder’is issuedundersuchbill of entry.Once animporterorhis
authorizedcustomshouse agentobtains‘passoutorder’fromconcernedcustomsofficial,the imported
goodscan be movedoutof customs.Afterpayingnecessaryimportchargesif anyto carrierof goods
and custodianof cargo.
Commercial Invoice
Invoice isthe prime documentinanybusinesstransactions.Invoice isone of the documentsrequiredfor
importcustomsclearance forvalue appraisal byconcernedcustomsofficial.Assessable value is
calculatedonthe basisof termsof deliveryof goodsmentionedincommercial invoice producedby
importerat customslocation.Ihave explainedaboutthe methodof calculationof assessable valuein
anotherarticle insame webblog.The concernedappraisingofficerverifiesthe value mentionedin
commercial invoice matcheswiththe actual marketvalue of same goods. Thismethodof inspectionby
appraisingofficerof customspreventsfraudulentactivitiesof importerorexporterbyoverinvoicingor
underinvoicing.Soinvoice playsapivotal role invalue assessmentinimportcustomsclearance
procedures.
Bill of Lading / Airway Bill
BL/AWB isone of the documentsrequiredforimportcustomsclearance Billof ladingundersea
shipmentorAirwaybill underairshipmentiscarrier’sdocumentrequiredtobe submittedwithcustoms
for importcustomsclearance purpose.Bill of ladingorAirwaybill issuedbycarrierprovidesthe details
of cargo withtermsof delivery.Ihave discussedindetail aboutBillof ladingandAirwaybill separatelyin
thiswebsite.Youcango throughthose articlestohave a deepknowledgeaboutdocumentsrequiredfor
importcustomsclearance.
Import License
As I have mentionedabove importlicensemaybe requiredasone of the documentsforimportcustoms
clearance proceduresandformalitiesunderspecificproducts.Thislicense maybe mandatoryfor
importingspecificgoodsasperguide linesprovidedbygovernment.Importof suchspecificproducts
may have beenbeingregulatedbygovernmenttime totime. Sogovernmentinsistanimportlicense as

8. one of the documentsrequiredforimportcustomsclearance tobringthose materialsfromforeign
countries.
Insurance certificate
Insurance certificate isone of the documentsrequiredforimportcustomsclearance procedures.
Insurance certificate isasupportingdocumentagainstimporter’sdeclarationontermsof delivery.
Insurance certificate underimportshipmenthelps customsauthoritiestocertify,whethersellingprice
includesinsurance ornot.Thisisrequiredtofindassessable due whichdeterminesimportdutyamount.
Payment mechanismsinInternational Trade
Advance Payment
Whena newcustomerapproachesandplacesan orderon the Exporter,normallymightinsistadvance
paymentforexecutingthe order.Thismethodnormallycontinuesforafew timesuntil mutual trustis
builtbetweenthe twopartiesandtheygetto know eachother.
Letters ofCredit
An Exporterif dealingwithanunknowncustomeratthe otherendmay not have any priorexposure to
the creditworthinessof the customerandwouldnormallyinsistonConfirmedLetterof Credittobe
openedbythe Customerbefore shippingthe goods.Insuchcasesthe Exportermaynot be extending
any credit.Alsoincase of highvalue transactionswithknowncustomerstoo;exportersprefertoget
paidthroughLetterof Credit.
While dealingwithacustomer,the Exportercancheckseeka creditworthinessratingfromthe
customer’sbankto be able to ascertainthe authenticityandcredibilityof the Customer.NormallyLarge
Multi Nationalsdemandsuchcreditworthinessreportsasa part of theirpolicy.
Bill of exchange of Documentary Drafts
Whenthere has beensufficientrelationbetweenanExporterandthe Customer(Importer) andthe
customer’s creditworthinessisknownthroughpreviousrecords,the Exportermightdecide to extend
creditand acceptpaymentonbill of exchange basis.ThissystemisalsocalledasDocumentaryDrafts.
DocumentaryDraftsare of two typesnamely SightDraftsandDate and Time Drafts.
OpenAccount
Whenthere isa huge volume of continuousbusinesstransactionsbetweenthe ExporterandImporter
and exportscontinue tohappenonongoingbasis,the Exportercansimplyexportonthe basisof a
purchase orderand expectthe Importertopay promptlyondue date.Thisisthe usual methodadopted
by mostof the Multi National Companiesaswell asthe large.
Organizationthathave sufficientimport volumesspreadacrossvariouscountriesandare dealingwith
multiple vendorsonongoingbasis.Insuchcasestheyjustdeterminethe annual volumestobe supplied
by eachvendor,issue anopenpurchase orderandkeepreviewingonlythe deliveryschedule. Theyoffer
standardpaymentcommitmentonaparticulardate toall vendorsasa global policy.The payment
processwill be setanddeterminedasapart of theirbusinessagreement.

9. A ShippingLine isacompanythat operates the shipsthatactuallycarry the containers(ownedorleased)
and cargo fromload portto discharge port.Example:HapagLloyd,Maersk,ChinaShipping.Some of the
shippinglineshave containerservicescoveringmostportsof the worldandit iscommonthat they
mightrun intoa situationwhere bytheyhave shortage of containersatcertainlocationsortheymight
have requirementof certaintypesof containers(FlatRacks,OpenTopsetc.) atcertainlocations.
Shippingagentisthe designatedperson oragencyheldresponsible forhandlingshipmentsandcargo,
and the general interests of itscustomers,atportsand harboursworldwide onbehalf of shipowners,
managersand charterers.Insome parts of the world, these agentsare referred toas port agents or
cargo brokers.There are several categoriesof shippingagentssuchas:portagents,lineragentsand
ownagencies,eachrenderingspecificservicesdependingonthe shippingcompanytheyrepresent.In
otherwords,a shipagentis anypersonor companythat carriesout the functionsof an agent,
irrespectiveof whethertheyare inbusinessas shipagent,ortheyperformsuchfunctionsasa adjunct
to , or conjunctionwith,otheractivitiessuchasshipowningoroperating,providingcargo handlingor
similar.
Shippingagentswillusuallytake care of all the regularroutine tasksof a shippingcompanyquicklyand
efficiently.Theyensurethatessential supplies,crew transfers,customsdocumentationandwaste
declarationsare all arrangedwiththe port authorities withoutdelay.Quiteoften,theyalsoprovidethe
shippingcompanywithupdatesandreportsonactivitiesatthe destinationportsothatshipping
companieshave real-time informationavailable tothemwhile goodsare intransit.
Port health authorities are responsible formonitoringall foodimportsbutwill notphysicallycheckall
foodimports.It’syourresponsibilitytoensure thatourproductsare safe to eat.Althoughdetailed
importchecksmay be carriedout on any food products from non-EUcountries(‘thirdcountries’), the
actual checkscarriedout are determinedonariskbasis.For productsthat have beendeclaredashigh
riskat an EU/UK level,special healthcontrolsare inplace,and checksmust be carried outat import
stage. Porthealthauthoritiesmustbe notifiedinadvance of the arrival of your goods.Role and
responsibilitiesof porthealth authorities.
Checkson foodat the pointof importare inplace throughoutEurope to control the risks to human and
animal health.Many ports andairports inthe UK have specialist facilitiesthatdeal with high-riskfood
importssuch as foodof animal origin,meatandfishproducts,aswell asotherhigh-riskfoodssuchas
peanuts.The importance of these controlshasbeenreinforcedinrecenttimes,withoutbreaksof avian
influenzaandfoot and mouth disease.
Local authorities(includingporthealth authorities) enforce controlsonUKfoodimports. (Porthealth
authoritiesare aspecial type of local authoritycreatedtoease administrationatseaportswhere the
port area iscoveredby more than one local authority).
A freightforwarder,forwarder,orforwardingagent,alsoknownasanon-vesseloperatingcommon
carrier (NVOCC),isapersonorcompanythat organizesshipmentsforindividualsorcorporationstoget
goodsfrom the manufacturerorproducerto a market,customerorfinal pointof distribution.
Forwarderscontract witha carrieror oftenmultiple carrierstomove the goods.A forwarderdoesnot
move the goodsbut acts as an expertinthe logistics network. These carrierscanuse a varietyof
shippingmodes, includingships,airplanes,trucks,andrailroads,and oftenmultiple modesforasingle
shipment.Forexample,the freightforwardermayarrange to have cargo movedfroma plantto an

10. airportby truck, flowntothe destination city, andthen movedfromthe airporttoa customer’sbuilding
by anothertruck.
Stevedoresinshipping
It isan occupationwhichinvolvesthe cargooperations i.e.loadingandunloadingof cargoesonships.It
alsoincludesthe othervariousdocksidefunctions.The people engagedinthisoccupationare knownas
stevedoresinUK& Europe.However,inthe UnitedStatesandotherareasare referredtoas
longshoremen.Atpresent,incountriessuchasDubai,Singapore etc.where stevedoringisacommon
place and where all the cargo passesthroughdomestic andinternational portsisusuallyhandled is
knownas FreightStationorFreightTerminal.In thisscenario,the stevedoresdoneedheavymachinery,
such as tractor, trailers,cranesand forklifters,etc.if onthe otherhand the some otherrelatedworkis
performedmanuallywhere use of machineryisnotrequiredsuchaslabouror clerical work.The
businesseswhichspecialize inloadingandunloadingvesselsare referred toasstevedoringcompanies.
Customs Operations(Introduction)
 Terminologyand definitions
 Customsand importcontrol
 Tariff classification
 DutiesandVAT
 Billsof entry
 Value fordutypurposes
 Clearinganddeliverycustomsclearance procedures
 Importdocumentation
 Cargo release aftercustomsclearance
 Rebates,refundsanddrawbacks
 Claimsrelatingtoundeliveredordamage cargo
 The clearingagent
 Dangerousandhazardousgoods
 Industrybodies
 Miscellaneousissues
Customsisan authorityor agencyina countryresponsibleforcollectingtariffsandforcontrollingthe
flowof goods,includinganimals,transports,personal effects,andhazardousitems,intoandoutof a
country.The movementof people intoandoutof a country isnormallymonitoredbyimmigration
authorities,underavarietyof namesand arrangements.The immigrationauthorities normally checkfor
appropriate documentation,verifythatapersonisentitledtoenterthe country,apprehendpeople
wantedbydomesticorinternational arrestwarrants,andimpede the entryof people deemed
dangeroustothe country.
Each country has itsownlawsand regulationsforthe importandexportof goodsintoand outof a
country,whichitscustomsauthorityenforces.The importorexportof some goodsmay be restrictedor
forbidden.Inmostcountries,customsare attainedthroughgovernmentagreementsandinternational
laws.A customs dutyisa tariff ortax on the importation(usually) orexportation(unusually) of goods.

11. Commercial goodsnotyetclearedthroughcustomsare heldina customsarea, oftencalledabonded
store,until processed.Allauthorizedportsare recognizedcustomsareas.
Customs: Import controls
Companiesandconsumersmustsatisfyanumberof regulationsbefore theymayimportgoods.Import
taxesmayhave to be paid,forexample,andgoodsthatare not safe may be banned.Customschecks
goodsthat are broughtintothe Netherlandsbycompaniesandprivate individual.
Importation of goods
All goodsthat are importedfroma thirdcountryfirstacquire the status of ‘goodsin temporarystorage’.
The importermustdeclare howtheywill be treatedorusedandcan thenuse one of the customs
procedures.
A well-knownprocedure is ‘releaseforfree circulation’.The goodsthenacquire the statusof
‘Communitygoods’andmaycirculate freelywithinthe EUsingle market.The importerpayscustoms
dutiestoacquire thisstatus.Importersusuallyrelyonthe expertiseandcreditfacilitiesof customs
agentsto deal withthe formalitiesof importinggoods.
Goodsplaced undercustoms supervision
The ultimate treatmentof use isnotalwaysknownwhengoodsare imported.If the goodsare
immediatelyre-exported,theyare notreleasedintofree circulationinthe EUand the importerneednot
pay customsduties.Customs-approvedtreatmentsoruseshave therefore beenintroducedinwhichthe
goodsare placedundercustomssupervisionanddutiesare notpayable.
Thisprocedure isusedof,for example:goodsmustfirstpasshealth,safetyandenvironmental checks
before theycanbe releasedintofree circulation.Animporterneedsalicensetopace goodsunder
customssupervision.
Otherexamplesof customs-approvedtreatmentoruse are external transit,customswarehousing,
temporaryimportationandinwardprocessing.
Customs procedures
Customsdoesitsbestto admitgoodsquicklyandsimplybutstill carryoutappropriate checks.To this
enc.It usesthe opportunitiesprovidedbythe Europeancustomsprocedureswhere possible.Customs
seekssimplersolutions.Examplesof thisapproachinclude:
Use of simplifiedprocedures
Simplifiedproceduresare oftenavailable tohelpbusinessescomplete customsformalities.If acompany
keepsapprovedaccounts,forexample, Customs iswillingtoacceptthemforits checks.Thisprevents
the duplicationof work.If necessary,checksof the accountsare combinedwitha physical inspectionof
the goods.

12. Combinationsof simplifiedprocedures
Businessesthatkeeptheiraccountselectronicallycanuse a combinationof simplifiedprocedures.These
include:accounts-basedchecksof goodsinstorage incombinationwithsimplifiedproceduresto
transportthe goodsto andfrom the warehouse.
Health, Safety,Economic and Environmental checks
Customssupervisesthe import(ImportControl System),export(ExportControl System) andtransit
(NCTS) of goods.It determineswhetherthe goodscomplywithhealth,safetyandenvironmental
standards.Withregard to healthandthe environment,itchecks,amongstotherthings,the qualityof
medicinesandtobaccoproductsandinspectsthe transportationof live animals.Withregardto
economicrequirements,itcheckslicensesforfirearmsandammunitionandforcounterfeitproducts.
Explore whattariffsandquotasare andwhat effecttheycanhave on the supplyof importedgoods.Find
out howthese twoeconomictacticscan influencethe pricesyoupayformany of the everydayitems
youmay purchase.
Basics of Tariffs and Quotas
Every time yougo shopping,youlikelypayhigherpricesbecauseof tariffsandquotas.Itishard to
believethatsome of the goodsyoumaybe purchasingcostyou more than twice asmuch as theycould
because of these economicmeasures!Dairyproducts,vegetables,tobacco,wool clothes,autoparts,
broom,Chinese tires,leathershoes,peanutsandchocolate are justsome of the commonitemswe pay
more for because of tariffsorquotas.
Let’sfirstreviewwhat tariffsandquotasare and thendiscussthe effectstheycanhave onimported
goodsand the priceswe pay.A tariff isa tax imposedon imports,which are goodscomingintoa
country.The tax may range from a fewpercentof the cost of the goodto well over100% of the cost of
the good!This tax is ultimately passedontoconsumers,resulting inhigherprices.
A quotasetsa numerical limitonhowmuchof a productcan be importedintoacountry.This helpsto
protectproducersof domesticproductsfromfacingtoo muchcompetitionandultimatelygoingoutof
business.Ultimately,quotasbenefitandprotectthe producersof a goodin a domesticeconomy,though
the consumersenduppayingmore if the domesticallyproducedgoodsare pricedhigherthanimports.
There are manyreasonsthat tariffsandquotasmay be used.The mostcommon reasonsare often
gearedtowardsprotecting newerorinefficientdomesticindustriesthatare seenasimportanttothe
Americaneconomyandthe productionof jobs.The governmentview isthatbyprotectingthese
domesticindustries,we canmaintainjobsthroughincreasedsalesof domesticgoods.Thisultimately
can leadto highertax revenue collected.
If we didn’tprotectsome of ourfirms,othercountriescoulddumpthousandsof productsonour
countryat extremelylowpricesandpotentiallyhurtmanyof ourdomesticbusinesses.Now,let’s
explore inmore detail the effectsof tariffsandquotas.
Tariff Effects
The additional tax,ortariff,onimportedgoodscan discourage foreigncountriesorbusinessesfrom
tryingto sell products ina foreigncountry.The additional taxesmake the foreignimporteithertoo

13. expensive ornotnearlyascompetitive asitwouldbe if the tariff didn’texist.Thiscanbe leadto fewer
choicesof goodsand a lowerqualityforconsumers.The amountof chocolate,fruitsandvegetables,and
automotive partsyouhave to choose fromare all subjecttothe effectsof tariffs.
Domesticproducersbenefitbyultimatelyfacing reduced competitionintheirhome market,whichleads
to lowersupplylevelsandhigherpricesforconsumers.Asyoucansee fromthe graphbelow, SOandDO
representthe original supplyanddemand curves.Whichintersectat(PO, O0).StShows what the supply
curve is withthe introductionof the tariff.The marketthensettlesat(Pt, Ot).Lessof the goodis
produced,andconsumerspayhigherprices.
Import duty and taxesexplainedina nutshell
In mostcountries,importsneedtobe declared,i.e.adescription,quantityandvalue of the imported
goodshave to be providedtolocal customsauthoritiessothatdutiesandtaxescan be assessed.Import
dutyis a tax that the importerhasto pay to bringforeigngoodsintohisorher country.Importdutyis
alsoknownas customsduty,tariff,orimporttariff.
Importduty can be ad valorem,i.e.basedonthe value of the goods,orit can be specific,i.e.basedon
weight,dimensions,orotherunitsof measure.The customsvalue onwhichdutyisassessedmaybe the
price paidfor the goodsalone,orthe sumof the productprice,the cost of shipping andthe costof
insurance.The valuationmethodvariesbycountry.
The rate of dutydependsonthe HarmonisedSystem(HS) of productclassification,asystemdeveloped
and maintainedbythe WorldCustomsOrganisation(WCO),inwhichtradedproductsare assigned
internationallystandardizedHScodesandcommoditydescriptions.The HS-code iscomprisedof 6 digits,
whichdesignate the chapter,headingandsubheadingtowhichacommoditybelongs.However,
membercountriesof the WCOare allowedtofurthersubdividethe HSnomenclature beyond6digits,
and to settheirownratesof dutyat the level the classifygoods.
The rates of duty mayalso differdependingonthe countryof manufacture of the importedgoods.
Preferential dutyratesmayapplywhere aFree Trade Agreementexitsbetweentwoormore transacting
countries.Onthe otherhand,additional anti-dumpingdutiesmaybe leviedonproductsthatoriginate in
countriesthatare believedtoprice certaingoodsbelow fairmarketvalue.
In additiontoimport duty,importsmaybe subjectto othertaxessuchas salestax (VAT,GST, etc.),
excise duty,orothercustomscharges.Each country hasits ownsetof taxes,anddifferentwaysof
calculatingthem.
Many countrieshave setthe minimisrulesforthe payment of dutiesandtaxes. I.e. aminimum
thresholdhasbeensetforlowvalue imports,below whichcustomsdutiesand/ortaxescanbe
exempted.Factorsotherthanthe value of an importmay be takenintoaccount forthe exemptionof
dutiesandtaxes,forinstance,the methodof transportorwhetheranimportis of personal or
commercial nature.
Some countrieshave asimplifiedapplicationof dutyforimportsunderacertainvalue,and/or of a
personal nature.The simplifiedprocessmayentail aflattax rate on the value of the import, a lumpsum
that has to be paidon the importregardlessof itsvalue,oran entirelyseparatesetof dutyratesto the
country’stariff schedule.

14. Besidesdutiesandtaxes,importrestrictionsorprohibitionsare tobe takenintoaccount before
attemptingtoimportforeigngoods.These couldbe imposedbycountriesorbycarriers.Carrier
restrictionsexistforinstance onhazardousgoods.Ata countrylevel,animportlicense orothertypesof
permitsmaybe requiredforvarioustypesof products,e.g.food,plants,animals,medicines,weapons,
etc.other type of goodsmay be prohibitedaltogether,forinstance those made of speciesindangerof
extinction,orgoodswhichpose athreatto people orthe environment.
Whenimportinganitem,youmaybe charged importduty,salestax,andpossiblyothertaxesor
customscharges.
Import duty calculation
In mostcases,importdutyis calculate asa percentage of the customsvalue of the import(advalorem
duty).The customsvalue variesbycountry.The dutyrate dependsonthe productclassification.
In some countriesthe customsvalue isbasedonthe FOBvalue:
Duty = duty %x productprice in mostcountriesthe customsvalue isbasedonthe CIF value.
Duty = duty %x (productprice + costof shipping+cost of insurance)
Importduty can alsobe calculatedbasedona unitof measure forinstance weightdimensions,etc.
(specificduty).
Quota Effects
The numerical limitsimposedonimportedgoodsthroughquotasultimatelyleadstohigherpricespaid
by consumers.Essentially,the importquotapreventsorlimitsdomesticconsumersfrombuying
importedgoods.The importquotareducesthe supplyof imports.Thisreducesthe overall natural supply
of goodsinthe domesticcountryandcausespricesto rise above whatmany othercountriesmaypayfor
a good where there are noartificiallyimposedlimitsongoods.
BILL OF ENTRY
A bill of entryisnormallyfiledbyanimporteror a CustomHouse Agent.Itis filedtoundergonecessary
importcustomsclearance formalitiestotake the goodsoutcustoms. As perthe customsprocedure all
materialsmovedintoa countryneedto be approvedbycustomsofficialsof eachcountryto move to
importer’slocations.
Customs Clearance – Meaning,Scope and Documentation
CustomsDepartmentsare the governmentdesignatedauthoritytoimplementthe policiesrelatedto
importand export,collectcustomsdutiesandfacilitiesmovementof people,goods,andcargointoand
out of the country.
Area of Operationsand Authority
Customsdepartmentshave officesatall seaports,airportsandbordergatewaysthatare essentiallythe
existandentrypointsforpeople andcargomovementsintoandoutof the country.

15. Customsagenciesare empoweredtomake arrests,confiscate goodsandenjoypowerssimilarto thatof
police departments.
Customs and Trade Logistics
Everycountry annuallypublishesitspolicy forForeignTrade,whichstipulatesthe conditionsunder
whichgoodsand servicesare eligibletobe exportedorimported.Customsdepartmentsimplementthe
provisionsof the policyundercustomsrules,regulationsandtariffs.
Importsinmany countriesmaybe allowedfreely,orsome categoriesmaybe permittedwithdue
licenses.Manyitemsare alsopublishedasbannedforimportandnot allowedentryintothe country.
All of the itemsimportedintothe countryhave tobe customcleared.Thisappliestothe itemsbrought
inas personal effectsandalsoimportedbytrade andbusinessestablishmentsincludinggovernmental
and defense agencies.Necessarystipulateddutieswouldhave tobe paidbefore the goodsare released
by Customs.
Cargo importedintothe countryfromany pointof entryiswarehousedatCustomsbondedareaunder
customsjurisdictionuntilitisreleasedafterclearance.
Importsand CustomsClearance
FreightForwarderswhocoordinate the international transportationalsoprovidecustomsclearance
servicestothe clients.The activityiscalledcustomsbrokerage.
Customsclearance workinvolvespreparationandsubmissionof documentationsrequiredtofacilitate
exportor importsintothe country,representingclientduringcustomsexamination,assessment,
paymentof dutyand co takingdeliveryof cargofromcustomsafterclearance alongwithdocuments.
Some of the documentsinvolvedincustomsclearance are:
Exports Documentation: Purchase orderfromBuyer,SalesInvoice,PackingList,ShippingBill,Bill of
Ladingof AirwayBill,Certificateof Originandanyotherspecificdocumentationasspecifiedbythe
buyer,or as requiredbyfinancial institutionsorLC termsor as perimportingcountryregulations.
Imports Documentation: Purchase Orderfrom Buyer,SalesInvoice of supplier,Bill of Entry,Bill of
Ladingor AirwayBill,PackingList,Certificatedof Originandanyotherspecific documentationrequired
by the buyeror financial institutionorthe importingcountryregulation.
CustomsAgentsprepare the documentof ShippingBillsinthe house forsubmissionwhile restsof the
documentsare obtainedfromthe client.Preparingshippingbill involvesClassificationof cargounder
specificclassificationthatisa critical activityinthe entire process.
Customsclearance agentsare alsocalledCarryingandForwardingAgents.Theyare registeredand
licensedbyCustomstooperate.Their role islimitedtoactingonbehalf of andrepresentingclientsas
thirdparty agenciesengagedincustomsclearance.
CustomsAgentsare linkedthroughEDIwithcustomsinmostof the countriesanduse documentation
software tofacilitate entireprocess.

16. IMPORT DOCUMENTATION
Bill of Entry
Bill of entryisone of the major importdocumentforimportcustomsclearance.Asexplainedpreviously,
Bill of entryisthe legal documenttobe filedbyCHA or Importer,dulysigned.Bill of entryisone of the
indicatorsof ‘total outwardremittance of country’regulatedbyReserveBankandCustomsdepartment.
Bill of entrymustbe filedwithinthirtydaysof arrival of goodsat a customslocations.
Once afterfillingbillof entryalongwithnecessaryimportcustomsclearance documents,assessment
and examinationof goodsare carriedout byconcernedcustomsofficial.Aftercompletionof import
customsformalities,a‘passoutorder’is issuedundersuchbill of entry.Once animporterorhis
authorizedcustomshouse agentobtains‘passoutorder’ fromconcernedcustomsofficial,the imported
goodscan be movedoutof customs.Afterpayingnecessaryimportchargesif anyto carrierof goods
and custodianof cargo.
Commercial Invoice
Invoice isthe prime documentinany businesstransactions.Invoice isone of the documentsrequiredfor
importcustomsclearance forvalue appraisal byconcernedcustomsofficial.Assessable value is
calculatedonthe basisof termsof deliveryof goodsmentionedin commercial invoice producedby
importerat customlocation.Ihave explainedaboutthe methodof calculationof assessablevalue in
anotherarticle insame web blog. The concerned appraisingofficerverifiesthe value mentionedin
commercial invoice matches withthe actual market value of same goods.Thismethodof inspectionby
appraisingoffice of customspreventsfraudulentactivitiesof importerorexporterbyoverinvoicingon
underinvoicing.Soinvoice playsapivotal role invalue assessmentinimportcustomsclearance
procedures.
Bill of Lading / Airway Bill
BL / AWB is one of the documentsrequiredforimportcustomsclearance.Bill of ladingundersea
shipmentorAirwaybill underairshipmentiscarrier’sdocument,requiredtobe submittedwithcustoms
for importcustoms clearance purpose.Bill of ladingorAirwaybill isissuedbycarrierprovidesthe details
of cargo withtermsof delivery.Ihave discussedindetail aboutBillof ladingandAirwaybill separatelyin
thiswebsite.Youcango throughthose articlestohave a deepknowledgeaboutdocumentsrequiredfor
importcustomsclearance.
Importlicense
As I have mentionedabove,importlicense maybe requiredasone of the documentsforimportcustoms
clearance proceduresandformalitiesunderspecificproducts.Thislicense maybe mandatoryfor
importingspecificgoodsasperguide linesprovidedbygovernment.Importof suchspecificproducts
may have beingregulatedbygovernmenttime totime,governmentinsistanimportlicenseasone of
the documentsrequiredforimportcustomsclearance tobringthose materialsfromforeigncountries.
Insurance Certificate
Insurance certificate isone of the documentsrequiredforimportcustomsclearance procedures.
Insurance certificate isasupportingdocumentagainstimporter’sdeclarationon space of delivery.

17. Insurance certificate underimportshipmenthelpscustomsauthoritiesto space,whethersellingprice
includesinsurance ornot.Thisisrequiredtofindassessable space whichdeterminesimportduty
amount.
Cargo release containsthree separatesections:
Transactionprocessing
Certificationforcargorelease and
Cargo release processingresults
Release Transaction Processing
Release processingisavailable onlytousersoperational onentrysummaryinthe space port of release.
Space the entrysummary,CBP from(CBPF) 7501, data isnot available,orif use of summarydata isnot
desired,entry(CBPF-3641) data may be usedforcargo release processing.Datasubmitted forthe first
time mustbe providedonan add transaction.Datamay laterbe replacedor deleted.
For air shipments,cargoreleaseselectivityprocessingisinitiatedonorafterarrival dependingonwhen
the cargo release dataisaddedtothe file andiscertified.
On vessel shipment,cargorelease selectivityprocessingisinitiatedonthe cargo release datanosooner
than five dayspriorto the arrival of the vessel,oronor afterarrival,dependingonwhenthe cargo
release dataaddedonthe file andiscertified.
Cargo release datamaybe submittedforrelease processingwiththe estimateddataof arrival upto 90
day inthe past and 60 daysin the future.
Cargo Release ProcessingCertification
Cargo release processingisavailable onlytouserswhoare operational onentrysummary.The entry
data or entrysummarydata to be certifiedmustprocesserrorfree andbe in the Automated
Commercial System(ACS)entryfile.
ReleasedBill of Lading
In viewof the time constraint,difficultiesinobtainingshippingguarantee forimportsoncollectionbasis
or openaccount methodandexpensive demurrage charges,the introductionof the TelexReleasedor
SurrenderedBill of Ladingwouldreduce coststothe importer.
Clearingagent isthe designatedpersonoragencyheldresponsible forhandlingshipmentsandcargo,
and the general interestsof itscustomers,atportsand harbors worldwideonbehalf of shipowners,
managers,andcharterers.In some partsof the world,these agentsare referredtoas port agentsor
cargo brokers.There are several categoriesof shippingagentssuchas:portagents,lineragents,and
ownagencies,eachrenderingspecificservicesdependingonthe shippingcompanytheyrepresent.
In otherwords,a shipagentisany personor companythat carriesout the functionsof anagent,
irrespectiveof whethertheyare inbusinessasa shipagent,ortheyperformsuchfunctionsasan
adjunctto, or conjunctionwith,otheractivitiessuchasshipowningoroperating,providingcargo
handlingorsimilar.

18. Clearingagentswill usuallytake care f all the regularroutine tasksof a shippingcompanyquicklyand
efficiently.Theyensurethatessential supplies,crew transfers:customsdocumentation,andwaste
declarationsare all arrangedwithportauthoritieswithoutdelay.Quiteoften,theyalsoprovide the
shippingcompanywithupdatesandreportson activitiesatthe destinationportsothatshipping
companieshave areal time informationavailabletothemwhile goodsare intransit.
Dutiesof ClearingAgents Include:
 Ensuringa berthfor the incoming ship
 Arrangingforthe pilotandthe tugs if necessary
 Drawingup the documentsforthe customsand harborservices
 Arrangingforthe necessaryshipfreshwater/provisions
 Arrangingforthe necessarydoctorforthe crew anymedical assistance
 Arrangingforstorage bunkersif these are needed
 Arrangingforthe necessaryrepairs
 Conveyinginstructionstoandfromthe shipowner
 Organizingthe supply,transportandthe handlingof the goods
 Organizingthe necessarycontactswiththe stevedores
 Collectingfreights,cargoes
 Contactingshippersandthe receiversof the goods
Hazardoussubstancesanddangerousgoods
Workplace storage,handlinganduse of hazardouschemicalswere regulatedunderdifferentpiecesof
legislationbefore the implementationof the WorkHealthand SafetyRegulation2011 (PDF.253 MB)
(WHS Regulation2011).
The WHS Regulation2011 coversworkplace hazardoussubstancesanddangerousgoodsunderasingle
frameworkforhazardouschemicals.Italsointroducesanew hazardclassificationandhazard
communicationsystembasedonthe UnitedNation’sGloballyHarmonisedSystemof classificationand
labellingof chemicals.
Transitional arrangementsare inplace forthe new classification,safetydatasheets(SDS) andlabelling
requirements.
Hazardous substances
Hazardoussubstancesare those that,followingworkerexposure,canhave anadverse effectonhealth.
Examplesof hazardoussubstancesinclude:
 Poisons
 Substancesthatcause burns or skinandeye irritation
 Substancesthatmay cause cancer
A substance isdeemedtobe a hazardousif itmeetsthe ApprovedCriteriaforClassifyingHazardous.
Substances(NOHSC:1008(2004) (PDF,2.11 MB).
Space that have beenclassifiedaccordingtothe approvedcriteriaare providedinsafe space Australia’s
online database –HazardousSubstancesInformationSystem(HSIS).

19. May hazardoussubstancesare alsoclassedasdangerousgoods.
Dangerous goods
Dangerousgoodsare substances,mixturesorarticlesthat,because of theirphysical,chemical
(physicochemical) oracute toxicityproperties,presentanimmediate hazardtopeople,propertyorthe
environment.
Typesof substancesthatare classifiedasdangerousgoodsinclude:
 Explosives
 Flammable liquidsandgases
 Corrosives
Chemicallyreactive oracutely(highly) toxic substances
Theyare dividedintonineclassessome of whichare dividedintodivisionsaccordingtothe nature of the
hazard.
SPECIAL OR CONSEQUENTIAL DAMAGES
Customersshall notbe liable foranylossor damage to a shipmentorforany delaycausedbyan act of
God, the publicenemy, andthe authorityof law,the inherentvice of the goodsorthe act or defaultof
the shipper.The burdentoprove freedomfromnegligence isonthe Carrieror the party inpossession.
In novase shall Saiabe liable,andherebydisclaimsresponsibilityforanyindirect,incidental,
consequential,special punitive,ormultiplieddamagesorotherindirectcosts,lostprofits,fees,or
chargesof any kindarisingfromanyfreightclaimsfiledhereunderorany otheracts,includingdelaysor
omissionsof Saia,whetherforeseeable,disclosedornot.
Subjecttoreasonable requests,Saiaagreestoaccept,transport,anddeliverwithreasonable dispatch
such merchandise asCustomermaytendertoCarrierfortransportation.However,Saiashall notbe
responsible foranydamages,direct,indirectorconsequential,whichare the resultof delaysindelivery.
Customershall,atitscost and expense, complywithall applicable federal,state,local andInternational
laws,rulesandregulationspertainingtoitsshipmentsandshall be responsible forall costs,liabilities,
delays,fines andexpensescausedby,resultingfromorotherwise associated withanynoncomplianceby
Customeror Customer’sshipmentswithanysuchlaws, rules,orregulations.Customershall alsobe
responsible forCarrier’scharges pertainingtoanyservicesbyCarrierat Customer’srequestfor
compliance withanysuchlaws,rule orregulations.
RETURNS
Liability forloss,damage ordestruction of propertybeingreturnedtothe original shipper,whichwas
not initially transported bySaia,fromthe original shipper.Will be limitedtolostfreightonly andSaia
will notbe responsible fordamages.
Liabilityforloss,damage ordestructionof propertybeingreturnedtothe original shipper,whichwas
initially transported by Saia,fromthe original shipperanddeliveredwithoutexception,whenSaiaisnot

20. giventhe opportunitytoinspectpriortoreturn,will be limitedtolostfreightonlyand Saiawill notbe
responsible fordamages.
UNDELIVERED FREIGHT
If freightcannotbe deliveredbecause of the consignee’srefusal orinabilitytoacceptit,or because
Carriercannot locate the consignee,orif freightcannotbe transportedbecause of anerroror omission
on the part of the shipper,Carrierwill make diligentefforttonotifythe shipperpromptlythatthe
freightis instorage and the reason thereof.
Undeliveredshipmentswillbe subjecttoapplicablestorage ordetentionstoragesif no replyisreceived
fromattemptsof notification.See Saiatariff item910 for explanationof applicable storage charges.
On undeliveredshipments,dispositioninstructionsprintedonthe Bill of Lading,shippingorder,shipping
order,shippinglabel,orcontainerhavingdispositioninstructionsissuedpriortotender of delivery,will
not be acceptedas an authoritytoreship,return,orreconsignthe shipment,ortolimitstorage liability.
Carrierwill follow the UniformBill of Ladingtermsandconditionsfordisposition of undeliveredfreight.
Upon requestof Shipper,undeliveredshipmentstobe returnedwillbe subjecttothe ratesandcharges
applicable fromthe neworiginbutnotlessthanthe chargeson the original movement.
Shipmentsmovingunderthe provisionsof this itemwill be subjecttoall otherprovisionsof the Rules
Tariff.
Whena consumerdoespurchase a higher-pricedimportedgoodwithatariff imposedon it,the
consumernowhas lessmoneytospendonotherthings.Thisforcesconsumerstoeitherbuylessof the
importedgoodorlessof some othergood, ultimately loweringthe purchasingpowerof consumers.Itis
importantto rememberthatalthough consumersmaypayhigherpricesbecause of tariffs andhave
limitedoptions,the potential benefitisthatdomesticsalesof goodscanincrease ultimatelyleadingto
higherdomesticsalesandmore jobsforcompaniesinside the country.
What Is A Custom Duty?
Customs Dutyis a tariff or tax imposedon goodswhentransportedacrossInternational borders.The
purpose of CustomsDuty is to protecteachcountry’s economy,residents,jobs,environment, etc.,by
controllingthe flow of goodsespecially restrictiveandprohibitedgoods,intoandout of the country.
Dutiable referstoarticlesonwhich CustomsDuty mayhave to be paid.Each article hasa specificduty
rate,whichis determinedbyanumberof factors, includingwhere youacquiredthe article,where itwas
made,and whatit ismade of.Also,anything youbringbackthat you didnothave whenyouleftthe
UnitedStates mustbe “declared.”Forexample, youwoulddeclare alterationsmade ina foreigncountry
to a suityou already owned,andanygiftsyouacquiredoutside the UnitedStates.American Goods
Returned(AGR) donothave to be declared,butyoumustbe preparedtoprove to U.S. Customsand
BorderProtectionthe articlesare AGR or payCustomsduty.
CLEARING AND FORWARDING
Role of Logistics Service ProviderExport Import
1. ShippingLine

21. 2. FreightForwarder
3. CustomsHouse Agent
4. ICD Authority
5. CustomsAuthority
6. Central Excise
7. Insurance
8. Marine Survey
9. CFS Authority
10. MTO
11. NVOCC
Transports of DocumentationB/L & Airway Bill
1. B/L
2. Commercial invoice
3. Certificate of origin
4. Packinglist
5. Exportcertificates
FreightForwarding
1. Effective cargoselling
2. Planning&understandthe requirementsof clients
3. Prepare datainputs
4. Major modesof Transport
5. Unitization
6. Highsea sale Documentation&Procedure
7. How to calculate Detectionchanges
8. How to calculate Demurrage charges
9. Documents requirementsforDeliveryorder(Dofirst& Do second)
10. TransitBond & Transshipment
11. FreightCalculationin
o Airshipments(Volumetricweight)
o Seashipments(CBMcalculation)
12. Negotiations of Freight&FreightStructure
13. Consolidationof cargo
14. Dangerousgoods(chemicals etc.)
A ShippingLine isacompanythat operatesthe shipsthatactuallycarry the containers(ownedleased)
and cargo fromload portto discharge port.Example: HapagLloyd,Maersk, Chinashipping.Some of the
shippingline have containerservicescoveringmostportsof the world,andit iscommonthat theymight
run intoa situationwhere bytheyhave shortage of containersatcertainlocationsortheymighthave
requirementsof certaintypesof containers(FlatRacks,OpenTopsetc) atcertainlocations.

22. What Is FreightForwarding?
Freightforwardingisthe coordinationandshipmentof goodsfromone place toanotherviaa single of
multiple carriersviaairmarine,rail orhighway.
The importance of freightforwardingforglobal trade was recognized inCanadain1948 withthe
establishmentof the CanadianInternationalFreightForwardersAssociation(CIFFA). CIFFA recognized
that forwardingfreight,whetherbyland,marine,rail orairrequirescoordination,regulationand
agreed-uponbestpracticestoensure thatgoodsflow inatimelyandproficientmanneracrossborder,
overseas,andthroughoutthe world.
The PrinciplesofFreightForwarding
The principle of freightforwardingare premisedonthe efficientand cost-effective transferof goods
that are maintainedingoodconditionthroughouttheirtravels.Toaccomplishthis,freightforwarders
become expertsinmanagingthe logisticsnecessarytoensure thatgoodsarrive ontime.Successful
trade and shippinginexpandingglobalizedmarketsmeanshavingthe righttoolsatyourdisposal.
Custom House Agent
Thisphysical laboronour part ensuresthe safe andtimelydelivery of yourgoodsto theirdestination,
and we escortthemeverystepof the way.We have hired a teamwithboththe expertise and
knowledge thatallowsthemtosupplyend-to-endsolutionforbothexportedandimportedgoodsat
marketleadingprices.
The customs authorities
Customsisan authorityor agencyina countryresponsibleforcollectingtariffsandforcontrollingthe
flowof goods.Includinganimals,transports,personal effects,andhazardousitems,intoandoutof a
country.The movementof people intoandoutof a country isnormallymonitoredbyimmigration
authorities,underavariety of namesand arrangements.The immigration authoritiesnormallycheckfor
appropriate documentation,verifythata personis entitled toenterthe country,apprehendpeople
wantedbydomesticorinternational arrestwarrants,andimpede the entryof people deemed
dangeroustothe country.
Each country has itsownlawand regulationsforthe importand exportof goodsintoand out of a
country,whichitcustomsauthorityenforces.The importorexportof some foodsmay be restrictedor
forbidden.Inmostcountries,customsare attainedthroughgovernmentagreementsandinternational
laws.A customs dutyisa tariff ortax on the importation(unusually) orexportation(unusually) of goods.
Commercial goodsnotyetclearedthroughcustomsare heldina customs areas,oftencalleda bonded
store,until processed.Allauthorizedportsare recognizedcustomsareas.The mainobjective of the
customsauthoritiesistoensure thatcustomsdutiesare correctlyleviedandpaidontime.Inaddition,
theyare responsible forpreventingthe illegal importandexportof goodsinNorway.The customs
authoritiessetandcollectcustomsdutiespayable tothe Treasury.
An excise orspace (sometimescalledaspecial excise duty) isaninlandtax onthe sale,orproduction for
sale,of specificgoodsora tax on a goodproducedfor sale, orsold, withinacountry or licensesfor
specificactivities.Excisesare distinguished fromcustomsduties,whichare taxesonimportation. Excises
are inlandtaxes, whereascustoms dutiesare bordertaxes.Anexcise isconsideredanindirecttax,

23. meaningthatthe produceror sellerwhopaysthe tax to the governmentis expectedtotryto recoveror
shiftthe tax by raisingthe price paidby the buyer.Excisesare typically imposedinadditionto another
indirecttax suchas a salestax or value addedtax (VAT).Incommonterminology (butnotnecessarilyin
law),anexcise isdistinguishedfromasalestax or VATin three ways:anexcise typicallyappliestoa
narrowerrange of products;an excise istypicallyheavier,accountingforahigherfractionof the retail
price of the targetedproducts;andan excise istypicallyaperunittax,costinga specificamountfora
volume orunitof the itempurchased,whereasasalestax or VATis an ad valoremtax and proportional
to the price of the goods.
Marine Surveyor
A Marine Surveyor (including“Yacht& Small CraftSurveyor”,“Hull &MachinerySurveyor”and/or
“Cargo Surveyor”) isa personwhoconductsinspections,surveysorexaminationsof marine vesselsto
assess,monitorandreporton theirconditionandthe productsonthem, as well asinspectsdamage
causedto bothvesselsandcargo.Marine Surveyorsalsoinspectequipmentintendedfornew orexisting
vesselstoensure compliance withvariousstandardsorspecifications.Marine surveystypicallyinclude
the structure,machineryandequipment(navigational,safety,radio,etc.) andgeneral conditionof a
vessel and/orcargo.It alsoincludesjudgingmaterialsonboardandtheircondition.Because
certificationsandsubsequentlypaymentsare processedonlyafterthe surveyorhasexpressedhisorher
satisfaction,amarine surveyorholdsaprestigiouspositionandisheldwithmuchregardinthe
shipbuildingindustry.Marine Surveyorsare highlyqualifiedandtechnicallysoundandare usually
selectedafterthoroughevaluationproceduresasvesselsrangingfromsmall ferriestoenormouscrude
oil carriesand cruise linersare approvedtosail intothe highseasbasedpurelyontheirjudgment,
competence andintegrity.
Marine surveyingisoftencloselyassociatedwithmarine insurance,damage andsalvage,accidentand
fraudinvestigationasinsurersgenerallylackthe trainingandskillsrequiredtoperformadetailed
assessmentof the conditionof avessel.While marinesurveyorsare sometimesemployedbyinsurers
directlytheymaintainacertainprofessional autonomyinordertoprovide anunbiasedview.
Independentmarine surveyorsare oftenemployedbythe clientsof marine insurerstoprovide evidence
insupportof damage claimsmade againstthe insurer.Insurance companiescannotrequire customers
to use specificmarine surveyors(althoughtheyoftenprovidealistof recommendedorpre-approved
marine surveyorswhoare knowntothem)
Non– vessel operatingcommoncarrier(NVOCC)
A NonVessel OperatingCommonCarrierorNVOCCisa shipmentconsolidator.Shipmentconsolidators
provide avarietyof international shippingserviceswhichincludepackingcargoandpickingup,
transportingandprovidingdoortodoor cargo delivery,tocustomersall overthe world.
An NVOCCfunctionsasacargo carrierby issuingbillsof lading,alsocalledaB/Lor BOL. Billsof lading
are documentswhichacknowledgethatgoodshave beenreceivedonboarda cargo vessel or shipment
to a specifieddestinationandconsignee forfinal delivery.
An NVOCCassumesresponsibilityforoceanfreight,butanNVOCCdoesnotowna cargo vessel.Inorder
to become anNVOCCinthe UnitedStates,a companymust obtainanocean transportation

24. intermediary(OTI)license fromthe UnitedStatesFederal Maritime Commission.Companiesthatapply
for the OTI license mustpassamulti-stepprocessadministeredbythe Federal Maritime Commission.
There are manybenefitstousingreliable andexperiencedNVOCC
Good NVOCCscanhelpyousave youmoneyand time.CargoExpertsisan NVOCCandwe offera range
of cargo servicestomeetall of yourinternational cargoshippingneeds.We have manysatisfied
customersincludingindividuals,small andlarge businesses,andgovernmentagencies.We are readyto
take care of yourcargo shippingsocontactus todayfor a free online freightquote ortolearnmore
aboutour international cargoshippingservices.
Transport of Documentation
Documentation
Documentation isimportantforthe shipmentof anitemoverseas.Thereare a numberof documents
that the freightforwarderneedstoprepare forthe shipmenthatrequiresspecialistknowledge.
Bill of Lading(BOL).The BOL isa contract betweenthe ownerof the goodsandthe carrier. There are
twotypes of BOL; firstlyastraightbill of ladingwhichisnonnegotiableandsecondly,anegotiableor
shipper’sorderbill of lading.The negotiable BOLcanbe bought,sold,or tradedwhile the goodsare in
transit.The customerwill usuallyneedanoriginal asproof of ownershiptotake possessionof the
goods.
Commercial Invoice – The invoice isthe bill forthe goodsfromthe sellertothe buyer.Itcan be usedto
determine the true value of goodswhenassessingthe amountof customsduty.
Certificate ofOrigin (COO) – The COO isa signedstatementwhichidentifiesthe originof the export
item.
InspectionCertificate – Thisdocumentmaybe requiredbythe customertocertifythe goodshave been
inspectedortestedandthe qualityof the goodsisacceptable.
Export License – thislicense isagovernmentdocumentthatauthorizesthe exportof goodsinspecific
quantitiestoaspecificdestination.
Shipper’sExport Declaration (SED) – The SED is usedforexportstatistics.It ispreparedviathe US Postal
Services(USPS) whenthe shipmentisgreaterthan$500.
Export Packing List – Thisis a detailedpackinglistthatitemizeseachiteminthe shipment,whattype of
packagingcontainerwasused,grossweight,andpackage measurements.
Companieslookingto exportitemscan use freightforwarderstonot onlysave time andeffortbut to
ensure thatthe goodsarrive at the customer’ssite ontime andwithoutincident.A freightforwarder
can provide the exporterwithall the necessarydocumentationsaswell asliaise with the transportation
companiesrequiredtogetthe itemstothe customer.
FreightForwarding
Firmspecializinginarrangingstorage andshippingof merchandiseonbehalf of itsshippers.Itusually
providesafull range of servicesincluding:trackinginlandtransportation, preparationof shippingand

25. exportdocuments,warehousing,bookingcargospace,negotiating freightcharges, freightconsolidation,
cargo insurance,andfillingof insurance claims.Freightforwardersusuallyshipundertheirownbillsof
ladingor airwaybills(called house bill of ladingorhouse air waybill) andtheiragentsorassociatesatthe
destination(overseasfreightforwarders) provide documentdelivery,deconsolidation,andfreight
collectionservices.
Modesof Transportation
Mode of Transport isa termusedto distinguishsubstantiallydifferentwaystoperform.The most
dominantmodesof transportare aviation,shiptransport,andlandtransport,whichincludesrail,road
and off-roadtransport.Othermodesalsoexists,includingpipelines,cable transport,andspace
transport.Human-powered transportandanimal-poweredtransportare sometimes regardedastheir
ownmode,butthese normallyalsofall intothe othercategories.Ingeneral,transportationisusedfor
the movementof people,animals,andotherthings.Eachmode of transporthas a fundamentally
differenttechnological solution,andsome requireaseparate environment.Eachmode hasits own
infrastructure, vehicles,andoperations,andoftenhasunique regulations.
Road Transportation - Road infrastructuresare large consumersof space withthe lowestlevelof
physical constraintsamongtransportationmodes.However,physiographical constraintsare significant
inroad constructionwithsubstantial additionalcoststo overcome featuressuchasriversorrugged
terrain.While historicallyroadtransportationwasdevelopedtosupportnon-motorized formsof
transportation(walking,domesticationof animalsandcyclingatthe endof the 19th
century),itis
motorizationthathasshapedthe mostits developmentsince the beginningof the 20th
century.Road
transportationhasan average operational flexibilityas vehiclescanserve several purposesbutare rarely
able to move outside roads.Roadtransportsystemshave highmaintenance costs,bothforthe vehicles
and infrastructures.Theyare mainlylinkedtolightindustrieswhere rapidmovementsof freightinsmall
batchesare the norm. Yet, withcontainerization.Roadtransportationhasbecome a crucial linkin
freightdistribution.
Rail transportation - Railwaysare composedof a traced pathon whichwheeledvehiclesare bound.In
lightof more recenttechnological developments,rail transportation alsoincludemonorailsandmaglev.
Theyhave an average level of physical constrainslinkedtothe typesof locomotivesandalow gradient
isrequired,particularlyforfreight.Heavy industriesare traditionallylinkedwithrail transportsystems,
althoughcontainerizationhasimprovedthe flexibilityof rail transportationbylinkingitwith roadand
maritime modes. Rail isbyfarthe land transportationmode offering highestcapacitywitha23,000 tons
fullyloadedcoal unittrainbeing the heaviestloadevercarried.Gauges,however,varyaroundthe
world, oftenchallengingthe integrationof rail systems.
Pipeline - pipelineroutesare practicallyunlimitedastheycanbe laidon landor underwater.The
longestgaspipelinelinksAlbertatoSarnia(Canada),whichis2,911 km inlength.The longestoil pipeline
isthe Transiberian,extendingover9,344 km fromthe Russia arctic oilfieldsineasternSiberiato
WesternEurope.Physical constraintsare low andinclude the landscapeandpergelisol inarcticor
subarcticenvironments.Pipelineconstructioncostsvaryaccordingtothe diameterandincrease
proportionallywiththe distance andwiththe viscosityof fluids(fromgas,low viscosity,tooil,high
viscosity).The TransAlaskanpipeline,whichis1,300 km long,wasbuiltunderdifficultconditionsand
has to be above groundfor most of itspath.Pipelineterminalsare veryimportantsince theycorrespond
to refineriesandharbors.

26. Maritime transportation - because of the physical propertiesof waterconferringbuoyancyandlimited
friction,maritime transportationisthe mosteffectivemode tomove large quantitiesof cargooverlong
distances.Mainmaritime routesare composedof oceans,coasts,seas,lakes,riversandchannels.
However,due tothe locationof economicactivitiesmaritimecirculationtakesplace onspecificpartsof
the maritime space,particularlyoverthe NorthAtlanticandthe Northpacific.The constructionof
channels,locksanddredgingare attemptstofacilitate maritime circulationbyreducingdiscontinuity.
Comprehensiveinlandwaterwaysystems include WesternEurope,the Volga /DonSystem,St.Lawrence
/ Great Lake’ssystem.The Mississippi anditstributaries,the Amazon,the Panama/Paraguayandthe
interiorof China.Maritime transportationhashighterminal costs,sinceportinfrastructuresare among
the most expensivetobuild,maintainandimprove.High inventory costsalsocharacterize maritime
transportation. More thanany othermode,maritime transportationislinkedtoheavyindustriessuchas
steel andpetrochemical facilitiesadjacenttoportsites.
Air transportation - air routesare practicallyunlimited,buttheyare denseroverthe NorthAtlantic,
inside NorthAmericaandEurope andoverthe North Pacific.Airtransportconstraintsare
multidimensional andinclude the site(acommercial plane needsabout3,300 metersof runwayfor
landingand take-off) the climate,fogandaerial currents.Airactivities are linkedtothe tertiaryand
quaternarysectors,notablyfinance andtourism, whichleanonthe longdistance mobilityof people.
More recently,airtransportationhasbeenaccommodatinggrowing quantities of highvalue freightand
isplayinga growingrole inglobal logistics.
Intermodal transportation - concernsa varietyof modesusedincombinationsothatthe respective
advantagesof eachmode are betterexploited.Althoughintermodaltransportationappliesfor
passengermovements,suchasthe usage of the different,butinterconnectedmode of apublictransit
system,itisoverfreighttransportationthatmostsignificantimpactshave beenobserved.
Containerizationhasbeenapowerful vectorof intermodal integration,enablingmaritime andland
transportationmodestomore effectivelyinterconnect.
UNITIZATIONOF CARGO IN THE DEEP-SEA TRADES
The most importantdevelopmentinliner shippinginthe pastdecade wasthe growthof cargo
unitizationinthe deep-see trades.Containerization,etc,hashadwide repercussions,notonlyinterms
of portfacilitiesandcargohandlingbutalsointhe structure of competition withinthe general cargo
market.The developmentof unitizedcargotechniquesare tracedinthe report,whichalsolooksat the
economicadvantagesof the systemcomparedtoconventional“break-bulk”handling.The structure of
the marketis analysed,adistinctionbeingmade between cellularcontainer,barge-carrying,roll-on-roll-
off and othershiptypesdevelopedtohandle unitized cargo. Conclusions are reachedaboutthe future
developmentof these tradesparticularly theirimpactonconventional shipping.Othersubjectsinclude
likelyportdevelopmentsandoperationsof containerconsortia.
Demurrage and DetentionTariffs
Detention& Demurrage: charges will be applicable forshipmentswhereincustomershave exceeded
the standard free time applicable bothinthe import&exportcycles.

27. Demurrage: thischarge will be leviedwhenthe CustomerholdsCMA CGM equipmentinside the
terminal forlongerthanthe agreedfree daysandis applicable toall containersthatremainatthe
terminal longerthanthe agreedfree time.
Detention:detentionchargeswill be leviedwhenthe CustomerholdsCMA CGMequipmentoutside the
terminal longerthanthe agreedfree time:itisapplicable throughoutthe durationof Customer’s
possessionof CMA CGMcontainer(s) inhiscustody,and until itssafe returnto CMA CGM.
FreightRate, the cost of transportinggoods,isreflective of anumberof factorsaside fromnormal
transportationcosts.The maindeterminingfactorsof freightrate are: mode of transportation(truck,
ship,train, andair craft),weight,size,distance, pointsof pickupanddeliveryandthe actual goodsbeing
shipped.One of the earliestformsof freighttransportationwasbywater.Many of the earliest
settlementswere builtalongornearseacoastsandnavigable inlandwaterways.Asthese settlements
grew,roadsand laterrailroadsand pipelineshadtobe builtto transportfreighttoand fromthe
navigable waterways,thusconnectingthe inland pointsof pickup anddeliverywhichcouldnotbe
reachedbynavigable waterways.The developmentof roads,railroads,and evenpipelinesallowedfor
the expansionof settlements inlandandawayfromwaterways.Transportationbyshipsisverylimited
innature.If there are no navigable waterwaysclose tothe pickuppointanddestinationthenagood will
not be transportedbya ship.Rarelyisany goodtransportedsolelybyship;usuallygoods cominginto
ports byshipmust be unloadedandtransferredontoanothermode of transportation i.e.truckorrailcar
for transportationtoitsfinal destination.Withthe expansionof railroadsystemsandthe development
of more efficienttrucks.The transportation of freightbyshipsbecame lesscosteffective. Networks,of
roads andtrain trucks whichonce carriedfreightfromcoastal andinlandwaterwayportsto destinations
whichwere notaccessible bymeansof marine transportation,greatlyexpandedmakingfreight
transportationfromport to port overlandmore efficientandmore affordable thanthe marine
transportationof freight.
How Freight Rate is Determined
The cost whicha shipper(the consumerorbusinessprovidinggoodsforshipment) orconsignee (the
personor companyto whomcommoditiesare shipped)ischargedforthe transportationof goodsis
determinedbyanumberof factors.The mainfactors indeterminingthe freightrate are:mode of
transportation,weight,size,distance,pointsof pickupanddelivery,andthe actual goodsbeingshipped.
All of these factorsplaytheirownindependentrole indeterminingthe price orrate at whichthe freight
will be transportedbuttheyare alsoall interconnected.Whendetermining whichmode of
transportation will be usedtodeliverthe freighttoitsdestinationthereare manythingswhichneedto
be takenintoconsiderationwhichwill all have aneffectonthe freightrate.
Consolidation:afirmwhichgroupstogethershipmentsfromdifferentcompaniesintoasingle shipment.
CustomsBroker:A personorfirm,licensedbythe treasurydepartmentof theircountrywhenrequired,
engagedinenteringandclearinggoodsthrough Customsforaclient(importer).FreightForwarder:A
personwhose businessistoact as an agenton behalf of the shippertoarrange transportationservices.
A freightforwarderfrequentlymakesthe bookingreservation.Inthe UnitedStatesfreightforwarders
are licensedbythe FMCas OceanTransportationIntermediariesandare onlydesignatedfreight
forwardersforexportshipments.Non-Vessel-OperatingComoCarrier(NVOCC).A cargoconsolidatorin
oceantradesthat will buyspace froma carrierand re-sell ittosmallershippers.The NVOCCissuesbills
of lading,publishestariffsand otherwiseconductsitself asanocean commoncarrier,exceptthatit will

28. not provide the actual oceanor intermodal service.Mostof the freightshippedwithinthe United States
travelsbytruck or railcar,but manyof the people andbusinessesshippingfreightdonothave enoughof
a good to fill awhole truckor rail car everytime theyneedsomethingshipped.
Consolidators,customsbrokers,freightforwarders,andNVOCCs canbe a factor indeterminingfreight
rate because of theirexperience,businessrelationships,andthe volume atwhichtheyoperate.These
factors helpkeepthe freightrate downforsmall businessesandthe individual withashippingneed.In
the commercial truckingindustry,manyshipperstenderloadstofreightbrokerswhose jobitistofine
qualifiedcarrierstomove the freightatan acceptable price forall parties.Brokershave accessto a suite
of technological toolstohelpdeterminethe mostcost-effectivewaytomove cargo includingaccessto
loadboards.The bestloadboardprovide rate analysistoolsbasedonactual transactionsoneverylane
inNorth America,since theirdatabase holdawealthof pricinginformationforexample:Dial-a-truck
(DAT) offersRate Viewforcarriers,brokersandshippers,providingaccesstoshipperscontractratesand
spotmarket(brokerbuy) rates.Thisallowsbrokerstoanalyze marketdemandandcapacityto assure
competitivepricing.
Dangerous Goods
Dangerous goodsor hazardousgoodsare solids,liquids,orgasesthatcan harm people,otherliving
organisms,property,orthe environment.Theyare oftensubjecttochemical regulations.Inthe United
States,UnitedKingdomandsometimesinCanada,dangerousgoods are more commonlyknownas
hazardous materials (abbreviatedas HAZMAT of hazmat). Hazmat teamsare personnel speciallytrained
to handle dangerousgoods,whichinclude materialsthatare radioactive,flammable,explosive,
corrosive,oxidizing,asphyxiating,biohazardous,toxic,pathogenic,orallergenic.Alsoincludedare
physical conditionssuchascompressedgasesandliquidsorhotmaterials,includingall goodscontaining
such materialsorchemicals,ormayhave othercharacteristicsthat renderthemhazardousinspecific
circumstances.
Handling DangerousGoods
Mitigatingthe risksassociatedwithhazardousmaterialsmayrequire the applicationof safety
precautions duringtheirtransport,use,storage anddisposal.Mostcountriesregulate hazardous
materialsbylaw,andtheyare subjecttoseveral international treatiesaswell.Evenso,different
countries mayuse differentclassdiamondsforthe same product,forexample,inAustralia.Anhydrous
AmmoniaUN 1005 is classifiedas2.3 (ToxicGas) withsubrisk8 (Corrosive).Whereasinthe U.S.itis
onlyclassifiedas2.2 (NonFlammable Gas).
People whohandle dangerousgoodswill oftenwearprotectiveequipment,andmetropolitanfire
departmentsoftenhave aresponse teamspecificallytrainedtodeal withaccidentsandspills.Persons
whomay come intocontact withdangerousgoodsas part of theirworkare alsooftensubjectto
monitoringorhealthsurveillance toensure thattheirexposuredoesnotexceedoccupationalexposure
limits.
Laws and regulationsonthe use andhandlingof hazardousmaterialsmaydifferdependingonthe
activityandstatus of the material.Forexample,one setof requirementsmayapplytotheiruse inthe
workplace whileadifferentsetof requirementsmayapplytospill response,sale forconsumeruse,or
transportation.Mostcountriesregulate some aspectof hazardousmaterials.

29. CARGO STORAGE AND WAREHOUSING
Warehouse and warehousing
 Typesof Warehouses
 Private Houses
 PublicWarehouses
 GovernmentWarehouses
 Co-OperativeWarehouses
 BondedWarehouses
 DistributionCentresorWarehouses
MaterialsHandling and Packaging
 DefiningWarehouseMaterial HandlingandWarehouse Packaging
 Four Dimensionsof Material Handling
 Conceptsof Material HandlingandPackaging
 Principlesof Materials Handling
 Storage & Order PickingEquipment
 Transportation& Sorting
 Shipping
 Packaging
Warehouse Performance
 Space EvaluationandUtilization
 Personal Utilization
 EquipmentUtilization
 Importance of the
 PerfectOrder
 Critical Performance Measures
Safety and Security
 PreventingandReducingWarehouse Accidents
 ProtectingWorkersandEquipment
 Safe ProductMovement
 Safe PickingandReplenishment
 Safe ProductStaging
 Securingthe Product
 Pilferage andTheft
 Damage
Storage systems
Typesof storage systems
Warehouse isthe act of storinggoodsthat will be soldordistributedlater.While asmall,home-based
businessmightbe warehousingproductsinaspare room, basement,orgarage,largerbusinesstypically

30. ownor rent space ina buildingthatisspecificallydesignedforstorage.The warehouse isthe most
commontype of storage thoughotherformsdo exist(e.g.,storage tanks,andcomputerserverfarms).
Some warehousesare massive structuresthatsimultaneouslysupportthe unloadingof numerousIn-
boundtrucks andrailroadcars containingsuppliers’productswhile atthe same time loadingmultiple
trucks forshipmenttocustomers.
Belowwe discussfive typesof warehouse
Private Warehouse
Thistype of warehouse isownedandoperatedbychannel suppliersand resellersandusedintheirown
distributionactivity.Forinstance,amajorretail chainmayhave several regional warehousessupplying
theirstoresor a wholesalerwilloperate awarehouse atwhichitreceivesanddistributesproducts.
PublicWarehouse
The publicwarehouse isessentiallyspace thatcanbe leasedtosolve short-termdistributionneeds.
Retailersthatoperate theirownprivate warehousesmayoccasionallyseekadditional storage space if
theirfacilitieshave reachedcapacityorif theyare makinga special,large purchase of products.For
example,retailersmayorderextramerchandise toprepare forin-productsalesorordera large volume
that isofferedata lowpromotional price bya supplier.
Automated Warehouse
Withadvancesincomputerand roboticsand roboticstechnologymanywarehousesnow have
automatedcapabilities.The levelof automationrangesfromasmall conveyorbelttransporting
productsin a small areaall the wayup to a fullyautomatedfacilitywhereonlyafew peopleare needed
to handle storage activityforthousandsof pounds/kilogramsof product.Infact,manywarehousesuse
machinestohandle nearlyall physical distributionactivitiessuchasmovingproduct-filledpallets(i.e.,
platformsthatholdlarge amountsof product) around buildingsandmaybe several storiestall andthe
lengthof twoor more football fields.
Mate-ControlledWarehouse
Warehouseshandle storage of manytypesof productsincludingthose thatneedspecial handling
conditionssuchasfreezersfor storingfrozenproducts,humidity-controlledenvironmentsfordelicate
products,such as produce or flowers,anddirt-free facilitiesforhandlinghighlysensitive computer
products.
ContributionCentre
There are some warehouseswhere productstorage isconsideredaverytemporaryactivitythe
warehousesserve aspointsinthe distributionsystematwhichproductsandreceiverfrommany
suppliersandquicklyshippedouttomanycustomers.Insome cases,such as withdistributioncentres’
handlingperishablefood(e.g.,produce),mostof the productentersinthe earlymorningandis
distributedbythe endof the day.

31. Functionsof Warehousing
1. Storage
Thisis the basicfunctionof warehousing.Surpluscommoditieswhichare notneedimmediately canbe
storedinwarehouses.Theycanbe suppliedasandwhenneededbythe customers.
2. Price Stabilization
Warehousesplayanimportantrole inthe processof price stabilization.Itisachievedbythe creationof
time utilitybywarehousing.Fall inthe pricesof goods whentheirsupplyisinabundance andrise in
theirpricesduringthe slackseasonare avoided.
3. Risk bearing
Whenthe goodsare storedinwarehousestheyare exposedtomanyrisksinthe form of theft,
deterioration,exploration,fire etc.warehousesare constructedinsucha wayas to minimize these risks.
Contract of bailmentoperateswhenthe goodsare storedinwave-houses.
The personkeepingthe goodsinwarehousesactsas boilerandwarehouse keeperactsas boiler.A
warehouse keeperhastotake the reasonable care of the goodsandsafeguardthemagainstvarious
risks.For anylossor damage sustainedbygoods,warehouse keepershall be liable tothe ownerof the
goods.
4. Financing
Loans can be raisedfromthe warehouse keeperagainstthe goodsstoredy the owner.Goodsact as
securityorthe warehouse keeper.Similarly,banksandotherfinancial institutionsalsoadvance loans
againstwarehouse receipts.Inthismanner,warehousingactsas a source of finance forbusinessmenfor
meetingbusinessoperations.
5. Gradingand Packing
Warehouses nowadaysprovide the facilitiesof packing,processingandgradingof goods.Goodscan be
packedinconvenientsizesasperthe instructions of the owner.
BenefitsfromWarehouses
1. Regular Production
Raw materialsneedto be storedtoenable massproductiontobe carriedon continuously.Sometimes,
goodsare storedinanticipationof arise in prices.Warehousesenable manufacturerstoproduce goods
inanticipationof demandinfuture.
2. Time utility
A warehouse createstime utilitybybringingthe time gapbetweenthe productionandconsumptionof
goods.It helpsinmakingavailablethe goodswheneverrequiredordemandedbythe customers.
Some goodsare producedthroughoutthe yearbutdemandedonlyduringparticularseasons,e.g.,wool,
raincoat,umbrella,heater,etc.onthe otherhand,some productsare demandedthroughoutthe year

32. but theyare producedincertainregion,e.g.,wheat,rice,potatoes,etc.Goodslike rice,tobacco,liquor
and jaggerybecome more valuablewiththe passage of time.
3. Store of surplusgoods
Basically,awarehouse actsas a store of surplusgoodswhichare not neededimmediately.Goodsare
oftenproducedinanticipationof demandandneedtobe preservedproperlyuntil theyare demanded
by the customers.Goodswhichare not requiredimmediatelycanbe storedina warehouse tomeetthe
demandinfuture.
4. Price stabilization
Warehousesreduce violentfluctuationsinpricesbystoringgoodswhentheirsupplyexceedsdemand
and byreleasingthemwhenthe demandismore thanimmediate productions.Warehousesensurea
regularsupplyof goodsinthe market.Thismatchingof supplywithdemandhelpstostabiliseprices.
5. Minimisationofrisk
Warehousesprovide forthe safe custodyof goods.Perishable productscanbe preservedincold
storage.By keepingtheirgoodsinwarehouse,businessmencanminimisethe lossfromdamage,fire,
theftetc.The goodskeptinthe warehouse are generallyinsured.Incase of lossor damage to the goods,
the ownerof goods can getfull compensationfromthe insurance company.
6. Packing and grading
Certainproductshave to be conditioned orprocessed tomake themfitforhuman use,e.g.,coffee,
tobacco, etc.A modernwarehouse providesfacilitiesforprocessing,packing,blending,gradingetc.,of
the goodsfor the purpose of sale.The prospective buyerscaninspectthe goodskeptinawarehouse.
DifferentTypesof Material Handling Equipment
Material handlingequipmentencompassesadiverse range of tools,vehicles,storage units,appliances
and accessories involvedintransporting,storing,controlling,enumeratingandprotectingproductatany
stage of manufacturing,distributionconsumptionordisposal.
Conveyors
Conveyors are usedwhenmaterial istobe movedfrequentlybetweenspecificpointsoverafixedpath
and whenthere isa sufficientflow volumetojustifythe fixedconveyorinvestment.Differenttypesof
conveyorscanbe characterizedbythe type of product beinghandled:unitloadorbulkload,the
conveyor’slocation:in-floor,on-floor,oroverhead,andwhetherornot loadscan accumulate onthe
conveyor.Accumulationallowsintermittentmovementof eachunitof material transportedalongthe
conveyor,while all unitsmove simultaneouslyonconveyorswithoutaccumulationcapability.For
example,whileboththe rollerand flat-beltare unit-load,on-floorconveyors,the rollerprovides
accumulationcapabilitywhilethe flat-beltdoesnot,similarly,boththe power-and-freeandtrolleyare
unit-loadoverheadconveyorswiththe power-and-free designedtoincludeandextratrackin orderto
provide the accumulationcapabilitylackinginthe trolleyconveyor.

33. Cranes
Cranesare usedtransportloadsovervariable (horizontal andvertical)pathswithinarestrictedarea and
whenthere isinsufficient(orintermittent) flowvolume suchthatthe use of a conveyorcannotbe
justified.Cranesprovide more flexibilityinmovementthanconveyorsbecause the loadshandledcanbe
more variedwithrespecttotheirshape andweight.Cranesprovide lessflexibilityinmovementthan
industrial trucksbecause theyonlycanoperate withinarestrictedarea,thoughsome canoperate ona
portable base.Mostcrane utilize trolley-and-trucksforhorizontal movementandhoistsforvertical
movement,althoughmanipulatorscanbe usedif precise positioningof the loadisrequired.The most
commoncranes include the jib,bridge,gantry,andstackercranes.
Industrial trucks
Industrial trucks are trucks that are not licensedtotravel onpublic roads(commercial trucksare
licensedtotravel onpublicroads.Industrial trucksare usedtomove materialsovervariable pathsand
whenthere isinsufficient(orintermittent) flowvolume suchthatthe use of a conveyorcannotbe
justified.Theyprovidemore flexibilityinmovementthanconveyorsandcranesbecause there are no
restrictions onthe areacovered,andtheyprovide vertical movementif the truckhas liftingcapabilities.
Differenttypesof industrial truckscanbe characterizedbywhetherornottheyhave forksfor handling
pallets,providepoweredorrequire manual liftingandtravel capabilities,allow the operatortoride on
the truck or require thatthe operatorwalkwiththe truck duringtravel,provide loadstackingcapability,
and whetherornottheycan operate innarrow aisles.
Hand trucks (includingcartsanddollies),the simplesttype of industrial truck,cannottransport or stack
pallets,isnon-powered,andrequiresthe operatortowalk.A palletjack,whichcannotstack a pallet,
usesfrontwheelsmountedinside the endof forksthatextendtothe floorasthe palletisonlylifted
enoughtoclear the floorforsubsequenttravel.
A counterbalancedlifttruck (sometimesreferredtoasa forklifttruck,butotherattachmentsbesides
forkscan be used) can transportand stack palletsandallowsthe operator toride onthe truck.The
weightof the vehicle (andoperator) behindthe frontwheelsof truckcounterbalancesweightof the
load(andweightof vehicle beyondfrontwheels);the frontwheelsactasa fulcrumor pivotpoint.
Narrow-aisle trucksusuallyrequire thatthe operatorstand-upwhile ridinginordertoreduce the trucks
turningradius.Reachmechanismsandoutriggerarmsthat straddle andsupporta loadcan be use in
additiontothe justthe counterbalance of the truck.Ona turret truck,the forksrotate duringstacking,
eliminatingthe needforthe truckitself toturninnarrow aisles.Anorderpickerallow the operatortobe
liftedwiththe loadtoallowforless-than-pallet-loadpicking.
Packaging is the technologyof enclosingorprotecting productsfordistribution,storage,sale,anduse.
Packagingalsoreferstothe processof designing,evaluating,andproducingpackages.Packagingcanbe
describedasa coordinatedsystemorpreparinggoodsfortransport,warehousing,logistics,sale and end
use.Packagingcontains,protects,preserves,business,andinstitutional,industrial,andpersonal use.
The purposesof packaging
Physical protection – The objectsenclosedinthe package mayrequire protectionfrom, amongother
things,mechanical shock,vibration,electrostaticdischarge,compression,temperature etc.

34. Barrier protection – A barrierto oxygen,watervapor,dust, etc.,isoftenrequired.Permeationisa
critical factor indesign.Some packagescontaindesiccantsoroxygenabsorberstohelpextendshelflife.
Modifiedatmospheresorcontrolledatmospheresare alsomaintainedinsome foodpackages.Keeping
the contentsclean,fresh,sterileandsafe forthe durationof the intended shelf life isaprimaryfunction.
A barrierisalsoimplementedincaseswhere segregationof twomaterialsprior toenduse isrequiredas
inthe case of special paints,gluesmedical fluids.Etc. Atthe consumerendandpackagingbarrieris
brokenor measuredamountsof material are removedformixingandsubsequentenduse.
Containmentor agglomeration – Small objectsare typicallygroupedtogetherinone package for
reasonsof storage and sellingefficiency. Forexample,asingle box of 1000 pencilsrequireslessphysical
handlingthan1000 single pencils.Liquids,powders,andgranularmaterialsneedcontainment.
Informationtransmission – Packagesand labels communicate how touse,transport,recycle,ordispose
of the package or product.With pharmaceuticals,food,medical,andchemical products,some types of
informationare requiredbygovernmentlegislation.Some packagesandlabels alsoare usedfortrack
and trace purposes.Mostitemsinclude theirserial andlotnumbersonthe packagingandinthe case of
foodproducts,medicine,andsome chemicalsthe packagingoftencontainsanexpiry/best-before date,
usuallyina shorthandform.Packagesmayindicate theirconstructionmaterial withasymbol.
Marketing – Packagingand labelscanbe usedby marketerstoencourage potentialbuyerstopurchase a
product.Package graphic designandphysical designhave importantandconstantlyevolving
phenomenaforseveral decades.Marketingcommunicationsandgraphicdesignare appliedtothe
surface of the package and oftentothe pointof sale display.Mostpackagingisdesignedtoreflectthe
brand’smessage andidentity.
Security – Packagingcan playan importantrole inreducingthe securityrisksof shipment.Packagescan
be made withimprovedtamperresistance todetermanipulationandtheycanalsohave tamper-evident
featuresindicatingthattamperinghastakenplace. Packagescanbe engineeredtohelpreduce the risks
of package pilferage orthe theftandresale of products. Some packagesconstructionsare more
resistanttopilferage thanothertypes,andsome have pilfer-indicatingseals. Counterfeitconsumer
goods, unauthorizedsales(diversion),material substitutionandtamperingcanall be minimizedor
preventedwith suchanti-counterfeitingtechnologies.Packagesmayincludeauthenticationsealsand
use securityprintingtohelpindicate thatthe package andcontentsare not counterfeit.Packagesalso
can include anti-theftdevicesasdye-packs.RFIDtags,or electronicarticle surveillancesthatcanbe
activatedor detectedby devicesatexitpoints andrequire specializedtools todeactivate.Using
packaginginthisway isa meansof retail lossprevention.
Convenience packagescanhave featuresthataddconvenience indistribution,handling,stacking,
display,sale,opening,reclosing,usingdispensing,reusing,recycling,andease of disposal.
Portion control – single servingorsingle dosage packaginghasa precise amountof contentstocontrol
usage.But commodities(suchassalt) can be dividedintopackagesthatare a more suitable size for
individualhouseholds.Italsoaidsthe control of inventory:sellingsealedone-literbottlesof milk,rather
than havingpeople bringtheirownbottlestofill themselves.

35. MaximizingSpace Utilization
Warehousesare expensiveforcompaniestooperate.The costof the land,building,machinery,labour
and the itemsstoredinthe warehouse canamountto a significantsumof money.Mostcompanies
wouldlike tomaximizethe operationof the warehouse,eitherbystreamliningthe placementand
pickingof goods,reducingthe time goodsare storedinthe warehouse,orautomatingasmuch as
possible tominimize labourcosts,whileimprovingaccuracy.Companiescanalsoreduce their costsand
improve the efficiencyof theirwarehousebymaximizingthe space utilization,ensuringthatitispossible
to store as many itemsaspossible inthe mostoptimumspace.
Improving Space Utilization
Havinga large warehouse isnotalwaysgoodbusinesspractice.A large warehouse meansthata
businesscanstore large numbersof itemsthere,whichall have acostassociatedwiththem.Inaddition,
a large warehouse meansthe staff isnotlookingtoutilize space efficientlyandthiscancause
unnecessarilylongtravel timesbetweenlocations,causingadditionalfuel costs,labourcosts,anddelays
inloadingor unloadingtrailers.
One area that isoftenoverlookedwhenwarehousespace isnotan issue,istoensure thatthe
warehouse space isconsistentwiththe itemstobe stored.Forexample,if afinishedgoodispackagedin
a container3 feetby3 feet,thenthe areawhere the itemisstoredshouldreflectthatsize.If the rack of
binlocationwasdesignedtoaccept4 feetby4 feetbox,thenthere isa lotof emptyspace whena3-
footsquare box is placedthere bymakingsure thatthe binlocationissuitable forthe item, the change
can free up space inthe warehouse,andthe companyisno longerpayingmoneytostore at aroundan
item.
Anotherareathat can maximize space utilizationistouse containersinthe warehouse thatfitsthe item
that isbeingstored.Quite often,apartis notpackagedand will needtobe placedina storage container
before itisstoredon the racks. Many warehousesdonothave a variousof sizesof these storage
containersandadopta “one size fitsall”approach.Thismeansthat a replacementvalveforapumpcan
be placedinthe same size containerasa few yardsof PVCpiping.The pumpmayfill the container85
percent,while the pipingbarelytakesuptenpercentof the container.Whenthe containersare stored
on the rack, the space maximizationcanappeartobe good,butin reality,there isalotof wastedspace
inside of the containers,whichiscostingthe companymoney.
Maximizingspace utilizationcanhelpwithkeepinginventoryvisibleandeasytofind.
Some warehouseswithlimitedspace cancram itemsona shelf,whichtheybelieve ishelpingwithspace
utilization,butinfact,can be detrimentalassome itemscanbecome hardertofindif largeritems are
placedinfront.Thiscan showdownpickingandthe deliveryof itemstothe customer,andpossibly
satisfaction.Whenacompanyhas performedsome space utilizationprojectthey oftenfindthattheydo
not needaslarge a warehouse astheyhad beenusing.Thiscanleadto a numberof revenue generating
possibilitiessuchasrentingoutwarehouse space toa thirdparty,movingothercompanyfacilitiesinto
the warehouse space reducingcostselsewhere,orusingthe space foradditional manufacturing.

36. Safety and Security
Productsafety,inventorysecurityandlosspreventionare paramount.Ourfacilitiesare always
exceptionally sanitarysafe well lit,andreadyforyourproducts24 hoursa day.
INVENTORYSECURITY: LOSS PREVENTION
Extensive precautions are incorporatedintoUnited’sprotectionof yourinventorybothintermsof
physical damage andlossor theft.
 Securityfencingfor24/7 access control
 Videosurveillance atsecuritygate withsecurityguardsondutyor key-code access24/7
 Restricted warehouseentryviaalarmeddoors.AccessavailableonlywithelectronicsecurityID
badge
 Videomonitoringwithdigital real-time viewingand recordingonall warehouse doorsand
storage areas
 Cross-checkandconfirmationof personal identificationand loadIDsfor carriersand driverson
everyload
 Trailerssecured anddoors sealedappropriatelyfollowingloading
 Cycle countsare routinelyandrelentlesslyintegratedintoour process todiscourage pilferage
and to ensure continuousaccuracy
FIRE SAFETY
Rigorousfire safetyandpreventionpoliciesare inforce, regularly reviewedauditedand relentlessly
upheld.
 All buildingsdesignedandconstructedof fire-retardantmaterials
 ESFR high-outputautomatedfire suppression systemthroughout
 Frequentanddocumentedemployee, fire safetyandfire extinguishertraining
 Frequentfire inspectionsandregularfire equipmentmaintenance andtesting
 Strict policiesandprocedureswithdocumentationtosegregate,isolate andcontrol flammables,
aerosolsandhazardousmaterials.
Warehouse SafetyPrinciples:6 Key GuidelinestoKeepYour Workplace Safe
1. Ensure SafetyEquipmentIs UsedAt All Times
In the warehouse itisvital thatforkliftsorhydraulicdolliesare usedtoliftitemsthatare too heavy.
Appropriate eyewearandhardhatsshouldalsobe worn whenrequired.Employeesshouldbe aware of
emergencyexitsandthe sprinklersinstalledinthe roof shouldnotbe blockedatany time.Safety
equipmentisimplantedinordertominimize workplace injury,soalthoughitmaybe time consumingto
initiate itsuse,itdoespayoff inthe longrun.
2. Eliminate Any Potential SafetyHazards
Ensure all warehousingfloorsare free of ‘slipandtrip’hazards.Itisimportantthat thissafetycheckis
carriedout on a regularbasis,byall employees,andthatthe floorisalwaysfree of straycords, liquids

37. and anyother potentiallyhazardousitems.Itisalsoessentialthatanycracks and pitsinthe flooringare
attendedtoas these can cause seriousinjuriestoemployersaswell asdamagingexpensivemachinery.
3. ClearlyLabel DesignatedHazardous Zones
Dangerousequipmentshouldbe storedawayinanarea thatlabeledandsafe walkwaysshouldbe
highlightedthroughnecessarysignage.The easiestwaytoilluminatehazardouszonesisbyusingtape or
paintingblackandwhite stripesonthe floorof the designatedarea.Thisenablesemployeestobe aware
of dangeroussurroundingsandcanbe useful inavoidingaccidentsthatcancause seriousinjury.
4. Always Use Safe Lifting Techniques
Whena load requirestransporting,firstlyassesswhatmethodisthe bestoptionforitsmovement.If
liftingisthe mostsuitable method,checkthe route toensure noobstaclesare inthe way andensure
there isenoughspace forthe loadat itsdestination.Safe liftingtechniquesshouldalwaysbe carriedout
and the loadshouldnotobstruct the view of the lifter.Use all materialshandlingequipmentcarefully
and followthe properoperatingproceduresincludingpushratherthanpull,wheneverpossibleandlean
inthe directionthatisbeingtravelled.Also,neverdrive aforkliftoruse otherpoweredequipment
withouttrainingorauthorization.
5. Provide Training and RefresherCourses
Ensure all staff are educatedandup to date withknowledge aboutsafe practiceswithinthe workplace.
Thisallowsforgreateradherence toproceduresasstaff memberswillbe completely aware of the
consequencesthatcanemanate froman unsafe workplace.Accidentsmostcommonlyoccurwhen
cornersare cut an attemptto save time.If staff and managementare completelyaware of the
repercussionsthatcanarise fromthisfact, proceduresmay more closely.
6. Promote Awarenessinyour Warehouse
Havinga sense of awarenessinthe workplace isan importantsafetyfactor. Thiscan be achieved
throughcommunicationbetweenstaff members.Byemployeesbeingvocal andyellingouttoothers
theirlocations,collisionincidentscanbe drasticallyreduced.Whencarryingitems ordrivingmachinery,
a simple “comingthrough”canalert othercoworkersof theirwhereabouts and can allow themtosteer
clearof dangerouspathways.All staff membersshouldbe encouragedtobe constantlyaware of what’s
aroundthemand to communicate where theyare toensure the avoidance of collisionaccidents.
Accidentsandinjuriesinwarehouse are preventableandcome withmanyseriousconsequences.
Preventablecostsof a rack collapse include worker’scompensationandinsurance rate increases,fines
and safetyviolations,legal expenses,andreplacingstorage anddamagedmaterial.Toavoidthe pitfalls
and detrimental effectsof anaccident,use the utmostcautionwhenplanningwarehousestorage and
design.Properdesign,installation,andmaintenance of storage rackswill make the warehouse
environmentasafe and healthyworkplaceforall employees.
Choosinga Provider
The firststepto warehouse storage safetyischoosing anexperienced,reputable provider.Whenyou
choose a companyto assistyouwithwarehouse designandinstallation,youare placingyourtrustand
employeesafetyinthat company’shand.Conductresearchaboutpotential supplier’ssafetyhistory,