1.1. What does freight forwarding mean?
Freight forwarding means all the activities carried out in order to organize the delivery of goods entrusted to the freight forwarder from the point A to the point B within a definite time.
1.2. What is the difference between freight forwarding and transport?
The freight forwarder, having an appropriate knowledge and contracts signed with many carriers (transporting companies), optimizes the carriage's cost for a particular kind of goods, taking also into consideration the delivery time requirements. The freight forwarder doesn't represent the carrier but the owner of the goods. He acts in accordance with his interests and protects them. The freight forwarder first advises his customer the best possible way of delivery and then traces his goods until the end of the carriage. For his customer, he can offer many additional activities e.g. insurance, customs clearance, dues protection and many others.
1.3. What are the air cargo agent's duties?
The air cargo agent's responsibility is the sale of airway transport of goods of the airlines he has contracts with. He has a great knowledge and has a right to issue shipment bills, book carriages of the parcels for a given itinerary and the attractive carriage rates. The air cargo agent, who also acts as a freight forwarder, is able to assure for his customers the most attractive carriage rates and the most complex service.
1.4. What is shipment bill?
The shipment bill is a document, which confirms acceptance of goods for carriage (carriage agreement). It specifies the nature of goods and the way of transport. There are a few types of shipment bills.
1.5. What is shipments' consolidation?
The consolidation means joining together some smaller shipments having the same destination, into a one big shipment. The freight forwarder issues separate shipment bills for every consolidated shipment and a collective one. On the collective shipment bill the shipper is the freight forwarder who consolidates the parcels, and the consignee is the freight forwarder who de-consolidates them. The carrier has only a look into a collective bill.
1.6. Why does the freight forwarder consolidate the parcels?
First of all the freight forwarder, who consolidate shipments into one big parcel, pays lower price for carriage so that the goods' owner's costs are lower. The other reason is the surety that the freight forwarder's partner, who will receive all goods, will protect his customers' interests,
1.7. What do the AWB, MAWB, HAWB abbreviations mean?
The AWB abbreviation means shipment airway bill. This bill is always marked with an eleven-digit number, where the first three digits indicate the carrier (ex. 080 – LOT Polish Airlines, 020 - Lufthansa, 125 - British Airways). The MAWB abbreviation means collective shipment airway bill for consolidated parcels. The MAWB bill is at the same time AWB bill. The HAWB abbreviation means shipment airway bill of a consolidated parcel.
1.8. What do the CC and PP abbreviations mean?
These are the symbols defining the person who is to pay for the transport. They can be put, among others, into the shipment airway bills. The CC abbreviation means the consignee will pay the costs of transport after delivery. The PP abbreviation means the shipper has already paid for the transport.
1.9. What does the DMC abbreviation mean and what actions have to be undertaken when the goods are damaged?
This abbreviation means the protocol of shipment's damage. The handling agent of the airline, which has transported the parcel, issues this document. The consignee must lay the claim letter at a handling agent within 14 days counting from the date of receiving the parcel (also from the date when the freight forwarder received the parcel). The original AWB and the document certifying the claim value (invoice, SAD) have to be enclosed with the letter.
1.10. What does the expression 'door to door' mean?
'Door to door' means the complete freight forwarding service, from the reception of goods from the shipper, transport at the airport, formalities at the port, airway transport to consignee's port, formalities at the consignee's port, until the delivery to the consignee.
1.11. What does the expression 'door to airport' mean?
This is the delivery comprising the reception of the goods from the shipper, transport to the airport, formalities at the airport, airway transport to the consignee's airport and formalities at the consignee's airport. The consignee receives the goods from the airport himself.
1.12. What does the expression 'airport to airport' mean?
The shipper transports goods to the airport himself. The freight forwarding service comprises formalities at the airport, airway transport to the receiver's airport and formalities at the receiver's airport. The consignee receives the goods from the airport himself.
1.13. What does the expression 'airport to door' mean?
The shipper transports goods to the airport himself. The freight forwarding service comprises formalities at the airport, airway transport to consignee's airport, formalities at consignee's airport and delivery to the consignee.
1.14. What does the FCL abbreviation mean?
This abbreviation means whole container carriages. It is applied among others in sea transport.
1.15. What does the LCL abbreviation mean?
This abbreviation means container carriages of small parcels. It is applied among others in sea transport.
1.16. What are the carriages of small parcels?
Unlike the FCL carriages or whole vehicle carriages, these are the carriages of the parcels, which do not occupy the whole containers, or means of transport. Generally, they are composed of many parcels destined for many different consignees.
1.17. What does the volume weight mean?
Airway transport dues are counted according to the gross weight of the parcel. However, in case when the volume of the parcel surpasses 6dm3 for every kilogram of gross weight, so-called 'volume weight' is calculated: length (cm) x width (cm) x height (cm) / 6000. To count transport dues, the volume weight is applied each time when its value is bigger than the value of gross weight of the parcel.
1.18. What is LGS Ltd.?
This is a business entity, providing handling agent's services for almost all airlines transporting parcels to Warsaw. A handling agent takes care of the ground service of the parcels transported by his contractors - the airlines.
1.19. After when the freight forwarder can receive the parcel and its documents from LGS?
To perform the entire handling service LGS reserves five hours from the landing of an aircraft. Of course, this time limit isn't kept rigorously.
1.20. What are 'terms of delivery?
Terms of delivery, by INCOTRMS 1990, precise claims and obligations of both buyer and seller. They clarify who, and from which moment, bears expenses and takes risks linked with delivering and insuring the parcel. Depending on the way of delivery the expenses are born by:
- EXW
Exporter: standard packaging
Importer: loading, export license, transport to airport, control / storing, customs clearance at export, port operations at loading port, freight, insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- FCA
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export.
Importer:port operations at loading port, freight, insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- FAS
Exporter:standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, delivery alongside ship.
Importer: port operations at loading port, freight, insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- FOB
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance, port operations at loading port.
Importer:freight, insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- CFR
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight.
Importer: insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- CPT
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight.
Importer:insurance, port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- CIF
Exporter:standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance.
Importer:port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- CIP
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance.
Importer:port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- DAF
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port.
Exporter / Importer: freight, insurance.
Importer: port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- DES
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance.
Importer: port operations at destination port, customs clearance at import, transport to buyer's office / storehouse, unloading.
- DEQ
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance, port operations at destination port.
Importer: customs clearance at import, transport to buyer's office / storehouse, unloading.
- DDU
Exporter: standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance, port operations at destination port, transport to buyer's premises / storehouse, unloading.
Importer: customs clearance at import.
- DDP
Exporter:standard packaging, loading, export licence, transport to port, control / storing, customs clearance at export, port operations at loading port, freight, insurance, port operations at destination port, customs clearance at import, transport to buyer's premises / storehouse, unloading.
Importer: none.
2.1. What is a customs agency?
A customs agency is a business entity authorized to carry out all the actions provided by the customs code before the customs organs on behalf of its principals (customers).
2.2. Why an entity, which carries out goods trade with abroad, should use customs agency services?
This is because a customs agency is a specialized entity, founded in order to secure the interests of the customer before the custom-house, in accordance with the law regulations. Customs agency's staff, continuously improving their qualifications, often helps their customers avoid major fiscal and logistic expenses. Especially in Polish conditions, where law regulations often change, this factor has a great importance.
2.3. What documents are needed to proceed to customs clearance?
To proceed the customs clearance it is absolutely necessary to be provided with:
- translated invoice
- goods specification or list, if the invoice doesn't pay the role of specification
- certificate of statistic identification number REGON
- certificate of tax identification number NIP (in case of company's address change NIP-2, 3, 5 or 6)
- Extract from the Commercial Register or Certificate of enrolment to economic activity record, licence (if necessary for acting).
- Authorization to declare goods, if customs declarations are made by a representative
- Other documents if necessary according to separate or special regulations.
2.4. In what situations a copy of the invoice is sufficient?
In case of the lack of the original invoice, a copy of the invoice can be recognized as a document serving to settle customs value of goods. However the value cannot exceed the equivalent of 70 EUR or for goods of a zero or suspended to zero customs rate and zero tax rate.
2.5. What should a customs invoice contain?
A customs invoice should contain in particular: name and address of a contractor, name and address of a buyer, number, place and date of its preparation, type and quantity of goods, value of goods expressed in an exchangeable currency or in Polish currency, unit price, origin of goods, terms of delivery (according to INCOTERMS 1990).
2.6. What should the translation of an invoice contain?
The translation of an invoice should contain the elements necessary to classify the goods in a right way up to a position PCN, especially: name of goods, material goods were made of. Directions for use (machines), or (and) type and description of machines goods will be used with. Parameters in units (ex. physical), specific for a given kind of goods (ex. electric bulb 220V 75W). In justified cases it is possible to omit some of mentioned above points. Translation, if possible, should be written on a separate sheet. It should be signed readably. There should be an identity card number of a translator.
2.7. In what time a customs declaration should be made?
A customs declaration should be made, counting from the date of making a shortened declaration, until: 1. Ninety days if sea transport, 2. Twenty days if other way of transport. These time limits can be extended by a customs organ, under a written application of an interested person, made before expiry of the time-limit, respecitvely: 30 and 7 days.
2.8. What is the Carnet ATA?
The Carnet ATA is a document applied at the temporary clearance of goods (excluding means of transport). By intermediary of the Carnet ATA it is possible to carry out a temporary importation and exportation of goods. The advantage of using the Carnet ATA is especially the release from the following obligations: 1. Applying for permission for using the procedure of temporary clearance 2. Being charged for the protection of an amount relating to customs debt 3. Paying the administrative costs and being charged by the customs-houses for the license 4. Filling in the SAD form. In Poland, the National Chamber of Commerce issues the Carnet ATA.
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