International Trade and Foreign Exchange: Freight Forwarding Agent

BANKING DIPLOMA EXAMINATION 

Banking Diploma Courses under The Institute of Bankers, Bangladesh (IBB)

International Trade & Foreign Exchange-DAIBB

FREIGHT FORWARDING AGENT

                

A person or a company which is involved in the processing and/or movement of goods on behalf of another company or person which crosses international boundaries.

A provider of professional services to the exporter through its established links with providers of packaging, transportation and warehousing services world-wide.

Expert on documentary and other legal requirements of the exporting and importing countries. Most Freight Forwarders in Australia have access to EDI facilities of the Australian Customs in Canberra and provide quick custom clearance service to the exporter.

Services Provided by Freight Forwarders

• Advice to Customers on the Quickest and Economical means of transportation 
• Arrange through transportation and documentation (Through Bill of Lading) 
• Offer Economical Freight through Grouping or Consolidation of small shipments 
• Compliance with foreign trade regulations and Documentary Credit instructions 
• Advice to customers on Packaging Requirements 
• Provide Marine Insurance coverage during transit 
• Advice to customers on warehousing and distribution of good 
•  Supervision of the movement of goods

Represent customers at the port of trans shipment Arrange Custom Clearance at the port of destination in case of DPP price quotation.

LEGAL ASPECTS OF EXPORTING
Home Country Export Regulations, Target Country Export Regulations
Home Country Export Regulations

1. The Australian Customs Service (ACS) is responsible for the implementation of Customs Act, By-laws, Customs Regulation. 

2. Customs Control over Goods for Export - For the purpose of regulating trade, revenue, and recording. 

Method of Control: Export Permit , Export Clearance Number, and Certificate of Clearance. 

2. Export Prohibition - Absolute or Conditional prohibition on export of certain goods for several reason (such as protection, quality control, international agreements, trade embargoes, defence agreements). 

Export Permit from respective Commonwealth Department is necessary for the export of certain Restricted Goods.

Departments that issue special Export Permits

• Department of the Arts, Sports, the Environment, Tourism and Territories (for goods listed in the regulation of the Protection of Movable Cultural Heritage (PMCH) Act 1986). 
• Department of Community Services and Health (for certain animal products, certain drugs and products containing those drugs). 
• Department of Defence (for export of firearms, ammunitions and explosives, and export of dual-use technology to certain countries) 
• Department of Foreign Affairs and Trade (for export of certain products, to certain countries, and Chemical earefare precursors states Schedules 12, 14 1nd 15). 
• Department of Primary Industries and Energy (for the export of prescribed goods, meat, grain and plants, processed food, fruit and vegitables, live animals, unprocessed wood, primary products, marine life, minerals, neclear related plants and materials). 
• Department of Transport and Communication (for export of aircraft and its component parts). 
• Australian National Park and Wildlife Service (for export of Endangered Species, Wild Fauna and Flora)

·   Commodity Marketing Boards and Corporations

 3. EXIT (Exports Integration) - a preshipment electronic reporting system which has replaced the traditional paper based Export Return Scheme. 

• Electronic submission of export details to Customs by the exporter or its agent for clearance prior to shipment; and It allows for international carriers, Freight Forwarders and Consolidators to connect to the system and create electronic manifests. 

EXIT Procedural Manual provides details of the system. 

4. Export Concessions: Draw-back/Texco Federal government concessions for the promotion of exports 

• Draw-back - the amount of import or excise duty paid back on goods imported for the processing of export, incorporated into export products or re-exported.
• TEXCO (Tariff Export Concession) - duty free entry of imported goods which are intended for export and which would otherwise be eligible for draw-back.

IMPORT REGULATIONS OF THE COUNTRY OF DESTINATION

• Import Restrictions on certain goods 
• Tariffs and Duties 
• Packaging and Marking of goods 
• Labelling (country of origin, manufacturer, composition, expiry dates etc.) 
• Method of quoting and payment 
• Public health requirements (for food products, live animal, animal products) 
• Documentation requirements 
• Regulations on Samples and Ad Materials 

Austrade World Import Regulations Directory is the primary source of information.
Up-to-date information is only available from embassies or consulate offices of respective countries.