Common Problems Shippers and Forwarders Experience Uncovered and Explained by Dedola

As an exporter or importer, you count on freight forwarders to handle your critical logistical requirements. Freight forwarders play a vital role in guaranteeing the safe and timely delivery of your goods.

However, hauling commodities by air, sea, or road often involves legal, financial, and logistical complexities that can be challenging for shippers and forwarders. Dedola explains the most common of these hurdles and their practical solutions.

Commercial Invoice Information

A big problem for a cost-conscious shipper is inattention to their commercial invoice description. The document specifies the HTS code assigned to the goods you’re importing, and the code dictates the duty rate applicable to the shipment. Failing to grasp the tariff codes’ subtleties denies you an opportunity to reduce or minimize your freight tariff and duties costs potentially.

To comply with customs and border protection, shippers must make the proper declaration of goods. It’s crucial to assign a correct HTS code. HTS codes designate goods by their name, material, and use. Currently, there are over 20,000 codes, and the shipper must exercise reasonable care when describing their goods. Dedola’s classification experts are unmatched in seeking out the correct and advantageous codes. We continually review the latest tariffs and alert our clients accordingly.

Complexities of Warehousing

Whether you’re an importer or exporter, you may need temporary storage for your goods before final delivery. One factor to consider is customs bonded warehousing (CFS), which allows you to defer payment of duty or import VAT until your freight has cleared customs.

You could also consider Warehouse Authorization Other than Customs (WAOC). This option lets you temporarily store eligible commodities in a private warehouse while delaying custom duty payments.

Dedola stands out from the crowd with its comprehensive Supply Chain Management Services, always looking to optimize your supply chain. You leverage cost-effective warehousing, fulfillment, warehouse management system (WMS), and 3PL services by working with us. We also offer white-glove service and reverse logistics.

Failure to Understand the Purpose of Your Bond

The U.S. government requires you to have a customs bond when importing goods to ensure payment of taxes and duties due. Without a bond, you are exposed to fines and severe shipping delays on imported goods.

At Dedola, we handle all the necessary paperwork to get you a customs bond that suits your needs. We’ll advise you on the right type of bond to get you maximum protection at a minimal cost.

Not Understanding Anti-Dumping (AD) and Countervailing (CVD) Duties

Dumping is the practice of selling imported goods in the U.S. at a less than fair price. It gives foreign manufacturers an advantage over local manufacturers. Unfair competition undermines the growth of U.S-based manufacturers.

The U.S. government imposes AD and CVD measures to prevent foreign manufacturers from undercutting local manufacturers’ prices. These laws level the playing field for all.

Are you importing goods that are subject to AD and CVD duties? It depends on the country of origin and type of product. Dedola can help you navigate any applicable legal requirements with ease.

Disagreements Over Distribution Rights

You may suffer a loss of business when a reseller infringes on your exclusive distribution rights. This unfair competition can occur when a third party starts importing a brand you’re already selling locally.

Delays at the Port and Demurrage charges

When cargo sits at the port past the designated last free day, demurrage starts to accrue. If you’re unable to take delivery within the stipulated time, you may incur demurrage, increasing your overall freight cost. Demurrage may accrue due to port congestion, incorrect or late documentation, or custom clearance issues.

Dedola’s TrakIt system helps you manage your shipments’ documents, ensuring that paperwork inconsistencies don’t cause you any costly port delays. We’re constantly tracking and informing you of all applicable fees, including tariffs, taxes, and duties, to streamline customs clearance.

Exposure to Liabilities or Claims in Shipping

Liability for damage to goods due to incorrect packing is a complicated issue. For instance, if the bill of lading indicates that damaged goods were in perfect condition when loaded at the port of origin, the carrier may be liable for the damage. However, liability is limited.

The bill of lading can protect you from liability, but it must be accurate. TrakIt’s document storage lets you review the accuracy of your documents efficiently.

The Bottom Line

Shipping challenges can cost your company time and money, ultimately impacting your operation’s efficiency.

Over the years, DGL has served over 100 industries, 20,000 customers and has transported over 1 million full container loads.

DGL’s mission is to optimize your supply chain. We provide industry-leading customer service and give you access to unparalleled logistics expertise so you can focus on achieving greater success.

You deserve a logistics provider that’s customer-focused and reliable. Switch to DGL and discover the Dedola Difference

For a free consultation to discuss your freight forwarding needs, call 800-516-3099 today.

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