LCL CLEARING GUIDE, Unfolding The Hidden Fact!


LCL clearing guide
LCL Shipments

As we know freight orders come in different forms or categories, while from a shipment point of view, it should be noted that things could be half baked if this subject isn’t brought to the limelight. While to wrap up freights associated with containers is to have our core area of focus delivered in the right proportion. Hence is the reason why LCL clearing guide promises to unfold in-depth facts which cut across the legal processes on how to exit and deliver this category of freight to consignees.

As for this subject, it’s also a category of freight shipped with the aid of containers irrespective of the nature of the goods and volume. However, a single shipment in this category practically consists of several consignees with at least two which is economically driven to reduce the cost of freight. As such, a form of shipment classified as ‘less than container load’ (LCL) shipment. While on the other hand, to customs clear this type of freight would mean delivering individual shipments without the container, owing to the fact that these shipments would be unpacked from the container into a warehouse (CFS) at the destination before each consignee takes delivery through its clearing agent.

One will also have to say that, customs clearing an LCL freight from its storage unit would totally require a different approach, unlike the measures taken to customs clear a full container load from any port or terminal.

Going forward, tracking the shipment is ideally the first step towards a timely clearing of this category of freight. Should the shipment delivery be delayed! Then, excessive local charges (storage) would be accrued. This could only be done after the consignee has reached out to a clearing firm or individual (in some cases) who in this regard have delivered a set of freight documents to the firm. Such as the house bill of lading, packing list, and the proforma invoice. However, should the PAAR document be deployed! It should be presented to the clearing agent as well. All these will be in process prior to the shipment arrival.

Further on this, it’s expected of the clearing agent to contact the shipping company at place final destination with the aid of the shipment house bill of lading. Bearing in mind that the subject shipping company at this point serves as the ‘Agent’ to the LCL Consolidator or its principal. Of course, the clearing agency in the same vein should also be seen eligible to carry out its function with the shipping company (already have its authority endorsed). With that said, figure out the expected time of arrival of the vessel from the shipping company, alternatively, the shipment container could be tracked if it won’t be transhipped with a different container.

And once the vessel’s ETA has been figured out, proceed with the customs documentation process by submitting the shipment documents including the PAAR that was triggered via the consignee’s commercial bank to the customs import section, then initiate the entry process. At this point, customs would have to figure out the value of the freight from the house bill of lading with the aid of its ‘HS Code’ and the product invoice. But if the ‘Valuation’ approach is to be deployed, then the freight tariff would only be issued after customs have done their physical finding. 

And as we dive deep into this subject (LCL clearing guide), it will be fair to deploy terminologies used in practice. Here’s something we should note as well, the clearing agent isn’t required to capture the whole container nor the shipment master bill of lading (MBL). However, here how to walk around the capturing process via a ‘DTI’ platform. Impute the following parameters:

  • The Tin number
  • The Terminal code
  • The rotation number (RTN from the shipping company)
  • The name of the consignee

Once this process is complete, then the ‘job is successfully captured’, with that in place, the freight tariff will be issued. But for PUBD freights, it’s simply zero tariffs. As soon as the tariff has been effected, proceed with the customs examination process in order to have the shipment released. While taking release from the customs often comes in stages, resulting in a number of customs documents being issued, such as the shipment ‘print-out’ and so no, while lastly is the ‘Exit Note’, indicating that the shipment has been released by the customs and could exit the CFS warehouse.

At this juncture, the clearing agent would have to focus on the shipping and terminal release process. And this is how to go about this, firstly, effect the shipping company release by paying the company’s local charges based on the date it’s been billed (rating date in practice) which should remain valid until the shipment exit the warehouse. Should the payment advice expire within the set period it’s been billed! The clearing agent would be billed additional storage cost (known as rent above stipulated days. Like rent below 7 days, rent above 7 days period). But often, this process is usually merged together with the terminal.

If the shipping and the terminal releases are merged together, then the clearing agent would be required to pay the local bills with single payment advice. And as soon as that has been effected, proceed with the following documents in order to take delivery of the shipment.

  • A copy of the customs ‘Exit Note’
  • A copy of the original copy of the freight bill of lading
  • Valid copy or copies of the shipping company’s payment advice
  • Original copy of Indemnity letter from the clearing firm

These four documents would certainly take care of the shipping company’s release, and in the process, the clearing agent would be issued ‘Delivery Order’ (DO), while below would be required for terminal release and delivery process. However, these documents should be presented.

  • A copy of original Delivery Order from the shipping company
  • Copies of valid payment advice
  • A copy of customs Exit Note
  • A copy of the shipment house bill of lading
  • A copy of the Indemnity letter from the clearing firm, which would include other documents.

Eventually, this will see the terminal issue the Terminal Delivery Order (TDO) to the clearing agent responsible for the delivery process. While in addition to that is the Authority to Load (ATL) design as a tool for passage, authorizing haulage truck or van to gain access into the port or terminal and load shipments. And lastly about this subject (LCL clearing guide) – is the gate, and this is strictly verification of delivery documents, ranging from customs down to the terminal (applicable if the warehouse is situated within the port premises), and if not, you should be talking next business because you’re done with the clearing process. Congratulation.

  • I hope you found this post on ‘LCL clearing guide’, helpful?

Be the first to comment

Leave a Reply

Your email address will not be published.