Trade Clearing Process, A Focus On Airfreights


Freight Clearing Process

One thing is to place an order that will successfully be delivered to its destination through a shipping company, while on the other hand, is to have this shipment delivered safely to the consignee, given this, it’s expected that this freight undergoes trade clearing process under enforced rules backed by foreign trade policy. However, the subject action (clearing) is an exclusive function often delivered by trade logistics firms except an individual has all it takes to deliver in this regard.

Before a logistics firm’s engagement, it’s also required as stipulated that such a firm must be eligible to carry out its function within the economic corridor (ports) of that nation. This will see the firm meet the requirements of the Ports Authority and Customs requirements after it has been registered with a corporate affairs commission (it will be fair to find out the body responsible for the registration of companies in your country).

Meanwhile, since the act of clearing freights from ports practically cut across air and sea freights, it will be proper to deal with each of these separately. Given this, let’s focus our attention on customs-clearing airfreights for now. However, from a logistics point of view, efforts are made to shed light on this which will entail the customs documentation process, shipment tracking process, the shipping company’s authorization, and requirements.

Going forward, let’s discuss airfreight clearing. However, some steps need to be taken to custom clear freights unloaded at the airport or stored at the airport’s shed (warehouse for seaport), and these processes require various stages of documentation.

To go about our subject area of concern, a look at factors to be considered before the shipment’s arrival will go a long way. Meaning, to walk around this subject, the logistics firm responsible for an airfreight clearing ought to have been notified by the consignee to track the shipment, figure out the shed, and most importantly, is to find out the actual airline and the shipping company that should be contacted for the goods delivery. However, such a tracking process will only be achieved with the aid of the shipment Airway Bill.

Carefully walk go through the airway bill because it’s a guide and also figure out the nature of the freight from the goods description detailed on the document.

As soon as the clearing agent responsible has confirmed the location of the freight, generate the airway bill and proceed with the same to the airline’s office to raise the ‘freight advice’, which often would require the payment of the document, either to via a commercial bank or direct to the airline. Further on this, proceed with customs documentation and import tariff. While in a bid to ‘lodge your entry, the received airway bill will be deployed for capturing via customs data bank.

To ensure that all customs processes are effected properly, customs will initiate the process by figuring out the weight of goods, which is needed for customs assessment. But, should PAAR be deployed for such trade? The shipment tariff will be generated based on the value declared on the freight’s ‘Form-M’ and the commercial invoice. As soon as the tariff has been effected, proceed to the customs office, there, a customs releasing office will be assigned to effect the release of the goods, which would cut across other offices.

Lastly, to ensure the smooth passage of the freight from the shed, and to exit such shipment, customs ‘DC shed’ will have to wrap things up by endorsing the trade document. While this endorsement simply implies that the release process was thoroughly carried out since the trade is on the verge of delivery. Then pay the storage and handling charges, and you’re done. Congratulation.

  • I hope you found this article on the ‘trade clearing process’, helpful?