FREIGHT BILL OR BILL OF LADING: KNOWING THE DIFFERENCE IS KEY TO EFFECTIVE LOGISTICS

Freight Bill or Bills of Lading? What's the Difference?

One of the most common questions that arise when we first bring on a customer has to do with the freight bill and bill of lading. While these documents are similar in most contexts, there are key differences between the bill of lading and the freight bill. Failing to know these can lead to misunderstandings that might undermine an otherwise mutually beneficial business relationship not only between your third party logistics provider, but also with carriers, suppliers, and ultimately customers.

What are Bills of Lading?

Bills of lading are official documents, which may be admissible in a court of law, that precisely, name and enumerate the items to be transported during a freight shipment. They are issued by the shipping company (the carrier hauling your freight) or by your 3PL that provides overall logistical support to meet the customer’s needs.

When composing these bills of lading, it is important to provide weight, value, and description of every item to be shipped. These bills (remember NOT the freight bill by bills of lading) represent the agreement between the shipper and the logistics provider or carrier that spells out where the freight will be collected, where it will be transported, and when the freight will arrive. Traditionally, this bill also serves as title to the goods thus described; in other words, it can serve as an official description of loan collateral.

In effect, this bill makes explicit the “service level agreement” that exists between a freight company and its customer. When determining whether a company has met its obligations, this bill is often the paramount source. For that reason, both customers and freight companies have a vested interest in ensuring these bills are accurate. Disputes can be avoided when all parties involved take steps to ensure these documents have been thoroughly checked over.

What is a Freight Bill?

Freight bills or freight invoices are different from bills of lading in that they do not serve as a key piece of “evidence” in any dispute. While freight bills should match up closely to their bills of lading counterparts, they can also include additional charges (such as accessorials), information, or stipulations that serve to clarify the information on the bill of lading document. When you are looking for an “invoice” to examine as part of a focused logistics improvement effort, you will generally use this bill rather than the original lading documents. Examples of using the freight bill for improvement is during the freight audit process. If you are using a third party logistics provider, included in the agreement should be a freight audit and freight payment service (also known as freight accounting).

In effect, these freight bills are similar to other invoices for professional services your business might collect. Although they may seem less important during the freight shipping process, they should be retained long term. If you are using a transportation management system provided by the 3PL or some other company, have a requirement that these freight bills and bills of lading are stored and available electronically.

MISTAKES TO AVOID WHEN LOOKING TO REDUCE LOGISTICS COSTS

In the logistics arena, fuel costs are a primary driver of price and a key focus when companies need to find ways to manage expenses. Many organisations make the mistake of assuming that the best way to manage costs is to reduce their logistics expenses. While it’s true that logistics costs can be high, organisations incorrectly assume there’s fat built into logistics, when the true expense actually lies in fuel surcharges that are beyond anyone’s control. It’s expensive to move product across borders, with the location of a vendor’s manufacturing plant playing a major part. For example, it might be unusually expensive to ship products in and out of a particular country, due to the frequency of flights to and from its airports. It’s difficult to monitor and control costs and factors such as these contribute to increased costs of global logistics, which is simply passed on to the end-user organisations.

But it is not all bad news. There are some countermeasures organisations can take to minimise logistics costs, such as order consolidation, multimodal transport, sea freight versus air freight, and so forth. The best cost-saving strategy, however, would be to outsource all procurement and logistics to a supply chain service provider that has sufficient expertise and experience in international logistics and know exactly how and where to save. Attempting to handle logistics in-house without the proper expertise often leads to higher costs because it’s not part of the organisation’s core focus. All too often, organisations who attempt to handle logistics on their own run into a host of problems, calling in the experts at the last minute at a far higher cost than if they’d simply outsourced the process from the start.

In addition to fuel costs, import duties and taxes are other areas where organisations can save by ensuring they’re not overcharged by customs and that goods are cleared in the most cost-efficient way. Goods should be tariffed and classified correctly on the commercial invoice to ensure that there are no unnecessary costs or misdeclaration of duties or tariffs. This process can save a great amount on large-scale imports, provided the procurement and logistics partner has an understanding of the product and its environment. Again, if this expertise doesn’t fall within the end-user organisation’s core focus, it’s best to leave such negotiations to an expert supply chain logistics partner.

Problems with the cost of logistics usually become glaringly obvious at the destination, when a product has been ordered, shipped from the plant, and arrived at the destination country without the correct paperwork, because it hadn’t been processed correctly at the origin. Parts of the order may be incorrectly labelled or even missing altogether. In these cases, it may be necessary to ship everything back to the origin and re-start the process from scratch, often at double the cost. Most, if not all, of these problems can be avoided by engaging an appropriate procurement and logistics partner.

While it’s critical to engage a knowledgeable partner, it’s also important to note that the intense competition among system integrators who provide supply chain services sometimes results in logistics costs being hidden in other areas, such as margin or maintenance charges. It’s best to partner with a systems integrator that’s completely transparent as far as logistics costs are concerned, expressing these charges separately and clearly as a percentage of the value of the equipment.

I hope this post has shed some light on how to reduce logistics costs. Watch out for my next post where I delve into more detail about outsourcing, and after that we look at trend number five which is all about shortened and more complex product life cycles.

TOP 5 SIGNS IT IS TIME TO SWITCH CARRIERS

Top 5 signs it is time to switch carriers:

1.  Financial Warning Signs

With many carriers reporting first quarter losses in 2015, now might be a good time to check the financial health of your current carrier.  While a one-time quarterly loss isn’t a reason to immediately run for the exits, a string of quarterly losses most likely has deeper considerations than just the state of the global economy.

2.  Uncompetitive Rates

Let’s face it, it is always easier to stick with an incumbent provider than bringing in a new partner.  The reasons are many, including I.T. connectivity, customer service and sales familiarity, and knowledge of your business to name a few.  However, if your current carrier is simply not market competitive it might be time to either have a rate conversation or take your services out to bid.  The term uncompetitive will largely be defined within your own corporate culture and how much you are willing to spend to remain with a company that provides good service is a personal decision.  It is not always about the lowest rates…just market competitive rates for a fair competitive service.

3.  Service Standards 

With many carriers offering similar services (ie moving boxes from A to B), one huge differentiator is the level of service that is provided by your carrier. If the level of customer service offered by your incumbent carrier has slowly deteriorated over the course of your business dealings, it might be time to shop for a carrier that is eager to provide you with stellar service. Also, pay close attention to the level of support you are offered from a commercial perspective.  There is something to be said about having consistency in sales support.

4.  I.T. Dark Ages

In today’s modern world, knowledge is power, and no more so than in today’s competitive supply chain environment.  The days of monitoring your supply chain via spreadsheets are over.  If your carrier does not have the tools necessary from an I.T. perspective to assist in managing your business on a day to day basis, then it is time to take a look at alternate options.  One of those options might be to research I.T. connectivity methods with your carrier through a third party supply chain platform.

5.  Internal Changes

As your company (hopefully) grows, it is important that your existing carriers grow with you.  If you have outgrown the service capabilities of your carriers, whether it is in I.T. requirements or shipment volumes, then now is a good time to start identifying any current shortfalls.  Once identified, start looking for ways to address those needs in preparation to take your supply chain to the next level and increase your competitive advantage.

SAVE MORE ON YOUR FREIGHT WHILE DOING BUSINESS IN GHANA

Why do business with Ghana?
Ghana's wealth of resources, democratic political system and dynamic economy, makes it undoubtedly one of Africa's leading lights. Gaining the world's confidence with a peaceful political transition and a grounded and firm commitment to democracy has helped in expediting Ghana's growth in foreign direct investment (FDI) in recent years.

Ghana has attracted the attention of well-known international businesses, investing in all sectors of our economy. All these investors have come to Ghana because they know we have a wonderful conducive social, political and economic environment in which they can invest, grow and be successful.

Advantages for Doing Business in Ghana

·         Demonstrated commitment to market liberalization

·         Ongoing privatizations in key economic sectors

·         Expanding stock market

·         Ongoing infrastructure development

·         Export free zones where goods traded with other countries 

·         are exempt from customs duties and laws

·         Immediate access to all markets of the Economic Community 

·         of West African States (ECOWAS)

·         Quota-free access to U.S. and European Union markets

·         Member of the World Trade Organization (WTO)

How do I start doing business Ghana

Step 1: Business Registration at Registrar General's Department (RGD)
All Limited Liability companies are expected to fill out the relevant Application Forms, which serve as the Company’s Regulations. All companies must have an auditor, who must be a member of the Institute of Chartered Accountants, but should not be an officer or servant of the company or be an employee or partner of such persons. When all such forms have been filled satisfactorily and relevant fees paid, a Certificate of Incorporation and a Certificate to Commence Business are issued.

Click to access basic Costs and Fees applicable at the Registrar General's Department office.

Step 2: Register with the Centre (GIPC)
The GIPC is responsible for registering all Enterprises in Ghana.  

Application Procedure: Investors are required to complete Investor Registration Forms (Form GIPC/R1) in triplicate. Within five (5) days from the date of orderly receipt of these forms (and its attachments) the GIPC will formally register the investment.

How to save on your freight expense when moving goods into Ghana?
If you are not keen to the constantly changing freight rates, then you will most likely get slaughtered by over-priced logistics costs. This expert tips will provide you some skills that will give you better understanding on how you can maximize your import shipping scheme.

Shipping in big volumes vs small volumes?
Properly evaluate the volume of goods you need to ship regularly. Find a reliable freight forwarder to ship your goods into Ghana cost effectively using any of these two methods: 

Full Container Load (FCL) and Less than Container Load (LCL).

Both options have their advantages and disadvantages, however planning your cargo accordingly will help you save heaps on your freight expense.

Identifying the required taxes, rates and add-on fees to be paid

Aside from carefully planning your shipments, identifying the required taxes you need to pay to import goods into Ghana will add more to your savings. This checklist will help narrow down your tax queries:

Is there a customs duty payable on the product?
Duty rates and import taxes vary from product to product when importing into Ghana. It is best if you could check with your customs clearance expert to clarify the rate you need to pay on this.

Are there any restrictions on bringing this product to the Ghana?
Firearms and weapons, pirated and counterfeit goods, non-compliant gas and electrical goods, explosives, pornographic materials, alcohol and other spirits are prohibited and should be sent separately.

Other freight charge and rate questions worth identifying

• Are clearance document costs included in the freight charge?
• How much will it cost to pick up my cargo from the dock? warehouse?
• Is there an inland freight charge to get to from the wholesale warehouse to port?

Choosing the best logistics partner to move your goods into Ghana
Hiring the services of a reliable and knowledgeable logistics and customs clearance expert will save you time, money and effort clearing and moving your goods into Ghana. Logical Maritime Services Limited has more than 15 years of industry experience shipping goods to and from Ghana. Tell us your specific logistics and customs clearance requirement. Talk to us at +233 30 330 0877.

HOW TO AVOID BEING A VICTIM OF FREIGHT FORWARDING SCAMS?

Various anti-scam organisations have been warning the public about scams in freight forwarding. Today, we summarise the main tactic used by these scammers and how to avoid them.

How does a freight forwarding scam happen when importing?

Unwary or inexperienced importers are usually the target of freight forwarding scammers. They usually promote themselves via email marketing or B2B website advertisements (including Alibaba).

At first glance, these freight forwarders would seem legitimate. But without careful evaluation, you could find yourself in a trap. You could have your shipment held for ransom and be forced to pay a lot more than you first thought in order to get your cargo.

Freight forwarder scam – exposed!

Knowledge is power. Safeguard yourself and your business from falling prey into the very low freight quotes offered by scammers by knowing their strategy as shown below:

Step 1: The importer orders the goods from his supplier and pays for it.

Step 2: The supplier produces the goods and informs the importer it is ready
for shipping.

Step 3: The importer finds a freight forwarder that can move the goods, through either the scammer’s online marketing scheme or B2B online advertising.

Step 4: The importer pays the scammer with the agreed rate. The scammer prepares the cargo for shipment and moves the shipment to the requested destination.

Step 5: The scammer prepares the bill of lading (B/L) and sends copies of this to his client together with the export docs such as the commercial invoice and the packing list.

At this stage, everything that the scammer has done is legitimate and nothing is unusual. Any regular freight forwarder will be doing  the same. 

Here comes the freight forwarding scam alert!

Looking at Steps 1 to 5, it seems everything is moving safely and according to what you have discussed. But the next thing that happens is not something you are prepared for.

You patiently await for the arrival of the original B/L in the mail. Sadly, nothing arrives.

You know you need the original B/L to claim ownership of the goods because, without it, Customs won’t be able to release the cargo.

You contact the freight forwarding scammer and their response is not what you are expecting. They ask you to pay triple, if not more than triple, the rate of the agreed freight cost just for them to release your B/L.

The scammer realizes he now has you in his hands. You can’t do anything with your shipment unless he gives you the original B/L. Thus, he holds it ransom until you give them money.

At this point, you are left with no other choice but to give in to their request.

Can I file a case in court against freight forwarding scam?

Yes, you can most definitely file this in court. But be prepared for a lengthy and complex process in order to prove your case. It will most likely result in many meetings, working with a lawyer, hearing the matter in court and cost a lot of time and money. Worse, you have no clear assurance you will get the original B/L you need.

Could it get any worse?

Here’s more.

The fact that the cargo was picked up in another country, and was indeed transferred via sea to its destination port, doesn’t imply theft of the goods was made by the forwarder. It doesn’t clearly break any laws. This type of case is a grey area which is hard to resolve in court.

How can you avoid freight forwarding scams?

No one would want to go through the nightmare of freight forwarding scam. Here are some tips on how you can most certainly avoid this.

Choose a freight forwarder with integrity

All importers would like to save money when importing their goods. But engaging with a freight forwarder that deals with you only via email is not very safe.

Choose wisely. Work with a freight forwarder that is easy to establish credibility or someone referred to by your friends in the industry. Check if they have:

• Phone and office
• Social media pages such as LinkedIn, Facebook, Twitter, Google Plus,
  and YouTube
• Official website with an About Us page section to learn more about the manager and owner of the company
• Wide network of partners around the globe
• Active blog that shares latest trends, insights and tips regarding
  freight forwarding

If it’s too good to be true, then it’s not true

Always remember that anything that sounds too good to be true is most likely not true. Legitimate freight forwarders can only offer their services at a certain price because they are aware of the freight forwarding costs these services require. Thus, if you are approached by a freight forwarder via e-mail, or respond to website ads with very low rates, that’s already a hunch to be extra careful.

Compare freight rates and learn about the breakdowns

How will you know if they are offering very low freight rates?

Get several quotes with a breakdown of various costs before closing any deal. Compare it with the rates of other freight forwarders.  If the price offered by one looks suspiciously low, you can see from others what might have excluded to make it so cheap.

Know your INCOTERMS

You are new in the industry but it is not enough reason for you not to learn more about some of the important International Commercial Terms (INCOTERMS).

If unsure, it is best to consult on what these terms mean with a freight forwarder. This will not only help you learn more about the industry but it will also help you get a feel for the level of customer service they deliver and if it is to your expectation.

Avoid dealing with freight forwarding scammers. Be informed. Deal with credible freight forwarders such as Logical Maritime Services Limited.

RORO SHIPPING VS CONTAINER SHIPPING. WHICH IS BETTER?

As a freight forwarder, Logical Maritime Services ships all kinds of cargo. One specific type of cargo that we pride ourselves on shipping well is automobiles.

As an international car shipping company, many people ask, “What’s the BEST way to ship a car overseas?” The answer will depend on what the objective is. 

When it comes to automobile shipping, you have two main options. You can ship your vehicle in a container or ship via Roll On Roll Off (RORO). But which option is better?

Both options can be used for your car, motorcycle, truck, or any other vehicle you need to ship internationally. It is important for your confidence to know that all vehicles are securely blocked, braced, and tied down ensuring absolute security during transportation.

RORO SHIPPING

RORO is the simplest and cheapest method of shipping for vehicles like cars, trucks, buses, heavy agricultural or plant machinery.

Vehicles are driven directly into the RORO vessel and secured to the car decks. They are securely inside the vessel, wind-and-watertight. It is important to know that you cannot ship personal effects using RoRo shipping method.

RORO overseas shipping is a very popular way of transporting cars to other countries. RORO carriers can handle not just cars but all types of motorized, rolling and even static cargo: trucks, boats, buses, motorhomes, trailers, RV-s, tractors, excavators, cranes, and other high & heavy agricultural equipment and machinery.

RORO shipping method is very popular mainly for two reasons: cost and simplicity. The vehicle is simply rolled on the ship at the port of loading and rolled off the ship at the overseas destination.

The only problem with RORO shipping is geographical coverage. While RORO transportation does have global routes, it is still not as all-encompassing as container shipping. Some smaller countries may not even have any options for international RORO transport. Our knowledgeable staff will be able to advise you on the availability of RORO shipping to the destinations of your choice. We'll make sure we find the option that is best for your shipment.

Container shipping can get you pretty much anywhere you want to go.

CONTAINER SHIPPING

This option should be selected for international shipping of valued vehicles. Shipping single cars in containers has a higher probability of reaching the destination without damages during the transportation.

Container shipping for transporting your vehicle provides the safest means of transportation to your overseas destination. Your vehicle is loaded inside the shipping container. Nylon straps are then used to tie your vehicle down and they are secured to the walls of the shipping container. Once your vehicle has been loaded into the shipping container, wooden braces are placed around each of the tires and nailed to the floor of the container.

A person can “share” a container with someone else to cut costs or get an “exclusive” container where the person can use the FULL container to ship items in addition to the car. Normally this is more expensive than RoRo.

HOW TO GET EXPORT ADVICE AND EXPORT TIPS

For companies making initial plans to export or to export in new areas, considerable export advice, export tips, and assistance are available at little or no cost. It is easy, through lack of experience, to overestimate the problems involved in exporting or to get embroiled in difficulties that can be avoided. For these and other good reasons, it is important to get expert counseling and assistance from the beginning.

This chapter gives a brief overview of sources of assistance available.

In general, however, the best place to start is the government institutions that deal with export and Commerce, they can not only provide export counseling in its own right but also direct companies toward other government and private sector export services.

Commercial banks

Good source of export advice and export tips are banks. Many banks have international banking departments with specialists familiar with specific foreign countries and various types of commodities and transactions. These large banks, located in major cities, maintain correspondent relationships with smaller banks throughout the country. Larger banks also maintain correspondent relationships with banks in most foreign countries or operate their own overseas branches, providing a direct channel to foreign customers. International banking specialists are generally well informed about export matters, even in areas that fall outside the usual limits of international banking. If they are unable to provide direct guidance or assistance, they may be able to refer inquirers to other specialists who can. Banks frequently provide consultation and guidance free of charge to their clients, since they derive income primarily from loans to the exporter and from fees for special services. Many banks also have publications available to help exporters. These materials often cover particular countries and their business practices and can be a valuable tool for initial familiarization with foreign industry. Finally, large banks frequently conduct seminars and workshops on letters of credit, documentary collections, and other banking subjects of concern to exporters.

Among the many services a commercial bank may perform for its clients are the following:

• Exchange of currencies.
• Assistance in financing exports.
• A collection of foreign invoices, drafts, letters of credit, and other foreign receivables.
• Transfer of funds to other countries.
• Letters of introduction and letters of credit for travelers.
• Credit information on potential representatives or buyers overseas.
• Credit assistance to the exporter's foreign buyers.

Export intermediaries

Export intermediaries are of many different types, ranging from giant international companies, many foreign-owned, to highly specialized, small operations. They provide a multitude of services, such as performing market research, appointing overseas distributors or commission representatives, exhibiting a client's products at international trade shows, advertising, shipping, and arranging documentation. In short, the intermediary can often take full responsibility for the export end of the business, relieving the manufacturer of all the details except filling orders.

Intermediaries may work simultaneously for a number of exporters on the basis of commissions, salary, or retainer plus commission. Some take title to the goods they handle, buying and selling in their own right. Products of a trading company's clients are often related, although the items usually are noncompetitive. One advantage of using an intermediary is that it can immediately make available marketing resources that a smaller firm would need years to develop on its own. Many export intermediaries also finance sales and extend credit, facilitating prompt payment to the exporter.

World trade centers and international trade clubs

Local or regional world trade centers and international trade clubs are composed of area business people who represent firms engaged in international trade and shipping, banks, forwarders, customs brokers, government agencies, and other service organizations involved in world trade. These organizations conduct educational programs on international business and organize promotional events to stimulate interest in world trade. Some 80 world trade centers or affiliated associations are located in major trading cities throughout the world.

By participating in a local association, a company can receive valuable and timely advice on world markets and opportunities for business people who are already knowledgeable on virtually any facet of the international business. Another important advantage of membership in a local world trade club is the availability of benefits - such as services, discounts, and contacts - in affiliated clubs from foreign countries.

Chambers of commerce and trade associations

Many local chambers of commerce and major trade associations provide sophisticated and extensive services for members interested in exporting. Among these services are the following:

• Conducting export seminars, workshops, and roundtables.
• Providing certificates of origin.
• Developing trade promotion programs, including overseas missions, mailings, and event planning.
• Organizing pavilions in foreign trade shows.
• Providing contacts with foreign companies and distributors.
• Relaying export sales lead and other opportunities to members.
• Organizing transportation routings and shipment consolidations.
• Hosting visiting trade missions from other countries.
• Conducting international activities at domestic trade shows.

In addition, some industry associations can supply detailed information on market demand for products in selected countries or refer members to export management companies. Most trade associations play an active role in lobbying for trade policies beneficial to their industries. Industry trade associations typically collect and maintain files on international trade news and trends affecting manufacturers. Often they publish articles and newsletters that include government research.

Chambers of commerce abroad

A valuable and reliable source of market information in any foreign country is the local chapter of our chamber of commerce. These organizations are knowledgeable about local trade opportunities, actual and potential competition, periods of maximum trade activity, and similar considerations.

Our chambers of commerce abroad usually handle inquiries from any domestic business. Detailed service, however, is ordinarily provided free of charge only for members of affiliated organizations. Some chambers have a set schedule of charges for services rendered to nonmembers.

International trade consultants and other advisers

International trade consultants can advise and assist a manufacturer on all aspects of foreign marketing. Trade consultants do not normally deal specifically with one product, although they may advise on product adaptation to a foreign market. They research domestic and foreign regulations and also assess commercial and political risk. They conduct foreign market research and establish contacts with foreign government agencies and other necessary resources, such as advertising companies, product service facilities, and local attorneys.

These consultants can locate and qualify foreign joint venture partners as well as conduct feasibility studies for the sale of manufacturing rights, the location and construction of manufacturing facilities, and the establishment of foreign branches. After sales agreements are completed, trade consultants can also ensure that follow-through is smooth and that any problems that arise are dealt with effectively. Trade consultants usually specialize by subject matter and by global area or country. For example, firms may specialize in high-technology exports to the Far East. Their consultants can advise on which agents or distributors are likely to be successful, what kinds of promotion are needed, who the competitors are, and how to deal with them. They are also knowledgeable about foreign government regulations, contract laws, and taxation. Some firms may be more specialized than others; for example, some may be thoroughly knowledgeable on legal aspects and taxation and less knowledgeable about marketing strategies.

Many large accounting firms, law firms, and specialized marketing firms provide international trade consulting services. When selecting a consulting firm, the exporter should pay particular attention to the experience and knowledge of the consultant who is in charge of its project. To find an appropriate firm, advice should be sought from other exporters and some of the other resources listed in this chapter, such as the Department of Commerce district office or local chamber of commerce.

Consultants are of greatest value to a firm that knows exactly what it wants. For this reason, and because private consultants are expensive, it pays to take full advantage of publicly funded sources of advice before hiring a consultant.

MEASUREMENT SIZES OF 40' REFRIGERATED CONTAINER

In this post, we explain about 40’ Refrigerated container which includes inner measurement and door opening measurement of 40’ Refrigerated container, volume capacity, tare weight and loading capacity of 40’ Refrigerated container.

    

What is the dimension of a 40’Refrigerated container?

What are the inner dimensions of a 40’ Refrigerated container (Interior dimension of a 40’ Refrigerated container)?

The inner measurement of 40’ Refrigerated container in millimeter, meter, and feet)

Length = 11679mm   (11.679meter or 38’ 4’’ or 38 feet 4inches)
Width = 2286mm  (2.286 meter or 7’ 6” or 7 feet 6 inches)

Height = 2211mm   (2.211 meter or 7’3” or 7 feet 3 inches)

What are the door opening width and door height of a 40’ Refrigerated container in mm, meter and foot?

The door opening width of a 40’ Refrigerated container is 2286mm (2.286meter or 7’6” or 7 feet 6 inches) and door height 2169mm (2.169meter or 7’ 1” or 7 feet 1  inches).

The cubic capacity of a 40’ Refrigerated container?
The cubic capacity of a 40’ Refrigerated container is 2083cuft   (59cu.m)   

  

Tare Weight of a 40’ Refrigerated container?
Tare weight of a 40’ Refrigerated container is 4100kgs   (9039lb)

What is the maximum Gross.weight of a 40’ Refrigerated container?
Maximum Gross.weight of 40’ Refrigerated container is 26380kgs  (58158lbs)

The information on measurement and weight mentioned may vary slightly from one brand owner to another.   Some of the top cargo container owners are NYK, Evergreen, CMA-CGM, Maersk, MSC, Hapag-Lloyd, APL, Cosco, Hanjin, CSCL.  You may reconfirm exact weight, measurement and other details from container owner or their agent.

EXPORT CLEARANCE PROCESS IN GHANA

Export procedures are grouped into two main categories - traditional exports and non-traditional exports.

TRADITIONAL EXPORTS

Commodities that are grouped under Traditional Export are:

• Cocoa Beans
• Logs
• Mineral Ore (e.g. Unprocessed gold)
• Electricity
• Fresh fish
• Fresh yam

N.B. This list could change depending on government policy.

CLEARANCE PROCEDURE FOR TRADITIONAL EXPORTS

1. Obtain Bank of Ghana Exchange Control Form A2 from your bankers
2. Declare your goods and submit to Customs through the GCNet/GCMS
3. Where the Customs point of exit is not connected to the GCNet/GCMS, you have to declare your goods on the Customs Single Administrative Document (SAD) Forms
4. Ensure to attach all relevant/required permits and/or certificates to your declaration to customs
5. After your declaration has been validated or accepted, present your goods to Customs to be examined against your declaration.
6. If Customs is satisfied with the examination, the goods would be released for export.

PROCEDURE FOR EXPORT OF NON-TRADITIONAL EXPORTS:

Commodities that are grouped under Non-Traditional Exports are all commodities outside the Traditional Export List.

• Where GC-Net/GCMS is not operational purchase a set of Ghana Customs Non-Traditional Export Forms at any Customs post. Complete the form (typed or hand-written) and attach all relevant documents, such as invoice (where necessary), permit or certificates; and present to customs for processing.
  Where GC-Net /GCMS is operational, the declaration would be submitted electronically. If the declaration is validated/accepted, the exporter is directed to present his goods to Customs to be examined physically against the documents. If Customs is satisfied with the examination, the goods are released for export.
• The shipper has the discretion to choose a shipping line and based on this preference relevant details on freight costs, transit times etc. provided by the shipping line after which a shipping note is issued upon payment of freight charges.
• Freight forwarder re-enters any additional information through GC-Net and prints out the declaration and heads to the long-room verification desk where a compliance officer is assigned. The compliance officer verifies the declaration and assigns an examination officer. Inspection is conducted at the loading bay by the examinations officer, Narcotics board and national security, after which the container is sealed.
• A waybill from the loading point and a counter waybill are used for port entry and GPHA/CEPS at the export shed are notified. An invoice is raised for the payment of handling charges and rent where applicable by GPHA billing officer. The waybills together with a photocopy of the declaration are submitted to shipping line representatives to check whether the seal and container numbers are the same as those on the shipping note. A shipping release is then issued.
• The shipping line raises a provisional bill of lading after certification by the forwarder or shipper. 72 hours after the vessel's departure the original bill of lading is issued by the shipping line. The forwarder/shipper returns to customs for post-shipment clearance.The original bill of lading is finally released to the shipper
• The procedure may have slight variations with different commodities

EXPORT DUTY

1. In Ghana, the following commodities attract duty:
   • Cocoa Beans
   • Hydrocarbon oils (e.g. Aviation fuel, Turbo, Kerosene)
2. All other exports attract zero (0) % duty

IMPORT CLEARANCE PROCESS AT THE PORTS OF GHANA

Customs clearance of cargo through the seaports involves dealing with a number of logistics service providers and governmental bodies in order to fulfil all contractual and tax obligations that might be associated with the import consignment. The agencies include Customs, the Port, other receipt delivery service providers, Shipping Lines and Agents.

Customs act 2015 act 891 section 43 enjoins all importers with the exception of Self-Declarants to engage the services of licensed Customs House Agents for the clearance of cargo at any freight station in Ghana.

The clearance process comprises;

• Declaration of cargo data on to the GCNET
• Customs Document Verification, System Validation, cargo Classification and Valuation, Risk Assessment and quality assurance, payment of duty, cargo verification.
• Release by the Shipping Agent,
• Delivery by the port and other receipt delivery service providers
• Customs physical examination or scanning of cargo before cargo is allowed to exit the port.

Obtain & submit IDF Form

The importer/agent obtains a complete (IDF) by submitting the suppliers invoice online through the GCNET system. In case the original invoice is not available the importer/agent may submit a pro forma invoice to obtain an incomplete IDF which can only be used to obtain letters of credit from the bank after which the actual commercial invoice, packing list, sea/air waybill or other shipping documents must be submitted to obtain the complete IDF to continue the process.

Document Verification by Customs

The IDF form with the final documents is electronically transmitted to the Customs Pre-Arrival Assessment Reporting (PAAR) System. The documents are reviewed, verified and validated for completeness and accuracy. The Customs Officer Accepts, Rejects or Refers.

System Validation by Customs

If all documents are compliant and accepted, the transaction is moved to the next phase of Valuation and Classification. Else if there are any anomalies detected i.e. Referral or rejection, Customs through PAAR submits a summary of documents online to Importer for "validation/declaration", highlighting the data anomalies.

Importer/Agent reviews documents and data elements and makes amendments Importer/Agent submits final reviewed documentation to Customs through PAAR.

Classification

Classification will be done using the Tariff uploaded in the system. Classification for sea, air and commercial transaction overland will be done at the Ruling Centre in Accra. Classification of new and used cars will also be done at the Ruling Centre.

Valuation

Valuation will be done in the PAAR system utilizing transactional data, however in instances where the price of an item cannot be found in the price database of the PAAR, appropriate documentation of the transaction will be sent to contracted experts for validation of the price of the commodities concerned.

Risk Assessment and quality assurance

PAAR performs a risk assessment on the transaction and automatically assigns risk levels in real-time to consignments with an appropriate level of intervention. Customs performs quality checks and final assessments for PAAR generation. PAAR is generated and relevant reports issued to:

The importer (with a unique barcode for authentication)

• GCNET
• The relevant Government Agencies
• The Scanning System.

Importers need to submit the Final Invoice, Import Declaration Form (IDF), a copy of the Bill of lading (if it is available) and the Packing List (itemizing the value of the packages) on all commercial imports prior to the arrival of cargo to the designated Destination Inspection Company for the preparation of the Customs Classification and Valuation Report (CCVR). The CCVR contains an assessment of the Dutiable Value, Import duty and VAT on the consignment.

Containerised cargo selected for scanning through the Risk Management System is also indicated in the CCVR. Importers of personal effects are required to send the packaging list and bill of lading on their cargo to the Customs long Room for the assessment and valuation on the arrival of the cargo.

Importers of used vehicles are required to fill a manual form and attach their bill of lading, bill of purchase or deed proving that vehicles were acquired legally as well as Chassis number of the vehicle submit to the customs office at the Port to obtain the computation of the value of their vehicles.

Entry Of Cargo Data Onto Gcnet

The Customs House Agent submits a customs declaration on the cargo (from information derived from the various documents) electronically to the GC-Net which is routed to the Ghana Customs Management System (GCMS). When the entry is validated, the GCMS generates and sends a response commonly referred to as a Declaration of the front end of the declarant. The Declaration indicates all the taxes and tariffs that have to be paid for the consignment. In addition, the name of the CEPS officer to verify the declaration at the Compliant Section of customs is indicated in the Declaration.

Payment Of Duty

Upon receipt of the validated Customs Declarations at the front end of the declarant, the declarant prints a hard copy and signs it. The custom house agent submits the signed Customs Declaration and attach all supporting documents like the Bill of Lading, the Invoice, the IDF, the CCVR, the Packing List, an IRS Certificate as well as other relevant permits and documents at either ECOBANK or Ghana Commercial Bank to make payment of the amount indicated in the declaration. Special Bank Receipts are given to custom house agent to acknowledge payment.

Verification

A hard copy of the Declaration, the Bank receipt, and Bill of Lading and all other relevant attaching documents are submitted to the designated Officer at customs Compliance Section for Verification. When no discrepancy is found, the cargo is ruled for immediate release or physical examination pending final release. The message is then sent to the relevant shipping agent to release cargo for the next procedure.

Release Of Cargo

Shipping line agent release of cargo by issuing Delivery Order. The Customs House Agent copies of the Customs Declaration, the Bank receipt, Delivery Order and original Bill of Lading and all other relevant documents to the Receipt Delivery Service Provider for payment of handling and other charges after which the cargo will be positioned for examination and delivery.

If the information on the declaration and what has been physically examined agree, the customs officer would release the cargo on the declaration and electronically send via the GCNet to the GCMS that the cargo is released. After this, a Delivery Tally Sheet or waybill would be issued by the Receipt Delivery Service Provider to enable the cargo to be loaded onto a truck and exit the port. Finally, all clearing documents are presented to Customs at the exit gate to confirm (using the GCNet )if they have released cargo and copies of waybill (DTS) to GPHA Security and Police detailed at the gate to inspect and allow exit as appropriate.