5. Forwarding

Forwarding is a very complicated thing. A reliable freight forwarder is a key link between the Shipper and the Consignee especially in the foreign commerce. Close cooperation of the Shipper and the Forwarding agent not only provides a prompt delivery of the goods to the Consignee without any extra costs but can also be a long-way in developing long-term relationships with customers. The Forwarding agent should not only be able to solve problems arising with cargoes at ports of destination but to transport them rapidly using seatransport railway and road transport (multi-modal forwarding). The freight forwarder can base either in the importer's country or in the country of the final destination. It is necessary to have a constant communication with the forwarding agent in order to maintain control over the transportation of goods.

Each shipment should be provided with all documentation. It should be accompanied by a B/L or a waybill, a commercial invoice, a certificate of origin and certificate of safety for a number of commodities.

Terms of delivery and the value of goods should be clearly shown in the commercial invoice. An additional certification may be required for some commodities. The certificate of safety is required for all imports. It is required in Russia to certify such cargoes as food and pharmaceuticals by the Russian Ministry of health and the Russian Veterinary section. The final consignees, their full addresses, phone and fax numbers should be clearly shown on the waybills. The shipping of hazardous cargoes requires special attention. It is best to wait till the FA gives his "all right" for such shipments after he has made sure that all documentation for them is in perfect order. Otherwise hazardous goods can be seized.

Since the January 1997 Russian importers should register their contracts with a Russian bank and obtain a document called "the import passport" that confirms the fact that the Importer has made payment for the import by contract through a Russian bank.

The Importer should make a deposit to obtain a temporary customs clearance for goods at the port of entry if it is not the final destination. The final customs clearance takes place at the final destination once cargo is presented to the customs to be inspected. Customs may be cleared and duties paid at the port of entry as well. To clear at the port of entry the Importer must be registered with the Customs of this port in order to effect bank transfers to the Customs.

Forwarders or (freight) forwarding agents are used by exporters to arrange both import and export shipments. Their services include collecting the consignment, arranging shipment and, if required, packing and handling all documentation, including making out the Bill of Lading, obtaining insurance, sending commercial invoices and paying the shipping company for their clients. They also inform the importer's forwarding agent that the shipment is on its way by sending an advice note and he, hi turn, will inform his client, send the goods on to him, arrange for the goods to be stored, until collected. Many forwarding agents in importing countries also act as clearing agents, ensuring that the goods are cleared through the customs and are sent to the importer.

As forwarding agents handle many shipments, they can collect consignments for the same destination and get competitive groupage rates for sending a lot of consignments in one shipment. However, many exporters find it more convenient to deal direct with the forwarding agents in the importer's country, and some importers prefer to deal with their supplier's forwarding agent.