Difference between clearing and forwarding and Custom Clearance

The difference between clearing and forwarding and Custom Clearance might not be too obvious to a lot of persons.

This article will point out the differences between clearing and forwarding and custom clearance as well as the difference between clearing and forwarding agent and custom clearance agent.

If you are looking at shipping a large number of goods from one point to another, the first thing you need to think about is how your shipping line will work.

The logistics of your shipping service is an important asset in your business.

The key agents in your supply chain are freight forwarders and clearing agents.

In the simplest terms, a freight forwarder also known as a clearing and forwarding agent manages the motion of your cargo from point A to point B as well as manages your shipment’s journey from the manufacturer to the warehouse or fulfillment center.

A Custom clearing agent ensures legal and comfortable passage through border agencies, negotiating with local customs authorities and managing customs inspections.

Sometimes a freight forwarder will take charge of the customs clearance aspect of a shipping line, but most of the time, these two positions separate.

They have unique responsibilities and, if you’re involved in the movement of large shipments of goods overseas or across borders, you need to know the differences between them.


Duties Of a Clearing and Forwarding agent/ Freight Forwarder


A clearing and forwarding agent perform the following:

Has experience in all forms of cargo transportation – air, ocean, road, and rail

provides cost-effective transportation of your goods

Negotiation of the freight rates with shipping lines

provision of storage for the cargoes

delivery of shipments according to the client’s specifications

Prompt provision of bill of lading to the client

Arrange the distribution or “forwarding” of the cargo following the instructions of the client

book cargo with the shipping line following the requirement of the client or under their own contract

process all relevant shipping documents such as certificates of origin, customs and port documentation, bills of lading and associated shipping/negotiating documentation (Eur1, Certificate of Origin, etc)

have a thorough knowledge of over border cargo movement

acts as a carrier in cases where they issue house bill of lading

Duties of a custom Clearance Agent.

organizes the relevant documentation for crossing borders and entering and leaving countries with cargoes

understands duty and VAT charges when importing goods into a country

does not negotiate pricing with shipping companies,

can be designated by the freight forwarder or by the importer or exporter

arranges to pass the relevant documents at customs

has in-depth knowledge of the HS Codes, the calculation of Duty and VAT

organises payment on the duty and VAT applicable

assists customers with duty drawback etc

does not issue own bills of lading in their capacity as a clearing agent

compared to a freight forwarder, a clearing agent is more specific to the country where they are based, as they deal directly and extensively with the local customs authorities and are acquainted with the local requirements.

Best Clearing and Forwarding Agent/ Custom Clearance Agent

In the import/export business, timely arrivals of the correct quantity of goods are paramount to your company’s success.

Two bodies that can make or break the equilibrium of your shipping lines are a freight forwarder and a clearing agent.

At King Shipping Trading Maritime Services, we manage your freight supply chain and shipping process, from shipping to customs to storage.

We are a clearing and forwarding/ Custom Clearing company accredited with the local customs authorities, border agencies, port, etc

We offer clearing and forwarding services as well as custom clearing services in Nigeria, Cotonou, and Togo Ports.

At King Shipping, we have highly professional staff of shipping experts that can handle the logistics of your supply line.

For more information on clearing and forwarding of cargo, contact +2348167069828.

for more information on customs clearance see HERE





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