The information provided here is part of Import Export online Training
After going through many articles in different books and electronic search engines, I could not get a satisfactory explanation about the subject ‘Transhipment’ at global point of view. Most of the information about transhipment is partial used at their own practice based on their act of business or services.
Let me re-define ‘Transhipment’ (transshipment) as below in a globalized scenario:
“The transhipment’ (transshipment) means the shipment of off-loading of goods from one location and loading to another (or one country to another) and from one carrier to another by mode of air, sea, road, either of two, or of all” .
So a Transhipment could be from a vessel to another vessel, one air craft to another aircraft, a vessel to an air craft, an air craft to a vessel, a road carrier to a vessel, a vessel to a road carrier, an aircraft to a road carrier, a road carrier to an aircraft or a road carrier to another road carrier or by means of all of them. However, the term ‘transhipment’ is widely used international trade by air and sea.
Why transhipment? What are the reasons for transhipment (transshipment)?
Transshipment can be for various reasons. However major reasons for transhipment are as follows:
When the distance of movement of goods from one place to another is very far, the single service of one carrier to move goods from the origin to final destination may not be possible in most of the cases. The owner of carrier would be one for movement of goods from its origin to final destination, although the carrier changes at a transhipment location or locations.
If a shipment is on less container load (LCL) basis, a transhipment is effected for the purpose of consolidation by dividing large shipment to small and small shipments to large by deconsolidating at transhipment hubs.
Another major reason for trans-loading is to change the means of transport.
If a cargo is stored in a customs bonded area where in import duty was not been paid by the importer, transhipment procedures are followed to export such dutiable imported goods to export to other country without paying import duty under the physical supervision of customs authorities of respective country. These formalities are also known as transhipment procedures under Customs Act of various countries. For example in India, section 54 of Indian customs Act explains about transhipment procedures as explained above.
Do you have different thought on Transshipment (transhipment) procedures and formalities? Write below.
The above information is a part of Export Import Training course online
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