Essential services of Clearing and Forwarding Agents in India


Essential services of Clearing and Forwarding Agents in India


Essential services of Clearing and Forwarding Agents in IndiaThe services they provide can be classified into essential and optional services.


The following are some of the services provided by all Clearing and Forwarding Agents.

1. Warehousing before Transportation

Soon after the goods are manufactured and are ready for shipping, warehousing facility for goods is made available before they are transported to the docks/port.

2. Local Transportation

When clearance is received from Port, goods are transported to the docks and warehoused in the port.

3. Container Arrangement

Movement through containers has been gaining popularity to facilitate export goods reach in the original condition, they are sent. In case of need, this service is provided.

4. Reservation of Shipping Space

Unless shipping space is finalized, there is no guarantee about the shipment of goods. C & F agent books the shipping space contacting the agents of the shipping company, alternatively, making arrangements for air- freighting.

5. Selection of Mode of Transport

Mode of transport is a matter of negotiation between the exporter and importer, invariably, incorporated in the contract. Either exporter or importer arranges transportation, depending on price terms. C & F agent provides information about different shipping lines/ air lines and guides on the selection of route, optimal from the standpoint of delivery date and distribution costs. Delivery of goods as agreed upon is one of the conditions on which success in exports depends. As transportation cost occupies a significant place in total cost structure, services of clearing agents are highly valuable in managing timely delivery, containing costs to achieve sales and profit goals for exporter.

6. Packing, Marking and labelling

Goods are packed, marked and labelled so that goods are ready for inspection and pre-shipment. These services are also provided by shipping agents, depending upon the requirement.

 7. Completing Customs and Port formalities

Clearing agents prepare the shipping documents to the requirements of customs procedures. Necessary port formalities are complied with, in time, to avoid delays in shipment of goods.

8. Cargo Insurance

Necessary marine/cargo insurance is made as per the terms of contract. Risk coverage in insurance policy has to be earlier to the date of shipment of goods.

9. Advising Exporters on Trade Lows

They are experts in the field as they deal continuously. They are abreast of the changes in the regulation and trade practices of foreign countries. Exporters can get benefit of their advice.

10. Educating Exporters

Clearing agents educate exporters in respect of developments in transport and changing options available to them to explore, new markets that are earlier remote or inaccessible.

I I. Coordination with other Agencies

Clearing agents arrange to procure certificates or endorsements from different agencies, required for shipment of goods. To illustrate, where necessary, certificate of origin is procured by them from the local Chamber of Commerce.

12. Procuring Documents

Finally, clearing agent procures documents like Bill of Lading and makes the available to the exporters for negotiation with the bank.


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