Things to know before Importing goods by sea
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Importing goods by sea is one of the most popular import channels for e-commerce businesses due to its cost-effectiveness and ability to transport large volumes of goods. However, each sea import shipment involves several steps, such as customs clearance, document processing, and operational management. Any errors in these processes can lead to shipping delays and potential business losses.
To help everyone better understand sea freight imports, we will explore the key steps involved, what information is required, and how to manage each step effectively to ensure smooth logistics for your business.
What is Sea Freight Import?
Sea freight import refers to the transportation and importation of goods via sea. Goods are shipped aboard cargo vessels that travel from the exporter’s country to the importer’s destination. Most sea freight shipments are containerized and can be categorized into two types:
Full Container Load (FCL)
FCL refers to a shipment where an entire container is used by a single owner. The advantages of FCL include faster customs clearance, easier handling upon arrival at the port, and better security for the goods. Logistics. This method is ideal for large shipments or businesses handling high volumes of goods.
Less Than Container Load (LCL)
LCL shipments share container space with other shippers. Goods are consolidated with other cargo inside the container, often secured with pallets and stretch film. LCL shipping is more cost-effective than FCL but may involve longer processing times due to shared customs clearance and increased risks of damage.
Sea freight import involves various customs procedures to ensure that the imported goods comply with international and domestic regulations.
Steps in Sea Freight Import
1. Transporting Goods to the Port of Origin
Once negotiations with foreign suppliers are complete, the exporter prepares the goods and necessary documents for export. They coordinate with a freight forwarder or shipping agent to book space on a cargo vessel from the port of origin to the importer’s destination.
Upon booking, the exporter receives a Booking Confirmation (also known as a “Booking Note”) from the freight forwarder or shipping agent. This document contains details such as cargo dimensions, container size, ports of origin and destination, and estimated departure and arrival times. Once received, the exporter delivers the prepared goods to the port for the next stage of the import process.
2. Export Customs Clearance
Before goods can be loaded onto a vessel, they must undergo export customs clearance. This process verifies and authorizes the shipment according to regulations. Exporters can complete this process independently or through a customs broker. The required documents generally include:
- Export declaration (original and copy)
- Commercial invoice (two copies)
- Packing list
- Export permits or other documents as required by customs, such as insurance certificates
As customs procedures and required documents vary by country, it is advisable to consult with the relevant customs authorities to ensure compliance.
3. Managing Charges at Each Port
Once goods arrive at the port of origin, the shipping line loads the containers onto the vessel and issues a Bill of Lading (B/L) to the exporter. This document serves as proof of shipment and is required for further processing.
When the goods reach the port of destination, the importer contacts the shipping line to settle destination charges and obtain a Delivery Order (DO), which allows them to clear the goods through customs.
4. Import Customs Clearance
Once goods arrive in the destination country, the importer must complete customs clearance to ensure compliance with local regulations. In Thailand, the required documents include:
- Import declaration (original and copies)
- Delivery Order (DO)
- Commercial invoice
- Packing list
- Bill of Lading (B/L)
- Insurance Premium Invoice
- Import permits or approval documents for restricted goods
- Certificate of Origin (if applying for tariff reduction)
- Additional documents such as catalogs or ingredient lists
5. Transporting Goods to the Warehouse
Once customs clearance is completed and import duties are paid, the importer arranges for transportation. Forklifts are often used to unload goods into warehouses, where they are inspected and officially received.
UPR (Thailand) Co., Ltd. provides pallet rental/sales, pallet racks, pallet management systems, and logistics equipment with advanced technology.
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