What is a Freight Forwarder?
When a company decides to export or import, it encounters a variety of processes to get the product to the customer. The freight forwarder acts as an intermediary between the client who hires him and the various transportation and logistics services that are involved in getting the cargo to its destination.
 
A forwarder usually researches and plans the best route, costs and transit times according to the goods to be transported, negotiates contracts with carriers, provides necessary documents for transportation, arranges payments and requirements for cargo release, always maintaining communication and control throughout the cargo’s journey and advises the customer.
 
A forwarder establishes relationships with its service providers, to negotiate the best price, best route, resulting in better profitability by improving cost and time. Just as a travel agent takes care of the entire plan, forwarders take care of every detail to deliver the cargo.
 
There are many companies that can handle the transportation part, however, the forwarder has to take into consideration that every cargo is different, depending on the product to be transported, and how important are variables such as delivery times, costs, complexity of cargo handling, security and delivery requirements.
What does the term FCL mean?

Full container load. Full container load with goods from a single shipper. The indication of the acronym FCL-FCL on the shipping documentation reflects that the container is filled in its entirety in the warehouse of an exporter and emptied in its entirety in the warehouse of an importer.

What does the term LCL mean?
Less Container Load (LCL) is a shipment that shares container space with other customers.
 
With the LCL container, you only pay for the shared container space. If your cargo does not fill the total container space, shipping goods in an LCL container is a more reasonable and convenient option available at this time.
What are the differences between FCL and LCL?

Full container load, or FCL, and less-than-container load, or LCL, are the terms used to refer to ocean freight transportation. Abbreviations are used to substitute, for example: freight transportation by rail, substitutes the word “car” for “container. “FCL and LCL are different in themselves, as in definition and transportation.

What are the common uses of LCL?

When using LCL shipping services, you do not need to worry about returning the container after delivery of the goods. Because the container was shared, and the handling of the return is a responsibility of the company in charge of performing the container shipping services. Shippers who ship an LCL container need to worry only about the cargo being shipped and nothing else.

How do I become IMO compliant for my hazardous cargo?
Transporting dangerous goods requires additional responsibilities, documentation, reporting, identification, packaging, marking, placarding and training.
 
Shippers of dangerous cargo are responsible for:
 
  • Determining if their material meets the definition of “hazardous material.”
  • Proper shipping name
  • Class/Division
  • Identification number
  • Hazard Warning Label
  • Packaging
  • Marking
  • Employee Training
  • Shipping documents
  • Emergency Response Information
  • Emergency response phone number
  • Certification
  • Compatibility
  • Locking and bracing
  • Signage
  • Safety tray
  • Incident Reporting
  •  
Hazardous materials are divided into nine classes, depending on the nature of the product. Below is a listing of the hazardous material classes:
 
Class 1: Explosives
 
Class 2: Gases
 
Class 3: Flammable Liquids
 
Class 4: Flammable Solids
 
Class 5: Oxidizers and Organic Peroxides
 
Class 6: Poisonous (Toxic) and Infectious Materials
 
Class 7: Radioactive materials
 
Class 8: Corrosives
 
Class 9: Miscellaneous Hazardous Materials
 
It is also important to note that there are products that you may not be aware of that are considered hazardous products. For example, food shipped with dry ice is technically hazardous cargo. In addition, certain batteries and household items (hair spray) may be classified as dangerous goods.
 
Various organizations regulate the transportation of dangerous goods depending on the mode of transport. The International Air Transport Association (IATA) regulates the transport of dangerous air cargo. However, dangerous sea cargo is regulated by the International Maritime Organization (IMO).
 
In addition, there are usually special fees associated with the transport and handling of hazardous cargo. Carriers, terminals, ports, warehouses, storage facilities, screening sites, insurance companies and freight forwarders may charge additional fees for dangerous goods.
 
The regulation of dangerous cargo varies depending on the mode of transport. Air transport is the most restrictive mode, as there are certain classes that are completely prohibited from traveling by air. There are also particular classes that can only be transported on cargo flights. In addition, there are certain ocean carriers and shipping companies that do not handle dangerous cargo.
Can the documentation I submit to SENAE customs be copies?

For customs only original documents may be presented and must be delivered for safekeeping to the Customs Agency carrying out the procedure.

What is DAV and why should I sign this document?

This document is the Andean Declaration of Value; declaration of fidelity of the importer, by which he attests that the declared values are the real ones. This document is required physically at the customs office or by means of authorization to the customs agent through the ECUAPASS computer system to be signed electronically by the agent.

How much time does Customs have to conduct a subsequent review?

The statute of limitations expires after five years, as it is a public entity.

What are the general taxes and duties paid on imported products?

Ad-valorem, Safeguard, VAT 12%, FODINFA 0.5%. Some goods pay ICE and mixed or specific tariff.

Are there any import restrictions on my goods? What are the general taxes and duties that imported products pay?

Ad-valorem, Safeguard, VAT 12%, FODINFA 0.5%. Some goods pay ICE and mixed or specific tariff.

In case of subsequent SENAE control, do I have to present all the documentation?

A carefully elaborated folder must be prepared with all the required documentation, following exactly what is requested.

What information do I need to provide for an international freight quote?

Gross weight of the load in KG. Dimensions in cubic meters or dimensions in centimeters height X width X length. Country of importation. Port, airport or border of cargo loading. Destination Port, airport or border of cargo unloading. Place of delivery of the cargo abroad. Route by which you wish to quote (sea, air or land). If by sea, please confirm if the cargo is to be containerized.

What is the cost of insuring all risks cargo?

The average percentage is 0.48% of the cost of the goods FOB + international freight plus taxes. This percentage may vary due to the risks of the cargo in the event of a loss.

Can I import restricted goods?

If they can be imported, it is only necessary to comply with the control document. These types of goods are not classified as prohibited imports (e.g. used clothing).

Equipment Measurements

IMAGE on container sizes and types of containers

You can review the Customs Glossary by clicking here.

Customs Glossary

Main Objective
To achieve an optimal performance in all logistic operations required by our clients, believing in constant improvement and our contribution to the efficiency and effectiveness of Ecuadorian companies.

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