Who is a Customs Clearing & Freight Forwarding Agent?

Derrickson Systems Limited is a licensed clearing/customs and freight forwarding agent company in Kenya. Freight Forwarders and Clearing/Customs Agents play very important roles in the supply chain.

Freight Forwarder's Role in the Supply Chain

Traditionally the Freight Forwarder's role has been confined to arranging transport and preparing documentation as an agent of the shipper (importer or exporter depending on the INCOTERM).

With new developments, the roles of the freight forwarder have drastically changed due to containerization and multimodal transportation. Instead of acting as an intermediary only, some become transport operators offering container services, as well as multimodal inland and international transportation. We know them now as non-vessel operation common carriers (NVOCCs) and can issue transport documents.

The Freight Forwarder can therefore fulfill one or more of the below services:

1. Act as a shipper's agent arranging transport services and preparing documentation
2. Act as a transport specialist advising shipper on the most cost-efficient and best means of transport
3. Act as a multimodal transport operator (MTO), becoming the principal transport operator with direct contractual responsibility for carriage of goods door to door
4. Act as a specialist service provider in packaging, container packing/unpacking, customs clearances, and raising marine insurance claims

Clearing/Customs Agent's Role

Clearing/customs agents act on behalf of the shipper (importer or exporter depending on the INCO Terms) and arrange for the customs clearances of goods at the customs entry or exit points.

Their main roles include but are not limited to:

1. Determining the correct harmonized system tariff codes (HS CODE) of goods for customs duties
2. Valuing goods in accordance with the East African Community Customs Management Act (EACCMA) and calculating import duties and taxes payable. IntradeIQ Duty Calculator
3. Facilitating clearance of goods through all relevant government agencies and ensuring all necessary documents are prepared and availed on time
4. Facilitating remittance of taxes to the relevant Customs Authorities
5. Facilitating physical customs verification of cargo with relevant government agencies

After cargo is cleared for release to the owners, or for shipping, various processes need to be followed:

• Air freight — Draw cargo from ground handling agents and deliver to consignee
• LCL (less than container load) — Goods collected from specialized customs licensed warehouses and delivered
• FCL (full container load) — Release notice/delivery order arranged depending on the shipping line depot and transport agreement
• Road freight — All depends on the INCO terms and limitations of the vehicle/site

Before you proceed to engage a freight forwarder or a clearing agent, ask all the relevant questions to ensure that all your requirements are met to the letter.

Derrickson Systems Limited is a licensed clearing/customs and freight forwarding agent company. Contact George at +254722478121 or email info@derricksonsystems.co.ke to book a meeting and discuss your specific needs.