FAQ

FAQ

Frequently Asked Questions

  • What is a customs broker? How does it differ from a freight forwarder?

    • Customs Brokers are professionals who are skilled in representing both importers and exporters in clearing their goods through Customs. Customs Brokers are normally employed in Freight Forwarding companies.

  • What functions can I expect from my Freight Forwarder?

    • A Freight Forwarder is a transporter of consolidated or single consignment freight through airlines or shipping lines. They supply shippers and consignees with advice on the most cost-effective method of moving cargo and they provide advice about import regulations and requirements in destination countries. Freight Forwarders provide cartage and pickup from the shippers’ premises for exports, and deliver to consignee’s premises for imports. For export shipments they prepare export documentation and liaise with overseas agents and suppliers to ensure freight moves correctly and arrives on time.

  • Why should I use a Customs Broker or Freight Forwarder?

    • Reduce Costs. Clearing goods through Customs requires knowledge of tariff classification, duty rates and other related charges. Prior to importation Customs Brokers can advise on these matters as well as freight charges to assist in determining an estimate of the probable landed cost. They can also arrange for the early receipt of shipping documentation. Many unnecessary expenses arise simply because shipments are arranged without prior consultation on these matters.

      Minimise Duty. Imported goods, for which there is no locally manufactured equivalent, may qualify for duty concessions. Custom Brokers are familiar with duty concession policies and procedures.

      Prepare export documentation. Export documentation should be accurately prepared to the exact requirements of the overseas importer. Customs Brokers and Freight Forwarders are conversant with documentation requirements of overseas markets.

      Select and arrange the best method of transport. Customs Brokers and Freight Forwarders are in daily contact with a wide range of freight services and can advise on the best methods of shipping imports and exports, sea freight and air freight at most competitive rates. Likewise they can provide or arrange cartage services to and from the wharves and airports.

  • What are Inco terms?

  • I’m new to exporting and importing …. HELP!

    • Importing and Exporting isn’t a mine field but there are more considerations that you need to take into account than when you are selling your goods domestically.
      Once you have some interest from overseas buyers in your goods or you have found product you wish to import there are some considerations before you pack your goods and put them on a plane or ship.
      • Transportation and costs – talk to your freight forwarder about your product, how it will be packed and quantities you are wanting to have sent. They will be able to advise on transport methods, delivery times and provide you with costs of international transport which you will need to factor into your sale price.
      • Time frame – Work out how long it will take to produce the order and the transit time to get the shipment to the final destination
      • Shipping terms – Before looking into freight options make sure it’s clear between you and your buyer/seller what the shipping / INCO terms are.
      • Take a small step before taking the world by storm. Check on import and export regulations and consider market that we have Free Trade Agreements with and this will make your price point more attractive.
      There may be a number of requirements you need to follow for the goods to clear customs at home or in your targeted country.
      • Customs Client Code – All export and import shipments will need to have an import or export entry completed before coming into or leaving the country. This will require a customs client code, apply for this through your freight forwarder.
      • Packing – If you are moving goods on pallets or in crates ensure that the wood is treated ISPM15 to avoid any fumigation cost or customs holds at destination. Ensure the correct labelling is used on your freight package as well as the product itself. Make sure the packing list provided explains what your product is clearly
      • Commercial Invoice – It specifies the supplier and buyer’s details, a detailed description of the goods and the commercial value. The quality of this information is vital to ensure the goods clear customs at destination
      The New Zealand Trade Enterprises (NZTE) website has detailed information to help first time exporters and importers or please just give us a call.

    • Documentation Required

    Every freight transaction generates quite a bit of paperwork and below you will find some types of documentation that you will regularly come across.

    Shipper’s Letter of Instruction: The Shipper’s Letter of Instruction is a form the Shipper partly fills in, instructing the Freight Forwarder how and where to send the export shipment. In preparing this form, the Shipper fills in most of the information required by the Freight Forwarder to make a booking & complete export documentation including consignee, package details etc and the Freight Forwarder will complete the rest.

    Commercial Invoice: This is the ‘charge’ document, containing details of the seller, buyer, goods, price & terms of trade.

    Bill of Lading (B/L): This is issued by or for the shipping company (Ocean Bill of Lading), or the freight forwarder (House Bill of Lading), in the country of export and serves as a receipt for goods uplifted for shipment.

    Airway Bill (AWB): The AWB is equivalent to a bill of lading for goods sent by air. In addition, courier companies often have their own documentation, unique to that transaction, which travels with the goods.

    Certificate of Origin: The origin of goods may have a direct bearing on the rate of Customs duty. Certificate of Origin may be incorporated in the commercial invoice, but a separate document, issued or countersigned by the Chamber of Commerce in the country of origin may be necessary.

    Packing Slip: The packing slip includes the weight and measurement of each item on the commercial invoice but shows no value on it. These weights and measurements may be needed to complete Customs clearance.

    Restricted Items & Biosecurity

    There are restricted items that require permits from various government agencies – Click here for the official list from NZ Customs.

    There are also goods that are prohibited or restricted – Click here for the official list from NZ Customs.

    New Zealand has a bio-security Service that keeps out diseases and unwanted pests. All containers imported to New Zealand are inspected at the time of unloading. The type of packaging used for all LCL, FCL and airfreight shipments are inspected. There are restrictions on the importation of food, animal products, plants and other similar items of this nature. Click here for more information from Biosecurity NZ.
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