7 expert tips to avoid additional costs for your import shipments.

1. Accurate Documentation

One of the most common causes of delays and extra charges in ocean freight imports is incorrect or incomplete documentation. Any errors and inaccuracies in shipping documentation has the potential to immediately lead to delays, penalties, and other avoidable charges.

You need to ensure that you and the service providers that you use (freight forwarders, clearing agents, truckers etc) have all the necessary and accurate information about the shipment cargo description, values, origin, etc. It would also be prudent to also verify the details in the documents that are sent, so that errors can be avoided.

2. Know the Duties and Taxes

An important factor that affects shipping costs are the duties and taxes you may have to pay for the goods imported. While some goods are dutiable, some goods may have preferential duties and taxes based on product, origin and free trade agreements that are in place.

It would be in your best interest to be aware of the applicable duties and taxies for your products in the destination country and use various tariff classification services to determine the duties that may be owed to the authorities. This helps a great deal in avoiding disputes and delays with customs officials which could result in additional costs that are total avoidable.

3. Select the correct Incoterms®

The Incoterms® rules are a set of internationally recognized and accepted global standards used worldwide in international and domestic contracts for the sale of goods, designed to clarify tasks, responsibilities, costs, and risks involved in the delivery of goods from sellers to buyers. Choosing the right Incoterms® for your shipment is essential to avoid confusion and unexpected costs related to freight, insurance, and other charges.

You should know and understand the meaning and implications of each Incoterms rules and select the one that best suits your needs and requirements. More often than not, several disputes especially relating to costs are a result of the incorrect Incoterms rules chosen by the buyer and/or seller.

4. Choosing the right container and optimization

Another area where many customers leave money on the table is in the usage of incorrect container type and also the optimization of the space in the shipping container.

There are several types of containers used in global trade and it is important to understand the differences in each container type and what it can and should be used for.

Optimize the usage of space in the containers wisely as both overloading and underloading the container can result in higher shipping costs per unit or damages to the container and/or goods. Your logistics service provider should be able to provide a plan to optimize container loads.

5. Cover yourself

Many consider insurance as a grudge purchase, but you need to be aware of the nature and types of damages which happen and the quantum of losses you can be exposed to if sufficient and correct insurance is not taken for the movement of their goods.