For beginners in cross-border ocean shipping, the following Weefreight shares some commonly misleading industry terms and related pitfalls that are worth your careful consideration.
SI Cut-off: This refers to the deadline for submitting bill of lading information, such as consignee and cargo information, to the shipping company. Bill of lading information is difficult to modify after submission, and incorrect entries may result in a bill of lading correction fee. Therefore, carefully review the bill of lading information before the cut-off to avoid additional costs.
CY Cut-off: Also known as the container load cut-off, this is the deadline for containers to be delivered to the terminal yard. If this time is exceeded, the cargo cannot enter the terminal yard, which will affect loading. Therefore, it is important to monitor the loading and return schedule during shipment and ensure that the cargo is delivered to the terminal before the cut-off.
Closing Time: This is the deadline for the shipping company to accept the customs release document. Customs clearance must be completed by this time; otherwise, the cargo will not be allowed onto the vessel. Please note that the customs clearance time differs from the sailing time, and is usually 1 to 3 days prior to the sailing date.
Customs Declaration: This is the legal process by which exporters submit cargo information to customs. This requires preparing documents such as the packing list, invoice, and customs declaration. It is also important to be aware of the destination country’s policies, such as EU CE certification and US FDA approval, to avoid customs clearance delays due to non-compliance.
Customs Clearance: Customs conducts a series of procedures, including document review, cargo inspection, and tax collection and release. Customs will only release cargo after confirming that it meets entry or exit requirements. Slow customs clearance isn’t necessarily a problem with customs; it could also be due to incomplete customs declaration information or the freight forwarder’s failure to pay taxes on time.
Customs Closure: This is the process by which customs records release documents and shipping information after goods are loaded onto a vessel. It’s a prerequisite for export tax rebates and foreign exchange verification. It’s usually completed about a week after the goods are exported. If there’s a problem with the tax refund process, you can first check whether the goods have cleared customs.
Customs Clearance: Customs clearance is a broad term encompassing all steps, including declaration, inspection, tax collection, release, and verification. Customs clearance is considered complete only after processing trade verification is completed.
Volumetric Weight: Ocean freight is often charged based on the greater of volumetric weight and actual weight. Some freight forwarders may offer seemingly cheap quotes, but if the volumetric weight exceeds the actual weight, the freight rate will increase significantly. New customers should clarify the billing weight calculation method with their freight forwarder in advance to avoid misunderstandings and incurring high freight charges.
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