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A freight forwarder (also known as a freight forwarder, delivery agent, or receiving agent) plays a key role in international trade by helping customers in one country buy goods from sellers in another country. Intermediaries take on tasks related to logistics, customs clearance, and delivery of goods. Let's look at how such a company works and what steps the process involves.
Answer: An intermediary company helps customers buy goods from another country by organizing delivery, customs clearance and warehousing services. The customer sends the goods to the intermediary's warehouse, which then delivers them to the destination country. This is a convenient way to buy internationally, but it is important to choose trusted intermediaries and take into account additional costs.
1. Main functions of the intermediary company
The intermediary company performs the following tasks:A. Delivery organization
- Coordinates the transportation of goods from the seller to the client.
- Uses various modes of transport: air transport, sea transport, rail or road freight transport.
B. Customs clearance
- Prepares documents for customs clearance.
- Pays customs duties and taxes on behalf of the client.
- Ensures that goods comply with the requirements of the destination country.
C. Warehousing services
- Provides temporary storage of goods in warehouses.
- Packs, labels or consolidates cargo.
D. Legal support
- Helps resolve disputes between the customer and the seller.
- Provides advice on international trade regulations (e.g. Incoterms).
E. Financial Services
- May act as a guarantor of payment (for example, through a letter of credit).
- Provides cargo insurance services.
2. Stages of working with an intermediary company
A. Registration and selection of an intermediary
- The client chooses a reliable intermediary by checking its reputation, licenses and reviews.
- An agreement is concluded, which describes the terms of cooperation, the cost of services and the responsibilities of the parties.
B. Purchase of goods
- The customer finds a seller (for example, on Amazon, eBay, or directly from the manufacturer) and places an order.
- Instead of sending the product directly to the customer, the seller sends it to the address of an intermediary.
C. Receipt of goods by the intermediary
- The goods are delivered to the warehouse of the intermediary company in the seller's country.
- The intermediary checks the goods for compliance with the order (for example, quantity, quality, completeness).
D. Cargo consolidation
- If a customer orders several items from different sellers, the intermediary can combine them into one shipment to save on shipping.
- The cargo is packed and labeled for further shipment.
E. Customs clearance
- The intermediary prepares documents for export from the seller's country and import into the client's country.
- Documents may include:
- Invoice (bill).
- Packing list.
- Certificates of origin.
- Permits (if the product requires special regulation).
F. Delivery of goods
- The cargo is sent by the selected method (air, sea, rail or road).
- The intermediary tracks the movement of the cargo and informs the client about the delivery status.
G. Receipt of goods by the customer
- After the goods arrive in the destination country, the intermediary will arrange customs clearance and delivery to the customer's address.
- The client pays for the services of the intermediary, as well as customs duties and taxes.
3. How does a broker make money?
Intermediary companies typically charge a fee for their services. The cost may include:- Order Processing Fee: Fixed amount for each order.
- Warehousing services: Fee for storing goods in a warehouse.
- Logistics costs: Cost of transporting cargo.
- Customs duties: Fees for paperwork and payment of taxes.
- Additional services: Insurance, repackaging, consolidation.
4. Advantages of working with an intermediary company
A. For the client
- The ability to buy goods from foreign sellers without having your own address in that country.
- Saving time and effort on organizing delivery and customs clearance.
- Protection from fraudsters (the intermediary checks the goods before sending).
- Access to professional services (logistics, insurance, legal support).
B. For the seller
- The seller sends the goods to the local address of the intermediary, which simplifies logistics.
- There is no need to work directly with international clients.
5. Example of working with an intermediary
- Customer Finds Product: On Amazon.com, a customer finds a product that costs $100.
- Order through an intermediary: The customer places an order, indicating the address of the intermediary's warehouse in the USA.
- Receipt of goods by the intermediary: The seller sends the goods to the intermediary's warehouse.
- Consolidation: If a customer orders more items, the broker combines them into one shipment.
- Delivery: The cargo is sent to the customer's country (for example, Russia) by air transport.
- Customs: The intermediary prepares customs documents and pays taxes.
- Customer pick-up: The customer picks up the goods from the pick-up point or receives them by courier.
6. Risks and Warnings
A. Fraud
- Some intermediaries may be unscrupulous. It is important to choose trusted companies.
- Make sure the broker is licensed and has positive reviews.
B. Additional costs
- Customs duties, taxes and fees may increase the total cost of your order.
- Clarify all possible costs in advance.
C. Delays
- International shipments may be delayed due to weather conditions, holidays or document issues.
7. Conclusion
An intermediary company is an important partner for those who want to buy goods from abroad. It takes on complex tasks such as logistics, customs clearance and delivery, allowing the client to focus only on choosing the goods. To avoid problems, choose reliable intermediaries, carefully study the terms of cooperation and take into account all possible costs.Answer: An intermediary company helps customers buy goods from another country by organizing delivery, customs clearance and warehousing services. The customer sends the goods to the intermediary's warehouse, which then delivers them to the destination country. This is a convenient way to buy internationally, but it is important to choose trusted intermediaries and take into account additional costs.