RORO CLEARING LOGISTICS 1!

RORO Clearing Logistics 1
SUV Shipped as FCL

RORO CLEARING LOGISTICS 1 ‘PROCEDURE’

RORO clearing logistics 1 is the first phase of clearing analysis professionally deployed in order to effectively customs clear roll-on-roll-out shipments from any port or terminal within a country. Categories of these shipments include cars, trucks, plants and other moving vehicles. However, analysis in this section of my post will be focused on the FCL and LCL method of clearing RORO shipments.

The procedures of customs clearing these forms of shipments from any port or terminal are different from the measures deployed in clearing less than container load (LCL), General Cargo and full container load (FCL) shipments. Though, roll-on-roll-out (RORO) shipments could be shipped through any of these ways mentioned.

If a roll-on-roll-out shipment is shipped in any of these forms mentioned above, it implies, a different approach will be deployed for each module. Based on this, we will have to discuss each of these instances, including proper measures deployed for RORO shipments shipped with RORO vessels.

For a clearing agency or an agent to properly execute RORO clearing logistics 1, it’s important he or she understands the conditions and the necessary steps that should be taken, noting the mode of such shipment in order to effectively customs clear such shipment from any port or terminal. Meanwhile, let’s begin.

Once the consignee has delivered the shipment documents to a clearing agency, in this case, the Masters Bill of Lading is mostly used except when such shipment is shipped as less than container load. Firstly, is to figure out the mode of shipment (if it was shipped as FCL, LCL or General Cargo) from the bill of lading document, then the next step is to track the shipment, and in the process of tracking, it is important the clearing agent or agency figure out the port or terminal it will be unloaded and stored in order to avoid unnecessary storage charges or demurrage when shipped as FCL.

After the necessary steps (tracking) regarding where the shipment will be unloaded and stored has been taken, it is also important to note the customs command responsible for that location. And once all these have been figured out prior to the shipment arrival, the clearing agent can then proceed with the documentation process. Meanwhile, let’s analyze each scenario by which roll-on-roll-out shipments could be shipped and customs cleared.

HOW TO CUSTOMS CLEAR RORO SHIPMENTS WHEN IT IS SHIPPED AS FULL CONTAINER LOAD (FCL)

At this point, bear in mind we will only focused on shipment documentation procedures. If a roll-on-roll-out shipment is shipped as full container load, either shipped with a vehicle or multiple vehicles in a container – dependent on the dimension of the container. Customs will treat such shipment as full container load and in the same vein treat the vehicle (car or cars) in that container based on their values and year of production. The clearing agent that is engaged in RORO clearing logistics should also bear in mind – container demurrage.

Once the shipment documents have been submitted to the customs, the value and the year of the vehicle’s production will be figured out from the master bill of lading and the shipment invoice (proforma invoice). For example, if you have a bill of lading with this description – 1×20 container said to contain (STC) a unit of 2016 Toyota Corolla. At this point, the clearing agent has initialized customs documentation, but prior to this, the clearing agent ought to have figured out the shipping company (agent) to be contacted at the port of unloading and the terminal where the container will be stored.

Before the duty charges are issued, customs will practically wait until the shipment has been unloaded and examined. Once the shipment has been unloaded, the agent will have to book for a customs examination, in the process the container will be transferred to examination bay by the staff of the port or terminal operator. At this point, customs will determine the state (new, used or damaged) of the shipment (2016 Toyota Corolla), if it did tally with the description on the bill of lading. When this has been verified by the customs, the shipment duty charges will be issued by the clearing agent.

While the clearing agent is processing the customs duty charges, he can as well proceed with the shipping company release process, firstly, obtain the shipping charges – Always fixed, while the terminal charges increase based on the number of days the shipment (vehicle) has been stored. After the shipment, duty charges have been paid and other customs processes have been completed, the clearing agent will be issued customs release (Exit Note).

The next step is to focus on the shipping and terminal shipment release, having completed the shipment documentation and release process with the customs, releasing the shipment from the shipping line (liner) will require, firstly, the payment of the shipping line’s charges which will include container deposit charge (refundable fee). The container deposit charge is refunded on this basis – full refund, based on timely and its return without damage. If returned damaged or after the rated date has expired, then the shipping line will deduct the valued amount for the container damage or deduction in respect to the number of days spent beyond the rating date. In some cases, no money will be refunded to the clearing agency or agent due to damage or other reasons, while on the other hand, the shipping line may demand additional penalty charges.

Once the shipping line charges have been paid, the clearing agent will have to present the liner’s shipment release requirements and these include:

  • The shipment original master bill of lading document
  • Evidence of payment (copy debit note and receipt)
  • Indemnity letter, and may include other documents.

Once the clearing agent is done with the shipping line, the next is to release the shipment from the port or terminal.

Releasing a vehicle(s) shipped with a container from any port or terminal is simple, this will equally require the payment of the storage and handling charges. Once those payments have been made, then the clearing agent handling (RORO clearing logistics 1) will be required to present all the necessary requirements demanded by the port or terminal operator. This will also include;

  • Release Order from the shipping line
  • Customs Exit Note
  • Evidence of payment of port or terminal charges
  • A copy of the master bill of lading document
  • Indemnity letter, and may include other documents.

Once the clearing agent is done, then the shipment is set to exit the port or terminal.

A Car Shipped as LCL

HOW TO CUSTOMS CLEAR RORO SHIPMENT WHEN IT IS SHIPPED AS LESS THAN CONTAINER LOAD (LCL)

To make sure the length of this post isn’t overstretched, we will focus on the documentation process. Once the shipment documents have been delivered to the clearing agency, the logistics firm will follow up with the shipment tracking process, and as soon as the shipping company (agent at the port of unloading) has been figured out, coupled with the shipment ETA (Expected Time of Arrival). The next step should be the customs documentation process.

To initialize this process (customs documentation), the clearing agency or agent will have to submit copies of the shipment documents to the customs, which includes the shipment house bill of lading (BL, not MBL), the goods invoice with other documents such as PAAR document. As soon as that has been done, customs will initialize the process, and in the process figure out the value and the state of that vehicle.

The value and the state of that shipment can only be confirmed by the customs only when the container has been retrieved and unpacked into the shipping company’s warehouse (CFS), this implies during customs examination. Also note, prior to this the clearing agent must have endorsed the agency’s authority with the shipping company.

Once the consignee or the clearing agent has been notified by the shipping company that the container has been unpacked into the warehouse, the clearing agent will have to book for customs examination precisely after the shipping charges has been paid to the shipping company, though in some cases, shipping and warehouse (terminal) charges are merged and issued as the shipping company charges. At this point, customs will figure out the state of the vehicle, if it is a new car, used, damaged or shipped with other goods.

If the state of the vehicle did tally with the description stated on the house bill of lading, then the value of that shipment will be issued the clearing agent. But, if it varies, it will be viewed as wrong declaration that will incur prolong scrutiny, amendment and penalty fee. Once the clearing agent is done with the shipment examination and has paid the shipment duty charges having captured the job (the shipment). As soon as the clearing agent is done with the customs process, he or she will be issued the shipment Exit Note.

The next step is to release the shipment (vehicle) from the shipping company, and this will require the payment of the shipping charges, while in most cases the shipping and terminal charges will be merged as single payment based on the date it’s been billed, known as rating date. As soon as the shipping company’s charges have been paid, the clearing agent will be required to present some customs and shipment documents in order to release the shipment from the shipping company. These include:

  • Original copy of the shipment house bill of lading
  • Evidence of payment (copy of debit note and receipt)
  • Customs Exit Note
  • Indemnity letter.

This may include other shipment and customs documents, coupled with the clearing agency’s document. At this point, the clearing agent or agency responsible for ‘RORO clearing logistics 1’ will be issued Delivery Order (DO) by the shipping company. After that has been done, the clearing agent should proceed with the final shipment release, and that has to do with the terminal or warehouse.

For the clearing agent to release the shipment from the warehouse, the terminal or the warehouse charges must be paid (which will only be paid separately if it was not merged with the shipping charges), but assuming it’s to be paid separately – make the payment and proceed with the terminal or warehouse release requirements, which will include;

  • Original copy of the shipment Delivery Order (DO)
  • A copy of house bill of lading
  • Copy of evidence of payment (debit note and receipt)
  • Copy of Customs Exit Note
  • Indemnity letter.

These may include other customs and shipment documents, and as soon as you’re done with the warehouse or terminal release, the clearing agent will be issued Terminal Delivery Order (TDO). If the vehicle will be loaded on a truck or van, the clearing agent will also be issued ATL (Authority to Load). At this point, the vehicle is set to be delivered to the consignee, Congratulation.

Our next post will be the second phase of RORO clearing logistics 1, and that’s ‘2’.

  • I hope you found my article on RORO clearing logistics 1 helpful?

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