HS Codes For Export And Import

HS - Code

  • HS Code Definition

    HS stands for Harmonized System. Harmonized System is a standardized numerical method of classifying traded products for the collection of international trade statistics, and as a basis for customs tariffs.  The HS assigns specific six-digit codes for varying classifications and commodities. The HS is administrated by the World Customs Organization (WCO), an independent intergovernmental organization based in Brussels, Belgium, with over 200 member countries, and is updated every five years.

  • HS Code List
      HS Codes List Of (Chapter 1-5)
    Section 01
    Live Animals; Animal Products
    Chapter Description
    Harmonized System Codes of Chapter 01 :
    Chapter Codes Live Animals
    Chapter 01 Harmonized System Codes of Chapter 02 :
    Meat and edible meat offal
    Chapter 02 Harmonized System Codes of Chapter 03 :
    Fish and crustaceans, molluscs and other aquatic invertebrates.
    Chapter 03 Harmonized System Codes of Chapter 04 :
    Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included.
    Chapter 04 Harmonized System Codes of Chapter 05 :
    Products of animal origin, not elsewhere specified or included.
    Chapter 05 HS Codes List Of (Chapter 6-14)-Section 2-
    Vegetable Products
    Section 02
    Chapter Description
    Harmonized System Codes of Chapter 06 :
    Chapter Codes Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage
    Chapter 06 Harmonized System Codes of Chapter 07 :
    Edible vegetables and certain roots and tubers
    Chapter 07 Harmonized System Codes of Chapter 08 :
    Edible fruit and nuts; peel of citrus fruits or melons.
    Chapter 08 Harmonized System Codes of Chapter 09 :
    Coffee, tea, mate and spices
    Chapter 09 Harmonized System Codes of Chapter 10 :
    Cereals
    Chapter 10 Harmonized System Codes of Chapter 11 :
    Products of the milling industry; malt; starches; inulin; wheat gluten.
    Chapter 11 Harmonized System Codes of Chapter 12 :
    Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder.
    Chapter 12 Harmonized System Codes of Chapter 13 :
    Lac; gums, resins and other vegetable saps and extracts.
    Chapter 13 Harmonized System Codes of Chapter 14 :
    Vegetable plaiting materials; vegetable products not elsewhere specified or included.
    Chapter 14 HS Codes List Of (Chapter 15)-Section 3-
    Animal or Vegetable Fats and Oils and their cleavage products; Prepared Edible Fats; animal or vegatble waxes
    Section 03
    Chapter Description
    Harmonized System Codes of Chapter 15 :
    Chapter Codes Animal or vegetable fats and oil and their cleavage products; prepared edible fats; animal or vegetable waxes.
    Chapter 15 HS Codes List Of (Chapter 16-24)-Section 4-
    Prepared Foodstuffs; Beverages, Spirits and vinegar; Tobacco and Manufactured tobacco substitutes
    Section 04
    Chapter Description
    Harmonized System Codes of Chapter 16 :
    Chapter Codes Preparation of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates.
    Chapter 16 Harmonized System Codes of Chapter 17 :
    Sugars and sugar confectionery.
    Chapter 17 Harmonized System Codes of Chapter 18 :
    Cocoa and cocoa preparations
    Chapter 18 Harmonized System Codes of Chapter 19 :
    Preparations of cereals, flour, starch or milk; pastry cooks’ products.
    Chapter 19 Harmonized System Codes of Chapter 20 :
    Preparations of vegetables, fruit, nuts or other parts of plants.
    Chapter 20 Harmonized System Codes of Chapter 21 :
    Miscellaneous edible preparations
    Chapter 21 Harmonized System Codes of Chapter 22 :
    Beverages, spirits and vinegar.
    Chapter 22 Harmonized System Codes of Chapter 23 :
    Residues and waste from the food industries; prepared animal fodder.
    Chapter 23 Harmonized System Codes of Chapter 24 :
    Tobacco and manufactured tobacco substitutes.
    Chapter 24 HS Codes List Of (Chapter 25-27) – Section 5 –
    Mineral Products
    Section 05
    Chapter Description
    Harmonized System Codes of Chapter 25 :
    Chapter Codes Salt; sulphur, earths and stones; plastering materials, lime and cement
    Chapter 25 Harmonized System Codes of Chapter 26 :
    Ores, slag and ash
    Chapter 26 Harmonized System Codes of Chapter 27 :
    Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes.
    Chapter 27 HS Codes List Of (Chapter 28 -38 ) –
    Section VI-Products of the Chemicals or Allied Industries
    Section 06
    Chapter Description
    Harmonized System Codes of Chapter 28 :
    Chapter Codes Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes
    Chapter 28 Harmonized System Codes of Chapter 29 :
    Organic chemicals
    Chapter 29 Harmonized System Codes of Chapter 30 :
    Pharmaceutical products
    Chapter 30 Harmonized System Codes of Chapter 31 :
    Fertilizers
    Chapter 31 Harmonized System Codes of Chapter 32 :
    Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter, paints and varnishes; putty and other mastics; inks.
    Chapter 32 Harmonized System Codes of Chapter 33 :
    Essential oils and resinoids; perfumery, cosmetic or toilet preparations.
    Chapter 33 Harmonized System Codes of Chapter 34 :
    Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, “dental waxes” and dental preparations with a basis
    Chapter 34 Harmonized System Codes of Chapter 35 :
    Albuminoidal substances; modified starches; glues; enzymes.
    Chapter 35 Harmonized System Codes of Chapter 36 :
    Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations.
    Chapter 36 Harmonized System Codes of Chapter 37 :
    Photographic or cinematographic goods.
    Chapter 37 Harmonized System Codes of Chapter 38 :
    Miscellaneous chemical products.
    Chapter 38 HS Codes List Of (Chapter 39 – 40 ) – Section VII-
    Plastics and Articles thereof; Rubber and Articles Thereof
    Section 07
    Chapter Description
    Harmonized System Codes of Chapter 39 :
    Chapter Codes Plastics and articles thereof
    Chapter 39 Harmonized System Codes of Chapter 40 :
    Rubber and articles thereof
    Chapter 40 HS Codes List Of (Chapter 41 – 43 ) – Section VIII-
    Raw Hides and Skins, Leather, Furskins and Articles thereof; saddlery and Harness; travel goods, Handbags and similar Containers; Articles of animal gut (other than silk-worm Gut)
    Section 08
    Chapter Description
    Harmonized System Codes of Chapter 41 :
    Chapter Codes Raw hides and skins (other than furskins) and leather.
    Chapter 41 Harmonized System Codes of Chapter 42 :
    Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)
    Chapter 42 Harmonized System Codes of Chapter 43 :
    Furskins and artificial fur, manufactures thereof
    Chapter 43 HS Codes List Of (Chapter 44 -46 ) – Section IX-
    Wood and Articles of Wood; Wood Charcoal; cork and articles or cork; Manufactures of Straw, of Esparto or of other Plaiting Materials; Basketware and Wickerwork
    Section 09
    Chapter Description
    Harmonized System Codes of Chapter 44 :
    Chapter Codes Wood and Articles of wood; wood charcoal
    Chapter 44 Harmonized System Codes of Chapter 45 :
    Cork and articles of cork
    Chapter 45 Harmonized System Codes of Chapter 46 :
    Manufactures of straw, of esparto or of other plaiting materials; basket-ware and wickerwork.
    Chapter 46 HS Codes List Of (Chapter 47 -49 ) – Section X-
    Pulp of wood or of other Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard; Paper And Paperboard and articles thereof
    Section 10
    Chapter Description
    Harmonized System Codes of Chapter 47 :
    Chapter Codes Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard.
    Chapter 47 Harmonized System Codes of Chapter 48 :
    Paper and paperboard; articles of paper pulp, of paper or of paperboard.
    Chapter 48 Harmonized System Codes of Chapter 49 :
    Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans.
    Chapter 49 HS Codes List Of (Chapter 50 -63 ) – Section XI-
    Textile and Textile Articles
    Section 11
    Chapter Description
    Harmonized System Codes of Chapter 50 :
    Chapter Codes Silk
    Chapter 50 Harmonized System Codes of Chapter 51 :
    Wool, fine or coarse animal hair; horse hair yarn and woven fabric
    Chapter 51 Harmonized System Codes of Chapter 52 :
    Cotton
    Chapter 52 Harmonized System Codes of Chapter 53 :
    Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn.
    Chapter 53 Harmonized System Codes of Chapter 54 :
    Man-made filaments
    Chapter 54 Harmonized System Codes of Chapter 55 :
    Man-made staple fibres.
    Chapter 55 Harmonized System Codes of Chapter 56 :
    Wadding, felt and non-wovens; special yarns; twine, cordage, ropes and cables and articles thereof.
    Chapter 56 Harmonized System Codes of Chapter 57 :
    Carpets and other textile floor coverings.
    Chapter 57 Harmonized System Codes of Chapter 58 :
    Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery.
    Chapter 58 Harmonized System Codes of Chapter 59 :
    Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use.
    Chapter 59 Harmonized System Codes of Chapter 60 :
    Knitted or crocheted fabrics
    Chapter 60 Harmonized System Codes of Chapter 61 :
    Articles of apparel and clothing accessories knitted or crocheted.
    Chapter 61 Harmonized System Codes of Chapter 62 :
    Articles of apparel and clothing accessories, not knitted or crocheted.
    Chapter 62 Harmonized System Codes of Chapter 63 :
    Other made up textile articles; sets; worn clothing and worn textile articles; rags.
    Chapter 63 HS Codes List Of (Chapter 64 -67 ) – Section XII-
    Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, Riding-crops and Parts thereof; Prepared Feathers and articles Made therewith; artificial Flowers; Articles of Human Hair
    Section 12
    Chapter Description
    Harmonized System Codes of Chapter 64 :
    Chapter Codes Footwear, gaiters and the like; parts of such articles.
    Chapter 64 Harmonized System Codes of Chapter 65 :
    Headgear and parts thereof.
    Chapter 65 Harmonized System Codes of Chapter 66 :
    Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof.
    Chapter 66 Harmonized System Codes of Chapter 67 :
    Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair.
    Chapter 67 HS Codes List Of (Chapter 68 -70 ) – Section XIII-
    Articles of Stone, Plaster, Cement, Asbestos, Mica or similar Materials; Ceramic Products; Glass and Glassware
    Section 13
    Chapter Description
    Harmonized System Codes of Chapter 68 :
    Chapter Codes Articles of stone, plaster, cement, asbestos, mica or similar materials.
    Chapter 68 Harmonized System Codes of Chapter 69 :
    Ceramic products.
    Chapter 69 Harmonized System Codes of Chapter 70 :
    Glass and glassware.
    Chapter 70 HS Codes List Of (Chapter 71 ) – Section XIV-
    Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals clad with Precious Metal, and articles thereof; Imitation Jewellery; Coin
    Section 14
    Chapter Description
    Harmonized System Codes of Chapter 71 :
    Chapter Codes Natural or cultured pearls, precious or semi-precious stones, preciousmetals, metals clad with precious metal and articles thereof; immitation jewellery; coin.
    Chapter 71 HS Codes List Of (Chapter 72 -83 ) – Section XV-
    Base Metals and Articles of Base Metal
    Section 15
    Chapter Description
    Harmonized System Codes of Chapter 72 :
    Chapter Codes Iron and steel
    Chapter 72 Harmonized System Codes of Chapter 73 :
    Articles of iron or steel
    Chapter 73 Harmonized System Codes of Chapter 74 :
    Copper and articles thereof
    Chapter 74 Harmonized System Codes of Chapter 75 :
    Nickel and articles thereof
    Chapter 75 Harmonized System Codes of Chapter 76 :
    Aluminium and articles thereof
    Chapter 76 Harmonized System Codes of Chapter 77 :
    (Reserved for possible future use)
    Chapter 77 Harmonized System Codes of Chapter 78 :
    Lead and articles thereof
    Chapter 78 Harmonized System Codes of Chapter 79 :
    Zinc and articles thereof
    Chapter 79 Harmonized System Codes of Chapter 80 :
    Tin and articles thereof
    Chapter 80 Harmonized System Codes of Chapter 81 :
    Other base metals; cermets; articles thereof
    Chapter 81 Harmonized System Codes of Chapter 82 :
    Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal
    Chapter 82 Harmonized System Codes of Chapter 83 :
    Miscellaneous articles of base metal
    Chapter 83 HS Codes List Of (Chapter 84 – 85 ) – Section XVI-
    Machinery and Mechanical Appliances; Electrical Equipment; Parts thereof; sound Recorders and Reproducers, Television Image and Sound Recorders and reproducers, Television Image and sound Recorders and Reproducers, and Par
    Section 16
    Chapter Description
    Harmonized System Codes of Chapter 84 :
    Chapter Codes Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.
    Chapter 84 Harmonized System Codes of Chapter 85 :
    Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.
    Chapter 85 HS Codes List Of (Chapter 86 – 89 ) – Section XVII-
    Vehicles, Aircraft, Vessels and Associated Transport Equipment
    Section 17
    Chapter Description
    Harmonized System Codes of Chapter 86 :
    Chapter Codes Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds.
    Chapter 86 Harmonized System Codes of Chapter 87 :
    Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof.
    Chapter 87 Harmonized System Codes of Chapter 88 :
    Aircraft, spacecraft, and parts thereof.
    Chapter 88 Harmonized System Codes of Chapter 89 :
    Ships, boats and floating structures
    Chapter 89 HS Codes List Of (Chapter 90 – 92 ) – Section XVIII-
    Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical Instruments and apparatus; clocks and watches; musical instruments; part and accessories thereof
    Section 18
    Chapter Description
    Harmonized System Codes of Chapter 90 :
    Chapter Codes Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof.
    Chapter 90 Harmonized System Codes of Chapter 91 :
    Clocks and watches and parts thereof.
    Chapter 91 Harmonized System Codes of Chapter 92 :
    Musical instruments; parts and accessories of such articles.
    Chapter 92 HS Codes List Of (Chapter 93 ) – Section XIX-
    Arms and Ammunition; Parts and Accessories thereof
    Section 19
    Chapter Description
    Harmonized System Codes of Chapter 93 :
    Chapter Codes Arms and ammunition; parts and accessories thereof.
    Chapter 93 HS Codes List Of (Chapter 94 – 96 ) – Section XX-
    Miscellaneous Manufactured Articles
    Section 20
    Chapter Description
    Harmonized System Codes of Chapter 94 :
    Chapter Codes Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings.
    Chapter 94 Harmonized System Codes of Chapter 95 :
    Toys, games and sports requisites; parts and accessories thereof.
    Chapter 95 Harmonized System Codes of Chapter 96 :
    Miscellaneous manufactured articles.
    Chapter 96 HS Codes List Of (Chapter 97 – 98 ) – Section XXI-
    Works of art, Collectors’ Pieces and Antiques
    Section 21
    Chapter Description
    Harmonized System Codes of Chapter 97 :
    Chapter Codes Works of art, collectors’ pieces and antiques
    Chapter 97 Harmonized System Codes of Chapter 98 :
    Project imports, Laboratory chemicals, passenger’s baggage, personal importation by air or post; ship stores.
    Chapter 98 Complete industrial plant
  • Find HS Code - English, German, and French

    To determine the HS code for your product, follow the link below in German, English, and French to find all European Customs Agreements and HC Codes with full details from 2009 to date. https://www.tariffnumber.com/

  • Freight Forwarding

    Freight Service

  • 1). Courier Service
    • Couriers generally focus on using trucks and planes to transport goods and provide door-to-door service.
    • Courier services specialize in quickly and efficiently tracking small packages and delivering them to the right address within a single delivery network. This is a great option for consumer companies or individuals from the business level who ship orders to individual addresses around the world.
    • It is transported inland within a day, two, or a short period of time and is generally used for 03 to 14 days during exports. The advantage of this is that the parcel can be sent very quickly and it can be tracked at any time ie. Online tracking, all port clearance is done by the relevant courier company and the goods are delivered to the relevant address.
    • The disadvantage of this method is that it is more expensive than other courier services and you have to pay the full cost even if it is less in terms of weight. That is, even if it is 20 grams, 1kg has to be paid.
    • DHL FedEx UPS is one of the most recognized courier companies in any country in the world. In addition, there are local courier services in each country, which are less expensive and may provide tracking services, the average delivery period can take anywhere from a week to three weeks.
    • The type of product you ship will affect the price you pay. Many shipping companies will charge extra for shipping hazardous goods. Items such as expired products and food items should be insulated during shipping and may incur higher costs.
    • The specialty you need to know here is whether the couriers are responsible for the damage or not. The most common type of shipping insurance is carrier liability insurance, which covers shipping items and covers shipping costs of up to $ 100 when shipping is damaged or lost. If your value is higher than this, you should definitely make sure whether you go for third-party insurance.
    • Most shipping providers will offer the opportunity to purchase third-party insurance on your shipments. You will have to pay extra to get it from them. The type of insurance you can purchase depends on the value of the goods you are shipping, your shipping origin, and the destination and shipping mode.
    • Different shipping suppliers will charge you different fees based on a combination of these factors. Before signing a contract with a shipping service, determine what your business policies are regarding shipping.
  • 2). Freight Forwarders
    •  Freight Agent is an essential component of international shipping. Freight forwarders are those who take the goods from the seller and deliver the goods to the desired location, at the right price, ensuring delivery to the buyer and using the most appropriate route possible. Sometimes the Freight forwarding companies will arrange all the customs work and deliver it to the relevant place.
    • The main difference is that carriers focus on global shipping on a larger scale than a small scale, freight forwarders also do not use their own vehicles and vessels. They work with a large network of shippers, truckers, and movers to provide cost-effective shipping solutions all over the world.
      Freight companies are the best choice for exporting large quantities of goods. Ideal for parcels larger than 100 kg.
      Freight carriers always work with a network of small freight brokers instead of individuals. For example, these brokerage firms maintain the relationship between the shipping company and individuals.
    • Shipping companies ship a variety of goods to their customers and control the entire shipping process to ensure that shipping arrives safely and in a timely manner. It usually provides a full range of services as follows;

    * Monitoring local transport.

    * Preparation of shipping and export documents.

    * Warehousing facilities

    * Inventory reservation

    * Discussion of freight rates.

    * Integration of goods.

    * Commodity insurance.

    * Payment of insurance compensation.

    • Freight carriers usually ship under their own shipping or airline bills, and their agents or assistants (freight forwarders) at the destination provide document delivery, landing, and cargo collection services.
      An exporter ships merchandise through these agencies, which they call a C&F agent.
    • Some Freight forwarders may have their own customs clearance department/divisions which means under normal circumstances and shipments, they would not use 3rd party customs clearing agents..
    World Top 20 Global Freight Forwarders List
    Rank Provider Gross Revenue (US$ Millions)* Ocean (TEUs) Air (Metric Tons)
    1 DHL Supply Chain & Global Forwarding 28,453 2,862,000 1,667,000
    1 Kuehne + Nagel 25,787 4,529,000 1,433,000
    2 DB Schenker 20,761 2,052,000 1,094,000
    2 DSV Panalpina 18,269 2,204,902 1,272,405
    3 Sinotrans 12,174 3,750,000 532,3
    4 Expeditors 10,116 1,012,600 926,73
    5 Nippon Express 19,347 660,152 720,115
    6 CEVA Logistics 7,4 **1,081,000 363
    7 C.H. Robinson 15,49 1,200,000 225
    8 Kerry Logistics 6,867 1,019,924 493,903
    8 UPS Supply Chain Solutions 11,048 620 988,88
    9 GEODIS 9,135 866,631 290,506
    10 Bolloré Logistics 5,265 761 574
    11 Hellmann Worldwide Logistics 2,74 905,1 552,64
    12 Kintetsu World Express 5,75 640,063 556,875
    13 Agility 4,018 771 372
    14 Yusen Logistics 4,248 764 337
    15 CTS International Logistics 2,16 1,021,007 398,175
    16 Hitachi Transport System 6,346 662 221
    17 DACHSER 6,591 **492,440 310,86
    18 Toll Group 7,26 523,3 117,4
    19 Maersk Logistics 6,369 401,369 138,086
    20 Apex Logistics International 2,274 190 750
    21 Logwin 1,292 698 167
    22 Mainfreight 2,467 347,638 114,736
  • 3). Clearing and Forwarding (C&F) Agents
    • C and F mean clearance and forwarding. Companies that provide transportation, supply, warehousing, distribution, and delivery services on behalf of manufacturing companies or exporters are considered third-party supply services (3PL) or C & F agents.
    • As soon as the goods enter the port, the C and F agents manage to fill/unload the containers or other specialized loading space. In addition, they check and process all required customs documents. In addition, they prepare an export bill.
    • As part of the procedure, all documents along with the export bill are submitted to the Customs Authority for export approval. If all goes well, Customs will approve the export. All these documents are assessed and certified by the Customs. Finally, the C&F agent returns these documents to the exporter. Then this C and F agreement ends.
    • The total cost of a C&F bill includes tariffs, landing charges, terminal container charges, labor costs, service charges, and more. Customs duty on products varies according to the types of products.
    • Also, the amount of payment related to the bill varies depending on the mode of transport (land/sea/air).
    • Service charges also depend on the reputation and experience of the C&F agent. Therefore, an exporter should pay attention to price, trust, and service when considering the C and F agents.
    Clearing Agents
    • Clearing agents are companies that deal with the customs clearance sector. This could be a shipping company or some other third-party company.
    • The Clearing agent is a type of agent who deals with local customs authorities, border authorities, ports, and so on. Relevant documents will be passed at the Customs.
    • In-depth knowledge of HS codes helps in calculating tariffs and VAT.
    • Organizes the payment of tariffs and VAT payable.
    • Clearing agents help to avoid tariff anomalies to the clients.
    • The Clearing agent is chosen by the freight forwarder or customer (exporter or importer).

    Some of the important documents are handled by the clearing agent.

    • Bill of Entry
    • Bill of Lading
    • Commercial Invoice
    • Packing list of goods
    • Certificate of Origin
    • Import license of the consignee
    • Insurance certificate
    • Letter of Credit (L/C)

     

  • 4). Freight Class
    • Freight class is a measurement that allows for standard prices across all LTL freight carriers and businesses. The National Motor Freight Traffic Association (NMFTA) determines freight classes. Generally, every type of product or commodity has a National Motor Freight Classification (NMFC), which corresponds to a specific freight class number for LTL shipments.
    • NMFC is the standard that enforces this system, grouping commodities into one of 18 classes – ranging from 50 to 500. The NMFC determines this class using four characteristics: Density, Stowability, Handling, and Liability.
    Class Name Samples Weight Range Per Cubic Foot Cost
    Class 50 – Clean Freight Fits on standard shrink-wrapped 4X4 pallet, strapping material, flour Over 50 lbs. Lowest
    Class 55 Bricks, cement, mortar, hardwood flooring, cloths or rags, magazines, copy paper 35 – 50 lbs  
    Class 60 Car accessories & car parts, steel cables, used tires, stone blocks, glass, moldings 30 – 35 lbs  
    Class 65 Car parts & accessories, bottled beverages, books in boxes, conveyors, chocolate in boxes, electric cords, tile 22.5 – 30 lbs  
    Class 70 Newspapers, wooden pencils, machinery, caskets, unassembled furniture, food items, automobile engines 15 – 22.5 lbs  
    Class 77.5 Tires, bathroom fixtures, garments, shirts/pants, snowplows, 13.5 – 15 lbs.  
    Class 85 Crated machinery, transmissions, clutches, doors, CDs/DVDs, motorcycle engine 12 – 13.5 lbs  
    Class 92.5 Computers, monitors, refrigerators and freezers, gas-powered generators, cabinets, kiosk or ATMs 10.5 – 12 lbs  
    Class 100 Vacuum, boat & car covers, canvas, wine cases, caskets 9 – 10.5 lbs  
    Class 110 Cabinets, framed paintings & artwork, table saw, metalworking 8 – 9 lbs  
    Class 125 Small household appliances, pictures/posters in boxes, exhibit booths, vending machines 7 – 8 lbs  
    Class 150 ATV, jet skis, motorcycles, assembled wooden furniture, work stations 6 – 7 lbs  
    Class 175 Clothing, couches, stuffed furniture, metal cabinets, 5 – 6 lbs  
    Class 200 TVs, aircraft parts, aluminum table, packaged mattresses, snowmobiles 4 – 5 lbs  
    Class 250 Bamboo furniture, engine hoods, mattresses and box springs, unassembled couch, plasma TV 3 – 4 lbs  
    Class 300 Wood cabinets, tables, chairs, model boats, kayaks/canoes, chassis 2 – 3 lbs  
    Class 400 Deer antlers 1 – 2 lbs  
    Class 500 (Low Density or High Value) Bags of gold dust, ping pong balls Less than 1 lb. Highest
  • 5). Container Type
    1.       Car Carrier Container Containers specially designed for various cars, trucks, tractors and buses for efficient and safe transportation of vehicles.
     
    2.       Double Door Container These Double door containers are also known as tunnel container . Double doors facilitate the transport and loading of goods. Double-door containers commonly used in freight forwarding may include standard cargo containers, bulk containers, special containers, and other equipment containers.
     
    3.       Drum Container Drum (also known as a barrel) is a cylindrical shipping container that is a very common transport container for many hazardous and non-hazardous goods. These are widely used for shipping liquids, chemicals, powders, granules and foodstuffs.
     
    4.       Dry Storage Container These are commonly used shipping containers. This has various dimensions that are ISO standardized. These standard dry storage containers are completely sealed and designed to be water resistant. Shipping containers are used for freight, both locally and internationally, for dry goods, boxes, pallets, sacks, barrels, etc.
    They are used for shipping dry goods that do not require temperature control.  
       
    5.       Flat Rack Container With collapsible sides, these are like simple storage shipping containers where the sides can be folded so as to make a flat rack for shipping of a wide variety of goods.
    Flat rack containers are especially suitable for loading machinery, track vehicles, large reels and construction materials. There are two types of containers: collapsible and non-collapsible.  
       
    6.       Half Height Container This container is designed for the transport of light goods on ships and trains. These containers can be used for goods such as coal, sand, gravel and stone.
     
    7.       Insulated And Thermal Container These storage containers have a regulated temperature control that allows them to maintain a high temperature to keep the goods warm. They are equipped with electrical compatibility (mechanical compressor) to cool or heat the air in the container. Insulated containers are usually constructed of a vacuum tube similar to a “thermal” bottle. Therefore, they are more suitable for long distance transportation of food, medicine, organs, blood, biological material and chemical substances.
     
    8.       Open Side Storage Container Open-sided containers are shipped modified containers that include two sets of double doors on the long side of the container. As a result, it is very easy for people to access and use every corner of the container. These are best suited for transporting large machinery or various goods and can be sorted and organized, making the loading process quick and easy. These side door containers can later be converted into food stalls, snack bars, office or home.
     
    9.       Open Top Container Open top containers are special containers and because there are not many containers it costs more to ship than a normal container, i.e. it is difficult to re-assign to another port after arriving at other ports (i.e. empty return). These containers are often used for pipes, construction materials, machinery and bulk materials.
     
    10.   Refrigerated ISO Container Refrigerated ISO freight container is one that is temperature regulated and always has a carefully controlled low temperature. An ISO shipping container is used for the shipment of temperature sensitive, perishable cargo such as meats, fruits and vegetables.
     
    11.   Special Purpose Container These containers can come in a variety of shapes and sizes and are often custom made for specific items.
     
    12.   Swap Body Container These inter-containers are containers designed to be transferred from a truck to a train. These shipping containers have flexible legs to support the containers between the two modes of transport. These containers are less expensive than regular shipping containers and are limited to land-based transport.  
    13.   Tank Container That is, liquid storage containers. A tank container is a container for transporting bulk liquids and gases in accordance with ISO standards. Hazardous and non-hazardous products can be transported in tank containers.
     
  • 6). Container Dimensions
    Container Type Max Gross Weight Tare Weight Cubic Capacity Outside Length Outside Height Outside Width Internal Length Internal Height Internal Width Door Width Door Height
    8ft Container Dimensions 6,000kg 13,227lbs 950kg 2,094lbs 9.95m3 351cf 2.44m 8ft 2.26m 7ft 6in 2.26m 7ft 2.29m 7ft 6in 2.06m 6ft 6in 2.11m 6ft 11in 2.10m 6ft 11in 1.95m 6ft 5in
    10ft Container Dimensions 10,000kg 22,046lbs 1,000kg 2,204lbs 15.95m3 563cf 2.99m 10ft 2.59m 8ft 6in 2.44m 8ft 2.84m 9ft 4in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    20ft Container Dimensions 30,480kg 67,196lbs 2,000kg 4,409lbs 33.2m3 1,172cf 6.06m 20ft 2.60m 8ft 6in 2.44m 8ft 5.9m 19ft 4in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    40ft Container Dimensions 30,480kg 67,196lbs 3,470kg 7,650lbs 67.6m3 2,387cf 12.2m 40ft 2.60m 8ft 6in 2.44m 8ft 12.03m 39ft 5in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    20ft Tunnel Dimensions 30,480kg 67,196lbs 2,180kg 4,806lbs 32.8m3 1,158cf 6.06m 20ft 2.60m 8ft 6in 2.44m 8ft 5.84m 19ft 1in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    20ft Open-sider Dimensions 30,480kg 67,196lb 3,170kg 6,988lbs 31m3 1,094cf 6.06m 20ft 2.60m 8ft 6in 2.44m 8ft 5.9m 19ft 4in 2.30m 7ft 6in 2.29m 7ft 6in 2.22m 7ft 3in 2.19m 7ft 3in
    40ft High Cube Dimensions 30,480kg 67,196lbs 3,660kg 8,068lbs 76.4m3 2,698cf 12.2m 40ft 2.90m 9ft 6in 2.44m 8ft 12.03m 39ft 5in 2.69m 8ft 10in 2.35m 7ft 9in 2.34m 7ft 8in 2.58m 8ft 6in
    20ft Open-top Dimensions 30,480kg 67,196lbs 3,000kg 6,613lbs 33m3 1,165cf 6.06m 20ft 2.90m 9ft 6in 2.44m 8ft 5.96m 19ft 4in 2.28m 7ft 6in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    40ft Open-top Dimensions 32,500kg 71,650lbs 4,050kg 8,928lbs 66.8m3 2,358cf 12.2m 40ft 2.60m 8ft 6in 2.44m 8ft 12.03m 39ft 5in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    40ft Tunnel Dimensions 30,480kg 67,196lbs 3,680kg 8,113lbs 67.4m3 381cf 12.2m 40ft 2.60m 8ft 6in 2.44m 8ft 11.98m 39ft 4in 2.39m 7ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.28m 7ft 6in
    40ft High Cube Open Sider Dimensions 24,000kg 52,910bs 5,920kg 13,051lbs 67.72m3 2,391cf 12.2m 40ft 2.90m 9ft 6in 2.44m 8ft 12.03m 39ft 5in 2.46m 8ft 1in 2.28m 7ft 6in 2.22m 7ft 3in 2.35m 7ft 9in
    20ft High Cube Dimensions 30,480kg 67,196lbs 2,100kg 4,629lbs 37.4m3 1,320cf 6.06m 20ft 2.90m 9ft 6in 2.44m 8ft 5.96m 19ft 4in 2.69m 8ft 10in 2.35m 7ft 9in 2.34m 7ft 9in 2.58m 8ft 6in
  • 7). Pallets

    Pallet is a type of tertiary packaging that is generally a flat structure used as a basis for unitization of goods in the supply chain.

    The pallet is a “portable, horizontal, rigid, compact platform that is used as a base for assembly, storage, stacking, handling and transport. Pallets are used to store, store, protect and transport goods by handling equipment such as forklifts, pallet jacks, or conveyors.

    Pallet material: wood, plastic, metal or corrosive paper.

    The International Standards Organisation established standard dimensions for container pallets. However different dimensions of pallets continue to exist. The most widely used pallet types are Euro pallets and Standard pallets. The dimensions are as follows:

    • Standard/EUR2/ISO2

    The size of these individual pallet sizes are as follows and these type of pallets are most commonly used in Europe and Asia:

    W: 1200mm L: 1000mm H: dependent on how high the shipper builds the pallets

    Number of pallets in a 20 foot container single stacked = 10 

    Number of pallets in a 40 foot container single stacked = 20 

    • EUR/EUR1/ISO1|

    The size of these individual pallet sizes are as follows and these type of pallets are mainly used across Europe, the benefit of this pallet is that they can fit through a standard exterior door so suit the more B2C market more: 

    W: 800mm L: 1200mm H: dependent on how high the shipper builds the pallets

    Number of pallets in a 20ft container single stacked = 11

    Number of pallets in a 40ft container single stacked = 24

    The main issue with this pallet size is the amount of wastage in a 40 foot container with around 15% wastage due to the pallet dimensions vs the dimensions of the container. 

    • North American Standard/GMA

    The size of these individual pallet sizes are as follows and these type of pallets are most commonly used (yes, you guessed it) in North America: 

    W: 1016mm L: 1219mm H: dependent on how high the shipper builds the pallets

    Number of pallets in a 20 foot container single stacked = 10 

    Number of pallets in a 40 foot container single stacked = 20 

  • 8). Full Container Load (FCL)
    • FCL means Full Container Loading.
    • The container is used only for complete individual shipping. You do not share the container with the inventory of other parties. You pay for a full container to be shipped. The container can be loaded from the factory and sealed and used up to the destination store.
    • FCL is the best carrier for shipping large, fragile (ceramics, chemicals, glass) and expensive goods.
      FCL can be used to carry a large enough container to fill a 20 ‘or 40’ for shipping.
    • FCL is the fastest way to ship cargo after air cargo. FCL shipping usually takes about 3-6 weeks, depending on the start and end destination.
    • A volume of 13 cubic meters or more or comprising 12 pallets or more is better shipped by FCL. For small weights, it is more expensive to use an FCL of approximately 13 cubic meters or less.
    • For FCL shipping, you can choose from door-to-door, door-to-door, port-to-house, and port-to-port services.
    • FCL uses refrigerated containers for pharmaceuticals and perishable goods such as fresh produce, fruits, vegetables, meat, etc. It ensures temperature, humidity, and ventilation control. Refrigerated containers are not commonly used in LCLs.
    • The risk of FCL damage is low, which means you have one container full of FCL your own products so you can be assured that your product will maintain integrity as your products will not mix with other products.
    • Goods handling under FCL is less required as the goods are not mixed. The container can be sealed from the supplier’s warehouse and left unopened until you receive the goods at the final destination. You can save money by using this method as you do not have to pay export handling fees, document fees, and delivery and collection fees.
    • Some FCL containers can be tracked directly from the carrier’s e-commerce portal.
    FCL Price
    • The freight is charged for the full container load basis means you pay a flat fee for the entire container, regardless of how much is in it.
  • 9). Less Than Container Load (LCL)
    • LCL is a term used to describe ships that are “‘Less Container Load’.” or have not fully filled a container.
    • Depending on the route, destination, and requirement, shipping via LCL can be more expensive than FCL. CBM will cost LCL shipping will be higher compared to FCL shipping, but the price per container is often lower. LCL has more freight per unit than FCL. This is because freight forwarding agents have less labor and less workload for full containers while LCLs incur additional labor work and costs.
    • Although LCL classifies that the goods they collect are in the same container, there is a higher risk of inspecting the container for customs purposes compared to FCL. Also, LCL shipments may mix with other shipments or be misplaced due to involvement in the landing process.
    • The average transit time for LCL shipments is 4 to 6 weeks from the date of departure and 5 to 9 days for shipping by air.
    • It helps to know when is the best time to ship using the LCL method. There are five things to consider:

    Volume
    Gross weight
    Product category
    Route
    Time

    • Shipping volume is calculated based on the amount of space available. The volume of a cartoon box is calculated by multiplying the length, width, and height. Shipping is charged by its volume (unless it is more than 1,000 kg for CBM), and this includes LCL shipping. If the volume of goods is between 1 and 13 CBM, it is best to consider an LCL agreement. Otherwise, air shipping (less than 1 CBM ) or full container (greater than CBM 13) may be a good option.
    • Gross weight is the total weight of the shipping as a whole, including the weight of the packaging and the main boxes. If the gross weight of the shipment is more than 150 kg during the peak season and more than 200 kg during the off-peak hours, it is best to consider shipping under an LCL agreement.
    • Product category is also considered when shipping. That is, some products are not allowed to be shipped by air due to flight restrictions. In this case, shipping cargo, especially LCL, may be a good option in terms of shipping volume.
    • Shipping Rout is also considered when selecting an LCL agreement. LCL cannot be shipped due to a lack of integration into all routes for maritime shipping. The usual reason for this is that there are not many ships to use that route. In such cases, the next step is to find an alternative route or port. If the alternative route is more expensive, other shipping options should be considered.
    • The final factor is time. Time plays an essential part in any supply chain. LCL is the longest exporting mode of transport. Therefore, it states that delivery time should be considered when shipping products.
    Price Calculation LCL

    Under LCL this cost is calculated as weight (in tons) or volume (in cubic meters) of the shipment, whichever is higher, multiplied by the base rate charged by the shipping line.

    A volume of a carton is calculated by multiplying the length, width, and height.

    L*W*H* = CBM * Rate

    CBM means Cubic Meter. However, the total weight of cargo should not exceed 1 ton. That means, if the cargo weight is above 1000kgs, the volume of cargo is treated on the basis of weight. In short, freight forwarders charge LCL rate on the basis of ‘per CBM’ or per weight of 1000kgs (1 ton) whichever is higher.

    CBM – cubic meter is calculated by multiplying the length, width, and height of packages of goods.

    For example, 4L* meters, 1W and 1.4H meters respectively, the volume of cargo is 4 X 1 X 1.4 = 5.60 CBM.

    If you have the measurement in inches or centimeters, first you need to convert in meters and then calculate CBM which will be easier for you. If freight forwarders quote a rate of USD 20.00 per CBM, the price will be 5.60CBM X 20.00$ per CBM = USD 112.

  • 10). Shipping Cost

    These freight charges are borne by the buyer or seller according to their Incoterms. The relevant party needs to pay these fees to the most appropriate freight forwarder who will then arrange the logistics process. Different carriers offer different rates and services please check before handovering the goods.

    • Transport Cost

    The cost of shipping goods up to the port: Cost of freight forwarders.

    • Documentation Fees

    Cost of all documents required for verification and custom clearance procedures.

    • Terminal charges

    Charges for handling and maintenance of goods at the port terminal.

    • FCL and LCL Fees

    The cost of the container you choose to export/import your product.

    • Customs Value

    The cost of customs clearance.

    • Security Charges

    The cost of protecting goods from damage and risk factors

    • Insurance

    The cost of insurance to cover the security of goods

    • Duties and taxes

    Customs clearance fees and specific country taxes are payable by the parties to the duty distribution.

    • BAF (Bunker Adjustment Factor)

    It is a fuel surcharge levied by shipping lines to adjust for fuel price fluctuations.

    • CAF (Currency Adjustment Factor)

    The price charged by shipping lines for adjustment or stoppage against currency volatility.

    • Demurrage and Detention

    Demurrage and Detention fees must be paid if a carrier or shipping container is not returned during the permitted free days. Free Delivery Day is determined by the number of days a shipper can use the container free of charge. If the free time is exceeded, the user will have to pay a delay and retention fee. These fees are usually calculated per day.

    Demurrage charges are always associated with the time a container is in a terminal. detention is a charge for extended use of the container until it’s returned empty to the shipping line.

    • Port storage charges

    Port storage charges are levied for non-release of imported goods and for unfinished containers for export or for empty containers within the port. Different terminals offer different free days.

  • Guideline On Cargo Insurance

  • 1). Cargo Clause
    • Insurance for the loss or damage may be available to cover the full value of the goods shipped, but in some cases the amount covered may be less than the actual value of the goods shipped. Make sure you understand the shipping insurance policy and its role in protecting your goods otherwise your goods may be harmed.
    • The insurance company or insurance broker issues the insurance certificate.
    • The International Chamber of Commerce as an insurance cover for goods formulated the following clauses. These clauses are in effect worldwide and accepted as general rule. The coverage of the goods according to each clause is given in the 4th step here.
    – Institute Cargo Clause A

    is considered the widest insurance coverage and you should expect to pay the highest premium because you are asking for total coverage. This insurance covers all risks of loss of or damage to the subject matter insured except as excluded by the provisions of Clauses few clauses chapter 4, 5, 6, and 7.

    – Institute Cargo Clause B

    is considered a more restrictive coverage and you should expect to pay a moderate premium because perhaps you are only requesting the more valuable items in your cargo to be covered or only partial cargo coverage.

    – Institute Cargo Clause C

    is considered the most restrictive coverage and you will probably pay the lowest premium but your cargo coverage will be much less.

      • A Clauses are referred to as “Full Cover”, B Clauses as “With Particular Average”, and C Clauses as “Free of Particular Average”.
      • The named perils policy is also formerly known as the “Free of Particular Average”. Unlike all risks, it covers only the losses caused by the perils specifically named in the policy. So it’s generally more limited.
      • Upon payment of additional premium, coverage can be obtained for War, Strikes, Riots & Civil Commotion Risks, Terrorism, Transshipment, and Storage Cover incidental to transit.
      • When goods are insured during transport, whether it be by land, air, or sea; it means that if the cargo is damaged or lost during transit it will be refunded or replaced to whichever party held the “technical” ownership.
    • The types of goods you are insuring, type of packaging, and shipping distance also determine the cost of the cover. In a nutshell, there is no standard cost of freight insurance. It is dependent on a wide range of factors. The projected cost of freight insurance is often happened on the type of insurance you are purchasing between single and open coverage.
  • 2). Possibilities of Damages
    • Cargo damage may happen at any stage in a shipment cycle. It may happen;

    • While cargo is in the possession of the seller,

    • While cargo is being packed into a container,
    • While cargo is being loaded onto a truck,
    • While cargo is in transit by sea, road or rail,
    • While cargo is being offloaded at delivery,
    • While cargo is in the possession of the buyer,
    • While cargo is being offloaded at delivery,

  • 3). The Types Of Cargo Damage

    There are five main types of damage:

    1. Physical Damage

    In the mode of road, rail, air, and sea transport; Damages to the goods take place due to falling, breaking, being hit in transit, etc. belongs to the category of physical damage. The worst possible movements can occur while a product is at sea. Unlike road, air, and rail transport, sea goods can be further damaged in various ways while at sea, as shown below.

    2. Wet Damage

    The moisture damage can be associated with moisture, condensation, rain, and seawater entering the container. Moisture and condensation in containers usually occur across different climates, from hot and humid to cold and freezing to wet and rainy. These situations can occur when using the wrong type of container, such as using a normal container instead of a ventilated container.

    3. Contamination Damage

    It is the damage caused by pollution, contamination, etc. that makes the product unusable for human consumption or other industrial purposes. Contamination can occur in both liquids and solids, even when loaded into an ISO tank container or standard ISO container. Clothing, food products, shoes, or merchandise such as coffee, tea, tobacco, and cotton are more likely to be contaminated by odors.

    4. Reefer Related Damage

    Damage to transportation products includes decay, thawing, freezing damage, excessive ripening, crushing, reduced size, and/or discoloration of products during transport. This damage can be caused by improper temperature settings, unintentional human error, improper storage, and poor air circulation.

    5. Infectious Damage

    Infection damage is defined as the presence of large numbers of insects or animals (rats) in a place that causes damage to the goods or diseases. Infection can cause the product to become contaminated (it can damage other items as mentioned above). It may also delay port inspections by port health authorities. This infection is most common when shipping agricultural products.

    Upon receipt of the Notice of Damage and Safe Evidence of Damage, the following sections should be notified immediately upon receipt of the damage.

    1). Your Goods Insurance Company.
    2). The shipping company or any of its affiliates before you receive the goods.
    3). From your shipper or the person you purchased the item.
    4). Any other agency involved in shipping.

    This awareness is very important as there is a time frame for claiming damages. If the damage to the goods is notified later, it may be time-consuming and you will not receive any compensation.
    In the event of damage, it must be informed within 72 hours to the relevant parties.

  • 4). Common Types of Cargo Claims
    1.) Damaged Claim

    It is the most common damage that occurs when there is visible damage during the transportation of goods. If you see physical damage to your shipping packages as stated by your custodian on the delivery receipt (or proof of delivery, POD), you may file a claim for damages. Generally, you have nine months to make a claim for visually damaged items. With proper evidence, the carrier will most likely refund part of your shipping cost.

    2.) Concealed Damage Claim

    This usually means that the damage will not be visible until delivery, which means that it was not recorded on the or proof of delivery (POD).
    It can be challenging to find out when it was damaged and therefore who is responsible for it. That’s where hidden damage freight rights begin to become more complex and subtle. It is difficult to prove hidden damages. You only have five working days (or less) to make a claim.

    3.)  Shortage Claim

    It denotes shipments that contain a lower than reported quantity, occur when only part of your cargo is delivered because sections were lost, and pieces are missing., meaning that part or all of the shipment was not visible for inspection during transport. This can also happen if the quantity of goods delivered does not match the amount printed on your bill of lading (BOL). Each of these instances creates the need for additional steps and can lead to delays and surcharges.

    4.) Concealed Shortage Claim

    Similar to a concealed damage claim, hidden arrears occur when a lost product is not listed on your POD, which means it does not appear to be short after delivery. You only have five working days (or less) to make a claim. If you are more than five days late, your carrier will reject your request.

    5.) Refused Claim

    Shipping is delayed when there is a shipment and it is the wrong freight, product is damaged or not. Those who have the right to refuse part or all of the shipping if they are dissatisfied with the condition of their goods. If your shipper refuses to ship, it will be returned to the carrier’s delivery terminal. The carrier will contact you and ask what you want to do with your shipment.

    6.) Loss Claim

    If the goods are lost due to being lost during transportation but never delivered, it means that your entire ship was lost by transportation.

    According to the transport regulations, the carrier must make a claim within 30 days of receiving the claim. The time it takes to resolve a claim varies, and the claim must be paid or terminated within 120 days.

     

  • 5). Cargo Clauses Insurance Claim Chart

    RISKS

    Institute Cargo Clauses

    (Proximate Cause) A B C
    Stranding, Grounding, Sinking or Capsizing Yes Yes* Yes*
    Overturning or Derailment of Land Conveyance Yes Yes* Yes*
    Collision of Ship or Craft with another Ship or Craft Yes Yes* Yes*
    Contact of Ship, Craft or Conveyance with anything other than Ship or Craft (excludes Water but not Ice) Yes Yes* Yes*
    Discharge of Cargo at Port of Distress Yes Yes* Yes*
    Fire or Explosion Yes Yes* Yes*
    Earthquake, Volcanic Eruption or Lightning Yes Yes* No
    Malicious Damage Yes No** No**
    Theft/Pilferage Yes No No
    General Average Sacrifice Yes Yes Yes
    Jettison Yes Yes Yes
    Washing Overboard (deck cargo) Yes Yes No

    War Risks (except Piracy)

    No No No
    Takings at Sea (except War Risks) Yes No No
    Seawater entering Ship, Craft, Hold, Conveyance Container Lift Van or Place of Storage Yes Yes No
    River or Lake Water entering same Yes Yes No
    Loss overboard during Loading/Discharge (total loss only) n/a Yes No
    Any risks of physical loss or damage not specified Yes No No
    * Common Clause 1.1 of the B and C Clauses requires the loss or damage to be reasonably attributable to the cause of damage
    ** Can be bought back

     

  • 6). Required Documents For Cargo Damage Claim
      • Bill of lading and other contract carriage documents.
      • Commercial invoice/packing list.
      • Copies of any loading or discharge receipts/reports (over, short, and damage/ discrepancy report) and delivery receipts.
      • Copy of claim letter to third parties holding them responsible (as applies).
      • Pictures of the damaged freight (if you have them).
      • Proof of the value of the commodities lost or damaged.
  • 7). Steps Cargo Damage Claim
    • The first rule for filing claims is to file them as soon as possible. You typically have 9 months from the delivery date to file a claim.
    • If your delivery receipt is not noted as damaged or short, you only have 5 days to file a concealed claim.
    Steps to handle a cargo damage situation

    1.Get proof of damage
    2. Notify concerned parties (note the time limits for notification)
    3. Arrange a joint survey
    4. Identify the cause of damage
    5. Mitigate / minimize loss
    6. Secure documentary evidence
    7. Provide documentary evidence
    8. Submit priced claim

    Handover the collected information and evidence to the freight forwarder or Insurance Company.
    Please note that you can claim only if you have a third-party insurance policy or if your goods are covered by an open insurance cover. BEFORE you transport goods, please ask and make confirm from the freight forward company about their insurance policy & indemnity.. No one will be responsible if you do not follow guidelines and do not take any insurance for your goods.

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