Are you confused and need a few differences between these two jobs? Here you go..
One must understand that a freight forwarder is responsible for the transportation of goods between the shipper and transportation services.
A freight forwarder acts as an intermediary, liaising with various carriers to negotiate on price and decide on the most economical, reliable, and fastest route.
The experts of freight forwarding companies are connected within the supply chains who concentrate on the logistics and physical transportation of cargo.
They are also in charge of assembling and completing a variety of documentation and compliance filings.
A custom broker in Dubai is defined as a private individual, partnership, association, or corporation which is licensed, regulated, and empowered by Government in Dubai to assist importers and exporters in meeting the government requirements governing imports and exports.
A custom broker in Dubai has to submit necessary information and appropriate payments on behalf of their clients and charge them a fee for this service. A customs broker is a specific term used to identify the intermediary between the importer and the government’s customs department in the country of import.
Top 5 differences between Freight Forwarder and Customs Broker
There are two entities involved in moving your shipment from Point A to Point B for many import and export businesses – freight forwarders and customs brokers.
They fulfill the same role and both satisfy different requirements of trade businesses, and each delivers advantages that their clients would not be able to achieve in other ways.
However, there some differences between both services listed below-
#1 Range of work
A freight forwarder is a wide-ranging term, whereas a customs broker is very specific among the other requirements. The freight forwarder deals with the logistics part of actually moving your goods from A to B – the physical transport of the goods, warehousing and storing.
A custom broker in Dubai, on the other hand, deals with the bureaucratic side, document completion, of getting your goods into or out of a country.
Many freight forwarders who have access to brokerage services, can be custom brokers; although, the vice versa may not be true. Freight forwarder thus can do works of Customs broker as well. The range of duties and responsibilities is, however, vast for the freight forwarders. Since they are not specific to brokerage services, people choose to deploy separate custom brokers in Dubai for ensuring efficiency and perfection in the work.
#2 Nature of transaction
Custom brokers in Dubai focus on the import side of an export transaction. The customs broker is a foreign country conversation for exporters. Exporters don’t need customs brokers because they are shipping out of the country.
However, an exporter’s freight forwarder can work together with a customs broker to help facilitate issues with an export transaction. The customs brokers must be licensed.
#3 The type of companies served
Freight forwarders are an extremely popular choice for companies that don’t have the necessary human and technological resources to manage their shipping operations.
On the other hand, a customs broker deals with the government and port authorities with jurisdiction over cargo importation.
The customs broker in Dubai has contacts with many government agencies which includes agriculture, FDA, consumer product safety department and the list goes on…
The main function of freight forwarding companies is to help the business or the shipper of the goods to find a reliable carrier that ships their cargos under the terms negotiated by the forwarder as well.
Apart from that, they can also assemble and consolidate smaller shipments from different shippers to make one bulk shipment, and vice versa. Some freight forwarders also offer storage facilities and trucking services to offer complete freight services to import and export companies.
However, a customs broker in Dubai is extremely vital if the business doesn’t want to invest too much time and money meddling with the legalities of their import products themselves.
Key Services Offered by Freight Forwarders in Dubai
Key services offered by a Freight Forwarder:
● All cargo pickup and drop-in
● Trading Transportation
● Freight charges negotiations
● Taking care of booking necessary warehouse facilities
● Preparing all documents for exports and shipments
● Freight collection services
● Dealing with the required cargo insurances
Key services offered by custom brokers in Dubai:
● Customs valuation
● Tariff classifications
● International trade consultations
● Freight Management
● Dealing with automated customs clearances
● Import and Export purchase order management