Second Review Business Analysts

What is Weight or Measure?
Weight is a designated unit, normally 1000 Kgs.  Measure is a designated unit of volume, normally one cubic meter.  This is standard but occasionally a freight rate is offered in imperial measure, e.g. 2200 lbs or 40ft cubic feet.   The carrier will define this for you.    Your freight rate is therefore based onthe greater revenue of either the weight or volume. Link to conversion tables

 
What is LCL and where do I find it?
LCL stands for Less than Container Load and represents a sea freight service.  Most forwarders or carriers offer this from a named point to another named point and will offer a rate per Weight or Measure, where you only pay for the space or tonnage that your cargo takes up. 

 
Why do I need an Importer’s Number?
CBSA – Canada Border Services Agency requires an importer number for every importer.  This number is the same business number assigned to your business but with an RM extension.  If you do not have a Business Number,  then you can apply online.  http://www.businessregistration.gc.ca/


Are all goods to/from the USA free of Duty?
No.   To qualify for duty free or lower rates,  your goods must qualify under NAFTA (North American Free Trade Agreement) and be accompanied by the required NAFTA certificate.   This only applies to goods manufactured in the NAFTA countries.   Goods previously imported from another country,
and re-exported will not qualify.    Link to Customs Tariffs 


Why do I need a Customs Broker? 
It is not mandatory to hire a Customs broker.   An importer can do their own clearances, however some investment would have had to be made in EDI and training to participate in the Customs programs.  CBSA would also have to approve the application.    For a one time importer, it is possible to go to the Customs port/office to effect clearance, however in the case of a busy port /airport, there could be a lot of waiting time and frustration. 


If my cargo is late and my client cancels the order, am I compensated? 
Unless you have purchased the type of insurance that specifically covers this event (usually at a high premium),   you will not be compensated.   If you are a high revenue customer and indicate your extreme distress, your forwarder or carrier may elect to give a token compensation as a goodwill gesture only.   Your only other option to to take legal action, but this is dangerous as most standard trading conditions refuse liability,  and you will have to prove gross incompetence or malice.
    
What are Incoterms?  Why do I need to know them? 
Incoterms are key elements of international contracts of sale. They tell the parties what to do with respect to carriage of the goods from buyer to seller, and export & import clearance. They also explain the division of costs and risks between the parties.  It is highly recommended that Sellers and Buyers understand the meaning of the shipping terms.  Download Incoterms in ppt and pdf


Can I buy COD?
Yes you can but subject to the agreement of the individual supplier.  The carrier or forwarder will undertake to collect the COD amount documented, in the form of a guaranteed bank draft, in the currency requested.    Steamship release of the goods and Customs clearance will not take place until the draft has been submitted.    There is a charge for this, between 5-10% of the invoice value dependant on the carrier. 


My carpets arrived looking good, but when I unrolled them, there was mould
and water damage.  Am I covered by insurance? 
Unless your cargo policy specifically covers this occurrence, then you are out of luck.   Most blanket cargo policies cover external damage only and exclude internal damage.   Claims are difficult to process since it’s virtually impossible to tell where the damage occurred.   Link to Cargo Insurance


What is the Aviation Security fee for?
This charge occurs at the originating Airport, and is for X-ray services /or alternatively dog services.   Many countries have adopted this measure due to the rise of terrorist or combative acts.  


What does the skull and crossbones sign at the back of the truck mean?
The truck is carrying dangerous goods.   This sign is the universal sign for poison or toxic substances,  it could be a gas, liquid or solid.  Please don’t have an accident with this vehicle.  

  
The Driver won’t help me load the truck!   Isn’t this bad service?  
Actually it’s not.   It’s not part of their contract of carriage and drivers fully expect shippers and receivers to do their own loading/unloading.    The trucking companies generally do not encourage any driver to help due to liability issues.  Many drivers however still help shippers in the loading process mainly due to the fact that they have another pickup or delivery. 


My Letter of credit has expired?   What do I do? 
Apply to your bank to amend the Letter of Credit expiry date.  Once this is done, the seller will indicate acceptance (this is most likely since they would not want to lose the sale) and prepare to ship.  Amending a Letter of Credit will of course cost money and your bank will indicate the fee.