IGNOU : M.COM : IBO 4 : UNIT 11 : Q - 5. What are the roles of clearing and forwarding agents in export trade? Discuss.

 

Ans. ROLE OF CLEARING AND FORWARDING AGENT

Clearing and forwarding agents are a link between the owners of goods and owners of means of transport. They help the cargo owners in efficient movement of goods to the buyers by completing a number of procedural and documentary formalities. They are experts and knowledgeable in laws and regulations governing shipment of goods through the customs authorities as well as in commercial practices, especially the ones concerning transport. Since they are in constant touch with various government authorities, they keep themselves abreast with the developments in the field of their activity. In addition to these functions, the agents can undertake a number of activities including marking, labelling and packing of goods, arranging internal transport, advising exporters 011 trade laws and price quotations as we'll as on developments in the transport field, file duty-drawback claims on behalf of the exporters, etc. In fact, the agents can perform all activities except perhaps selling the goods. Above all, the agents act as trouble- shooters for the exporters in case of movement problems. We may categorize various activities in the following groups :

i) Advising exporters on trade laws

ii) Providing transport and handling cost information

iii) Packing, marking and labeling

iv) Arranging transport

v) Completing customs and port formalities

vi) Preparing and procuring documents

vii) Educating exporters on developments in transport.