What is the Difference Between Freight Forwarder and Clearing Agent?

The main difference between a freight forwarder and a clearing agent lies in their roles and responsibilities within the supply chain.

A freight forwarder manages the transportation of cargo from one point to another, typically from the country of origin to the destination country. Their responsibilities include:

Experience in various modes of cargo transport (air, ocean, road, and rail)
Providing cost-appropriate transportation of goods
Booking cargoes
Negotiating freight rates with shipping lines
Providing storage for cargoes
Delivering shipments according to the client's specifications
Providing a bill of lading to the client promptly
May or may not help with customs documents
May or may not be associated with other freight forwarders or clearing agents

A clearing agent (also known as a customs broker) is responsible for clearing shipments through customs procedures at the destination country. Their responsibilities include:

Determining the correct tariff heading of the goods for customs duties
Ensuring compliance with local customs regulations
Clearing shipments for entry at the port of destination
Dealing directly and extensively with local customs authorities

In summary, a freight forwarder manages the logistics of transporting cargo from one point to another, while a clearing agent is responsible for ensuring that the cargo is cleared through customs procedures at the destination country. These roles may be performed by separate entities or, in some cases, by the same person or company.

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What is the Difference Between Freight Forwarder and Clearing Agent?

Comparative Table: Freight Forwarder vs Clearing Agent

Here is a table that highlights the differences between a freight forwarder and a clearing agent:

Parameter	Freight Forwarder	Clearing Agent
Meaning	A person responsible for moving and storing the goods of a client.	A person responsible for getting required clearances from the customs department.
Duty	To move and store goods at designated locations.	To get all the required clearances so that no disturbance occurs while the moving of the goods.
Role in Transportation	Manages transportation and logistics for shipping goods.	Ensures compliance with import and export regulations.
Services	- Experience in all forms of cargo transport (air, ocean, road, and rail). - Provides cost-appropriate transportation of goods. - Books cargoes, negotiates freight rates with shipping lines, provides storage for cargoes, and delivers shipments according to the client's specifications. - Provides a bill of lading to the client promptly.	- Has in-depth knowledge of HS Codes, calculation of Duty and VAT, and organizes payment of duty and VAT applicable. - Assists customers with duty drawback, does not negotiate freight rates with carriers, and does not issue own bills of lading.
Global Presence	Freight forwarders have more of a global presence since they may be present in many countries.	Clearing agents are more specific to the country where they are based, as they deal directly and extensively with the local customs authorities.

In summary, a freight forwarder manages the transportation and logistics of goods, while a clearing agent handles customs processes and documentation. Both roles are essential for smooth international trade and often collaborate to facilitate the movement of goods.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.