The company paid freight forwarder fees for imported goods and is unsure which account to credit them to, fearing it will affect financial accounting. The best answer points out that if the freight forwarder fees are directly incurred to bring the goods to a usable or saleable condition, they are usually credited to the cost of purchase. If they are not directly related to the goods, they may be credited to administrative expenses, and the accounting entry should be determined based on their actual use and nature.
Who typically hands over the import delivery order to the freight forwarder?
Resolved
I've been handling import business recently and am not very clear about the circulation process of import delivery orders. I'd like to know who typically hands over the import delivery order to the freight forwarder in the entire process. Is it the shipper, the consignee, or other relevant parties? I hope a professional can help answer this, explaining in detail the relationships between the parties involved and the general delivery process. Thank you.
Trade Expert Insights Answers
Under normal circumstances, the import delivery order is handed over to the freight forwarder by the consignee or their agent (such as a customs broker designated by a trading company). The process is roughly as follows: After the goods arrive at the port of destination, the shipping company or its agent will send an arrival notice to the consignee or the notify party. The consignee will then go to the shipping company or its agent with the original bill of lading (or a telex release guarantee and relevant documents if it's a telex release) to exchange it for the delivery order. Subsequently, if the consignee has entrusted a freight forwarder to handle customs clearance, cargo pick-up, and other subsequent matters, they will hand over the delivery order to the freight forwarder. Upon receiving the delivery order, the freight forwarder can then proceed with subsequent operations such as customs declaration and inspection to complete the pick-up and delivery of the goods. In this process, the consignee plays a crucial role because the delivery order is an important document for them to claim the goods, and when handing it over to the freight forwarder, it is also necessary to ensure that the freight forwarder has professional qualifications and good credibility.
Usually, the consignee gives it to the freight forwarder. This is because the consignee first needs to exchange the bill of lading at the shipping company to get the delivery order, and then, for convenience in handling customs clearance and cargo pick-up, they will hand over the delivery order to the freight forwarder.
If the consignee has entrusted a trading agency company to handle import matters, then the trading agency company may also forward the delivery order to the freight forwarder, as they are responsible for liaising with related parties.
Sometimes, with communication and coordination among all three parties, the shipping company or its agent may, at the consignee's request, directly hand over the delivery order to the freight forwarder, but this situation is relatively rare.
When the consignee is unable to handle cargo pick-up and other matters at the port of destination themselves, they will rely on a freight forwarder. In this case, the consignee will hand over the delivery order to the freight forwarder after obtaining it.
If a letter of credit is involved in the settlement, the bank might initially give the delivery order to the consignee, who will then transfer it to the freight forwarder.
For some consolidated cargo (LCL), the consolidator, after obtaining the delivery order, may also hand it over to the freight forwarder according to agreements with the consignee or the freight forwarder.
When import goods have regulatory requirements, the consignee must first meet the regulatory conditions to obtain the delivery order, and then hand it over to the freight forwarder to handle the subsequent cargo pick-up process.
In actual practice, there are also cases where the shipper has negotiated in advance with the consignee and freight forwarder, and the destination agent directly hands over the delivery order to the freight forwarder.