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CTPAT Questions

Q: Should I ship to the U.S. via air freight or ocean freight?
A: Shipping via ocean freight is generally less expensive than shipping via airfreight. However, the transit time is much longer. Shipments from most foreign points of origin outside North America require 30-45 days of transit time via ocean freight. Foreign shipments to the U.S. via air freight require 1-7 days of transit time. Some shipments, such as large machinery, can only be sent via ocean freight.
Q: How should goods be packed for international transport?
A: Pack giveaway items in cardboard boxes sturdy enough to withstand a high degree of handling. If boxes are exposed to weather, pack contents using waterproof lining. Items that are imported for temporary import and likely to be re-exported, should be crated using a waterproof lining and attached to a skid or pallet for easy lifting. Use wing nuts instead of nails to facilitate re-crating. Make sure that all boxes are individually labeled and, if appropriate, ensure that any special instructions (“this side up,” “fragile,” “hazardous materials”) are indelibly marked on the outside of the crates.
Q: How do the U.S. regulations regarding Wood Packaging Materials (WPM) affect shipments to the U.S.?
A: All Wood packaging material (including wood used for dunnage, i.e. pallets or lumber) MUST be with fumigated or treated if entering the U.S. after September 15, 2005. All WPM must have an insignia marked on each crate/pallet evidencing proper fumigation. Fumigation certificates only will not be accepted. Plywood and any wood product less than 6mm in thickness are exempt as are imports from Canada. Once a wood product is fumigated and properly marked, it never needs to be treated again. Any freight not complying will immediately be sent back to its origin and the forwarder and/or exhibitor will be assessed a fine.

For further details about this regulation, please visit the U.S. Department of Agriculture/APHIS website: http://www.aphis.usda.gov/ppq/wpm/import.html.
Q: What documents are required to clear shipments through U.S. Customs and Border Protection?
A: Include five (5) copies of a proforma invoice/packing list in ENGLISH. The invoices must show the name and address of the shipper, the name of the show, the name of the exhibitor, the correct booth or stand number, identifying marks, quantity and description for each item, harmonized tariff number of each item, weights/dimensions of each package, the country of origin and the F.O.B. value of each item in U.S. dollars.

ISF Questions

What is Sea Freight (or Ocean Freight)?
In respect of using our Online Sea Freight Price Calculator, Sea Freight (or Ocean Freight) is the part of total Freight Cost of an international shipment by sea that covers containers move between carrier’s Container Yards (CY) at origin and destination. It is very important to understand that in respect of using our online sea freight price calculator, SEA FREIGHT (or Ocean Freight) DOES NOT INCLUDE COST OF INLAND TRUCKING (Containers pre-carriage and drayage at origin and destination).
Surcharges in Sea Freight (or Ocean Freight)
Total Sea Freight (or Ocean Freight) offered in a price quote should include SURCHARGES added to Basic Sea Freight (or Ocean Freight). •Basic Sea Freight (or Ocean Freight) or BAS - It is the cost of the sea freight from port to port. Typically reflects BAS in our contracts with Steamship Lines and valid within one calendar year unless amendments in contracts are occurred. •BAF or Bunker Adjustment Factor - Fuel surcharge. It reflects changes of price of oil on the world market. In our sea freight contracts typically changes quarterly. •Origin Inland Add-on – If a Container Yard (CY) is in a landlocked city then it is the price of containers delivery from the CY to a seaport of sail. •SEO - Security Charge at Origin •MAR - MARPOL Surcharge •DOC - Outbound Documentation Fee •CSC - Container Service Charge •DCX - Inbound Documentation Fee •SEC - Security Charge at Destination  
What is GRI (General Rates Increase)?

GRI (General Rates Increase) is the average amount by which Carriers (International Transportation Companies) tariff rates increase. It reflects price changes on the International Cargo Transportation by Sea Market. Typically GRI apply on contract rates once a year at the end of contract. However, in to carrier-to-carrier co-load agreements GRI may apply at a time when prices on the market change.
What is Container Yard (CY)?
In respect of FCL freight a Sea Port Container Yard (CY) is a facility at which FCL traffic and empty containers are received from or delivered to the consignee by or on behalf of the sea freight carrier. It is the place at which loaded and empty multimodal sea freight containers are accepted for loading onboard ships and the off-loading, releases, storing, assembling and holding. If it is a landlocked Container Yard at Origin, then it also used for transfers of containers to sea ports CY. A Destination Sea Port CY may also used (if necessary) for containers transfer to landlocked CYs, which are closer to places of cargo off-loads and empty containers return to the carrier.
What is the sea freight Bill of Lading?
In respect of Sea Freight (International Cargo transportation by Sea) a Bill of Lading (also referred as a B/L or BOL) is a document issued by an Ocean Freight Carrier acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee. 1.It is an evidence of a contract of carriage between an ocean freight carrier and shipper; 2.It is a receipt for goods shipped by an International Transportation Company; 3.It is a document of title on shipped goods. There are different types of ocean freight bill of ladings used by International Transportation Companies for export and import goods from and to US.
Essential shipping documents used in the Sea freight industry
In respect of dealing with an International Shipping Company (Freight Forwarder, NVOCC, VOCC) shipper is held responsible for providing complete set of documents related to his/her international shipment by sea. I.e. International Shipping Companies act such carriers for moving goods overseas on behalf of shippers based on information on shipped cargo provided by shippers in advance..

General Questions

What is the "Live Load" and "Drop and Pick"?
In respect of using our Online FCL Ocean Freight Price Calculator, Sea Freight (Option A) does NOT include cost of inland container(s) pre-carriage to a place of load. Ocean Freight is the price for container(s) transfer between seafreight carriers Container Yards only. Option B in our Online FCL Ocean Freight Price Calculator provides complete shipping cost / FOB including a price of inland container(s) pre-carriage to a place of load at origin (in the USA).
What is FOB?
FOB - Free on Board - is an Incoterms term. Incoterms are not actually transportations, but trade terms that are widely used in the International Trade practice (particularly in the Sea Freight industry) to indicate responsibility and ownership of goods when it is transmitting from seller to buyer.
SED is the acronym for U.S. Sea freight Shipping Export Declarations.
In order to comply with U.S. Customs regulations International Transportation Companies enforce the condition on all export from U.S.: NO DOCS-NO LOAD. I.e. presentation of required shipping documents, INCLUDING Proof of AES Filing (ITN#) or AES Exemption Legend, must be submitted to an International Transportation Company (Ocean freight carrier) used for your shipment no later than in 72 hour before the Seafreight shipment departs from the USA. 1.A valued packing list or commercial invoice, which contains: commodity description (1), value of shipped goods in USD (2), estimated weight (3) and volume (4). Our online forms for these documents allow you conveniently submit all that info from your computer. You may use this simple online forms in order to submit the information to us: COMMERCIAL INVOICE and/or VALUED PACKING LIST ONLINE.
ISPM 15 RULES - Wood packing restrictions in the sea freight
With regards to prevent the spread of plant pests and diseases throughout the world, new regulations had been implemented in the ocean freight industry. These regulations known worldwide as ISPM 15 rules and have been originated from the International Plant Protection Convention (IPPC - www.ippc.int). ISPM 15 rules apply on international seafreight shipments containing wood packaging material such as pallets, crates, dunnages, drums, wood cases etc. International transportation companies must comply with these ISPM 15 rules when accept cargo to overseas shipments.
What is SED (Shippers Export Declaration)?
A Shippers Export Declaration is used for two purposes. First, it serves as a census record of U.S. exports. Many reports are generated by the government using these statistics. Second, because the commodity's export license designation appears on the form, the SED serves as a regulatory document. The SED is required for shipments when the commodity's value exceeds more than $2500 per Schedule B number and for postal shipments if the value is at least $500 U.S.dollars. SEDs must also be prepared, regardless of value, for all shipments requiring an export license or for shipments to embargoed countries. This form can be filled out by either you or your freight forwarder (if power of attorney has been recognized). The SED does not leave the United States and does not travel along with the other export documents through the banking channels on the letter of credit or other transactions. Instead the Shippers Export Declaration is delivered to the exporting carrier (airline or vessel line) and then presented to the U.S. Customs Service at the port of export.
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