OVRSEA
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OVRSEA Insights

Theme

Customs & compliance

Duties, tariffs, regulation and their operational impact on imports.

Guides

Understand & decide

Service scope: freight forwarder vs customs

Freight forwarder vs customs broker: what's the difference and who does what?

The freight forwarder organizes and manages the movement of your goods (booking freight, coordinating modes, tracking). The customs broker files customs declarations on your behalf. These are two distinct jobs, but many freight forwarders - including OVRSEA - bring the two together: you then have a single point of contact for both transport and customs clearance, which simplifies coordination and reduces the risk of error.

Customs, import duties, and tariffs

Import duties: who pays, how to calculate them, and how to reduce them

On import, customs duties are owed by the importer (the consignee), except under the DDP Incoterm where the seller bears them. They are calculated by applying a rate, set by the goods' HS code, to the customs value (generally the CIF value: goods + insurance + freight). VAT is then added on top of that total. To reduce the bill: classify your products correctly, use preferential origin agreements, and apply the right customs procedures.

Incoterms and cost allocation

Incoterms 2020 explained: who pays what (FOB, EXW, CIF, DDP)?

Incoterms 2020 define, for each shipment, where the seller's responsibility ends and the buyer's begins: who pays for transport, who bears the risk, who handles customs. EXW: the buyer takes everything from the factory. FOB: the seller delivers on board at the port of departure, the buyer pays the freight. CIF: the seller pays freight and insurance to the port of arrival. DDP: the seller delivers cleared at destination, all included. For an importer, FOB often offers the best cost control.

Market analysis

In The Merchant

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