Stage one:
The importer and the supplier agree on terms of trade – known in the trade as International Commercial Terms (or 'Incoterms.') The Incoterms are a set of internationally recognised rules which define what each side is responsible for.
Stage two: origin handling and export clearance
Depending on the INCO terms agreed, the freight forwarding company can arrange to move the goods from the supplier's location to the next part of the chain – whether that's to a seaport, or an airport. The company will also arrange for the cargo to be satisfactorily inspected by the customs department of the origin country if required.
Stage three: export customs clearance
The freight forwarding company can be responsible for coordinating the relevant paperwork between the supplier and recipient of the goods to ensure that all laws and carrier requirements are met. In short, a passport for the shipment.
Stage four: import customs clearance
Once the cargo has arrived in its destination country, the paperwork must be checked once again to confirm that it meets the required custom and quarantine requirements. A good freight forwarding company will request and prepare this information in advance to reduce holdups in the process.
Step five: onward to the final destination
Once the goods are approved for release into the destination country, the freight forwarding company will organise its onward transit. This could be direct to the customer's warehousing facility, retail store, or, if a 3PL is required, to a warehouse managed by the freight forwarder.