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A cost, insurance, and freight (CIF) agreement is a type of international shipping contract used to carry products between buyers and sellers. It is one of the eleven international commerce terms (Incoterms) created by the International Chamber of Commerce (ICC) in 1936.

The specific definitions vary somewhat in every country, but the contract generally specifies the origin and destination information that is used to determine where liability officially begins and ends. It also outlines the responsibilities of buyers to sellers, as well as sellers to buyers. Only products transported by waterway, sea, or ocean are subject to cost, insurance, and freight.

Overview of CIF

When goods are purchased or sold by "Cost, Insurance, and Freight" (CIF), the seller is responsible for delivering the products to a ship, loading the goods aboard, and insuring the consignment until it arrives at the port of destination. This insurance is based on the minimum coverage, which is the product's commercial worth plus 10%. The seller is also responsible for all necessary export documentation and licensing. In addition, the seller is liable in the event of any inspections.

In other words, the items are shipped to the buyer's specified port in the sales contract. The seller is responsible for any loss or damage to the merchandise until it is delivered to the buyer's destination port. Furthermore, if the product necessitates extra customs fees, export documentation, inspections, or rerouting, the seller is obligated to cover these costs.

But, after the products arrive at the buyer's port of destination, the buyer is responsible for any fees or costs. This includes the ones incurred during the unloading and delivery of the shipment to the final destination. CIF is comparable to carriage and insurance paid to (CIP). But, CIF is exclusively used for sea and waterway shipments, whereas CIP can be used for any form of transportation, including trucking.

What is Each Party Responsible for Under CIF Incoterms?

Seller's Responsibilities

CIF terms require the seller to get export licenses for the product, provide product inspections, and pay any charges or fees for shipping and loading the goods to the seller's port. Additional responsibilities of the seller include:

• Packaging charges for exporting cargo,
• Customs clearance, duty, and tax charges (for exporting),
• The cost of transporting freight by sea or river from the seller's port to the buyer's port of destination,
• The cost of insuring the shipping until it arrives at the buyer's final destination.
• In order to cover the costs of any damage or destruction to the products,
• The seller must deliver the products to the ship on time and show documentation of delivery and loading.

Buyer's Responsibilities

When the items arrive at the buyer's target port, the customer accepts responsibility for the costs of importation and delivery. Among these expenses are the following:

• Unloading the cargo at the port terminal,
• Transferring the merchandise within the terminal and to the delivery location,
• Customs duties and other fees related to importing goods,
• Charges for shipping, unloading, and delivering items to their final destination.

What are the risks that come with CIF?

As with every trade transaction, CIF also comes with risks. Let’s take a look at what kind of hazards it poses to the seller and buyer respectively.

Risks and Costs for the Seller

The seller is in charge of arranging and paying for transportation to and from the port of destination. All export formalities are also the seller's responsibility. While the seller pays for transportation and insurance to the final port, the buyer assumes responsibility for the cargo once it is loaded into the vessel. The seller is responsible for all charges related to exporting the shipment from the country of origin.

The risk is relatively low because it is shifted to the buyer after the shipment is loaded. The seller is responsible for any loss or damage until the shipment is loaded.

Risks and Costs for the Buyer

When the shipment is loaded aboard the vessel, the buyer assumes responsibility for it. The buyer is responsible for unloading the goods at the final port. They are responsible for the costs of offloading and onward transportation at the port of destination. The buyer is liable for all charges associated with importing the shipment into the country of destination.

Only unloading and transportation to the final location are handled by the seller. Because the buyer controls the majority of the expenditures, there is a risk of overcharging. The seller may also choose more expensive transportation methods than the buyer.

Utilization of Cost, Insurance, and Freight

CIF can be used for both international and domestic water transportation. It transports big cargo, oils, and oversized items. When the seller has direct access to the vessel for loading, CIF should be used. It is preferable to employ Carriage and Insurance Paid (CIP) when shipping containerized items.

CIF Under Incoterms 2020

The new Incoterms 2020, introduced by the ICC in early 2020, are already in effect and will remain so until 2030. The Incoterms 2010 will remain in effect as the Incoterms 2020 made no modifications to Cost, Insurance, or Freight. 

Get Full Service with Turkish Goods

Turkish Goods' global transportation management team is well-versed in Incoterms standards and all shipping terms. We make sure your cargo arrives safely at its destination.

Importing can be a complex and time-consuming process. You must deal with a large amount of documentation, from summary declarations and temporary holds to free zone declarations, and closely monitor several procedures. But as Turkish Goods, we ensure that your cargo meets all the requirements and has all the necessary documentation. Just put in your order and leave the rest to us.

Flour is one of the indispensable ingredients in the world. The demand for flour is constantly increasing as it is the main ingredient of many staple foods in many different cultures. Flour is mainly used in the making of bread. However, there are many different kinds of flour that are made from different grains, seeds, roots, nuts or beans. 

Even though wheat flour is the one that is widely used around the world, there are also flours for different purposes. Cake and pastry flours have specific uses. All-purpose flour can be used in the making of many different recipes and foods. Bread flour is used in making bread. There is also gluten-free flour for those who are gluten intolerant. 

Due to its importance in the diet of humans and providing sustenance with the least effort, flour is widely produced around the world. In this article, we have listed the countries that are leaders in flour exports in the world. Read on to discover which countries are taking the lead, producing and exporting flour. 

Turkey

Turkey is the leader in the world when it comes to flour exports. In fact, in 2020, the flour exports in the entire world totaled 4.7 billion dollars. Turkey counted for 20% of the flour exports in the world. This is a significant percentage which makes Turkey by far the largest exporter of flour compared to other countries. Turkey earned 951 million dollars from its flour exports in 2020. 

While Turkey exports flour to many different countries, Iraq seems to be the leading importer. In fact, 47% of Turkey’s exports went to Iraq. Yemen followed Iraq with a 9% share in flour imports from Turkey. Syria followed with 6% and becomes the third importer. Venezuela and Angola also followed with 6% and become important markets for Turkey in terms of flour exports.

Kazakhstan

Kazakhstan comes second in flour exports in the world, even though its export is significantly less compared to Turkey. The country exported 489 million dollars worth of flour in 2020. Kazakhstan’s export market when it comes to wheat flour is quite different compared to Turkey. The country exported the most flour to Afghanistan, generating 334 million dollars. Uzbekistan followed Afghanistan with 85.4 million dollars. Tajikistan came third in flour imports with 24 million dollars. Finally, Kyrgyzstan and Turkmenistan followed with 20.5 million dollars and 10.7 million dollars respectively.

Compared to its exports, Kazakhstan imports only a small amount of flour from other countries. In 2020, its flour imports totaled 3.89 million dollars. Kazakhstan primarily imported flour from Russia worth 2.63 million dollars. Secondly, the country imported flour from Italy amounting to 123 thousand dollars. Lithuania followed with 48.1 thousand dollars. Finally, Turkey came with 36.6 thousand and South Korea with 33.7 thousand dollars.

Germany 

Germany is another important country in terms of flour exports. According to the published data, Germany exported 342 million dollars’ worth of wheat flour in 2020. With this export figure, Germany secured its place as the third-largest flour exporter. The Netherlands was the top importer of flour from Germany with 130 million dollars. France came second with 89.6 million dollars. Austria followed France with 24.5 million dollars. Finally, Poland came with 22.6 million dollars and Belgium with 20.9 million dollars.

When it comes to the flour imports of Germany, the list of countries doesn’t seem to change. In 2020, Germany imported wheat flour mainly from Italy which was worth 14.9 million dollars. Poland was the second country with 10.4 million dollars. The Netherlands followed with 8.17 million dollars. Having a small yet notable share in Germany’s imports, Austria followed with 7.29 million dollars and France with 5.03 million dollars. 

Uzbekistan

Uzbekistan is the fourth country that exports a significant amount of wheat flour in the world. According to the export data, Uzbekistan exported 219 million dollars’ worth of wheat flour in 2020. Wheat flour is an important export product for Uzbekistan. In fact, in 2020, wheat flour was the 6th most exported product in the country. Therefore, it is an important source of income.  

Moreover, Uzbekistan made the most of its flour exports to Afghanistan and generated 217 million dollars in 2020. Kyrgyzstan followed with 676 thousand dollars and Tajikistan with 526 thousand dollars. Finally, Denmark came with 1.25 thousand dollars.

When it comes to the imports of the country, it imported the most flour from Kazakhstan which was worth 85.4 million dollars. Next, Uzbekistan imported flour from Russia worth 2.18 million dollars. France and Lithuania followed with 11.6 thousand dollars and 7.9 thousand dollars respectively. Lastly, Italy came with 6.8 thousand dollars.

Argentina

Argentina is the last country on our list. In 2020, Argentina became one of the largest flour exporters in the world. The country exported 196 million dollars’ worth of wheat flour. Argentina mainly exported flour to Bolivia and earned 118 million dollars. Brazil followed with 67.6 million dollars. Chile came third with 6.2 million dollars. Gambia and Uruguay, on the other hand, came last with 1.79 million dollars and 1.19 million dollars respectively. 

On a different note, Argentina imported the most from Brazil with 82.8 thousand dollars in 2020. Italy came second with 34.3 thousand dollars. Finally, France was the third country with 7.8 thousand dollars. 

Import the Best Quality Wheat Flour from Turkey

If you want to import the highest quality wheat flour from the world’s top exporter Turkey, you can safely do so with the guarantee of Turkish Goods. Having a professional team that takes care of the entire import process from start to finish, Turkish Goods offers the best experience to its clients. Turkish Goods partners with reliable suppliers in Turkey to provide the best products and deliver them to any location around the world. High-quality products with the best wholesale prices are at Turkish Goods.

If shipping is part of your business, it's important to become familiar with International Commerce Terms (Incoterms). The International Chamber of Commerce has established Incoterms. By knowing these terms and their meanings, you can follow a more accurate way. Also, knowing the rules and standards will keep you safe as a buyer or seller. Incoterms to know include CIF and FOB. They specify what buyers and sellers need to know and their responsibilities. 

There are some differences between CIF and FOB. Differences come with different responsibilities. Thus, we explained the differences between CIF and FOB in detail for you.

What is CIF?

CIF stands for cost, insurance, and freight. The seller is responsible for the cost, insurance, and freight. CIF is a shipping agreement. This agreement specifies the seller's responsibilities and the fees he must pay. The seller pays these fees to cover costs, insurance, and freight. These costs incur while the cargo is in transit. Only goods transported via waterways, sea, or ocean are subject to CIF. Hence, other forms of shipping are not subject to CIF. 

In general, CIF applies to large, heavy, and bulk items. According to CIF, the seller is responsible for the cargo until it reaches the port of destination. The seller is also responsible for export clearance. Thus, ownership of the transport remains with the seller until delivery. For this reason, the risks that occur until the transport reaches the buyer's port are the responsibility of the seller. In this process, the seller must cover the damages. Moreover, the seller is responsible for the additional factors such as customs duties and paperwork required for the goods.

However, the responsibility passes to the buyer as soon as the goods reach the port of destination. For example, the buyer should pay the unloading costs. Besides, the buyer must ensure that the transport reaches the final destination. Also, the buyer bears the costs incurred in this process.

Responsibilities Required by CIF

CIF comes with some responsibilities for both buyers and sellers. Sellers take responsibility for all export and transport of the cargo until the goods reach the ship. After loading, the responsibility of the shipment passes to the buyer. Responsibility remains with the seller until the products reach the final destination. Apart from these, we can explain the responsibilities of both parties in more detail.

Responsibilities of Sellers

• Licenses: Sellers must obtain export licenses for the goods. Thus, they must pay the fees required for these licenses.
• Packaging: The seller must ensure that the cargo is properly packaged. Sometimes some countries require special marks on the packages. The seller must also provide these markings according to the rules of the countries. As a result, sellers are responsible for making the cargo suitable for export.
• Loading, Carriage, and Origin Terminal Charges: The seller is responsible for the costs of loading the shipment from the seller's warehouse to the first carrier. The seller pays the fees required for the transfer of the cargo to the vessel. Besides, the seller must pay the delivery fees at the loading port.
• Export Duty, Taxes, and Customs Clearance: The seller must bear all customs costs associated with the export of the goods.
• Insurance: The seller must pay for the insurance of the goods. The insurance he must pay covers the period until the shipment reaches the port of destination.

Responsibilities of Buyers

• Delivery to Final Destination: The seller is responsible for transporting the cargo from the port to the final delivery point. Thus, he should organize the necessary logistics for this process.
• Unloading: The buyer bears the unloading costs after the cargo reaches the delivery place.
• Destination Handling Charges: Another name for Destination Handling Charges is destination terminal charges. The buyer bears the unloading-related costs required to transfer the cargo within the terminal.
• Import Duty, Taxes, and Customs Clearance: The buyer must pay the import-related fees and customs fees for import.

What is FOB?

FOB stands for Free on Board. FOB is a shipping agreement. It is the responsibility of the buyer from the moment the shipment leaves the port of departure with FOB. FOB requires the buyer to choose the shipping company, insure the shipping, and pay some costs.

With FOB, the buyer assumes responsibility once the goods have passed the ship's rails. This happens at the point of origin. Full responsibility passes to the buyer from the moment the goods begin their journey. The buyer should pay for transport, insurance, and other costs. In addition, the buyer is responsible for unloading the goods from the vessel in FOB.

Responsibilities Required by FOB

As we mentioned above, the responsibility passes to the buyer as soon as the shipment leaves the port of departure. But, it would be useful to explain the responsibilities of the parties in more detail.

Responsibilities of Sellers

• Packaging Fees: The seller must bear the packaging costs of the exported items.
• Export Duty, Taxes, and Customs Clearance: The seller is responsible for paying customs duties and taxes related to export.
• Loading and Delivery: The fees for the loading and delivery of the goods to the seller's port are the seller's responsibility.
• Transfer, Loading, and Handing: The seller must bear the costs of loading the goods, such as the transfer fee.

Responsibilities of Buyers

• Freight Charges: The buyer bears the freight charges in the process of sending the cargo from his port to the buyer's port.
• Insurance: The buyer should pay the freight insurance charges. But the buyer may not take out insurance if he wishes. Thus, insurance is optional.
• Unloading and Delivery to Final Destination: The costs of unloading at the buyer's port and delivery to the final destination belong to the buyer.
• Import Duty, Taxes, and Customs Clearance: The buyer is responsible for paying customs duties and taxes related to the import.

Key Differences Between CIF and FOB

The key difference between FOB and CIF is the point where responsibility passes from the seller to the buyer. In FOB, responsibility transfer happens when the shipment reaches the point of origin. With CIF, the seller is responsible for the goods until they reach the destination port.

Another difference between FOB and CIF is the costs. Generally, FOB is a more cost-effective method than CIF. Because with FOB, sellers can negotiate rates. Also, it is up to the buyers to choose insurance policies by price or to work with low-priced companies. Yet, if you are new to international trade, CIF may be a better option. Furthermore, if your cargo is small, CIF may be more suitable for you. CIF makes the process smoother for the buyer, even if it costs more.

In conclusion, CIF and FOB have their own pros and cons. Choosing one of the two according to your situation gives you different advantages. 

Turkish Goods is at your service as your unrivaled partner for trouble-free import and shipping processes. Click here to get detailed information about our services.

Figs have been considered an important fruit since ancient times. They have green skin when raw and the skin darkens and becomes purple as the fruit ripens. The inside of the figs is a soft and sweet flesh full of seeds. Loved by many, figs are consumed in many different ways. They can be eaten fresh or dried. They are also made into jams or used in desserts.

Even though now grown in many different places, figs are known to be native to the Mediterranean and western Asia. In this article, we will be exploring which countries produce and export the most figs around the globe. Let’s take a look at some of the leading countries in fig exports in the world. 

Turkey

Turkey is the home of figs. Figs were first cultivated in Turkey. Later on, figs started to be cultivated in Syria and Palestine. From there the production of figs moved to China and India. Therefore, Turkey plays an important role in the production of figs. Having fertile soil and the best climate conditions for figs to grow, Turkey is the leading fig producer and exporter in the world. 

When it comes to the production and export figures, Turkey is above the curve. Fig production areas were 573 thousand decares in 2020. The province that had the most fig production areas with 69,4% of the total area was Aydın. In the same year, Turkey produced 320 thousand tons of figs. Aydın was the top fig-producing province with 183 thousand tons. İzmir and Bursa followed Aydın in fig production. 

As the top fig exporter in the world, Turkey exported 21 thousand tons of fresh figs in 2020 according to the Ministry of Agriculture and Forestry. 53,6% of these figs were exported to Germany, Russia and Holland. When it comes to dried fig exports, Turkey exported 56 thousand tons of dried figs in 2020. A significant amount of these exports were made to France, Germany and the USA. Turkey generated a total of 278 million dollars from fresh and dried figs exports in 2020.

Afghanistan

Afghanistan has been one of the top producers and exporters of figs in the world for a long while. Since the fig cultivation that started in the Mediterranean moved to Asia through the Middle East, many Middle Eastern countries are important places in fig production. 

In 2020, Afghanistan exported fresh and dried figs worth 135 million dollars. Thus, Afghanistan became the second country in the world to export the most figs. Interestingly, in the same year, figs were the most exported second product in the country. Afghanistan exported the most figs to India with 132 million dollars. The United Arab Emirates followed with 1.35 million dollars. Finally, Pakistan was the third with 1.04 million dollars.

On the other hand, in 2020, Afghanistan imported 34.1 thousand dollars’ worth of figs, ranking as the 112th fig importer in the world. Most of these figs were imported from the United Arab Emirates, Uzbekistan and Turkey. 

Austria

Even though there is a significant difference in its export amounts compared to the top two countries, Austria comes third in fig exports in the world. According to the data, Austria exported 22.9 million dollars’ worth of both fresh and dried figs in 2020. When it comes to the countries that imported the most figs from Austria, Germany came first. 

Germany imported 14.5 million dollars’ worth of figs from Austria in 2020. France followed Germany with 2.2 million dollars. Poland was the third with 1.82 million dollars. Finally, Italy and the United Kingdom followed with 1.28 million dollars and 870 thousand dollars respectively. 

From a different standpoint, Austria imported figs worth a total of 17.1 million dollars in 2020. Austria imported both fresh and dried figs primarily from Turkey which amounted to 6.91 million dollars. Austria also imported figs worth 5.71 million dollars from Germany and figs worth 2.27 million dollars from Slovakia.

Germany

Germany was the fourth largest fig exporter in the world according to the 2020 export records. Not far from Austria, Germany exported 22.4 million dollars’ worth of figs in 2020. Not surprisingly, Austria was the country that imported the most figs from Germany. In fact, Austria imported 5.71 million dollars’ worth of figs from Germany. Holland followed Austria with 3.31 million dollars. Slovakia imported 2.62 million dollars’ worth of figs. Finally, France and Switzerland imported figs worth 2.3 million dollars and 1.24 million dollars respectively. 

When it comes to Germany’s imports, Turkey is the country Germany imports the most figs from, similar to the other countries on the list. Germany imported both fresh and dried figs from Turkey worth 55.7 million dollars in 2020. Austria came second with 14.5 million dollars and Holland came third with 6.05 million dollars. 

Spain

The last country on the list of the leading countries in fig exports is Spain. Spain was the fifth largest fig exporter in 2020. Spain’s fig exports were very close to Germany’s exports. In fact, Spain exported 22.2 million dollars’ worth of both fresh and dried figs in 2020. The country Spain exported the most figs to was France.

France imported 10.1 million dollars’ worth of figs from Spain in 2020. Portugal followed Frace with 2.27 million dollars. Italy came third with 1.44 million dollars. Germany and the United Kingdom came the last with 1.34 million dollars and 1.25 million dollars. 

Spain, on the other hand, imported the most figs from Turkey with 2.15 million dollars in 2020. France followed Turkey with 234 thousand dollars. Italy followed France with 192 thousand dollars. Germany came fourth with 180 thousand dollars. Finally, Spain imported figs worth 94.8 thousand dollars from Switzerland. 

Import High-Quality Fresh and Dried Figs from Turkey 

Since Turkey is the leading fig exporter in the world in terms of both fresh and dried figs, the quality of the Turkish figs is proven worldwide. As Turkish Goods, we provide the highest-quality figs that are produced in Turkey to any location in the world. If you wish to import figs, contact Turkish Goods to get the best wholesale price in only 48 hours. 

Turkish Goods works with a wide network of reliable suppliers. With its professional team, Turkish Goods takes care of the entire import process to make sure the products are delivered on time and safely. Providing support in 13 languages, Turkish Goods is with you every step of the way. 

Every year the trends change. New products become more popular. On the other hand, some products continue to be popular for several years. Even though the demand for each product changes constantly, some products are more sought after all throughout the year.

If you are considering which products to import for your business, you need to be aware of the demand as well as what is trendy. Of course, this is highly related to the type of business you are running and the market you are in. Because the trending products might be quite different based on the market. Therefore, it is important to choose the products that are in demand in your niche and the products you will definitely be able to sell.

In this article, we have listed the trending product groups and products in 2022. Depending on your business, you can choose some of these products to import this year. Read on to discover more!

Healthcare Products

Healthcare products have been in great demand since the Covid-19 pandemic. Even though the conditions are no longer dire, the effects of the pandemic can still be felt. This naturally reflects on the demand for healthcare products. The increasing demand for healthcare products is still continuing today. Therefore, importing healthcare products might be a good idea for your business if it fits your niche. Turkey is especially a great country to import healthcare products from due to its production and export rates as well as how well it performed during the pandemic.

Medical Masks

Even though they are not as strictly used everywhere, medical masks are still widely used around the world. Some countries still demand medical masks to be used in public or crowded areas such as hospitals or public transportation. On the other hand, people become more aware of the importance of using medical masks when they are sick to protect those around them. Hence, medical masks are still among the popular import products. The global face mask market was 16.4 million dollars in 2021 and it is expected to reach 21 million dollars by 2028.

Sanitizers

Another product that became popular during the pandemic was sanitizers. The fear of contamination and coming in contact with the virus increased the use of all sorts of sanitizers everywhere. From workplaces to our homes, we started to use sanitizers more frequently. Even though people are no longer as worried about the virus, they still formed new habits to keep themselves clean. People are nowadays especially careful about keeping their hands clean at all times. When this is the case, the demand for sanitizers is still going strong. The global market for hand sanitizers was estimated to be 12.1 billion dollars. It is expected to reach 39.2 billion dollars by 2027.

Textile Products

Textile products cover a great number of products in different categories. These categories include women’s clothes, men’s clothes, children's and baby clothes, home textiles and much more. Since it is a big market and there is fast consumption in terms of textiles, the demand is continuously increasing. In fact, the global textile market was 530.97 billion dollars in 2021. It is expected to reach 575 billion dollars in 2022, showing a growth rate of 8.3%.

Cosmetics

Cosmetic products are always in demand since it covers a wide range of products such as makeup, skincare and haircare. Even in each category, there are many different products designed for different purposes. Cosmetic products are formulated with utmost care and dermatologically tested to meet the needs of each skin type and protect the skin against the environment. 

On that note, some of these cosmetics products may also be environmentally friendly. Vegan and cruelty-free cosmetic products are also increasing in demand as consumers are becoming more and more aware and conscious. Therefore, importing cosmetic products in accordance with the current trends might be a great option for your business.

Baby Products

Baby products is another category that is significantly increasing in demand each year. In fact, in 2020, the global baby products market was 11.7 billion dollars. It is estimated that this market will reach 15.6 billion dollars by 2026. A 5.6% growth rate is quite significant. Therefore, it is safe to say that baby products will be in demand for a long time. 

The diversity of the category makes your options endless. Therefore, if your business’ niche is suitable, there are so many products you can import. Baby clothes are always in demand. High-quality baby clothes that are made of natural materials are especially sought after. Other baby products such as carriers, toys or diapers are also highly in demand. By importing these products, you can make quite a bit of profit in the long run. 

Sustainable Products

According to the report of IBM, the global pandemic positively influenced people’s view of sustainability. Another survey done in February 2022 showed that 51% of the people cared about sustainability more than a year before. This idea also reflects on their purchasing habits. According to another data in 2021, half of the consumers were willing to pay more for sustainable products. Naturally, this increases the demand for sustainable products each year. 

Products that are eco-friendly and that don’t contain harmful chemicals to humans and the environment are becoming more and more popular. However, this is not enough. Consumers also care about the product packaging. They tend to prefer products if the packaging is recyclable or compostable. On the other hand, brands that actively work on sustainability are also supported. Since sustainability is gaining more momentum, it might be a great idea to import more sustainable products if your niche is suitable.

A Trustworthy Address for Imports: Turkish Goods 

Turkey plays an important role in meeting the demands of the global market. Having proven to be a strong partner in international trade, Turkish Goods delivers high-quality products to any location in the world. By working with trustworthy suppliers in Turkey, Turkish Goods offers more than 1000 products in any category you can imagine. Turkish Goods takes care of the entire process to make the import process easy and fast for its partners. You can get the best wholesale price within 48 hours by contacting Turkish Goods. 

Many importers and exporters, particularly newcomers, believe that freight forwarders and customs brokers are interchangeable terms.

Customs brokers and freight forwarders both provide unique services and play an essential role in international trade and transportation. Many overseas transactions make use of both forwarders and brokers, and in certain cases, the same organization will perform both.

Here's everything you need to know about forwarders and brokers, how they fit into the international shipping process, and particular instances of how they could be employed.

What is a Customs Broker?

A customs broker is a person or corporation who is licensed and controlled by the government to assist importers and exporters in the preparation and clearance of a customs entry.

Licensed customs brokers are logistics professionals who understand port of entry procedures, admission regulations, freight classification, freight appraisal, and financial issues such as the payment of tariffs and taxes on imported products. They provide customs brokerage services to businesses to ensure that their goods pass through customs clearance efficiently.

What is a Freight Forwarder?

A freight forwarder is a person or firm who organizes the storage and delivery of goods on behalf of a company. Freight forwarders wear several hats and provide a wide range of services, including transportation, paperwork and documentation preparation, tracking, freight rate negotiations, consolidation, insurance, warehousing, and other areas of supply chain management.

Freight forwarders do not transport your products. They act as a go-between for shippers and transportation companies, ensuring that the process runs smoothly and that items arrive on time.

Freight forwarding services encompass a wide range of logistical and administrative tasks that may cause problems for the shipper. Errors (even inadvertent ones) can create lengthy delays and are illegal. While a freight forwarder isn't required for international shipping, their knowledge and contacts can help you save time and money.

Differences Between Freight Forwarders and Customs Brokers

The primary distinction between a freight forwarder and a customs broker is that the freight forwarder is responsible for the logistics of transporting the shippers' products from origin to destination. A forwarder enters into direct contracts with carriers to arrange bookings via ocean, air, rail, or truck, as well as advise shippers on expected freight costs, port taxes, special document expenses, insurance costs, and terminal handling fees.

The customs broker, on the other hand, works with the administrative side of things, such as document completion and ensuring the shippers' products are transferred into or out of a country. Customs brokers often specialize in the import side of an export transaction and have direct contact with a variety of government agencies, including the Department of Agriculture, Consumer Product Safety Commission, FDA, and, of course, the United States Customs Border and Protection.

Because importing goods into the United States is complicated, many importers engage customs brokers to help clear U.S. import cargoes. Individuals can self-clear products, while businesses, partnerships, and associations must rely on certified brokers to manage the complex parts of "customs business."

Freight forwarders without certified customs broker capabilities frequently collaborate with a customs broker to help resolve challenges with an export transaction.

Which One Does Your Company Need?

Shipping logistics are difficult regardless of the option a shipper chooses. Moving goods globally, regardless of preference, necessitates a partner who is detail-oriented and precise. Of course, the shipper can always manage it on his own, but these transactions are always best handled by an expert.

Hiring a freight forwarder and customs broker can make the import and export procedure more convenient and straightforward.

When Should You Use a Freight Forwarder?

If you are just starting in international shipping, hiring a freight forwarder is highly recommended. A freight forwarder can help you manage the process by negotiating the best shipping costs and arranging storage and warehousing for your items.

A freight forwarder eliminates risk and allows you to focus on the important areas of your business.

When Should You Use a Customs Broker?

If you have a proven effective and efficient logistics plan, you may not require a freight forwarder. However, unless you are well-versed in the complicated world of international customs, you should use a customs broker. It is a sophisticated, time-consuming, and ever-changing field that necessitates knowledge and skill.

Conclusion

Global trade is critical to economic development. However, trade has become increasingly complex, necessitating the coordination, transportation, and clearance of goods by a number of experts. Shippers can handle their shipments or work with freight forwarders, customs brokers, a combination, or a firm that does both functions.

Understanding what each offers is critical for maintaining efficient supply chain operations and meeting the shipper's and market's timing requirements.

A freight forwarder arranges for goods to be transported from an origin to a destination within a particular time frame, whereas a customs broker is in charge of preparing and processing a customs entry upon shipment arrival at a port of entry.

There are advantages to each approach; however, choosing an experienced organization that can perform both jobs can save not only time but also money on logistics. A forwarder enters into direct contracts with carriers to arrange bookings via ocean, air, rail, or truck, as well as advise shippers on expected freight costs, port taxes, special document expenses, insurance costs, and terminal handling fees.

At Turkish Goods, we pride ourselves in covering every aspect of the global trade process and making sure your order reaches you without a hitch. With our partnership with Trem Chart, we handle all customs processes and the only thing you need to do is wait for your order to arrive safely.