What is Shipment Registration? An Overview of the Procedures Involved in it!

What is Shipment Registration? An Overview of the Procedures Involved in it!

A lot of shipments are being moved around the world!

They may lose track if they are not properly registered and tagged.

The shipment (cargo) will leave the port after the registration process. The registered cargo will be sent to the receiver.

As a registered shipment, it will possess the tracking number and other details to make the process a bit more transparent.

What happens when you register a shipment?

You are assured of a safe and efficient transfer in compliance with local, national, and international regulations.

One of the most important shipment processes is ‘ship registration’.

Ship registration

It is simply a permit that the ship holds so it can travel anywhere without any hindrance. The permit document serves as travel proof even to international countries.

The ship registry is a document that provides the nationality of a ship, or the flag of its identity. It will have basic details such as the ship name, the port in which it was registered, and the country name.

(add model ship registered document)

Types of ship registry

There are two types of them here. Let’s have a look.

  • Closed registry
  • Open registry

 

Closed registry

Some countries have flagship registry systems. It allows citizens to register vessels under their country’s flag if they own or crew them.

Open registry

Open registries are flagship registry systems in some countries that allow vessel owners to register their vessels under that country’s flag even if there is no “genuine link” between the flag state and the vessel.

Procedures for shipment registration

The procedures for shipment registration vary from one to another shipment. It may be the shipment type or the regulation of shipment origin or the destination, etc.

Let us look at the procedures step by step now.

Procedure 1: Initial step

The first and foremost of this step is to find the shipment type. Generally, there are two shipment types. They are

Commercial

Personal

1. Commercial shipment type

If your shipment is built from a sales perspective, it’s a commercial shipment type. For commercial shipment types, there might be a need for the following things.

  • Commercial invoice
  • Bill of lading
  • Bill of exchange
  • Letter of credit

 

Commercial invoice

It is a legal document that serves as evidence of a sale transfer document between the buyer and seller. It is primarily used for customs clearance and helps in the identification and evaluation of duties and taxes payable.

Bill of lading

It acts as a contract document between the seller and buyer about the quantity, type, and destination of the goods that are shipped. The contract acts as a mutual agreement between the seller and buyer. It helps prevent theft while transporting.

Bill of exchange

It is a written order that binds one party to pay a fixed sum of money to another party on demand or at a specified time in international trade.

Letter of credit

A letter of credit, also known as a credit letter, is a document issued by a bank or other financial institution intended to guarantee the payment of a specific amount in a business agreement. Importantly, the agreement covers an impartial third party during the transaction.

2. Personal shipment type

As the name goes by, these shipment types are built for personal purposes. For personal shipments, the documentation varies from that for commercial shipments.

A personal shipment is when someone imports goods for their own use, not for selling or using in a business. When importing these goods, the person may be required to pay additional fees in addition to the cost of the goods.

Procedure 2: Obtain permission and a license before transport

For some shipments, the transporter needs to get permission and a license before transporting these kinds of goods.

For instance, shipments that possess hazardous materials or restricted goods will need special permission before being sent.

Permission is not to be ignored!

Procedure 3: Relevant authority authorization

Once all the necessary licenses, documents, and permissions have been obtained, the shipment can be registered with the relevant authorities.

The shipping method varies, such as ground, air, and sea.

  • Ground: It will be taken care of by local customs authorities.
  • Sea: It will be taken care of by shipping companies or port authorities.
  • Air: It will be taken care of by the airline itself.

 

Procedure 4: Payment of fees and taxes

The relevant fees and taxes need to be paid during shipment registration. This includes customs duties, excise taxes, and transportation fees.

You might need to study the regulations of both the origin and destination countries keenly to determine the fees and taxes.

Procedure 5: Packing the shipment

The shipment must be properly packaged and labeled in accordance with the regulations of the origin and destination countries.

It may be necessary to attach a shipping label, mark the package as hazardous or not, or use special packaging if the shipment is fragile.

Procedure 6: Final step

Now we are at the end.

The shipment registration process is to arrange for the shipment’s pickup or delivery. This could include

  • Coordinating with a shipping or logistics company, or
  • Delivering the shipment to a predetermined location.

As I mentioned above, the shipment registration procedures vary greatly from origin to destination. Therefore, try to be updated.

Wrapping up

The ultimate purpose of shipment registration is to help the shipment reach its destination safely without any damage.

And you need to know the procedures involved in it. Because, following proper procedures can help you avoid delays, fines, and other issues that may arise during shipping.

FOS Desk experts can help with shipment registration without any hassle. We are available 24×7 here.

If you want your shipments to be registered ASAP, do not miss this opportunity. We are professionals. We can do anything!

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