Customs House Agent (CHA) and freight forwarder play distinct roles in the import-export process, below i clarify What is the difference between CHA and freight forwarder?
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Difference between CHA and freight forwarder?
- Customs House Agent (CHA):
- A CHA is a licensed individual or entity authorized by customs authorities to represent importers and exporters in customs clearance procedures.
- CHA specialize in navigating customs regulations, completing documentation, and facilitating smooth clearance of goods through customs.
- They’ve made linked between importers/exporters and customs officials, ensuring compliance with customs laws and regulations.
- CHA may also provide additional services such as tariff classification, duty calculation, and regulatory compliance support.
- Their primary focus is on customs clearance activities, and they typically operate at the local level, often in proximity to major ports or customs checkpoints.
- Freight Forwarder:
- A freight forwarder is a logistics company that specializes in arranging the transportation of goods from the point of origin to the final destination.
- Freight forwarders manage various aspects of the shipping process, including booking cargo space, negotiating rates with carriers, and arranging for the movement of goods by air, sea, rail, or road.
- They handle documentation, packaging, labeling, and other logistics-related tasks to ensure the efficient and timely delivery of goods.
- Freight forwarders may offer additional services such as warehousing, consolidation, cargo insurance, and supply chain management.
- Their scope of services extends beyond customs clearance to encompass the entire logistics chain, from origin to destination.
Also read – How to hire Custom House Agent (CHA)?
In summary, while both CHA and freight forwarders play essential roles in international trade, their areas of expertise and focus differ. CHA specialize in customs clearance procedures and compliance, while freight forwarders manage the logistics of transporting goods from one location to another. Depending on your specific needs.
FAQs
What is a CHA in shipping terms?
In shipping terms, CHA means customs House Agent in India.
What is another name for a freight forwarder?
Another name for a freight forwarder is a “logistics provider”, “freught broker” or simply a “forwarder.” These terms are often used interchangeably to refer to companies or individuals that specialize in arranging and managing the transportation and logistics of goods from one location to another.
