International Freight forwarders may be defined into two; “freight” meaning means goods may be transported by truck, train, ship or aircraft, while the word “forwarders” has the meaning of a person or organization that supervises the dispatch and delivery of goods. Freight Forwarders is a business firm engaged in the business of forwarding the cargoes from point A to the point B. The freight forwarder acts as the agent/operator who acts on behalf of the shippers instruction to where the goods may be delivered. It may also procure the service of third parties who will be performing the packing, handling, storage, transport, customs documentation, insurance and port and terminal charges, and customs clearance of the goods. Some of the forwarders may offer a wide rage variety of service to maximize their service and satisfy their clients.
When we say international freight forwarder, although it has the same function as a local forwarders but operates differently, the differences is that when we say international forwarders, they are engaged in the business of moving the goods outside the boundaries of their country to another countries and may have access to both sea and air freight to allow them to cover the distance. It may also have wide expertise in terms of complex customs requirements in different countries and paperwork. To sum it up, the distinction between the two is that local freight forwarders operates within selected areas in their country, while international freight forwarders operates may operate in different countries.
1.2 Background of the study
In the fields of both interregional and international trade, Freight forwarding services have been an important activity throughout history. Particularly in the rapid development of globalization and trade liberalization have highlighted the role of transport. Freight forwarding occupies a strategic position in production chain as it sees to movement of goods from one place to the other. Freight forwarder ensures that the goods are move from the point of production to its destination.
International freight forwarders mean that they perform consolidation of less than container loaded cargoes (LCL cargoes) and concerned work in port. Forwarders in international trade process fulfill consolidation of LCL cargoes and accessory works concerned with the consolidation. They supply shipper and consignees with services such as inspection, bonded transportation and customs clearance in an international trade process.
In way back 1800s the earliest freight forwarders were known to be innkeepers who helped guest hold and re-forward goods. Then a freight forwarding company established in 1836, the company helped in the transporting of item through contracting with a local carrier. It also helps its client with documentation and offers them information as regard to customs. Now freight forwarding companies evolved where it can transact to a small and large scale of transactions.
1.3 Statement of the problem
This will determine the following similarities and differences of freight forwarding practices in Philippines and China:
What are the procedure and process on establishment and accreditation of International Freight Forwarding between the two countries?
What are the procedures on how international freight forwarding in the two countries consolidates Less Container Load cargoes together with is documentation and clearances?
What procedure can Philippine International Freight Forwarding adopt from Freight forwarding in China and how can it be beneficial?
1.4 Significance of the Study
The generalization of this study would be of great help to the vast knowledge in relation to the increasing numbers of proponents in this industry. Vital results of this investigation could be highly significant and beneficial specifically to the following:
Freight forwarders – persons engaged in the business of forwarding cargoes situated in the Philippines. For the purpose of this, they could use this as reference for the process of forwarding cargo for which is applicable and most reliable together with its corresponding rules and regulation they had.
Importers- a stakeholder who is accredited and recognized by the Bureau of Customs, who is involved in bringing goods from other country to the Philippines with the use intermediaries.
Customs Brokers- a bona fide holder of license issued by the PRC in the Philippines, to provide him/her with information essential facts and knowledge of international freight forwarding in China and Philippines.
Customs Administration Professors-
Academe- study who are studying in the Lyceum of the Philippines as well as other Universities who has a bachelor degree in Customs Administration. To further emphasized the difference between freight forwarding in China and Philippines which will be beneficial in their related course.
1.5 Objective of the Study
This study aims to deliver and gather a comparative study in freight forwarding practices in the Philippines and China. The results of the study can be used as a basis for improvement among the practices each has especially the Philippines. Thus, the research aims to attain the following specific objectives:
To determine the usefulness of practices of China and Philippines in terms of international Freight forwarding.
To analyze the differences of practices and the effects of these in the international trade.
To know whether the practices are done properly to benefit the entire China and/ or Philippines
To determine which country has a better procedure and process on establishing Freight forwarding and delivering imported goods.
1.6 Scope and Limitation
This study attempted to understand the comparison of freight forwarding in Philippines and China and their relationship. The study will cover the freight forwarding in the Philippines and China through individual rules and regulations establish in the respective countries, information and resources was found in a legal published site in their country representing the creation, establishment and accreditation of freight forwarding.
This study presented the legal site obtain in individual country, BOC Philippines and Customs in Republic of China. This will provide the further understanding of different compliance of the two Countries that the other may adopt to have a smooth transaction with one another.