kuwaitshippinginfo

Exporting goods

Laws and Government policies to control the export of goods from Kuwait. These prohibit the export of certain goods either absolutely or conditionally and adequately record Kuwait's international trade.

Total prohibition applies to the export of protected wildlife, some heritage items, selected weapons and other dangerous goods.

Documentation for Exporting

Other than the mandatory export documents required by Kuwaitn authorities, the following documentation are also required (all of which World Wide will organise for you).

Commercial Documents

Commercial Invoice

Describes the goods which are the subject of the transaction between the buyer and the seller. Banks, customs or an insurance company will usually require such documentation.

Packing List/Weight List

Will list the precise contents for shipment. Facilitates customs clearance.

Transport Documents

Bill of Lading

Issued by shipping companies, this acts as evidence of a contract of affreightment setting out the conditions of carriage, a receipt for goods and a document of title.

Air Waybill

Issued by the airline company acknowledging receipt of the goods for despatch by air. This document, however, does not convey title to the goods and is not necessarily required to be produced for delivery of the goods.

Insurance Documents

Due to the risks of damage or theft in international trade, marine cargo insurance is an important consideration. It is the overseas importers responsibility to ensure that the shipment is on a Free On Board (FOB) or Cost and Freight (CFR) basis. It is the exporter's obligation to arrange insurance in CIF/CIP contracts. Banks providing documentary credit will usually want insurance on at least the CFR value of the goods.

Other Documents

Certificate of Origin and Value

A Certificate of Origin for goods is required for duty and import control purposes. The information on value is required for customs duty purposes in the country of importation. This information is required by certain overseas buyers and customs authorities, especially in areas of preferential trade agreements. Chambers of Commerce in Perth, Fremantle and Bunbury issues the Certificate of Origin and Value.

Certified Commercial Invoices

Certified Commercial Invoices are invoices certified by a Chamber of Commerce. Some overseas customs authorities may require them.

Consular Invoice

An invoice that is certified by the Consul of the country to which the goods are to be exported. Other documents mentioned above may also be required to be "legalised" by consular authorities. If you are unsure of what documentation is required for a particular transaction or country, the Chamber of Commerce and Industry can advise you. The Chamber and the Kuwait Institute of Export provide courses on documentation.

About Customs and Quarantine

Kuwait Customs and Quarantine import and export entry procedures are based on self-assessment by importers and exporters who should be aware of their obligations. Penalties may be imposed for the submission of incorrect or misleading information or for omitting information with the intention to mislead.

The Kuwait Customs Act requires importers and exporters to retain commercial documents relating to a transaction for five years from the date of entry. These documents may be required for Customs audit purposes.

Kuwait Export Information

To help you with the successful export of your goods to your customers, we have summarized below the main points that require attention. They can be broken down as follows.

1. Export Documentation

2. Getting paid

3. Planning the shipment of your cargo

1. Export documentation

The documentation that is needed to export cargo can be split into 3 main types.

a) Contract between Buyer and Seller

b) Documents for the physical movement of the goods

c) Documentation for the Consignee - to cover customs clearance,

payment etc.

a) Contract between Buyer / Seller

Commercial Invoice - Exporter (seller) prepares an invoice to the buyer, showing the price of the goods and terms of shipment (sale). A packing list accompanies the invoice which show the number of packages, description, physical weight and size etc.

Certificate of conformity - Invoicing regulations do vary according to the destination, therefore additional certificates maybe required for importation. We will be happy to advise you on this.

b) Documents to transport

Shipping Instructions - Clear instructions from the exporter to our staff in Custom Exporters, Inc. are essential. We can provide you with a standard shipping note for completion.

Dangerous Goods Note - For goods classified as dangerous in the UK, IMO, ADR, RID or IATA regulations, we need you to complete a standard dangerous goods declaration before shipment.

Bill of lading - Issued by Custom Exporters, Inc. or the ultimate carrier of your cargo and forms the contract of carriage. It is regarded by the banks as the most important document in international trade, as it has it is evidence of the contract of carriage, receipt of the goods and is a transferable document of title for the goods.

c) Documents for the consignee / customs

The international movement of goods may require further documentation to support their status, to satisfy the Customs authorities. This will depend upon the place or origin, destination or mode of transport, We can advise you of the regulations for each country accordingly.

2. How do you get paid ?

The 4 main methods of payment for your exports are identified below. Additional advice could be sought from your bankers or finance houses. Consideration must be given to payment of the freight and transport costs. These should be agreed as part of your commercial contract, and reference to the terms of delivery should be made in the contract. INCOTERMS 2000 are used to define terms of delivery and who pays for the transport of your goods.

Payment in advance - Ideal for the exporter and prevalent in trades with developing countries. ( BEST METHOD!)

Letter of Credit - These mutually secure payment for both the buyer and seller. A document, issued by a bank following instructions by a buyer, authorizing the seller to draw a specified sum of money under specified terms, once appropriate documents are presented to confirm the transfer/shipment of goods).

Cash against documents - Payment is made when the title to goods is transferred.

Open account - The traditional route for domestic trade, whereby buyer invoices seller, and seller then pays based on credit terms.

3. Planning the shipment of your cargo

The arrangements for the transportation and logistics of your cargo, ensuing it is shipped in the correct manner, plays a vital role in selling your goods to your customers.

The checklist below should help you through this process. Our staff are very experienced in handling almost any kind of cargo and would welcome the opportunity to give guidance.

1. Product Type

2. Protecting Your Goods

3. Choosing the Best Route

4. Speed of delivery

5. Customs and other documentation

1. Product Type

What's special about your cargo ?

Are they hazardous ?

Do they require temperature control or special lifting equipment ?

Are the goods alive, fragile or particularly valuable ?

Ensure the mode of transport and packaging of your goods is appropriate. We can help you decide on what's suitable for each mode of transport and can advise or pack the goods on your behalf.

2. Protecting your goods

Transit packaging, marking and labeling - ensure your goods arrive at your client’s premises in excellent condition. The goods should be packaged to withstand natural hazard stresses, temperature changes, humidity and safeguard against theft.

Insure your goods for transit.

3. Choosing the Route

Working together we will help you choose the most appropriate mode of transport, route and transit time. We will help you understand the legal constraints and restrictions that certain countries impose during international trade with their country.

4. Speed of delivery

Ensuring that the transit time to deliver your goods is acceptable to your clients. With experience in managing and transporting goods by sea, air, road, rail and courier, we are able to help you make the right decisions.

5. Customs

It is important that you check ahead to ensure that the goods being shipped meet local customs requirements. With our knowledge of shipping to most destinations world-wide and our network of overseas partners we can help you ensure your cargo will be delivered without delay.

Terms of SaleTerms of Sale serve two basic functions: • They determine who pays the costs involved in transportation. • They determine where the risk passes from seller to buyer. It is vital to ensure as either the seller or buyer you are fully aware of your legal obligations under the agreed Terms of Sale. To avoid misunderstanding it is recommended that INCOTERMS 2000 are used and reference is made to such use on the contract of sale, plus all other relevant documents, i.e. Pro-Forma invoices, Commercial Invoices, Documentary Letters Of Credit etc. You should also ensure the correct INCOTERM is used so that in the event of any dispute, you have fulfilled your obligations under the chosen Term Of Sale. INCOTERMS form only part of the overseas contract of sale dealing solely with transportation. They are not a substitute for written Trading Conditions which should refer to other issues such as, your right to retain ownership of the goods until paid for, payment terms, method of payment, the right to charge interest on overdue payments or liability for defective products etc. There are 13 different terms of sale identified by INCOTERMS 2000. Each of these is identified by using a 3 letter code. For your guidance they are disclosed below.

- Insurance certificate

For air shipment, air waybill serves as insurance certificate; for sea shipment, insurance certificate is issued as evidence of the existence of the marine insurance policy. The marine insurance policy is a contract between the assured and the insurer, and its principal purpose is to define the terms of the agreement between the assured and the insurer.

Based on the CIF price term, insurance certificate is required for customs clearance in some countries.

General customs clearance tips

- Find a customs broker

To different countries, import customs clearance procedure may differ. In some countries, The customs service does not require an importer to have a license or permit and an individual may make his own customs clearance of goods imported for personal use or business. You'd better, however, have a licensed customs broker (or freight forwarder) act as the clearing agent for you unless you're very familiar with the import customs clearance formalities in your country.

Therefore, the first tip is to find a licensed customs broker who can work with you on a long-term basis. They are especially valuable to you when your business is not located in the destination air/sea port which is usually the port of entry - if you're unable to be there to prepare and file your entry, the customs broker may act as your agent, pick up and deliver the shipment to your door. The customs broker could be found by personal referrals, looking in the local yellow pages, or running a search online.

- Know the documentation required for customs clearance in your country

In all countries, three documents are required for customs clearance:

Billing lading (air waybill)

Commercial invoice

Packing list

For the imported merchandise of binoculars and telescopes, depending on the packing materials and different customs regulations in different countries, the documents below may be also required:

Proforma invoice

Fumigation certificate

Certificate of origin

GSP certificate of origin

Insurance certificate

Sales contract

Import license

Work with your customs broker to find out what kinds of documents are required for your local customs clearance, and then tell us, so we can provide and prepare the relevant documents at our end.

- Inform the date of arrival

The customs service does not notify you of the arrival of your shipment. Notification is usually made by the carrier of the goods. With the air waybill no. or B/L no. given, you may track the shipment online to get the date of arrival. You or your clearing agent may recheck with the local office of the carrier to be sure there is no unexpected delay with the flight no. or the ship name.

The purpose is to enter the imported binoculars and telescopes through customs in a timely manner. The customs services in most countries stipulate that all goods declared must be downloaded and entered within 7-15 days after the arrival of the importing ship. Failure to do so will result in the goods to be conveyed to a general customs warehouse to be held as unclaimed. You're responsible for storage charges which are incurred while unclaimed binoculars and telescopes are held at the warehouse. If it remains unclaimed at the end of 3-6 months, the merchandise is sold at auction.

If, due to the unexpected reasons in some countries, a long delay in the clearing procedures is expected, Goods are placed in the bonded areas before going through clearing procedures. Bonded areas are warehouses under the control of customs authorities, Customs duties are not paid unless goods are taken out of the bonded area.

- Submit the documents and apply for the Customs Declaration Form

For air shipment, the documents are sent to you or your clearing agent with the cargo on the same plane and arrive at the destination airport at the same time. Upon arrival, you'd better provide the documents to your clearing agent immediately. With the correct documentation, the Customs Declaration Form is issued.

For sea shipment, the documents are sent by our bank to your bank. Upon arrival of the documents, you bank will inform you that you should pay to get the documents. After the payment is made, you or your clearing agent obtain the documents to apply for the Customs Declaration Form before the goods arrives at the destination sea port.

- Download the goods and proceed to the customs

When the goods arrive at the port, the goods should be listed in a document that lists all goods present on the shipment. Only if the goods are listed, they can be downloaded and a delivery order issued. The delivery order is a document issued by the shipping company which states the price to be paid for transportation.

In our case, based on CIF (cost, insurance and freight), there is no problem for the issuing of the delivery order.

- Clear the goods

In order to clear the goods, relevant documents should be presented. Goods are given a "Customs Entry" document that contains the number of the shipment and its value. At this stage, the clearing agent identifies customs and duties to be paid and completes the Customs Declaration Form. In some countries, clearance procedures are normally done directly in the customs broker's office using electronic communication systems directly connected with the local Customs Authorities. If the goods do not go through clearance after being downloaded from the ship/plane, they must be placed in bonded areas. If goods go through clearance and there are delays during the clearing procedures, you might pay demurrage and storage fees.

The dutiable value of merchandise is determined by Customs. Generally, the transaction value of the merchandise serves as the basis of appraisement. Transaction value is the price the you actually pay us for the binoculars and telescopes being imported. The customs will examine the goods to determine the value of the goods for customs purposes and their dutiable status. Examination may usually be made on the docks, at container stations, or cargo terminals.

Customs duties rate is a percentage which is applied to the dutiable value of the imported goods. Work with your customs broker to check your local tariff schedule and duty on the binoculars and telescopes. For APEC (Asian Pacific Economic Community) countries, the import duty rate on binocular and telescopes can be checked online on APEC Tariff Database (http://www.apectariff.org/). For other countries, you can get clue on Customs Tariffs of the world (http://customs-tariff.freeyellow.com/).

- Pick up the goods

After the goods are released, you or your customs broker will pick up the goods, and deliver to your premise.

And don't forget to set up an easy-to-use record keeping system. In some countries like U.S., records regarding any import must be maintained for five years. Failure to produce these records in response to a reasonable request from customs may result in penalty.