Import-export regulations in international shipping

Businesses need international trade, imports, and exports to grow their businesses and reach maximum heights. To maintain global economic relations and transport goods overseas, it is important for companies to follow the shipping regulations of other countries.

To maintain good relations with other countries, some import-export regulations in international shipping need to be adhered to maintain peaceful and honest global container transport service. These laws sustain security measures, support fair global trade operations, and protect the country’s national interest.

This article will explore import-export regulations and why they are essential to maintaining good economic relations with other countries.

What are import-export regulations in international shipping?

International shipping is a complex and dynamic aspect of global trade involving the movement of goods across borders between different countries. Therefore, countries must follow certain rules before importing or exporting goods internationally. Import-export regulations consist of legal formalities, documentation, laws, import-tariff duties, and export-tariff duties that are meant to be followed, filled, and paid by the countries.

The International Maritime Organization (IMO) is a specialized organization in the United States that sets laws for shipping containers globally. The Maritime Safety Committee (MSC) is the central committee of IMO, setting the standards especially safety related to containers.

The Beauraeu Of International Containers (BCI) is a non-governmental and non-profit organization that sets rules for containerization and intermodal transport. The primary responsibilities include setting the type and size of the containers that can be transported, as well as maintaining the data and information related to the movement of the container.

Importance of import-export control in international shipping

For successful shipping, it is essential to comply with international shipping standards, which means there would be contrary laws in every country. No standardized laws will cause confusion and business disruption.

Every country has import-export regulations that define the type of products allowed in a particular country and prohibit the entry of some products. In some countries outside of the European Union, exporting alcohol, live plants, and seeds is prohibited due to environmental concerns. Under these rules, there are import-export duties along with customs regulations.

Compliances and legal formalities of international shipping

Each country has to fulfill some legal formalities and compliances before trading with any other country. Now, we will understand those in detail:

Custom attestation: The most basic global shipping requirement is custom attestation, which means attachment of all custom documents. WCO (World Customs Organisation) sets rules and standards for custom procedures as per the import-export regulations. The following documents documents are required:

• A certificate of origin is needed to determine where the product was manufactured and, accordingly, decide the taxes, tariffs, and agreements.
• The Bill of Lading (BOL) is the proof of deal between the buyer and the seller. It consists of a description of the cargo, the shipping route, and delivery directives.
• A commercial invoice contains all the transactional data, like the value of goods and the terms of the sale.
• A packing list contains a detailed overview of the products transported in the storage containers.

Last, the import/export license is required for some specific goods, as some can’t be transported without permits.

Harmonized tariff schedules: HTS (Harmonized Tariff Schedules) are particularly the division on behalf of a good’s name, construction, and intended use. According to them, shippers must take special permits and pay some tariffs.

Under this comes HS (Harmonised System Codes), which are used worldwide. Providing the correct code for the product is essential to deciding the taxes, tariffs, and import duties applicable.

Selection of proper incoterms: Incoterms are International Commerce Terms that give a detailed overview of the buyer, seller, and carrier contract. 11 incoterms define the roles and responsibilities of buyer and seller in international shipping. Shippers have to choose one and make a contract that ensures the place and time when the risks and expenses will transfer to the buyer or seller.

SPS (Sanitary and Phytosanitary): It is important to follow the SPS measures as they protect human, animal, and plant life. Pesticide control and animal and plant quarantine are some of the regulations included. Your shipment can be rejected if you have not complied with SPS measures.

Commerce control list: Goods with commercial implications and potent military utilization are included in the commerce control list. An Export Control Classification Number (ECCN) identifies each item with alpha-numerical code and the license required accordingly. Systems, equipment, components, Test, inspection, production equipment, Material, Software, and Technology are the six categories that require export licenses.

IMDG Code: The International Maritime Dangerous Goods Code sets some rules to avoid pollution at sea and unexpected accidents and ensure workers’ safety when carrying dangerous goods. Some import-export restrictions are levied on certain goods. The compliant items must ensure proper packaging and handling, markings, labels, placards, loading/unloading, safe practices, handling in the voyage, containment procedures, and emergency preparedness.

Security regulations: The Container Security Initiative (CSI) lays down strict regulations for every type of container not to be used for smuggling, terrorism, or any type of illegal practice. In addition, the ISPS (International Ship and Port Facility Security) ensures the safety of ships, container ports, and terminals.

Customs clearance: After arriving at the assigned location, import customs clearance should be given to the port authorities to ensure the shipment meets all the specifications and compliances. Electronic Data Interchange (EDI) systems simplify the exchange of data about shipments between the shippers and buyers. It was involved in import and export documents, taxes paid, security inspections if needed, import licensing as per the goods, document verification, and adherence to local compliances.

Penalties and fines: Failure to follow the guidelines as prescribed can result in fines, penalties, and criminal prosecution. Trade consultants and compliance software should be used to adhere to these import-export regulations. Also, all shipping companies must follow the ISO guidelines for their conex boxes’ structure, design, and material.

Import-export regulations in shipping are compliances before and after shipping goods to ensure the journey does not break any other country’s shipping laws or negatively affect the workers or environment. Some organizations, such as ISO, IMO, and BCI, set up guidelines for trade regulations. You must follow these guidelines if you don’t want to pay fines or penalties or face prosecution.

LOTUS Containers facilitates the import and export of goods, offering services including containers for sale or lease compliant with ISO guidelines.