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How to apply for AD Code Registration?

To apply for AD Code Registration, you need to follow these steps:

1 Open the ICEGATE website and log in. 2: Select Bank Account Management from the left panel. On the Export Promotion Bank Account Management page, click AD Code Registration.

Click on AD Code Registration, then fill out the form to register a bank account using the AD code. Upload the necessary files and include your company's information. Please supply specific facts regarding your bank account, such as the account number, branch information, and name of the bank to which the AD Code will be connected. If necessary, kindly submit a copy of your GST (goods and services tax) registration document.

You are welcome to contact our customer support at Citrus Freight for any queries.

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Customs Clearance Process : Steps for Exporters to follow

What is the customs clearance process?

Customs clearance procedure for export involves verifying the integrity of goods before their entry or exit from a country. The customs clearance process ensures that shipments comply with regulations and that all taxes and duties are paid. Furthermore, the customs clearance process mainly focuses on reviewing the necessary documentation to facilitate the nation's economic interests, food safety, and standards during the movement of goods.

Why is customs clearance important?

You need to make meticulous preparations to reduce the potential delays and additional fees during the customs clearance process. Keep in mind these considerations before transporting perishable goods from one port to another.

If you are new to the perishable industry or want to export fruits, vegetables, meat, dairy products, or seafood, you need to keep the necessary documents for a seamless customs clearance process.

How to handle the customs clearance process?

Let's discuss in brief the steps to clear the customs process:

Correct Documentation: The customs clearance process can be tough, especially if you do not understand the policy requirements. You need to make sure that all the essential documents are in place. Additionally, ensure you list your shipments correctly and their value. Any mistakes between your documentation and the actual shipment contents can delay your clearance, leading to court proceedings by the concerned customs authorities. 

Adhere to International Trade Laws: The first and foremost thing in global trade is being familiar with the international trade laws and regulations. These foreign laws change from time to time. Both the buyer and seller should understand the intercom agreement. The agreement terms decide who is responsible for paying the customs duties and taxes, as this might affect the goods being shipped.

Know What Goods You are Shipping: You must have a precise understanding of the goods you are shipping. If you are sending perishable foods or any pharmaceuticals to the USA, you need to abide by the Food and Drug Administration. Before entering your perishable shipment to an imported nation, ensure you contact reliable federal agencies. Pay the applicable customs fees and duties, as the U.S. Customs and Border Protection evaluates the charges based on your shipment value. 

Be Ready for Customs Clearance Checks: You must be ready to undergo customs procedures for port entry or exit. Each country has its strict customs clearance procedure for export, and you must comply with it. 

Evaluate Tax and Duties: If you are shipping perishable goods overseas, you need to be aware of the relevant customs charges. The fees depend entirely on the imported goods value and specific tax rates. The importers can calculate the customs clearance cost by estimating their goods value and adding the cost of all individual goods and any shipping or insurance charges. 

Citrus Freight has strived to provide you with an excellent customs clearance process to export the perishables all over the world. If you are finding it difficult to cope with the customs clearance process, you can contact our customer support at Citrus Freight. 

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Cold Chain Challenges In The Perishables Logistics

Cold chain logistics mainly involves the transportation and storage of perishable goods at controlled temperatures to preserve their quality and safety. This complex supply chain is vital for ensuring that all kinds of perishable foods, such as fresh fruits, vegetables, dairy, meat, and seafood, reach consumers in optimal condition. The cold chain for perishable goods includes various stages, from post-harvest handling, processing, and packaging to transportation, warehousing, and distribution. 

Besides its importance, the cold chain faces several challenges that can have an impact on its efficiency. One major challenge is the need to maintain a consistent temperature throughout the supply chain. There could be spoilage and food waste in the wrong temperature range. You need to overcome the cold chain logistics challenges and  cold chain transportation problems that are essential for the food industry to reduce waste, ensure food safety, and meet the consumer’s demand for premium-quality perishables. 

What are the Challenges faced in Cold Chain logistics?

The business and establishment need to undergo various cold chain challenges as follows:

Deficiency of Infrastructure: More than 90% of the cold chain logistics industry in India is unstandardized, privately held, and dispersed. There are no equipped cold storage facilities that can handle a particular commodity, which, as a result, degrades its quality. Reefer vehicles are not available to load perishables and are prone to breakdowns that cause major losses in the supply chain.

Heat Exposure: When temperature-sensitive goods are loaded and unloaded, there is a high chance of risk to their integrity from prolonged exposure to heat. These stages are crucial because they expose the goods to external factors, which result in temperature fluctuations.

Temperature Fluctuations: The biggest obstacle in cold chain logistics is maintaining a constant temperature range. Fresh vegetables, fruits, sea food, and poultry products are prone to damage if temperature fluctuations occur during transit. As these are perishable in nature, there can be excessive spoilage due to inclement weather and potential delays.

Real-time monitoring: A reefer container needs constant, real-time temperature monitoring to protect the perishable goods. Data loggers and temperature sensors offer up-to-date information about the environment while in transit. This allows logistics companies to respond immediately if temperatures rise higher or beyond the required range. In such circumstances, the company can shift the shipment to another cold storage facility.

Lack of Visibility: The absence of visibility and transparency can pose a serious threat to cold chain logistics. You should be aware of the location and monitor the condition of the perishables as they go through several phases and involve multiple stakeholders.

Ecological: Environmental issues in cold chain logistics extend beyond excessive power consumption and the burning of fossil fuels required for active cooling systems. Hydrofluorocarbons (HFCs), one type of refrigerant gas that has a major contribution to greenhouse gas emissions, not only damage the environment but also make it difficult to comply with regulations when exporting goods across nations. 

Improper Packaging: Perishable goods need to be packed with extreme caution. Wrong packaging practices can easily deteriorate the quality of a product. At the outset of transportation, temperature fluctuations must be avoided to safeguard the perishables.

Human Error: When it comes to handling, loading, and unloading perishable goods, human error can be a major obstacle in cold chain logistics. Experienced professionals should be recruited to handle the operations of transportation. Lack of efficient handling, improper practices, and wrong documentation can eventually lead to other problems that might increase the cost of cold chain logistics.

Growth of Microorganisms: Damaged freezer doors and a poorly maintained temperature environment can lead to microbial growth in cold chain storage. If the freezer walls are duly checked, then the process of contamination can be reduced. You can use chemical-free components to clean the inner surface area of the freezer to stop mold buildup.

Equipment Failure: Unexpected equipment failure can be a serious problem with cold chain logistics management. The powered cooling systems may malfunction due to power outages or changes in the electrical supply. These can include broken freezer doors, malfunctioning refrigeration equipment, problems with temperature sensors connected to GPS, or power supply outages. The integrity of goods that are sensitive to temperature during storage and transit may be compromised by these malfunctions.

Supply Chain Management: If you are engaged with the cold chain industry, you need to coordinate with multiple stakeholders, including producers, distributors, retailers, and consumers. Maintaining the right temperature throughout the supply chain is challenging and needs careful planning and execution to ensure smooth operations and cargo safety.

Regulatory Compliance: It takes a lot of effort and money to abide by the industry and guidelines to maintain the safety and integrity of perishable goods. In addition, it becomes a complex process for the shipment to cross international borders as several nations have to undergo strict laws regarding temperature-controlled goods.

Damaged Goods: Your business can be significantly impacted by factors outside your cold storage facility's control, such as receiving damaged or spoiled cargo. Cold chain logistics can encounter various issues in the shipment if perishable goods are not maintained at the required temperatures.

Throughout the transit, Citrus Freight ensures to protect your perishable goods, irrespective of rigorous weather conditions. The effective reefer containers enable the shipment to arrive at the desired destination without any interruptions.

At Citrus Freight, we ensure that the perishables are stored in the right reefer temperature control containers.

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Customs Clearance Process : Steps for Exporters to follow

Global market exposure is a vital element for an export business. It paves the way to a golden niche for the particular product you are exporting. If you are willing to transport perishable goods between ports, you need to have a clear idea about the customs clearance process. You need to abide by the export customs clearance procedure; if you fail to do so, the customs authority has the right to halt your shipment, and you might have to encounter legal issues and heavy fines. 

What is the customs clearance process?

Customs clearance procedure for export involves verifying the integrity of goods before their entry or exit from a country. The customs clearance process ensures that shipments comply with regulations and that all taxes and duties are paid. Furthermore, the customs clearance process mainly focuses on reviewing the necessary documentation to facilitate the nation's economic interests, food safety, and standards during the movement of goods.

Why is customs clearance important?

You need to make meticulous preparations to reduce the potential delays and additional fees during the customs clearance process. Keep in mind these considerations before transporting perishable goods from one port to another.

If you are new to the perishable industry or want to export fruits, vegetables, meat, dairy products, or seafood, you need to keep the necessary documents for a seamless customs clearance process.

The List of Documents necessary for Customs Clearance Process

Proforma Invoice: A proforma invoice is a preliminary document that is provided to a buyer before the final transaction is made. This invoice involves the primary stages of exporting the perishable goods that need to be shipped. The bill is prepared by the exporters and provides an estimated price, quantities, shipping bills, and a fixed timeline.

Commercial Invoice: When conducting business internationally, an authorized document known as a commercial invoice is useful for customs clearance. It is a document that lists the amount and cost of goods being transported across international boundaries. Commercial invoices are mandatory to ship goods globally by land or ocean freight. This authorized document enables the customs authorities to review the import duties and taxes to be paid for the goods being shipped.

Export Packing List: An export packing list is a document that specializes in the shipment of goods being shipped from one country to another. It includes the contents of the shipment, providing comprehensive information about the goods, their quantities, and packaging.

Certificate of Origin: The Certificate of Origin, an authentic document, implies the identity of the country where goods or commodities are manufactured. It has all the details, such as the nature of the goods, its port destination, and the countries of export. This certificate is essential for exporting goods across international borders, as required by trade agreements and treaties between nations.

Shipping Bill: The shipping bill refers to the document with which the customs authorities permit the exporters to ship their perishable cargo from end-to-end port. The bill contains all the information relating to the perishable cargo being exported, including the name of the vessel, the desired destination where the shipment needs to be landed, its value, and other relevant details.

Bill of Lading: A bill of lading is an official document issued by a carrier to a shipper, outlining the type, quantity, and location of the goods being transported. It acts as a title document, a receipt for the goods, and a contractual agreement between the carrier and the shipper.

Letter of Credit: A Letter of Credit (LC) is a legal document issued by a bank that guarantees payment from the buyer to the seller. It ensures that the seller receives full and timely payment for goods or services rendered. If the buyer fails to make the payment, the bank provides the payment in full coverage or the remaining amount on behalf of the buyer.

Shipper’s Letter of Instruction: A shipper’s letter of instruction is an authentic document that is issued by the exporters to provide shipping instructions to the freight forwarders. This document is also known as the shipper’s export declaration, through which the freight forwarder can export the goods globally. The freight forwarder acting on behalf of the exporter may provide a Bill of Lading (BIL) that includes the precise dimensions, weight, and packing specified in the SLI, ensuring that the cargo is loaded and unloaded without any damage.

Ocean Bill of Lading: The Ocean Bill of Lading refers to the document that helps ship cargo across international waters. 

Citrus Freight has strived to provide you with an excellent customs clearance process to export the perishables all over the world. If you are finding it difficult to cope with the customs clearance process, you can contact our customer support at Citrus Freight. 

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Directorate General of Foreign Trade (DGFT)

DGFT stands for the Directorate General of Foreign Trade, which is the main entity under the Ministry of Commerce and Industry, Government of India, responsible for facilitating and promoting India's global trade in imports and exports.

What is DGFT?

The Directorate General of Foreign Trade (DGFT) is the backbone of the Ministry of Commerce and Industry in India. Earlier, in 1991, it was known as the Chief Controller of Imports and Exports (CCI&E). Post-economic liberalization in 1991, the DGFT was established and replaced by CCI&E, changing its role from prohibiting and controlling exports and imports to facilitating, promoting, and regulating them. The DGFT’s aim was to enhance India's exports by executing laws, issuing export licenses, introducing trade incentives, and cultivating trade relations with other nations.

Why is the Directorate General of Foreign Trade crucial to conducting international trade?

The roles of the Directorate General of Foreign Trade are as follows:

Implement the EXIM Policy and Foreign Trade Policy

The Directorate General of Foreign Trade sets guidelines and instructions for importing and exporting perishable goods. As directed by the Government of India, under Section 5 of the Foreign Trade Act 1992, the EXIM Policy is applicable for a tenure of 5 years. The objective of the Foreign Trade Policy is to motivate exporters by increasing exports and maintaining a uniform payment structure. In the present, Foreign Trade Policy 2015–2020 is in effect and will continue until March 31, 2020. 

Foreign Trade Policy

The Directorate General of Foreign Trade (DGFT) prepares and announces foreign trade for an exporter or importer to implement provisions of the Foreign Trade Act and Foreign Trade Policy. This process plays a vital role in conducting international trade through EDI-compatible guidelines that are user-friendly and efficient. Aligned with the current Foreign Trade Policy, the Handbook of Foreign Trade Procedure 2015–2020 is currently in effect.

IEC Code Registration for Exporters and Importers

The IEC stands for Import Export Code. The IEC consists of a 10-digit number that is issued by the Directorate General of Foreign Trade (DGFT) to execute any import or export business. The IEC code enables tracking the shipping process. As the IEC Code is now linked to the PAN (Permanent Account Number), only one IEC can be issued against each PAN. Through the DGFT's website, exporters or importers can apply for the IEC Code.

Maintain classifications of ITC HS codes

Based on the International Harmonized System of Coding, ITC HS Codes were validated in India to facilitate global trade. Indian customs employ 8-digit ITC HS Codes for trade activities that are categorized into two schedules: Schedule 1 for imports and Schedule 2 for exports. If any changes or additions are needed in the description of perishable commodities, the removal of disused codes, or the addition of new codes, all such tasks are handled by the DGFT (Directorate General of Foreign Trade).

Update and view eBRC

The banks issue the exporters an eBRC, or bank realization certificate, to claim benefits from several export promotion schemes under the Foreign Trade Policy. DGFT's eBRC module permits banks to directly send foreign exchange earnings from exports to exporters' accounts electronically to promote paperless trade.

The steps an exporter can follow to view their eBRC are:

You can visit the DGFT's website and choose "View and Print Your eBRC."

Enter your IEC code and your bank's IFSC code where your eBRC or forex earnings have been deposited.

After entering these details, click on “show details.”

eBRC lists uploaded by your bank will be displayed.

By clicking on "Print," you can download each eBRC.

Citrus Freight, the standard booking reefer platform, grants you the authority to export and import all types of perishable goods. At Citrus Freight, the exporter can navigate the intricacies of maritime export by delivering the goods in optimal condition to the consumers. 

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Export Pricing Strategy For International Shipping Business

What is Export Pricing?

Export pricing plays an important role in the global shipping business. It's not limited to making a profit but also speaks a lot about managing factors like exchange rates, tariffs, and local market conditions. These influences can have an impact on the perishable goods that you are exporting to the international market. 

Some factors that can determine the final cost of the agricultural product are:

Demand for goods in the market.

Cost of manufacturing the product.

Buyers are willing to pay in their local currency.

Price of the competitor’s

Tariffs of the importing country

Supply Chain Costs

Internal factors such as the delivery time, the variety of goods 

Objectives of the exporter

Pricing Strategies In Global Export

When it comes to an export pricing strategy, you need to consider several factors that can assess the agricultural product’s price and meet your profit expectations. 

Let's briefly discuss some of the methods of export pricing:

Market-Driven Strategy: This method is the best approach for export pricing. This pricing involves adjusting your product's price depending on market conditions such as demand, supply, inflation, and competitive rates. It enhances flexibility to respond to changes in steady and well-built markets. On the other hand, excess market exposure can bring down your standard pricing.

Skimming Pricing Strategy: This strategy involves charging an increased price for your commodity to recover initial expenses and maximize a high profit margin, but at the same time, it can lead to a decline in market share. You can sell the products in well-established markets. The exporters who just stepped into the new markets are not in favor of paying high prices. 

Penetration Strategy: This pricing method opts for a low cost to infiltrate the market and isolate competitors. It is also known as dumping, which is mainly used for the mass consumption of goods. 

Preemptive Pricing: Both penetration and preemptive pricing strategies are the same. In preemptive pricing, the exporter’s aim is to demoralize the competition. This method involves setting prices below the actual cost of the product on the belief that holding market dominance can be profitable. Despite the risks involved, if managed properly, this pricing strategy can help companies dominate the market and gain virtual monopolies.

Marginal Cost Pricing: This cost strategy is best used when the exporter considers only variable or direct costs in determining the price. If you are not interested in recovering fixed and/or preliminary costs from your sales and consignments, you can go for marginal cost pricing. This helps lower product prices but comes with the risk of a slower path for neither profit nor loss. 

Competition-Based Pricing: Through this strategy, businesses can fix their product’s cost depending on market conditions. This pricing is easy to adopt but is vulnerable to sudden cost fluctuations in the leader’s prices. 

Before embarking on your perishable export, you need to take some factors into account:

Choose an Export Destination: The first thing you need to do is identify your desired target audience in your area of export. Addressing your competitors and having a clear understanding of their pricing strategies enables you to quote your products based on market demand and the amount the buyers are willing to pay. 

Product Requirements: Before showcasing your agricultural products in the international market, you need to make sure that your perishable goods abide by the particular nation’s regulations. It is necessary to modify your inventory to meet these regulatory requirements. Estimate the pricing of your perishable goods to understand how it might affect demand in the target market.

Logistics Provider: You can choose to ship your perishable goods by land or sea route. You can set the cost of your agricultural products and other additional costs, such as tariffs, customs duty fees, local taxes, and inspection services, based on your desired transport. Choosing the wrong incoterm can impact the entire logistics, potentially influencing your pricing strategy.

Documentation: In addition to regulatory and customs compliance, proper documentation is crucial to avoid additional costs when exporting shipments across international borders. You need to have specific documents like MSDS certification, which are applicable for non-hazardous perishable goods delivery. Each market mandates its own set of paperwork for imported agricultural products, requiring time and resources for preparation.

Factors to Influence a Balanced Strategy

Pricing strategies pave the way for precise and streamlined export pricing. As an exporter, you shouldn't stick to a single pricing strategy, ignoring the changing mobility of the international market. Customer expectations, demand-supply dynamics, local currency fluctuations, and supply chain changes require a good amount of attention as they can impact the upgrade of your pricing strategy over time.

Keep in mind that very high pricing can cut off your buyers, while pricing too low can result in huge losses for your perishable export business. You need to keep an eye on the market trend and adjust prices accordingly. It is wise to maintain a competitive pricing method for bulk orders.

Some pro-tips for optimizing export pricing:

Export pricing is the ideal method to address duplicate and unnecessary expenses in your supply chain. These adaptive measures can contribute to streamlining distribution channels and boosting operational efficiency.

Consider using a slab-based pricing strategy for certain agricultural products, offering different prices as per the volume of purchase orders. It's advisable to lower prices for bulk orders, making sure that the importers don't exploit it.

When it comes to selling your perishable goods in volatile markets, fluctuations in the cost can be a boon to your pricing strategy. This approach reduces the possible risks from direct declines in trading currency values and protects against potential losses.

Citrus Freight has efficient export pricing strategies to keep a balanced market environment for your perishable goods. At Citrus Freight, we do a cross-check of your agricultural product’s cost to avoid a price hike in the market. 

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Switch Bill of lading in Shipping

What is a Switch Bill of Lading?

Switch Bill of Lading are second set of bills issued by the carrier or freight forwarder, usually when goods are sold during transit. The switch BL process involves careful coordination between the shipper, consignee, and carrier, but can we change the port of loading in a switch bill of lading? While many changes are possible, altering the port of loading generally isn't allowed as it contradicts the physical movement of the cargo. It serves the same purpose as the original B/L, which is to act as

Contractual agreement between the shipper and the carrier for the shipping of perishable cargo.

A receipt for the safe arrival of the goods at the desired destination port

Title document for the goods

 Why Is A Switch Bill of Lading Issued?

Switch Bills of Lading are issued upon surrender of the first set of original Bills of Lading that can be requested by the cargo owner or seller, trading agent, or end buyer involved in the purchase or sale of the perishable cargo.

The seller, who may act as a trading agent, doesn't want to disclose the actual exporter's name to the consignee to prevent the consignee from making a deal with the exporter directly.

The seller doesn't want to reveal the actual country of origin of the cargo to the buyer. 

The original Bill of Lading (B/L) might be delayed or not present when the ship arrives at the discharge port.

The trading agent prefers to receive the payment from the end receiver prior to making the transaction with the shipper. 

Your goods may already be sold during transit via a high-speed sale, which requires changing the discharge port.

Who Has the Right to Request the Switch Bill of Lading?

A Switch Bill of Lading (B/L) can only be prepared by the original seller of the goods, a trading agent, or the buyer. The original B/L between the seller and the trading agent is replaced with one between the trading agent and the buyer. After going through the differences between the original bill of lading and the switch bill of lading, the freight forwarding agent needs to approve the switch bill of lading. The carriers or freight forwarders have the right to sign the bill of lading. The previous B/L is removed from circulation, so that only one set of bills remains active. 

Which Details Should Be Included in a Switch Bill of Lading? [H3]

The listed details can’t be changed in the Switch Bill of Lading.

Location and shipment date (especially crucial for goods that are scheduled for delivery)

Details on out-of-gauge (OOG), reefer, and hazardous cargo

Conditions pertaining to the cargo

Any provisions from the first B/L payment terms

Location of the loading

The loading date

Any unique guidelines, such as shipping temperature requirements

Citrus Freight strives to make the best effort to resolve any of your issues related to the Switch Bill of Lading.

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How to Process Your First Export Order

The term export refers to the concept of a broad network of businesses in international trade. An exporter needs meticulous planning for the particular perishable good he/she is going to promote on the international market.

Processing of an export order is not simple. You can get a few orders at the start of your venture. If you are not getting regular orders, you will not be able to build brand recognition and earn the trust of the audience. The exporters must receive steady orders to handle the export process with the importers efficiently. 

Let’s briefly explain the processing of an export order. The steps are listed below:

Receive the order

Generally, the processing of an export order begins with receiving the order. As per an export order, a formal agreement in the form of a document is signed between the exporter and importer before the exporter starts producing or sourcing the goods. An export order can be in the form of a pro forma invoice, purchase order, or letter of credit.

Confirmation of Order

After receiving an export order, the exporter should examine the terms of the contract. This stage plays a crucial role, as it depends solely on the exporter whether to confirm the order or not.

The export includes verification of the perishable product’s description, payment in terms of the shipping process, insurance coverage for the loss of goods during transit, releasing payment for documentation, and finally the negotiation of documents with the bank. After addressing all these necessary formalities, and if it meets expectations, the exporter confirms the order.

Obtaining a License

The Indian exporter needs to obtain an authorized license from the government of India after receiving an order from the importer. The exporter can submit an application to the Export Trade Control Authority to obtain a valid license. 

Letter of Credit

The importer sends the letter of credit along with the export order, or the exporter can request the importer for the letter of credit.

Foreign Exchange Formalities

An Indian exporter must adhere to the foreign exchange rules under the Foreign Exchange Regulation Act (FERA). They need to submit a declaration stating that:

The foreign exchange earned by the exporter must be handled according to RBI rules and within the specified time.

Shipping documents and transactions should be conducted through authorized foreign exchange dealers.

Payment for transporting perishable goods must be collected using approved methods only.

6.   Executing the Order

The exporter must make the proper arrangements to execute the export order. 

Mark and pack the goods based on the importer’s specifications.

Obtain an inspection certificate from the Export Inspection Agency to make an arrangement for pre-shipment inspection.

Get an insurance policy from the Export Credit Guarantee Corporation (ECGC) for credit risk protection.

Get a marine insurance policy as needed.

Assign a forwarding agent (customs house agent) to handle customs and related matters.

7.   Responsibilities of a Forwarding Agent

The forwarding agent needs to obtain a permit from the customs department to ship the goods.

The forwarding agent must give all the required details of the goods, including nature, quantity, and weight, to the shipping company.

A shipping bill or order is prepared by the agent.

The forwarding agent prepares two copies of the port challan and pays the dues.

The ship’s master is responsible for loading the perishable cargo onto the ship. The goods should be loaded on the ship in the presence of the customs officials, as mentioned on the shipping order.

Once the goods are loaded, a receipt is issued by the master of the ship. 

8.  Bill of Lading

When an Indian exporter hands over the receipt issued by the ship's master to the shipping company, they receive a Bill of Lading in return. The Bill of Lading is an official document that provides a detailed description of the perishable goods loaded onto the ship, including their type and quantity and the name of the port of destination.

9.  Advice for the Shipment

Before dispatching the perishable shipment onto the ship, the exporter sends the shipment advice to the importer so that the latter is present at the port of unloading to receive the exported goods. Along with the advice note, the exporter sends a copy of the packing list, a non-negotiable copy of the bill of lading, and the commercial invoice. 

10.  List of Documents

The exporter sends a list of documents to the importer’s bank, which includes:

Commercial Invoice

Packing List

Certificate of Origin

Marine Insurance Policy

Letter of Credit

GR Form

Bill of Exchange

Bill of Lading

Bank Certification

11.  The Acquisition of Export Revenue 

The exporter must complete certain banking formalities to realize the proceeds from an export. These are usually initiated upon the submission of the bill of exchange. The exporter receives the payment in foreign exchange.

Citrus Freight has left no stone unturned to offer you the right solution to export your first order. From analyzing the proper documentation till the freight forwarding services, our dedicated team made your export voyage easy and worry-free.

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Verified Gross Mass (VGM) in Shipping

What is the meaning of VGM in shipping Industry?

The VGM in shipping terms refers to the total weight of your shipping container, including the quantity, contents of the perishable goods loaded into the container, and the packaging involved in the shipping process. 

What is the importance of verified gross mass (VGM) in the maritime industry?

Set forth by the International Convention for the Safety of Life at Sea (or SOLAS), the International Maritime Organization introduced the reporting of VGM in 2016. Before loading perishable cargo onto the ship, the shipper’s name, as mentioned in the bill of lading, is responsible for reporting the verified gross mass. This VGM in shipping guarantees the safety of container ships in international waters and helps maintain the integrity of the transported goods to reach their destination safely.

Here are the main reasons why reporting VGM in shipping is important:

Preventing Accidents: Reporting Verified Gross Mass means more than just a formality; it is an integral component of maritime safety. Reporting of the accurate VGM in shipping prevents overloading and maintains vessel stability. Miscalculations of cargo weight can lead to severe consequences, such as ship capsizing, vessel damage, and threats to human life. Understanding the complexity of verified gross mass can be daunting. Citrus Freight can input insightful data and streamline transport operations to ensure the safety of your cargo and compliance with marine safety norms. 

Secure Navigation: The shippers can make informed decisions about stowage and loading plans by reporting Verified Gross Mass(VGM). This enables better stability calculations and avoids overloading and uneven weight distribution, both of which play a crucial role in the safe navigation of the vessel.

As the global shipping industry gains momentum, maintaining safety standards and improving operational efficiency through accurate VGM reporting are the sole focus.  Strict adherence to VGM regulations by Citrus Freight underscores the industry's commitment to safety and compliance.

Citrus is moving towards technological advancements and streamlined processes that play a crucial role in modern maritime logistics, benefiting shippers, carriers, and the overall integrity of the supply chain.

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Purchase Order: Definition, Process, and How to Create

What is the purchase order process?

Purchase Order Meaning In Business: A legal document that is prepared by the buyer to authorize a purchase transaction. This document is sent by a business to a supplier or vendor, including the details of the perishable goods, the quantity, and the cost. It serves as an agreement accepted by the buyer while purchasing perishable goods from the seller. The purchase order process benefits both parties as they specify the type of goods needed to be delivered on the mentioned timeline. This streamlines vendor management and maintains a record of the financial transactions to strengthen the business. 

What are the steps involved in the Purchase Order process?

The purchase order procedure can serve as a legally binding agreement. If you want to create a purchase order, you must have an understanding of the purchase order definition. A business can use a purchase order strategy to create and handle the purchase order process easily.

The steps involved in the purchase order process are as follows:

Buyers create a purchase request: Remember to create a purchase request before sending the purchase order. This process ensures the purchasing department keeps a record of the requested goods. Before sending out the purchase order to the supplier, the first step is to create a purchase request. The company can also monitor their expenses with the help of purchase requisitions. Once the purchase request is approved by the authorized manager, the purchase order can be created.

Buyer generates a purchase order: The purchase order is created only when the perishable goods are intended to be purchased as agreed by both parties. The purchase order outlines the order dates, FOB shipping information, discount, names of the buyer and seller, description of the perishable goods being purchased, item number, price, quantity, and the PO number.

The PO number is a unique number specified for a particular order. It serves two main purposes.

Ordered goods should match the received ones.

The PO number aligns with the invoice and ensures that the buyer pays the correct amount for the goods as agreed upon. 

Seller accepts or rejects the Purchase Order: At the bottom of the purchase order, there is a dotted line for the seller's authorized manager to sign. The purchase order comes with all the transaction details and the buyer’s amount expectation. The seller can accept or reject the document once the seller receives the purchase order. But once the PO is accepted, both parties should abide by the legally binding contract.

Buyers monitor the Purchase Order: After placing an order, the purchase order will remain open. An open purchase means that the purchased goods are not delivered, or only a part of the order is received. 

What are the various types of purchase orders?

In a procurement process, the POs are categorized as follows:

Standard Purchase Order: This is the most used PO. It includes information about the goods or services being purchased, their quantity, and their cost.

Blanket Purchase Order: This PO is used for repeated purchases and forms an agreement with a definite time period and fixed payment terms. 

Planned Purchase Orders: The planned PO indicates a company's initial order with the intention of buying particular perishable commodities; however, the amount and delivery schedule are not confirmed.

Emergency Purchase Order: This purchase order (PO) is employed in emergency situations, allowing for expedited acquisition without following the usual approval processes.

Single-Source Purchase Order: This purchase order, which is directed towards a certain supplier, specifies the intent to acquire perishable products or services from them only.

Direct Purchase Order: The direct PO refers to the perishable goods bought from the suppliers without involving any negotiating parties. 

Indirect Purchase Order: This PO is involved with non-production-related items such as maintenance, services, or equipment for the company.

With Citrus Freight, you can easily manage all your purchase orders from a single dashboard without any manual effort. It facilitates financial record-keeping, provides easy status updates, reduces miscommunication and missed orders, and ensures timely delivery of goods.

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Let Export Order : Everything You Need to Know

If you are an exporter, it is imperative to know that moving perishable cargo across international borders is a bit complex. You must adhere to the varied rules and regulations of the different countries as imposed by the international government. The Customs Department monitors all import and export activities and adheres to the legal guidelines. Your cargo will receive a Let Export Order (LEO) upon completion of the necessary customs formalities.

What is Let Export Order in Export?

The LEO full form in export stands for Let Export Order, which represents the final legal step in the export process for transporting perishable goods from one port to another. This Let Export Order procedure, handled by the Indian Customs Department, assesses the value of your perishable goods and examines them before they can be officially exported from India. 

Who issues the Let Export Order?

The customs department is responsible for inspecting your perishable cargo moving in and out of India. Once an exporter or CHA completes the legal export formalities, the customs department issues a Let Export Order for the specific cargo

What is Leo Copy in Export to fill out the online procedure?

The CBIC has implemented digital copies of the shipping bill to make customs processes faceless, contactless, and paperless, as stated on July 22, 2020.

Printing three copies of the shipping bill (customs, exporter, and export promotion) will no longer be considered.

A digital PDF out-of-charge (OOC) replaces the traditional method.

The final Let Export Order (LEO) copy of the shipping bill will be sent via mail to customs brokers and exporters.

This electronic copy can be shared with the Directorate General of Foreign Trade (DGFT) banks, DGFT, and others for various purposes.

The final Let Export Order (LEO) of the shipping bill consists of the following: 

The PDF shipping bill will be electronically signed and include an inaccessible QR code that can be scanned with the ICETRACK mobile app to verify the authenticity of the document. The QR Code includes details like SB No., SB Date, FOB Value, and Package Details.

The QR Code also has a version number to check the document version via ICEGATE .

Although printing transference copies is now optional, many logistics operators still use printouts. Thus, the Directorate General of Systems has made it compulsory to send the eGatepass PDF copy of the shipping bill by email.

At Citrus Freight, you ship your perishables without any worries!

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Difference between consignor and consignee in Shipping - A Complete Guide

In the logistics sector, the terms "consignor" and "consignee" play a crucial role to move the perishable goods. This bonding between the two parties is connected with the logistics chain, ensuring that goods are safely delivered from the exporter to the importer.

What is the difference between consignor and consignee in maritime shipping?

Some of the key differences between consignor and consignee are:

A consignor sends the shipment, while the consignee receives the consignment from the carrier.

The consignor is responsible for proper packaging and the labeling of the goods. On the other hand, the consignee needs to unpack and unload the received goods.

The consignor compiles all the shipping and forwards them to the consignee. On the other hand, the consignee completes all the required documentation for a smooth customs clearance.

The consignor pays the freight cost and covers the insurance for damage or spoilage done to your perishable goods, while the consignee pays import duties and taxes.

What is the meaning of consignor in terms of shipping?

The consignor is the individual, business, or organization that initiates the shipment of goods. A consignor, also known as the seller or shipper, is entrusted to send the goods and can choose the carrier or shipping company. Once the carrier receives the goods in optimal condition and is ready to ship them, they issue a bill of lading to the consignor. This document includes details of the consignor, consignee (buyer), notification party, and carrier involved in the shipment.

What is the consignee meaning in terms of shipping?

A consignee is the party that receives goods from the consignor. This can be either the final buyer or a middleman that acts on behalf of the final buyer. The buyer assigns a freight forwarder to collect the goods. The consignee is responsible for collecting the goods from the carrier, fulfilling formalities like customs duty payments, and arranging transport to their warehouse. If the consignee is the final buyer, they can claim ownership of the goods. The bill of lading contains details about the consignee and can list a notified party. 

The carrier informs a notified party to take care of the goods upon their arrival. The notify party and the consignee are usually the same, but sometimes the notify party includes the buyer, a clearing agent, or another third party.

At Citrus Freight, we understand the intricacies of the safe and timely shipping of your perishable goods. With our best logistics solutions, we enable export businesses to find reliable and cost-effective shipping options to meet their expectations.

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Ocean Bill of Lading: Meaning, Types and More

What is the meaning of the Ocean Bill of Lading?

The Ocean Bill of Lading is an important document that identifies the sender and receiver of the perishable goods. The bill of lading outlines the goods for shipment, specifies the necessary specifications, and provides routing instructions.The ocean bill of lading acts as both proof of a contract for carriage and a document of title for the perishable cargo.

How does an ocean bill of lading process?

In terms of an agreement between the shipper and the carrier along with varied international regulations, the Ocean Bill of Lading has some key features. They are as follows:

Cargo Description: It provides information about the goods that are being transported, focusing on their nature, weight, quantity, and any specific marking numbers. 

Details of the Shipment: The lading has the name and address of the shipper (the person or company shipping the goods) and the consignee (the person who is available to receive the goods at the port).

Port of Loading and Unloading: The bill of lading mentions the port of loading (the place where the perishable goods are loaded into the vessel) and the port of unloading (the place where the goods will be received).

Vessel Details: The lading includes information about the vessel’s name, its voyage number, and the exact date of departure.

Freight Cost: The bill of lading includes the freight service cost that can be done in advance or paid at the port of destination. It also clearly states the currency for the cost to be paid.

Liabilities and Responsibilities: The Ocean Bill of Lading mentions the clauses that are responsible for the shipper and the carrier to bear the cost of any loss or damage to the cargo during transit.

Nature: An authorized document issued by the carrier (shipping line) to acknowledge receipt of goods and highlight the terms and conditions for their carriage.

Negotiability: It can be negotiable or non-negotiable. A negotiable B/L can claim ownership of the goods through endorsement.

Goods Title: In the case of a negotiable B/L, the shipper can claim the title of the goods from the carrier upon their arrival at the destination.

Usage: The Ocean Bill of Lading is commonly used in international trade, especially involving perishable shipments with multiple carriers, providing security for both the shipper and the consignee.

Special Notations: This bill also mentions if there is any special notation for the related shipment.

Date and Signature: The bill of lading is usually signed by the shipper, carrier, or agents, specifying the date of issuance

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What is A Master Bill of Lading? Meaning, Requirements

What is the definition of the Master Bill of Lading?

A Master Bill of Lading (MBL) is issued by the carrier (ship owner or operator), who represents the contract of carriage between the shipper and the carrier. In this case, cargo shippers will only receive a Master Bill of Lading if they are working directly with a shipping line carrier or a freight forwarder. The carrier prints and signs the MBL in maritime transport. Once the carrier receives the confirmed cargo receipt, the Master Bill of Lading is issued to the concerned entity.

What are the main features of the Master Bill of Lading?

The Master Bill of Lading (MBL) plays a significant role in operating international shipments and strictly adheres to legal, documentation, and trade requirements.

The key features of Master Bill of Lading are as follows:

Legal Responsibilities: The MBL acts as a legal contract and evidence of your perishable cargo, describing the responsibilities and liabilities of the shipping line and cargo shipper. In the event of any cargo loss or damage, it helps to resolve disputes mentioning the conditions and terms of transportation.

Essential Information: This shipping document includes all necessary information for shipment transit and customs clearance, including commodity descriptions, packaging types, and mention of sail dates and delivery timelines. 

Important Role in Global Trade: The MBL helps to transport perishable goods across borders and expedites customs processes. Moreover, providing the correct shipment information to comply with international and domestic regulations is essential in conducting seamless global trade.

What details are included in the Master Bill of Lading?

The details mentioned in the Master Bill of Lading are as follows:

Shipper’s information

Consignee’s details

Container numbers

Payment terms

Cargo details

Notify party

Seals

Quantity of the goods

Weight of the goods

The information on the bill of lading should be correct to ensure that the goods arrive safely at the desired destination.

Simplifying the export process and effective shipment tracking are the main focus at Citrus Freight. With all the relevant export documents, invoices and bills of lading, Citrus has facilitated the business of perishable exporters worldwide.

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What Are High Cube Containers in Shipping? Meaning, Types and Uses

What is High Cube Container? [H2]

A high cube container is a specialized metal box container to ship your perishable goods from one port to another. The shippers prefer the high cube container as they can withstand rigorous weather conditions during the sea voyage.

The size of a high cube container is taller as compared to the standard-size containers available on the market. The high cube container has the capacity to load bulk or large quantities of perishable goods and can accommodate taller cargo owing to its additional one foot in height. These sturdy containers come in 20, 40, and 45-foot variants.

Under the ISO certifications, this high cube container signifies temporary or permanent storage that has access to ground level. A high cube container has a shelf life of 10 to 12 years and can be upgraded for further use. They are equipped with a safe lock feature to prevent unauthorized access. A high cube  container can be customized into reefer containers or multiple pallet designs to meet the specific perishable cargo needs. The reefer containers can maintain a consistent temperature to preserve the quality and freshness of the perishable goods during transit. These containers are well ventilated to circulate sufficient air and prevent moisture and food contamination. Each 40-foot HC container consists of up to 21 standard pallets compared to 20 pallets in standard containers.

40 Ft High Cube Container

The 40-foot-high cube container has an internal length of 12.03 m (39.47 ft). The internal width of these containers is about 2.35 m (7.71 ft), and the internal height of the high cube container is 2.7 m (8.86 ft). The total weight stands at 3,900 kg/8,598 lbs, with a payload capacity of 28,600 kg/62,974.8 lbs and a cubic capacity of about 76.4 m3/2,696.9 cu ft.

Despite the added height, the 40-foot-high cube container size is affordable as compared to standard-size containers. The 40-foot-high cube container dimensions come with an exterior height of 9'6" that provides a larger loading volume by accommodating taller perishable cargo, utilizing space usage, and ensuring cost-efficient transport and storage. With a maximum door height of 8’5”, they can accommodate up to 26,300 kg.

The specifications of the 40-foot high cube container are listed below:

Can withstand harsh weather conditions

The best mode of transportation

Container floors are made of wood

30 cm taller than standard containers

Thorough inspection before delivery and has a valid CSC date, ensuring international standard quality and food safety

Applications:

International transport and shipping

Logistics challenges with large quantities or bulky loads

Storage of goods with varied dimensions

Storage facilities and warehouses

In maritime shipping, high cube containers play a significant role in optimizing perishable cargo capacity and accommodating large or bulk quantities of exported goods.

The reefer logistics expert at Citrus Freight can guide you in purchasing the accurate specification of a high cube container to simplify the export venture to transport perishable goods to any corner of the world. 

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5 Tips To Reduce Export Shipping Costs

In a small or medium-sized business, everything from fuel costs to machinery costs to raw material procurement and store setup can lead to additional shipping costs. In such a critical scenario, shipping cost reduction strategies can make a significant difference in your overall budget. 

When you are involved either with export or import businesses, managing these elements is a must to reduce shipping costs. Implementing strategies like consolidating shipments, negotiating competitive rates, streamlining packaging, and selecting favorable shipping routes can reduce shipping costs.

The five best practices to reduce international freight costs are as follows:

Cargo Weight: A shipping calculator estimates costs by considering the shipment size, dimensions, and weight. However, if there are inconsistencies in the weight and the reported weight doesn’t match the actual weight, you could end up paying extra fees during the customs clearance. If you can provide proper paperwork and maintain an accurate weight, you can avoid extra charges and streamline the shipping process.

Follow the Best Packaging Process: Clumsy packaging of your goods can increase the transportation cost. If your shipment stretches beyond the required weight, it may require additional space, which can increase the overall cost. You can cut down on shipping costs by packing your goods with lightweight packing materials to protect against damage or spoilage.

Negotiate with Different Carriers: When it comes to international shipping, it's wise to discover different carrier options. Don’t just cling to a single carrier or service provider. Do groundwork research, compare with various shipping lines, and seek references to find a reliable freight forwarder or logistics provider. Negotiating contracts and long-term agreements with trusted carriers can help you secure better quotes and extra benefits.

Shipment Consolidation: Combining several smaller shipments into one larger load can potentially minimize your shipping costs. This approach allows you to benefit from economies of scale; you can get access to lower rates and shared transportation costs.

Choose cost-effective shipping route: Evaluating the right shipping route can minimize your transport costs to ship goods. Choosing direct routes or combining different shipping routes, such as road, rail, and sea can minimize your increased transport costs.

At Citrus Freight, we help businesses globally reduce shipping costs for their import or export operations through a range of comprehensive solutions.

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9 Best Tips on How to Negotiate Freight Rates

Freight rate negotiation is a must when conducting international trade. The way you negotiate freight rates tells a lot about your export or import business. Freight rate negotiation with carriers can help you consider factors like cargo quantity, weight, and available capacity to get the competitive rates for exports.

9 best tips on how to negotiate freight rates are as follows:

1. Be ready to negotiate: Before entering negotiations, it's important to fully understand your needs and available resources. Analyze the latest market trends in the shipping industry and stay informed about currency fluctuations and changes in the political and economic landscape.

2. Address your freight rates: You can negotiate freight rates with the carriers or freight forwarders after having clarity about your freight needs, and accordingly, you can place your terms and conditions.

3. Consolidation of the shipments: If you want to save on shipping costs, you can consider combining multiple shipments into a single one.

4. Try negotiating with multiple carriers. When it comes to negotiating freight rates, don’t just settle with a single carrier. Interact with different carriers and compare the quotes. This will enable you to ease the negotiation process, and you will be in a position to make competitive demands.

5. Objections: Negotiating shipping rates with the carriers is likely to encounter various objections. You must listen carefully to the carrier’s perspective to understand the reason behind those objections. Maintaining composed behavior and presenting alternative solutions that match with goals and the carrier’s limitations can address objections. 

6. Establish Strong Bonding: Though transactions play a major role in global trade, your role as an exporter or importer doesn't end here. If you are working with a carrier or a freight forwarder, you must respect their opinions and confide in them. This will help you cultivate a strong relationship with them.

7 .Pay only for the required services: Try to negotiate with your carrier by checking the aspects of the price contract, which include added services, insurance, applicable fees, and other relevant services.

8. Go through the fine print: Don’t forget to read the entire agreement, including the fine print. Having a clear understanding of the document can help you check for restrictions and limitations and negotiate reasonable freight rates.

9. Avoid peak seasons: If you conduct shipments during off-peak periods, you can obtain competitive freight quotes. Most of the carriers offer a lower rate in the off-seasons to keep their business running smoothly. 

At Citrus Freight, we have an expert price consultant that can offer you a detailed list of the breakdown costs to make the freight negotiations easier. The team can provide you with reliable freight forwarders and carriers to ship a variety of perishable goods and get competitive freight rates for every single shipment you make.