What are Freehand and Nominated goods? What are the similarities and differences?

x Are you new to the import-export field, wondering what the term freehand is, what is nominated goods?
x Do you want to know if there are any similarities or differences between freehand products and nominated products?
x Import-export enterprises are not familiar with customs clearance operations at the Port, need to find a professional customs declaration unit?

Freehand goods and Nominated goods are specialized terms, quite commonly used in International Freight Forwarding. In order to help businesses and individuals new to the import-export field understand correctly what freehand is and what nominated goods are, Proship.vn will synthesize knowledge from many reliable sources, with specific examples for easy reading. Imagine these two types of goods.

In addition, Proship Logistics cooperates with FadoExpress to OFFICIALLY become a Customs Agent at Cat Lai Port with a fast, professional customs declaration process, helping businesses' shipments be cleared under the best conditions and in accordance with the Customs Law. .

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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Correct understanding of Freehand and Nominated goods in sea transport

Regardless of any profession or field, there are specialized terms used specifically in that profession or field. The same goes for the Logistics field. This is an industry related to International Trade activities, so there are even more specialized terms. Among them, the most basic terms that must be understood are Designated Goods and Regular Goods.

Freehand goods (regular goods) and nominated goods (designated goods) are two terms often used by sales staff at shipping lines and forwarding companies to refer to the types of goods they monitor. So specifically, what is the concept of freehand and nominated goods? What are the advantages and disadvantages of these two types of products? The answer will be shortly:

What is Freehand goods? Advantages and disadvantages?

Concepts, examples

What is Freehand? Freehand goods (or regular goods) are goods for which the shipper himself books the ship and pays the freight according to Incoterms conditions. All issues from choosing a shipping company will be decided by the shipper. For freehand goods, sales staff must carry out all processes from finding customers, offering prices, closing contracts and tracking the shipment.

* For example: Shipper wants to export goods to China under Incoterms group C conditions and in the form of freehand goods, the shipper has the right to choose the shipping company of his choice. Normally, to receive commissions, most forwarders must sell goods freehand to have the right to choose the shipping company with the most suitable schedule and price.

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In addition, if you are a forwarder and the shipper is working with a sale of a certain shipping company, it will be very difficult for you to deal with this shipper's goods with another sale of the same shipping company. Thus, only freehand goods give you the opportunity to choose the shipping company.

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Advantage

  • Actively choose shipping companies and choose which shipping company has the most beneficial prices and costs, thereby bringing high commissions.
  • Be proactive in choosing delivery time and delivery time.

Defect

Must find customers, find opportunities, evaluate feasibility, offer prices and do all the processes yourself.

What are Freehand and Nominated goods? What are the similarities and differences?
Freehand goods and nominated goods are understood as normal goods and designated goods, both are commonly used terms in International freight forwarding.

What are Nominated goods? Advantages and disadvantages?

Concept

Nominated goods (or designated goods) are goods exported under FOB conditions. The buyer will pay the shipping freight and designate the specific shipping company. Therefore, the seller only needs to pay local charges at the export destination and of course they do not have the right to choose another shipping company. The main task of shipping line sales staff is to take good care of customers. Nominated goods are almost the exact opposite of regular goods - Freehand.

Nominated goods will be booked by the buyer and sent to the seller by email or fax to receive the booking order. This form has the advantage that the exporter only needs to deliver the goods to the ship to fulfill its responsibility. However, the disadvantage is that if the exporter cannot be proactive in the delivery time, the exporter will have to comply with the available designated time.

In some cases, for Nominated goods, the buyer will designate the shipping company and the seller will have to pay the freight. Normally, the shipping line's sales staff will handle both freehand and nominated goods, while forwarders almost only handle freehand goods. Forwarders often do freehand goods to earn profits and commissions because they can choose which shipping company has the most profitable prices and costs.

Advantage

Just deliver the goods onto the ship to fulfill your responsibility.

Defect

Unable to be proactive in delivery time. The time to prepare goods, and the people working on import and export for designated export companies, are also quite difficult.

>>See more: Forwarder companies in Vietnam

What are the similarities and differences between Freehand and Nominated goods?

What is freehand goods, what are nominated goods have been answered. Next, Proship Logistics will synthesize other related knowledge that shows the basic difference between freehand and nominated goods. Specifically:

Are Freehand goods and Nominated goods the same?

Nominated goods and Freehand goods are both terms used by Shipping Lines and Forwarding Companies to refer to goods that Sales Staff will directly monitor. In addition, Nominated Goods are almost the exact opposite of Freehand Goods.

What is the difference between Freehand goods and Nominated goods?

The reason it is necessary to distinguish these two types of goods is because they have different Decision Makers. Identify the right type of goods - when there is a problem related to responsibility or costs, we can ask the right person, collect money from the right party and avoid many risks in International Trade.

When looking at the documents, the signs to distinguish between freehand and nominated goods will be based on international shipping rates and Incoterms conditions. As follows:

Based on international shipping rates

  • For shipments with international freight prepaid (freight prepaid), it will be freehand, because the exporter is responsible for booking the ship and the freight has been prepaid in the exporting country.
  • For shipments with international freight collected, it will be nominated, because the importer is responsible for booking the ship and paying freight at the destination port.
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What are Freehand and Nominated goods? What are the similarities and differences?
To properly distinguish the basic difference between Freehand Goods and Nominated Goods in sea transport, it is necessary to rely on Incoterms conditions and International shipping rates.

Based on Incoterms conditions

Freehand goods are divided into two delivery conditions: C and D. Exporting businesses will be able to choose a forwarder company to support the import-export transportation process and pay international shipping costs.

* For example: An Enterprise exports goods from Hai Phong port to Thailand under group C conditions. In this case, this Enterprise will have to bear the shipping fee from Vietnam to Thailand and choose the appropriate forwarder company. meet your conditions.

Nominated goods will be subject to two delivery conditions: E and F. Thus, exporting businesses will not have to pay international shipping fees to the importing country. The unit importing the goods will be responsible for paying the freight.

* For example: A business exports goods from Hai Phong port to New York under FOB terms (the business does not have to pay freight to New York but only delivers the goods to the port of export and is no longer responsible). Exporting enterprises cannot choose the forwarder company but must follow the instructions of the importing party. After that, the exporter will coordinate with the designated forwarder company to export goods to New York port.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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What do Freehand and Nominated goods delivery documents include?

The set of delivery documents for freehand and nominated goods is no different and basically includes the following documents:

  • Invoice (commercial invoice) and packing list (goods packing slip);
  • Bill of Lading and Delivery Order;
  • C/O Certificate of Origins (if any);
  • Customs declaration,…

Different delivery conditions lead to different delivery methods as well as risks, costs incurred and ownership rights, etc. For example, FOB and CIF delivery are the same for exported goods. However, if delivery is under FOB terms, the exporter must deliver the goods at the CY yard for the export goods to be relieved of responsibility. If delivered under CIF terms, the Exporter will only complete his responsibility when the goods are delivered at the import warehouse.

Import-export enterprises need to declare customs at Cat Lai Port for Sea goods, which reputable and best Customs Customs Agent should they choose?

Export and import businesses that need to declare customs for Sea goods at Cat Lai Port should choose KBHQ Agents Proship Logistics and FadoExpess to receive support from AZ on customs operations. Accordingly, when choosing Customs declaration service at Cat Lai Port, the Shipper/Business does not need to use their digital signature to approve (remotely), or send false documents as before, but instead, As KBHQ Agent, we will use our valid digital signature to declare and transmit the declaration for the shipment.

In general, in our new role as Customs Clearance Agent, we will be named on the declaration and be primarily responsible for the declared content on the Sea import and export customs declaration. This contributes to helping businesses save time and effort and the goods clearance process also happens faster, instead of choosing customs clearance units as before. In particular, we support door-to-door delivery according to customers' requests with cheap and affordable fees.

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What are Freehand and Nominated goods? What are the similarities and differences?
Proship Logistics and FadoExpress, with existing customs experience and expertise, officially became professional KBHQ Agents at Cat Lai Port.

Address of Cat Lai Port HQ and Representative Office of FadoExpress and Proship

Proship will update the latest customs declaration address at Cat Lai Port and the representative office of the KBHQ Agent:

  • Address for receiving customs clearance at Cat Lai Port: Saigon Port Border Gate Customs Branch, Area 1, Gate B, Cat Lai Port Area, Le Phung Hieu, Cat Lai Ward, District 2.
  • Representative VP address:

    Ho Chi Minh

    Proship Joint Stock Company

    Pick-up point:

    PROSHIP HO CHI MINH CITY TAN BINH DISTRICT : 26 Van Chung, Ward 13, Tan Binh District, Ho Chi Minh City

    Sales office:

    21Bis Hau Giang, Ward 4, Tan Binh District, City. HCM

What is the type of KBHQ Proship and FadoExpress carried out at Cat Lai Port?

Proship and FadoExpress are planning to deploy the following types of customs declarations at Cat Lai Port:

  • Customs declaration services for business imports - A11, non-commercial imports - H11,...;
  • Customs declaration services for export production, investment - processing;
  • Type of on-site import and export (selling goods into export processing zones)...;
  • Type of business export: B11;
  • Temporary import for re-export, temporary export for re-import,...

Why choose KBHQ Agent at Cat Lai Port of Proship Logistics and FadoExpress?

Customs declaration agents at Cat Lai Port of Proship and FadoExpress point out the legitimate reasons that businesses should choose:

  • Customs agents Proship and FadoExpress are responsible for the content declared on the HQ Declaration along with import-export enterprises;
  • KBHQ Proship and FadoExpress agents on behalf of businesses carry out import and export procedures for goods according to the contract signed between the two parties;
  • The name and code of our Customs Agent will appear on the Declaration and Customs System;
  • There is a representative office in Ho Chi Minh City, convenient for customers' needs to hire customs declaration services;
  • Complete the KBHQ process according to the criteria: "Fast - Accurate - Cheap - Professional" ;
  • We do not aim to provide the CHEAPEST price Service, but rather the quality that ensures the MOST REASONABLE cost;
  • Commitment to confidentiality of goods information + customer information provided when warehousing at Cat Lai Port;
  • Understand and update the latest Customs Circulars, Decrees, etc. to advise customers;
  • Businesses receive dedicated advice on documents, procedures, application of HS codes, etc. by a team of staff with customs expertise;
  • Understand the customs clearance process of all types of goods at Cat Lai Port;
  • Skills to quickly handle import-export shipments that are difficult to declare to customs at Cat Lai Port;
  • Have enough means to effectively serve Logistics activities;
  • Commit to delivering goods to customers as requested (accurate in time and location);
  • Adequate compensation policy for customers if there is a delay in customs clearance at the seaport.

Proship Logistics has clarified the concept of what freehand goods are , what nominated goods are as well as the difference between freehand and nominated goods. Based on the above specialized knowledge, import-export businesses or those new to this field should save the shared article to effectively support goods planning, customs clearance, etc. In case your business needs to use it. Customs declaration service at Cat Lai Port by a specialized agent, contact immediately 0909 344 247 to receive advice and quote for the best package service.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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