Cargo release processes 

Did you know that cargo release involves a series of risks that can affect the flow and security of commercial operations? 

What we want to tell you is that dealing with the challenges this process implies can become a real logistical puzzle. 

From incomplete documentation to unexpected inspections, each step is a potential challenge. 

As you can see, the above are some of the inconveniences that will be addressed in this article, with the goal of providing useful and practical information for importers and exporters who want to optimize their cargo release processes. 

What is cargo release? 

In simple terms, it refers to the process by which the withdrawal of imported or exported goods that have been subjected to customs control is authorized. It can be documentary or physical, and its objective is to verify that they comply with the norms and legal requirements of each country. 

In a broader context, it also refers to the management of merchandise in a warehouse. When it arrives at a depot, cargo release is carried out to distribute and organize the products, facilitating their storage and subsequent shipment. 

Its importance lies in preventing delays, additional costs, or penalties for non-compliance with customs obligations. 

To achieve successful release, a series of documents must be presented that certify the origin, value, quantity, quality, and type of the goods. These can vary according to the country, mode of transport, and type of commercial operation. 

The actors for the correct release of cargo are the Importer / Exporter, a Customs Agency, as well as a Specialized Intermediary or a Forwarding Company. 

What is the cargo release process?

It is a critical operational sequence in logistics management, characterized by rigorous protocols and procedures to ensure the efficient transfer of goods from their means of transport to their final destination. Some key steps are as follows: 

Arrival and documentation. It involves the arrival of the means of transport to the designated facility. Simultaneously, an exhaustive documentary review is carried out to ensure compliance with legal and commercial requirements. 

Inspection. After documentary approval, a physical verification of the cargo is carried out. This step involves the visual and dimensional verification of the goods to ensure correspondence with the information provided. Any discrepancy or irregularity is addressed immediately to avoid possible setbacks. 

Unloading. During this process, safe and efficient handling practices are applied to prevent damage to the merchandise. In addition, specialized equipment is used according to the nature of the cargo, ensuring a trouble-free operation. 

Storage and organization. The released cargo is strategically structured and stored. For this, specific locations are assigned, using management systems to ensure traceability and easy retrieval of products when necessary. 

Distribution and tracking. For this, surveillance systems are implemented to monitor the progress of the delivery in real-time, allowing proactive logistics management and the immediate resolution of potential problems. 

Necessary documents for the customs release process 

1. Commercial invoice. This document details the information of the merchandise, including precise descriptions, quantities, unit and total values, as well as the terms of negotiation. It is fundamental for the evaluation of tariffs and the determination of applicable taxes.
2. Bill of Lading (BL or AWB). Certifies the transport of the cargo. It is crucial for the identification of the merchandise and its tracking from the point of origin to the final destination.
3. Packing list. Details the composition of the cargo, indicating the content of each package. Its objective is to provide a broader view of the merchandise and facilitate customs inspection.
4. Customs entry. It is an official form that presents information about the import or export. Contains specific data about the customs value, applicable tariffs, and other legal aspects related to customs clearance.
5. Certificates and permits. Includes phytosanitary, sanitary, origin certificates, among others. Obtaining and presenting these specifics is essential to comply with customs regulations.
6. Proof of tax payment. Evidence of the payment of the corresponding customs taxes must be presented. Since it supports the fiscal regularization of the import and is essential to complete the customs release process.
7. Official identification. In some cases, the presentation of the importer or customs agent may be required. This helps to verify the authenticity of the provided information and ensures transparency in the process.

These documents must be presented in electronic format through the Automated Customs System (SAAI), which allows sending and receiving information quickly and securely. If they are correct and complete, the release of the merchandise is authorized, and it can proceed to its withdrawal. Otherwise, Customs retains it and applies penalties. 

Problems can arise in cargo release 

In cargo release, various inconveniences are likely to arise, underscoring the importance of careful management and adequate preparation. Here we describe some of the most common: 

• Incomplete or incorrect data. Such as errors in the invoice, lack of necessary certificates, or discrepancies in the packing list can delay customs release.
• The most important document is the Bill of Lading known as BL, which is the title of ownership of the merchandise. If it is lost or delayed in reaching the destination (in case the release instructions are original), it can hinder the release of the merchandise.
• Inspection. Customs authorities may conduct random or specific inspections on the cargo. If there are discrepancies between the documentation and the actual merchandise, or if compliance issues are detected, the process may be delayed while these matters are resolved.
• Customs classification. Mistakes in the organization of the merchandise lead to the incorrect application of tariffs and possible conflicts with customs regulations.
• Transport delays. Unmet delivery times can result in additional costs and complications in the customs process.
• Problems with permits and certificates. The lack of these documents causes significant delays in cargo release, as customs authorities must ensure that all requirements are met.
• Identification and tracking. Caused if documents, such as the BL or AWB, are not in order. The lack of accurate information about the location and status of the cargo leads to uncertainty and delays.
• Non-compliance with customs regulations. This includes incorrect payment of tariffs, taxes, or not being up to date with specific requirements.
• Inadequate packaging. If the cargo arrives in non-conforming conditions, adjustments and repairs may be necessary before proceeding with the release.
• Tariffs and taxes. When importing or exporting goods, the corresponding taxes or duties must be paid based on the value, origin, and type. They vary according to the country and the commercial treaties it has. If forgotten or miscalculated, there is a delay in the release of the merchandise and a penalty by Customs.
• Damaged cargo. During the transport of the goods, there are deteriorations due to bumps, collisions, braking, fires, or thefts that affect the quality and quantity of the goods, and in turn, economic losses arise for importers or exporters. To avoid or minimize them, it is important to ensure that the merchandise is prepared and packed with all the protections it requires.
• Penalties. These are the penalties applied for non-compliance with the norms and legal requirements of international trade. They are usually economic, administrative, or criminal, depending on the severity of the infraction. 

Conclusion

Cargo release processes are links in the global logistics chain. 

From the arrival of the merchandise to its final distribution, each step demands precision and knowledge to avoid setbacks. 

With the information provided in this article, we trust you are better prepared to face the challenges and optimize your operations. 

At KENSA Logistics, we understand the importance of efficient cargo release. If you are looking for personalized advice, comprehensive logistics solutions, or simply wish to improve your processes, we are here to help. 

Contact us today to discover how we can be your strategic ally.