Eng

FAQ

common questions

Q: Who is the consignee and who is the consignor or 
A: The consignor (or shipper) is the person who is the originator of the shipment. A consignee is the person who is the receiver of the shipment.

Q: Which should I choose: airfreight, sea Freight or road freight?
A: This depends on your immediate needs at the time. All are good services and all can get your cargo to market, but they all come down to cost and time.

Q: What is a maximum weight permitted for transportation by the land on the territory of Georgia?
A: In case of transportation of standard tilt-covered vehicles or container-carrying carriage, the standard weight of goods should be 22 tons, in special cases, a maximum of 26 tons. In case of transportation of heavier cargo, a special equipment and patrol police permission are required. Restriction is individual according to the countries during international transportation.

Q: Does my shipment need any special packaging for freight shipping?
A: Yes, your freight needs to be packaged and/or palletized, it is the shipper’s responsibility for packaging the goods. Shrink wrap, corrugated boxing, palletizing and strapping or banding is the most common type of pack.

Q: Do I need to know the weight of my goods?
A: In most cases you can estimate your weight. But be aware that the carrier can and will adjust the weight, which will determine your final cost. The final weight is known as the "chargeable weight". For Air Freight, chargeable weight may be the dimensional weight if greater than the gross weight of the shipment.

Q: Does size matter for air shipment?
A: Yes, air freight is based on both the actual weight and chargeable weight of the cargo.

Q: How is chargeable weight calculated?
A: There is a special formula.
Just give us all three dimensions (Length x Width x Height) and we will calculate the chargeable weight for you.

Q: What is the maximum size or weight?
A: This varies depending on the airline and aircraft to be used for the transportation. … so please ask us.

Q: How and where can we pick up the cargo at destination?
A: We will provide you with the necessary paperwork for custom clearance, once custom is done, you can go to the warehouse to pick up the cargo.
We also advise you to check with destination custom prior to shipment departs, just to make sure if there’s any special rule & regulation at destination for certain commodities.

Q: Do you have office at destination who can help us?
A: Yes, we have our representatives and agents around the globe that will be delighted to assist you.
Please check with us, they will be able to help you for any logistics services.

Q: Can you handle door delivery at destination? Can you handle pick up from residential area?
A: Yes, please help to provide us your door address, and we shall work out the costs accordingly.

Q: What are some of the destination charges?
A: There may be airport fees, warehouse fees, custom clearance charges, duty/tax and door delivery charges.

Q: What is typically transit time?
A: Airport to airport 3-5 days on average. Door to door varies depending on customs clearance, estimate 5-7 days. Delays and/or changes to schedules can happen. Best way to make the cargo ship as quickly as possible is to make sure all paperwork is properly filed before hand, this eases the customs process.

Q: Are there types of cargo that cannot be shipped via air freight?
A: Yes, there are some items that are restricted and some accepted under certain conditions these comprise: hazardous, flammable, dangerous, chemicals. Our freight consultant will guide you accordingly.

Q: What kind of paperwork I will need to fill out ahead of time?
A: You will need to have the packing list with all dimensions and weights and provide us information about shipper and receiving party contact.

Q: Can I have my goods picked up at a certain time to meet my schedule?
A: We will try to arrange your pick up to meet your time table.

Q: As a freight forwarding company, what various options do you provide?
A: As a freight forwarding company we provide single source logistics to and from anywhere in the world. We have our agents and representatives in every major trading market making. We provide control and reliability of the process through our online tracking capabilities. Our experienced staff will instill the confidence you look for in a reliable freight forwarding company in handling all of your transport and logistics requirements. We can provide highly competitive rates through our leveraged volume agreements.

Q: Do I need cargo insurance? Who insures my goods while they are being shipped?
A: Yes, you will need insurance, as it is not mandatory for a forwarder or the carrier to cover your insurance. You must insure your goods. Forwarders do not apply insurance automatically.

Q: Can you handle hazardous materials?
A: Yes. All of our associates have been fully trained and are certified in the handling of hazardous material. We take the handling of hazardous materials very seriously and are completely certified to transport freight of this nature. At this time, we do not handle Class 1 explosives. If you are shipping hazardous materials, you must include a copy of the MSDS with the shipment at the time of delivery. The freight must be properly packaged and labeled to meet all regulations. All hazardous items must be itemized to include:

  • Shipper’s Name
  • Shipper’s Emergency contact name & phone number
  • Emergency Contact file number or name
  • UN Number
  • IMO Proper shipping name
  • Hazardous Class
  • Packaging Group (if applicable)
  • Quantity and packaging type
  • Weight
  • Cubic feet
  • Flash Point (if applicable)
  • Placard

Q: HOW DO I GET A QUOTE?
A: Call our office number (+995 32 24 24 905) or email us at: sales@megrex.ge When you contact us, please provide the following information so we can give you a quick and accurate quote:

Origin city, state and zip
Destination city, state and zip
Commodity
Number of pieces
Total weight including packaging
Dimensions including packaging (length, width, height)

Q: Can the price change?
A: The price will not usually change. However, if you undertake any changes after accepting the offer, it is possible that the price will change. Also the carrier may change the rates without prior notification.

Q: How does the billing process work?
A: After every successful operation, you will receive a bill from MEGREX. Transfer the amount to the account specified and send us back a copy of payment order.

Q: What size is a standard pallet and what is Euro pallet?
A: "STANDARD PALLET" (metric pallet)
Size of standard pallet is 1200 mm x  1000 mm. 
"EURO PALLET"
Size of euro pallet is 1200mm x 800 mm. 

Q: Do you offer refrigerated shipping options?
A: Yes.  Our carriers offer refrigerated, or Reefer, trucks and cars for shipping via both road and rail.

Q: Can MEGREX handle pickups at origin?
A: Yes. We require your full pickup address and contact information at origin in order to make arrangements for freight pickup. 

Q: Can MEGREX Handle door delivery at destination?  
A: Yes. We require your full delivery address and contact information at destination in order to make arrangements for freight delivery. 

Q: What are cargo MEGREX’S typical shipment transit times?
A: Air: Airport to Airport transit times are approximately 2-4 days and Door to Door transit times are approximately 5-6 days. Ocean: Port to Port transit times are approximately 45 days and Door to Door transit times are approximately 50 days. Note: Transit times are approximate and may vary depending on loading and unloading address of the goods, customs clearance, carrier delays or schedule changes etc. 

Q: What paperwork is required?
A: The paperwork necessary to clear your shipment include the following:

- Bill of Landing.
- Commercial Invoice.
- Packing List.

The invoice must be completed properly showing the:

  • Consignee.
  • Shipper
  • Country of origin.
  • Detailed description of the goods.
  • Total amount of the goods.
  • Currency used.
  • Certain goods will require additional documentation, please contact us for more information.

incoterms

INCOTERMS

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. When negotiating an international sales contract, both parties need to pay as much attention to the terms of sale as to the sales price. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. As such they are regularly incorporated into sales contracts worldwide.

FCA - Free Carrier - This term means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. Seller pays for carriage to the named place.

EXW -  Ex-Works  - This term represents the seller's minimum obligation, since he only has to place the goods at the disposal of the buyer. The buyer must carry out all tasks of export & import clearance. Carriage & insurance is to be arranged by the buyer.

FAS - Free Alongside Ship - This term means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. The seller is required to clear the goods for export. The buyer has to bear all costs & risks of loss or damage to the goods from that moment. This term can be used for sea transport only.

FOB - Free On Board - This term means that the seller delivers when the goods pass the ship's rail at the named port of shipment. This means the buyer has to bear all costs & risks to the goods from that point. The seller must clear the goods for export. This term can only be used for sea transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used.

CFR - Cost and Freight - This term means the seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the costs & freight necessary to bring the goods to the named port of destination, BUT the risk of loss or damage, as well as any additional costs due to events occurring after the time of delivery are transferred from seller to buyer. Seller must clear goods for export. This term can only be used for sea transport.

CIF - Cost, Insurance and Freight - The seller delivers when the goods pass the ship's rail in the port of shipment. Seller must pay the cost & freight necessary to bring goods to named port of destination. Risk of loss & damage same as CFR. Seller also has to procure marine insurance against buyer's risk of loss/damage during the carriage. Seller must clear the goods for export. This term can only be used for sea transport.

CIP - Carriage and Insurance Paid - This term is the same as CPT with the exception that the seller also has to procure insurance against the buyer's risk of loss or damage to the goods during the carriage. This term may be used for any mode of transportation.

CPT - Carriage Paid To - This term means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. The buyer bears all costs occurring after the goods have been so delivered. The seller must clear the goods for export. This term may be used irrespective of the mode of transport (including multimodal).

DDP - Delivered Duty Paid - This term represents maximum obligation to the seller. This term should not be used if the seller is unable to directly or indirectly to obtain the import license. The term means the same as the DDU term with the exception that the seller also will bear all costs & risks of carrying out customs formalities including the payment of duties, taxes & customs fees.

DAT – Delivered at Terminal (named terminal at port or place of destination) - Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.

DAP - Delivered At Place (named place of destination) - Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

Air Freight

Air Way Bill (AWB) – An air waybill (AWB) is a document that accompanies goods shipped by an international carrier to provide detailed information about the shipment and allow it to be tracked. The bill has multiple copies so that each party involved in the shipment can document it.

Master AirWayBill (MAWB) - MAWB is a type of air waybill that is issued by the international carrier or its agent and instead of real shipper and consignee, requisites of forwarders are indicated in the columns of shipper and consignee. 

House AirWayBill (HAWB) – HAWB is a type of air waybill that is issued by a freight forwarding company and shows the details of real shipper and real consignee.

Multimodal transportation – Combination of two or more modes of movement of goods, such as air, road, rail, or sea.

Cargo consolidation – Combining Cargo of many consignees into one lot and then prepare it for shipping. This includes sea, air and road freight.

Freight forwarding services – helping importers and exporters transport their goods.

Freight Forwarding company – a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Logistics – the commercial activity of transporting goods to customers.

Dry Cargo – any type of goods that does not require temperature control.

General cargo (GEN) – ordinary goods transported on a ship, aircraft, etc., rather than special goods like oil, food products, etc.

Out of gauge cargo – cargo, that exceeds the internal dimensions of a transport.

Dangerous cargo (DGR) – items that may endanger the safety of an aircraft or persons on board the aircraft. Dangerous Goods are also known as restricted articles, hazardous materials and dangerous cargo. Many common items found in your household can be considered dangerous goods for the purpose of air transport.

Perishable cargo (PER) – Cargo requiring refrigeration, such as meat, fruit, fresh vegetables, and medical department biologicals.

Force Majeure –  unavoidable accident, an overwhelming force, an event (war, strike, riot, crime) that relieves parties from liability and obligation. Depending on the interests of the Parties, the terms of the force-majeure may be determined.

Shipper – A person or company that sends or transports goods by sea, land, or air.

Pallet – a wooden or plastic portable platform on which goods can be stacked, stored, and moved.

Cargo -  goods carried on a ship, aircraft, or motor vehicle.

Consolidator - A person or firm performing a consolidation service of small lots of cargoes for shippers.

Consignment - Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the

consignee) under agreement that the agent sell the merchandise for the exporter.

Consignor - The person or company shown as the shipper on the bill of lading.

Consignee - The person or company (named in the Air Way bill) to whom commodities are shipped. The owner of the cargo.

Carrier - Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.

Surcharge A surcharge is a fee or other charge that is added to the cost of a good or service. A surcharge is typically added to an existing tax and may not be included in the stated price of a good or service.

Packing List - A document provided by the shipper detailing the packaging of the goods, including their weight and measurement, and assortment, etc.

Net Weight (Actual Net Weight) -Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can’s weight.

Gross Weight - Entire weight of goods, packaging and container, ready for shipment.

Exchange Rate - The ratio of prices at which the currencies of nations are exchanged at a particular time.

ETD - Estimated time of departure of carriers.

ETA - Estimated time of arrival of carriers.

En Route - Along the route of movement.

Dim Weight (Dimensional Weight or Volume Weight) -  Freight charges calculated by the cubic dimension (total cubic inches). This measurement, along with the weight of the pieces shipped, is typically used by airfreight carriers to determine their freight charges.

Door to Door - Transportation of cargoes from consignor’s premises to consignee’s premises.

Cube - A measure of volume expressed in cubic feet.

Commodity - Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.

road transport

Freight Forwarding company – a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Freight forwarding services – helping importers and exporters transport their goods.

Carrier - Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.

Shipper – any seller (Exporter) private person or legal entity.

Consignment - Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the

consignee) under agreement that the agent sell the merchandise for the exporter.

Consignee - The person or company (named in the Air Way bill) to whom commodities are shipped. The owner of the cargo.

Trucking manifest - This type of manifest is prepared for trucks after they have been loaded with goods for transportation. The manifest is prepared whether the goods are moved within the same locality, across the state or across the border. The trucking manifest is handed over to the driver or any other person with him.

Free Trade Zone - A country’s government designates this area, where any non-prohibited merchandise may enter duty-free. In this zone goods may be used in manufacturing, put on display, warehoused, etc. and re-exportation is also duty-free if the merchandise should pass from the zone into another area of the country.

Destination - The place where the carrier or the forwarder actually turns over the cargo or container to consignee or his agent. It may also be termed “Final Destination”.

Seal - A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes.

Bonded Warehouse - This facility is authorized by Customs authorities for storage or processing of goods. No Customs duties are incurred until the goods are removed.

CMR - International road waybill determined on the basis of the CMR Convention. Specifies the relationship between a sender, carrier and recipient. CMR performs functions of information, instruction sheet, possess and evidence. Based on the CMR Convention, international road waybill should be issued in three original copies. Each party of the transport process should be in possession of one original copy.

Tir Carnet - TIR stands for Transports Internationaux Routiers (International Road Transport) and is an international Customs transit system. TIR is the only universal transit system that allows the goods to transit from a country of origin to a country of destination in sealed load compartments with Customs control recognition along the supply chain. This minimizes administrative and financial burdens and Customs duties and taxes that may become due are covered by an international guarantee.

Cargo - arbitrary type that can be transported by according mean of transport.

Demurrage –  Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shipping or transporting company's warehouse.

Dry Cargo – any type of goods that does not require temperature control.

Dangerous cargo – items that may endanger the safety of an aircraft or persons on board the aircraft. Dangerous Goods are also known as restricted articles, hazardous materials and dangerous cargo. Many common items found in your household can be considered dangerous goods for the purpose of air transport.

Perishable cargo – goods that loses the greatest part of its value, if a transportation of such cargo lasts for undetermined time.

Out of gauge cargo – cargo, that exceeds the internal dimensions of a transport.  

Cargo consolidation – Combining Cargo of many consignees into one lot and then prepare it for shipping. This includes sea, air and road freight.

General cargo – ordinary goods transported on a ship, aircraft, etc., rather than special goods like oil, food products, etc.

Consolidator - A person or firm performing a consolidation service of small lots of cargoes for shippers.

Multimodal transportation – Combination of two or more modes of movement of goods, such as air, road, rail, or sea.

Pallet – Pallet – a wooden or plastic portable platform on which goods can be stacked, stored, and moved.

Force major –  unavoidable accident, an overwhelming force, an event (war, strike, riot, crime) that relieves parties from liability and obligation. Depending on the interests of the Parties, the terms of the force-majeure may be determined.

Logistics – the commercial activity of transporting goods to customers.

Surcharge A surcharge is a fee or other charge that is added to the cost of a good or service. A surcharge is typically added to an existing tax and may not be included in the stated price of a good or service.

Packing List - A document provided by the shipper detailing the packaging of the goods, including their weight and measurement, and assortment, etc.

Net Weight (Actual Net Weight) -Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can’s weight.

Gross Weight - Entire weight of goods, packaging and container, ready for shipment.

Cube - A measure of volume expressed in cubic feet.

Exchange Rate - The ratio of prices at which the currencies of nations are exchanged at a particular time.

ETD - Estimated time of departure of carriers.

ETA - Estimated time of arrival of carriers.

En Route - Along the route of movement.

Door to Door - Transportation of cargoes from consignor’s premises to consignee’s premises.

Commodity - Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.

Ocean Freight

Freight Forwarding company – a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Freight forwarding services – helping importers and exporters transport their goods.

Bill Of Lading – a legal document between a shipper and a carrier that details the type, quantity and destination of the goods being carried. The bill of lading also serves as a shipment receipt when the carrier delivers the goods at the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and an authorized representative from the carrier, shipper and receiver must sign it.

Master Bill Of Lading (MBL) -  a document created for shipping companies by their carriers as a receipt of transfer.  A MBL summarizes the contents of a shipment including the bill of lading numbers assigned to the various items within the shipment, as well as a description of the freight under each bill of lading. The document also includes the terms for transporting the freight and the name and address of the consignor, or the shipper, and the consignee, the person whom possess the goods.

House Bill Of Lading (HBL) – a document created by  a freight forwarder. The document is an acknowledgment of the receipt of goods that are to be shipped. It is issued to the supplier once the cargo has been received and may be used in lieu Letter of Credit in lieu of a Master Bill of Lading (MBL). HBL includes the name and address of the supplier, who delivers the shipment to the freight forwarder, and the consignee, who the freight forwarder delivers the shipment to. The document also includes specific information about the items shipped and the value of the shipping contract.

Carrier - Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.

Shipper – A person or company that sends or transports goods by sea, land, or air.

Consignment - Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the exporter.

Consignor - The person or company shown as the shipper on the bill of lading.

Consignee - The person or company (named in the bill of lading) to whom commodities are shipped. The owner of the cargo.

Dangerous cargo – items that may endanger the safety of an aircraft or persons on board the aircraft. Dangerous Goods are also known as restricted articles, hazardous materials and dangerous cargo. Many common items found in your household can be considered dangerous goods for the purpose of air transport.

Cargo -  goods carried on a ship, cargo rail transport, aircraft, or motor vehicle.

Perishable cargo – Cargo requiring refrigeration, such as meat, fruit, fresh vegetables, and medical department biologicals.

Out of gauge cargo – cargo, that exceeds the internal dimensions of a transport.

General cargo – ordinary goods transported on a ship, aircraft, etc., rather than special goods like oil, food products, etc.

Dry Cargo – any type of goods that does not require temperature control.

Cargo consolidation – Combining Cargo of many consignees into one lot and then prepare it for shipping. This includes sea, air and road freight.

Consolidator - A person or firm performing a consolidation service of small lots of cargoes for shippers.

Multimodal transportation – Combination of two or more modes of movement of goods, such as air, road, rail, or sea.  

Pallet – a wooden or plastic portable platform on which goods can be stacked, stored, and moved.

Force major –  unavoidable accident, an overwhelming force, an event (war, strike, riot, crime) that relieves parties from liability and obligation. Depending on the interests of the Parties, the terms of the force-majeure may be determined.

Logistics – the commercial activity of transporting goods to customers.

Surcharge A surcharge is a fee or other charge that is added to the cost of a good or service. A surcharge is typically added to an existing tax and may not be included in the stated price of a good or service.

Packing List - A document provided by the shipper detailing the packaging of the goods, including their weight and measurement, and assortment, etc.

Net Weight (Actual Net Weight) -Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can’s weight.

Gross Weight - Entire weight of goods, packaging and container, ready for shipment.

Exchange Rate - The ratio of prices at which the currencies of nations are exchanged at a particular time.

Door to Door - Transportation of cargoes from consignor’s premises to consignee’s premises.

Cube - A measure of volume expressed in cubic feet.

Commodity - Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.

Cargo Manifest - The manifest is a list of all goods, listed per Bill of Lading, which was loaded onto the ship in one certain port and which has a single certain destination. Thus, the number of manifest onboard equals the number of different travel routes.

The cargo manifest solely lists the details of the goods (nature, quantity, types and numbers, sender, destination, etc.) and service for customs declaration of the goods. This manifest must be submitted to the port authorities prior to the vessel entering the port.

Terminal Handling Cost (THC) – Used to describe the charges raised by the port of arrival or port of discharge to lift the container onto or off the vessel.

LCL – Less Container Load – A term used to describe the transportation of small ocean freight shipments not requiring the full capacity of an ocean container.

FCL – Full Container Load – means that all goods in the container are listed on one Bill of Lading, and as such are owned by one party. It does not matter how full the container is. Payment is made on the basis of one container.

Demurrage –  Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shipping or transporting company's warehouse.

Container – a very large metal case of a standard size for loading and transporting goods on trucks, trains, and ships.

Bulk Carriers - A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count.

Arrival Notice - An advice that the carrier or forwarder sends to the consignee advising of goods coming forward for delivery. Pertinent information such as bill of lading number, container number and total charges due from consignee etc. are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier or forwarder to ensure smooth delivery but there is no obligation by the carrier or the forwarder to do so. The responsibility to monitor the transit and present himself to take timely delivery still rests with the consignee.

Seal - A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes.

Maximum Payload - Maximum cargo that can be loaded into a container either by weight or volume.

Marine Insurance - Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, piracy and various other causes but excludes losses that can be legally recovered.

Letter of Indemnity - Guarantee from the shipper or consignee to indemnify carriers or forwarders for costs and/or loss, if any, in order to obtain favourable action by carriers or forwarders. It is customary practice for carries and forwarders to demand letters of indemnity from consignees for taking delivery of cargoes without surrendering bill of lading which has been delayed or is lost.

Devanning - the removal of cargo from a container. Also known as unstuffing, unloading or stripping.

CFS - Container Freight Station. A carrier facility where Less Than Container load shipments are consolidated or unloaded.

FEU - Forty foot (40’) Equivalent Unit. Commonly describes a 40- foot container.

Freight - goods transported in bulk by truck, train, ship, or aircraft. A charge for transport by freight.

rail transport

Freight Forwarding company – a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

Freight forwarding services – helping importers and exporters transport their goods.

Rail Waybill -  a document used for the shipments via a railway. The document is prepared by the shipping agent or the railway line that is going to transport the shipment after having received from the shipper the shipping instructions. A draft railway bill is given to the shipper in order to accept and consign with the terms noted and after this the original copies are issued.

Train cargo manifest - As implicit from the name, this type of shipping manifest is the type prepared for a trail after it has been loaded.

Carrier - Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.

Shipper – any seller (Exporter) private person or legal entity.

Consignment - Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the

consignee) under agreement that the agent sell the merchandise for the exporter.

Consignor - The person or company shown as the shipper on the bill of lading.

Consignee - The person or company (named in the Air Way bill) to whom commodities are shipped. The owner of the cargo.

Seal - A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes.

Maximum Payload - Maximum cargo that can be loaded into a container either by weight or volume.

Cargo -  goods carried on a ship, cargo rail transport, aircraft, or motor vehicle.

Dangerous cargo – items that may endanger the safety of an aircraft or persons on board the aircraft. Dangerous Goods are also known as restricted articles, hazardous materials and dangerous cargo. Many common items found in your household can be considered dangerous goods for the purpose of air transport.

Perishable cargo – Cargo requiring refrigeration, such as meat, fruit, fresh vegetables, and medical department biologicals.

Out of gauge cargo – cargo, that exceeds the internal dimensions of a transport.

General cargo – ordinary goods transported on a ship, aircraft, etc., rather than special goods like oil, food products, etc.

Demurrage –  Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shipping or transporting company's warehouse.

Dry Cargo – any type of goods that does not require temperature control.

Cargo consolidation – Combining Cargo of many consignees into one lot and then prepare it for shipping. This includes sea, air and road freight.

Consolidator - A person or firm performing a consolidation service of small lots of cargoes for shippers.

Multimodal transportation – Combination of two or more modes of movement of goods, such as air, road, rail, or sea.

Pallet – a wooden or plastic portable platform on which goods can be stacked, stored, and moved.

Force majeure –  unavoidable accident, an overwhelming force, an event (war, strike, riot, crime) that relieves parties from liability and obligation. Depending on the interests of the Parties, the terms of the force-majeure may be determined.

Logistics – the commercial activity of transporting goods to customers.

Surcharge A surcharge is a fee or other charge that is added to the cost of a good or service. A surcharge is typically added to an existing tax and may not be included in the stated price of a good or service.

Packing List - A document provided by the shipper detailing the packaging of the goods, including their weight and measurement, and assortment, etc.

Gross Weight - Entire weight of goods, packaging and container, ready for shipment.

Net Weight (Actual Net Weight) -Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can’s weight.

Exchange Rate - The ratio of prices at which the currencies of nations are exchanged at a particular time.

Dim Weight (Dimensional Weight or Volume Weight) -  Freight charges calculated by the cubic dimension (total cubic inches). This measurement, along with the weight of the pieces shipped, is typically used by airfreight carriers to determine their freight charges.

Door to Door - Transportation of cargoes from consignor’s premises to consignee’s premises.

Cube - A measure of volume expressed in cubic feet.

Commodity - Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.

customs brokerage

Broker - An individual, partnership or corporation which arranges transportation service for client companies.

Power of Attorney (POA) - A method a company uses to assign authority to another company or person to perform a certain function on the behalf of the first company.

Customs clearance – 1. The act of passing goods through customs so that they can enter or leave the country.

2. A document given by customs to a shipper to show that customs duty has been paid and the goods can be shipped.

Customs Declaration – The document reflecting information about the goods entered in the territory of the country and goods exported.

Customs - The authorities designated to collect duties on imports and exports that are levied by a country (also applying to the procedures involved in such collection). They are responsible for ensuring that no illegal importation takes place.

Commercial Invoice - Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents concerning the shipment.

Accessorial Fees - Charges for service beyond standard transportation pricing. Such fees would include special pickup or delivery on domestic shipments, and documentation and communication fees for international shipments.

Export - Shipment of goods to another country.

Export Declaration - A government document permitting designated goods to be shipped out of the country.

Import License - A document required and issued by some national governments authorizing the importation of goods into their individual countries.

Invoice - Documentation supplying customs with the type of goods, quantity, price of each type and terms of sale. The type of invoice required is determined by the shipment’s value.

Import Permit - Usually required for items that might affect the public health, morals, animal life, vegetation, etc. Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies). In some countries an import permit is the same as an import license.

Import - Bring (goods or services) into a country from abroad for sale.

Certificate of Origin – document that proves the justice of origin of any cargo.

Customs Procedures

Under which customs procedures are goods registered?

  • Import 
    When goods of foreign origin are brought into the territory of Georgia import duties are paid and the goods are issued the status of Georgian goods.
  • Export 
    Georgian goods are transported outside the customs territory of Georgia.
  • Re-export 
    Goods of foreign origin, which were brought into the customs territory of Georgia, are transported outside the customs territory of Georgia.
  • Transit 
    Goods of foreign origins are moved through the customs territory of Georgia under the customs control.
  • Warehouse 
    Goods of foreign origin as well as Georgian goods will be stored in the warehouse without paying import duties provided that the purpose of storing the goods subject to placing under the customs warehouse procedures is to remove them from the customs territory of Georgia.
  • Free Zone 
    Bringing goods of foreign origin into Georgia is not deemed to be subject to import and no import duties apply and when Georgian goods are placed in the free zone similar provisions of placing goods under the export regime apply.
  • Temporary Importation 
    This operation allows for brining goods of foreign origin temporarily into the customs territory of Georgia (as a rule, the period shall not exceed 3 years).
  • Inward processing
    This operation allows for using one or more processing operations towards goods of foreign origin, such as: 
     
    • processing goods, including installing, assembling or fitting them to other goods;
    • producing of goods;
    • repairing goods, including restoring them and putting them in a operational condition;
    • destructing goods;
    • using of certain goods which allow or facilitate the production of compensating products, even if they are entirely or partially used up in the process.
  • Outward processing 
    This operation allows for using one or more processing operations towards goods of Georgian origin, such as: 
     
    • processing goods, including installing, assembling or fitting them to other goods;
    • producing of goods;
    • repairing goods, including restoring them and putting them in a operational condition;
    • destructing goods;
    • using of certain goods which allow or facilitate the production of compensating products, even if they are entirely or partially used up in the process.

What to know about the clearence of goods

Within what timeframe shall the goods be declared in a relevant goods operation?

  • Within 30 days from the date of importing the goods
  • The Revenue Service is authorized to reduce or extend this deadline by 60 days
  • In case of temporary storage of goods in the customs warehouse the timeframe within which the goods shall be declared, increases up to 5 calendar years.

Who is to fill out goods declarations?

The goods declaration is filled out by the declarant or his/her representative, or by the tax authority (when asked by the declarant or his/her representative).

What documents are to be submitted for the clearance of goods?

The following documents are required for the clearance of goods:

  • Invoice, the document certifying the purchase of the goods;
  • Waybills, such as a consignment note (for a shipment), a railroad bill of lading (for railway transportation), an air waybill (for air transportation), CMR or TIR documents (for road transportation); 
    Note:: 
    The transportation documents shall contain the general description of the cargo, the quantity of seats, gross and net weight, the goods code, the number of container, and information on the carrier, the shipper of goods, and place of loading the goods as well as the destination and about the consignee of the goods.
  • In case non tariff measures apply to the goods or they are subject to additional customs control, a relevant license, a permit, a certificate and other necessary documents shall also be submitted.

What information shall be included in the document certifying the purchase of the goods?

An invoice, the document certifying the purchase of the goods, shall contain the following main information:

  • The date of issuance of the document and the number thereof;
  • Particulars of the seller;
  • Particulars of the buyer;
  • Description of each type of goods (e.g. a men cotton coat, or a men wool coat)
  • Quantity of each goods (pieces, kilograms, etc);
  • Price of each type of goods;
  • The document shall certify the fact of actual selling and buying (the document shall be attested by the seal, if any, or by other means of attestation);
  • The terms of delivery.

Nota Bene! An incompletely filled out document certifying the purchase of the goods causes delays in the procedures, specifically in order to fill out the declaration, you will need to order the examination of goods (for establishing the quantity of goods, the price or/and the code of goods, as far as necessary)

What taxes are to be paid when declaring the goods?

Tariffs: 
Export, re-export, transit, and the warehouse, and a free zone are exempt from taxes. 
Import: Import Duties:
Import duty is 0; 5; 12 percent of the customs value of the goods (Article 197, Chapter XXVII of the Tax Code);
VAT is 18 percent of the amount of import (Article 169 of the Tax Code of Georgia);
Excise - the rate of excise is differentiated (Article 188, Tax Code of Georgia):
Inward processing: If only the goods of foreign origin undergo processing and the product obtained as a result of the processing is exported, no taxes are levied on this operation.
Outward processing:When goods are exported the duty levied on exports applies and when the goods processed are brought in the country a relevant import duty shall be paid. No import duties apply to the goods processed free of charge. 
Temporary Admission: Total or partial relief from import duties may apply to the goods. 
VAT is 0.54 percent of the amount of temporary admission on the territory of Georgia per calendar month or fraction of a calendar month but no more than 18 percent (Article 18, Tax Code of Georgia).
Import duties are 3 percent of the amount to be paid on the date on which the customs declaration of temporary admission was registered and the goods were placed under the importation procedure (Article 197, Tax Code of Georgia).

Service tariffs: (N96 Decision of the Government of Georgia on Approval of the Prices and Tariffs for the Services provided by the Legal Entity of Public Law (LEPL) Revenue Service).

What is the timeframe for paying import duties and service fees?

  • Import duties and service fees may be paid within 5 days from the clearance of the goods;
  • In case of prior declaration import duties and service fees may be paid within 15 days from the release of the goods;
  • Those entities on the Gold List may pay import duties and service fees within 30 from the release of the goods;
  • In case of importing goods up to the value of 10 000 GEL by air transport in the checked-in luggage or/and in the carry-on bags, as well as parcel posts import duties and service fees may be paid within 30 days (in this case a simplified declaration applies) from assigning the registration number to the declaration.