What is Closing Time?
What is Closing Time?
In the field of import and export, time is a very important factor because it determines whether the goods arrive on time or not. And a term that many people mention is closing time. So, what is closing time? What should you keep in mind to avoid being late? Let’s find out more with World Courier!
What is closing time?
In import and export, closing time is also known as nail cutting time. This is the final time that the exporter needs to complete customs clearance of goods and liquidate the container to load and unload goods onto the ship. If the closing time is exceeded, the ships will not accept the goods and will be considered abandoned.
For full-container goods, on routes in the Asian region, the cut-off time can be 1-2 days before the train departs. However, for longer trips, the nail cutting time may be longer depending on the regulations of each shipping company.
As for retail cargo, the chute cutting time will usually be longer before the train departure date. Because retail goods often take a lot of time to consolidate companies’ goods into the same container and then go through customs procedures to export these goods.
However, depending on your relationship with the shipping lines, you can also ask for more time to cut the trough. If you encounter problems and cannot deliver goods for liquidation in time, you can ask for a few more hours. to assist when needed most.
Objects related to closing time
Shipping is an indispensable part of international trade. And the success of a transaction does not depend on how the person manages the shipping process. Below are some subjects related to closing time so that goods can be transported more smoothly.
- Importer: This is the buyer, they identify demand in one location, search for suppliers globally and place orders
- Exporter: A seller who produces or purchases products based on the buyer’s needs
- Banks: Play an extremely important role in international trade. They are financiers, negotiators of trade contracts, and custodians of goods
- Insurance companies: As part of the shipping process, they help businesses cover transportation-related risks.
- Forwarder: An agent who coordinates with participants to carry out the transportation process on behalf of buyers and sellers
- CHA: Customs agents assist exporters and importers in receiving customs clearance from agencies
- Shipping company: A company that owns ships that transport goods from the port of loading to the port of destination
- Customs: Is the customs agency of at least two countries, the exporting country and the importing country. Customs authorities provide customs clearance for goods leaving the exporting country and entering the importing country, etc.
Some notes when closing time is delayed
It must be emphasized that the role of the Forwarder (individual/business) is especially important because they have a better voice with shipping lines.
- At this time, the Forwarder needs to contact the shipping company’s sales department. They will be the ones who can help you as much as possible by notifying the OPS department at the port and ship to help you. In an urgent case, you need to ask for the phone number of the OPS department to contact the cargo handler at the port directly to ask for help.
- The necessary procedures you need to do are to request a form from the shipping company (with signature and seal of the shipping company) and bring it to the terminal area of the port for confirmation and entry into the ship’s book.
- If you can’t make it in time, you need to notify the shipping company so they can reschedule your goods to another trip. Avoid the situation where the goods have already been booked on the ship but canceling them will affect both parties.
Some regulations about closing time
Normally, shipping lines will have regulations on specific chute cutting times including:
- S/I Cut Off Time: this is the final deadline to submit detailed information about the goods for the ship to make a bill of lading. Normally this information needs to be done 2-3 days before the ship leaves the port
- VGM/CY (PORT) Cut Off Time: the deadline for the exporting goods owner to provide a confirmation of the load of the packed container and bring the goods to the port yard for loading onto the ship. Normally this must be done 1 day before the ship leaves the wharf.
- Sometimes some shipping lines also stipulate cut off time for confirming the content of the B/L Cut Off Time bill of lading or the final time for declaring imported goods.
Based on the chute cutting time, the shipper will calculate the most appropriate time to bring the container to the port. Avoid situations where goods arrive too early or deliver goods close to cut-off time to avoid incurring additional storage costs or goods not arriving on the ship in time, having to wait for the next trip and missing appointments with customers.
Hopefully the above article has provided you with information about what closing time is as well as notes related to closing time. This is the knowledge that anyone involved in logistics needs to know.
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