In global trade, an important factor is efficient movement of goods from exporter to importer. As we all know in global trade many activities are involved, few of those are container handling, packaging and labelling, stuffing and destuffing, custom clearance and transportation.
Container freight station commonly known as CFS is the places where above activities carried out under a custom bounded area.
What is a Container freight station (CFS)?
A Container freight station is a custom bounded
area where the activities such as cargo handling, packing & labelling, stuffing,
destuffing, and custom clearance carried out.
The CFS acts as intermediate point between
exporter's place and the seaport.
How a Container freight station works?
Export process:
Exporter sends the goods in trucks to the CFS, the
Custom house agent (CHA) is already been informed by the exporter, so once
trucks arrives at the CFS, the CHA files shipping bill and takes necessary
approvals from custom officers available at CFS for trucks to enter into the
CFS premises. The goods are offloaded from trucks inside CFS and kept at the temporary
warehouse where packing and labelling is done as per the exporter's
instructions. Meanwhile the CHA coordinates with the team of empty container's
yard at CFS for empty container pickup, once container is allotted; it is
picked up and placed at the stuffing (loading) area where the goods are stuffed
inside container properly, as per the guidelines.
After completion of stuffing customs examination
happens, and clearance which is known as Let export order issued by the custom
officer.
Once Let export order is issued, the containers
are moved to the port for further operations related to export.
Import process:
Once vessel arrives, containers are offloaded from
the vessel and after completion of formalities, containers are sent to the
nominated CFS (CFS nomination process is explained in IGM article). Simultaneously
the CHA files bill of entry and submit all shipping documents at customs
portal. Once containers arrive at the CFS, the CHA starts custom clearance
process, if everything is in order, custom officer issues Out of charge, once
out of charge issued and delivery order received from the shipping line,
container seals can be broken and destuff the goods from containers and kept at
temporary warehouse at CFS and once the importer place trucks, the goods are
loaded into the trucks and dispatch for importer's place after completion
necessary documentations at CFS.
In case of plant product, fumigation and plant
quarantine clearance are mandatory before custom clearance. Fumigation and
plant quarantine inspection both happens in CFS.
Advantage of Container freight station:
1. Provides integrated services: CFS provides all required services in one
place, such as stuffing, destuffing, packing, labelling, customs and other
clearances, fumigation services, container lift-on & lift-off,
transportation
2. Port congestion reduces: CFS provides temporary storage for the goods
and moves the containers after completion of all required activities which
reduce burden of port and custom cleared containers are directly sent to the
terminal (after completing minimal documentations) for loading into the vessel.
3. Efficiency in cargo handling: CFS has all the equipment which are required
for cargo handling such as fork lift, container moving equipment, loading area,
vehicles etc. which helps to handle the cargo in better and efficient manner.
4. LCL cargo consolidation: In some cases many exporters want to ship their
goods which are less in volume, so they don't want to pay for the full
container, in this case the shipping line or freight forwarder consolidate the
goods from different exporters and stuff into a single container and ship
together. The consolidation process can be done in CFS.
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