How customs regulation impact maritime logistics

Trading is a big part of our history on this planet. Furthermore, trading is something that allowed many different civilizations, as well as people, to experience new things and explore their senses. In every way, trading is something that allows every person on the planet enjoys something from the other side of it. Even today, trading is still a big part of many counties’ economies. Today, we talk about how customs regulation impact maritime logistics. Moreover, we will be talking about what maritime logistics are and why is their role in trading important. More importantly, if you are from Saudi Arabia and have items that you want to ship to another country, relying on the National Shipping Company of Saudi Arabia, will ensure a positive shipping experience. However, you should know about the customs regulations and what they mean for your shipping process.

What are maritime logistics and how does customs regulation impact maritime logistics?

Maritime transportation is one of the most commonly used forms of transportation throughout centuries. It even dates back to Egyptian and Roman times. Nowadays, as economies became interlinked with each other, maritime transportation represents the backbone of many economies around the world. Namely, maritime logistics shortly means shipping items via boats or ships.

a ship at the dock loading items in it
Maritime logistics is one of the oldest methods of transportation on a global level

Moreover, this form of transportation is the basic form of shipping parts of finished goods around the world using water transportation. Furthermore, it represents the backbone of the global supply chain network. Especially for the counties that have ports or entrances via the sea. Because of that, every change in regulations that occurs can severely impact this form of transportation. More importantly, as we were saying, this is one of the main methods of transporting and any sudden changes can create a big impact on the economies of different countries.

Covid-19 and its impact on global maritime logistics

The coronavirus pandemic has made its mark on this world. Basically, nothing remains the same, as it was a couple of years ago. In reality, almost every industry in the world has seen the effects of this virus in one way or another. Like many industries, the maritime logistics industry is the same. Namely, due to covid, many countries now have stricter rules of what can or cannot enter their country. On top of that, the virus also made many counties change their regulations. By doing so, many small or big businesses took a hit from these changes. Now, because around 90% of global trade is by sea, you might understand how this affects these companies. So, if you consider sending items via ocean freight to Saudi Arabia, for example, make sure you are within the regulations.

Adapting to the customs regulations of each country is very important

There is a reason why customs regulation impact maritime logistics the most. Namely, sending items into a country means that the customs must examine the items thoroughly. This can take a lot of time. On top of it all, there are certain countries that have different rules about what can or cannot enter their borders. So, if you plan to send a freight forwarder to Saudi Arabia make sure you do not send:

  • Weapons
  • Narcotics
  • Pork and pork products
  • Alcohol and products containing alcohol, etc.
a gate with a chain keeping it closed to represent how customs regulation impact maritime logistics
Not abiding by the regulations of bringing forbidden items into a country can impose financial, as well as legal consequences for the sender

Each country has different views on the products we consume. Some are affected by religion, some by culture, and some by previous experiences. Regardless of what you are planning to send, make sure that the item is allowed in the country. This is the biggest sign that regulations impact any logistics in a big way.

Why do customs regulations impact maritime logistics?

The answer to this might be pretty simple. As we were saying, there are multiple factors that can determine what can or cannot enter a certain country. Furthermore, each country will have its own set of rules and regulations. Logically, each of these regulations can change depending on the status of the country or their needs. So, if a country decides that something is not welcome within its borders, it will change its regulations to fit the narrative. Additionally, as ocean freight is the most common form of transportation, one could expect that these are the most regulated ones. Therefore, consulting with experts can help you prevent shipping delays that occur often, especially in 2021. Now, because most companies see profit from trading via seas, it is logical that this is the first industry that will be highly regulated in those countries.

Any form of regulation can easily increase your shipping expenses

One thing that is most common for these regulations is that they determine the duties and taxes you have to pay for an item entering a country. Of course, every country will have different views on this. Furthermore, there are other things that can impact the fees like the weight of the items, the type of the items, etc. Therefore, knowing how much you are going to pay for each item is crucial.

a stash of money inside a black envelope
On most occasions, changing the customs regulations will also mean increasing or decreasing duties and taxes on certain items

Now, what is bad about this is that with each change of regulations, there is a high chance that the fee you have to pay will change. In addition, most countries will require you to pay these fees in advance. So, if you are planning to send items to another country, make sure you are aware of their current regulations and how much the fees you have to pay are. If not, this can create issues.

Always be one step ahead

Finally, a little piece of advice. Customs regulation impact maritime logistics in many ways and can happen at any given time. Regardless if this is your first time shipping items or not – consult your shipping company! Do not send any items via sea without having to do research on the fees you have to pay, the taxes, as well as the list of forbidden items in a certain country. These are all the things that are constantly changing and the things that can affect your business, budget, or even your legal status. Be one step ahead and do your research before you decide to send items and spend your own money.

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