Freight Forwarding and Shipping

Akshay Vinayak

Akshay Vinayak

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Freight forwarding is the coordination of the shipment of goods from one place to another, while shipping is the physical movement of those goods. Freight forwarders act as intermediaries between shippers and transportation companies, managing the logistics of the shipment, including arranging transportation, managing documentation, and coordinating with customs officials. Shipping companies are responsible for the physical transportation of goods, including loading and unloading cargo, maintaining vessels, and ensuring timely and safe delivery.

The business activities that fall under Freight Forwarding and Shipping are:

Sea and coastal water transport (5010.00): This involves the movement of passengers or freight on vessels designed to operate on sea or coastal waters. This can include arranging for the transportation of goods via sea vessels from one port to another, coordinating the necessary documentation, and ensuring compliance with customs regulations. Freight forwarding companies can provide services to help businesses navigate these complex logistics and ensure the safe and timely delivery of goods.

This business activity should be conducted outside UAE.

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 5010.00 is required to fulfill this requirement.
  • Anti-Money Laundering Compliance: Business activity 5010.00 is exempt from this requirement.

Sea Freight & Passengers Charters (5012.97): This involves the transportation of freight over seas and coastal waters, including the towing or pushing of barges, oil rigs, and other large structures. This can include coordinating the movement of cargo, arranging for the necessary transportation equipment, and handling customs documentation and clearance. Freight forwarding companies can help businesses to navigate these logistics and ensure that goods are delivered on time and in good condition.

  • Third-party Approval (PRE): Before obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Dubai Maritime City Authority (DMCA).
  • Filing of Economic Substance Return: Business activity 5012.97 is required to fulfill this requirement.
  • Anti-Money Laundering Compliance: Business activity 5012.97 is exempt from this requirement.

Inland freight water transport (5022.00): This involves the transportation of freight over seas and coastal waters, including the towing or pushing of barges, oil rigs, and other large structures. This can include coordinating the movement of cargo, arranging for the necessary transportation equipment, and handling customs documentation and clearance. Freight forwarding companies can help businesses to navigate these logistics and ensure that goods are delivered on time and in good condition.

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 5022.00 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 5022.00 is exempt from this requirement.

Forwarding of freight (5229.01): This involves the arrangement or organisation of transport operations by rail, road, sea, or air. This can include organising group and individual consignments, planning and designing logistics activities, issuing and procuring transport documents and waybills, and handling customs-related activities. Freight forwarding companies provide these services to help businesses navigate the complexities of global trade and ensure that goods are transported safely and efficiently.

This business activity should be conducted outside UAE.

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 5229.01 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 5229.01 is exempt from this requirement.

Sea-freight forwarders and air-cargo agents (5229.07): They specialise in arranging and organising the transport of goods by sea or air. They may work with carriers and other transportation providers to negotiate rates, book cargo space, handle documentation and customs clearance, and track shipments until they reach their final destination. Freight forwarding companies may also provide additional services such as cargo insurance, warehousing, and distribution.
This business activity should be conducted outside UAE.

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 5229.07 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 5229.07 is exempt from this requirement.

Logistics and Freight Services (5229.91): This includes a range of activities such as forwarding of freight, organising transport operations via various modes of transport, customs clearance, brokerage, and goods handling. These activities are all part of the freight forwarding and shipping industry and are essential for the efficient transportation of goods. However, courier activities, provision of transport insurance, and activities of travel agencies, tour operators, and tourist assistance are excluded from this activity.
This activity must only be combined with other activities under the RTA-Group A and other activities not related to transport (if allowed by other authorities).

  • Third-party Approval (POST): After obtaining a license from Meydan Free Zone, it’s necessary to obtain third-party approval from the Roads and Transport Authority (RTA).
  • Filing of Economic Substance Return: Business activity 5229.91 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 5229.91 is exempt from this requirement.

Service Activities incidental To Water Transportation (5222.00): This includes activities related to water transport of passengers, animals, or freight. This encompasses the operation of terminal facilities such as harbours and piers, navigation, pilotage, berthing activities, lighterage, and salvage activities. These activities are essential components of the shipping and freight forwarding industry. Freight forwarding companies may work with harbour operators, navigation, or pilotage services to ensure the smooth and efficient transportation of goods via water. However, cargo handling activities and marina operations are excluded from this activity as they are considered separate business activities.
This business activity should be conducted outside UAE

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 5222.00 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 5222.00 is exempt from this requirement.

Cargo Freight Consultancy (7020.21): This involves providing advice, guidance, and operational assistance to businesses and other organisations on management issues. While this service is not directly related to the physical transportation of goods, it falls under the broader umbrella of the freight forwarding and shipping industry. Cargo freight consultants may advise businesses on logistics and supply chain management, as well as offer guidance on customs regulations and other industry-specific matters.

  • Third-party Approval: No third-party approvals are required for this business activity.
  • Filing of Economic Substance Return: Business activity 7020.21 is exempt from this requirement.
  • Anti-Money Laundering Compliance: Business activity 7020.21 is exempt from this requirement.

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