Insurance

The cargo insurance covers the risk if lawfully owned goods or other lawfully owned property may be damaged while being transported by an officially recognized means of transportation. The cargo insurance is useful for a party who is responsible for the damages to the goods which may occur during the transportation. To use the cargo insurance is to protect one’s commercial interests against the damages which may occur during the transportation. A well combined insurance and business strategy which includes the responsibility of an insurance underwriter, together with its professionalism and know-how, may also reduce the costs for a company without adding risks.

There are two main types of cargo insurance policy: the single policy and the open policy. The single policy shall be used for a single parcel, and the open policy for many consignments during a certain fixed period.

The cargo insurance underwriters widely use the internationally recognized insurance clauses (The Institute Cargo Clauses) which can provide many insurance coverage options from compensating the damages due to a traffic accident to granting full protection against all risks (including robbery, theft etc.).

Useful information:

  • The insurance sum is the purchase price of goods, wherein up to 10% of transport costs can be added.
  • In every insurance case the customer shall always cover a certain agreed amount of the damages caused by the customer (the deductible).
  • If the damages to the goods are visible, the claim must be presented directly to the transport company immediately after receiving such damaged goods
  • If the damages to the goods are not immediately visible, the claim must be presented within the following deadlines:
    • Truck transportation – 7 days
    • Marine transportation – 3 days
    • Railway transportation – 7 days
    • Air transportation – 14 days
    • Spedition company – 7 days
  • The damages due to a delay must be claimed within:
    • Truck transportation – 21 days, since the cargo was delivered
    • Marine transportation – 60 days
    • Railway transportation – 60 days (in case of an international transportation)
    • Air transportation – 21 days, since the cargo was delivered
    • Spedition company – 7 days
  • If a company is trading with countries which are not members of the European Union, a customs declaration must be registered with each consignment.
  • Balti Logistika can draw up all customs formalities in Estonia and in other countries fast and conveniently.

Regarding the goods upon which a customs procedure is planned to be applied (free movement of goods, transit, customs warehousing, processing in the country, processing under the inspection of customs, temporary import, outward processing procedure, export) a customs declaration must be presented. The customs declaration must be based upon the transport documentation and the invoices. The customs declaration shall be drawn up by the company’s representative or a customs broker. The declaration may comprise of the main bill of delivery (one position of goods) and supplementary bills of delivery if necessary (each one may contain three additional positions of goods). If exporting the goods from the country, the client shall be returned the 3rd copy of the declaration as evidence about the export. In case of importing the customer gets the 8th copy. Useful information:

  • All goods shall pass a customs check while being transported into the country and while being transported out of the country; the goods must be declared to customs in accordance with valid regulations.
  • If the consignment consists of the ordinary goods, for exporting an invoice must be presented to the customs office and for importing a bill of delivery and a letter of notice from the warehouse must be included.

The invoice must include the following information: buyer, seller, specification of goods, value, currency, net and gross weight, and sales term.
If the goods are sent to Russia or CIS countries, the documentation must include the following information:

  • Seller
  • Buyer
  • Customs warehouse details in Russia
  • Country of origin
  • Contract number
  • Term of delivery
  • Container number
  • Description of goods in English and in Russian
  • HS code of goods
  • Number of collies/pallets
  • Weight
  • Value

NB! The invoice must be signed, stamped and approved by a consignee or destination customs broker!

  • Some goods can be imported only by companies which have the appropriate licence (the permit to conduct such business). For example, alcoholic beverages, precious metals etc.
  • The exporting or importing of some goods requires special permits.
  • While importing the goods, import taxes must be paid: customs tax, excise duty, VAT.