An MBendi Profile: Guide to Exporting from South Africa

1. Introduction

For definitions of terminology used in container transport procedures, see section on Dictionary of common shipping and export phrases, terms and abbreviations.

The advent of containerisation has enabled the carrier to offer a wider transport service than the existing port to port contract of carriage. The carrier, commonly called the container operator, offers a combined transport bill of lading providing for the transport of containerised cargo from one inland destination to another. Container operators also provide a port to port, port to inland or inland to port service at the merchant's request.

In an indepth study concluded by the lines in the Southern Africa Europe Container Service (SAECS), containerisation has proved a considerable cost saver for importers and exporters. Savings are particularly marked in the case of inland based shippers and receivers. The lines advise using the best and most economical method of moving cargoes from point of origin to point of ultimate destination; total cost is more important than the constituent intermediate costs. The cost factor must then be considered together with numerous other hidden benefits of containerisation.

South African coastal container terminals are situated at the ports of Cape Town, Port Elizabeth and Durban. Inland terminals are located at City Deep (Johannesburg), Vaalcon (Sasolburg), Pretcon (Pretoria), Eastcon (Dunnottar, East Rand), Bloemcon (Bloemfontein), Mascon (Maseru) Matsapha (Swaziland) and Gabon (Botswana). Feeder services operate from the ports of East London and Walvis Bay. Cargo is being containerised for virtually all South Africa's trade routes.

Shipping lines have rationalised their sailings and offer a joint service on certain routes. SAECS operates between South Africa and Mediterranean ports, the northwest continent of Europe and the United Kingdom. The Southern Africa Far East Integration Services (Safari) operates a service to the Far East. Independent lines also carry containerised and breakbulk cargo on these routes.

2. Types of containers

Most containers conform to the International Standards Organisation (ISO) specifications of 6-metre and 12-metre containers (ISO specification no. 668 'Freight containers external dimensions and ratings'). The most commonly preferred sizes are those in the table below, along with two additional heights 2 591 mm and 2 896 mm. The additional capacity helps to reduce the mass of products so that the maximum gross mass permitted is not reached.

According to the following information and table published by the South African Bureau of Standards (SABS), an internal width of 2 330 mm dictates the base dimension of the unit load to be used. Depending on the type and thickness of the insulation used, the dimension for insulated or refrigerated containers may be significantly reduced. It has been proposed that a minimum internal width of 2 220 mm should apply for this type of container.

To determine the rating or maximum gross mass of containers varying in size, the mass of the container, or tare mass, must be considered. This varies according to design and construction materials, but is likely to be in the region of 2 300 kg for 1 CC (steel) and 4 000 kg for 1 A sizes.

The unit load mass must be regulated accordingly, viz.:

R = rated capacity of container, kg

T = tare mass of container, kg

N = number of unit loads to be fitted into container

Then R-T /N = maximum gross mass (kg) of each unit load

**Freight Containers**
EXTERNAL DIMENSIONS (mm)				INTERNAL DIMENSIONS (mm)
Freight container used	Height	Width	Length	Height	Width	Length	RATING (Max.gross mass, kg)
1A	2 438¹	2 438¹	12 192²	2 197	2 330*	11 998	30 480
1AA	2 591¹	2 438¹	12 192²	2 350	2 330*	11 998	30 480
.
1 C	2 438¹	2 438¹	6 058 ³	2 197	2 330*	5 867	24 000
1 CC	2 591¹	2 438¹	6 058³	2 350	2 330*	5 867	24 000

* 2 220 for insulated and refrigerated

1) Tolerance of 5 mm LESS but no more than stated dimension

2) Tolerance of 10 mm LESS but no more than stated dimension

3) Tolerance of 6 mm LESS but no more than stated dimension

In these sizes, the following containers are available:

General purpose containers: These are the most common type of container and are the ones with which most people are familiar. Each general purpose container is fully enclosed and has doors at one end. General purpose side loading containers have a lid as well as side doors for greater flexibility of loading. Side loading containers, however, are not in common use and must be ordered specially;

Reefer containers (refrigerated): These play an important role in South Africa's exports of perishable products, and are designed to carry cargoes at temperatures reading down to deep frozen (30°C);

Dry bulk containers: These are built especially for the carriage of dry powders and granular substances in bulk;

Open top/open sided containers: These are built for heavy and awkward pieces of cargo. They can also be placed into a ship, forming a platform to support heavy lifts.

Liquid cargo containers: These are ideal for bulk liquids, such as wine, fruit concentrates, vegetable oils, detergents and various other non-hazardous chemicals. Bulk liquid bags, designed to carry specific commodities, can fit into a standard ISO 6-metre container when full. This results in full utilisation of a container, regardless of the liquid being carried.

Exporters should note that the quantity of special containers that is, open top/open side, bulk, etc., is limited; where possible, general purpose containers should be used. Hazardous or dangerous cargo cannot be loaded into general purpose containers unless these containers are certified for this carriage from all countries on the transport route.

3. Getting the container

When approaching the container operator (this could be the forwarding agent or the carrier) for a container booking, the exporter indicates the service required:

Full container load (f.c.l.): This is suitable for an exporter who has sufficient cargo to justify the use of a whole container. The empty container is supplied to the exporter for packing. Different booking procedures apply for general cargo, refrigerated cargo, dangerous goods, out of gauge cargo, etc. and the relevant information is necessary to ensure that the correct type of container is supplied. Depending on the route and carrier concerned, either the fee for the container is included in the total carriage fee or a separate fee is charged.

Less than container load (l.c.l.): This service is provided to exporters whose consignments are not sufficient to fill a container. The exporter can have his goods consolidated into an f.c.l. either by a groupage operator, groupage service or shipping line.

The exporter may hire a container through a leasing company.

Under certain circumstances, exporters may wish to purchase their own container. However, exporters thinking of using their own containers should clear this with the lines they are likely to use. In such a case, the container operator is responsible only for the sea journey. The container is transported by 'merchant haulage' (that is, an independent haulier), and the exporter is responsible for all transport arrangements (excluding those for the sea journey) and all charges.

4. Container operators

Section 1(1)(iB) of the Customs and Excise Act defines a container operator as any person providing international transportation of containerised goods, and approved by the Commissioner for operating containers in the Republic. This may be a shipping line, Spoornet, a freight forwarder or other private company.

The following container operators have been approved to operate containers in the Republic (further operators are continually being approved, so exporters should check with their forwarding agents):

Polaris Shipping	Medite Shipping Company SA
Ellerman and Bucknall	Transatlantic Shipping Agency
Unicom Lines	Taurus Shipping Company
Mitchell Cotts Maritime	Nedlloyd Agencies SA
SA Marine Corporation Limited (Safmarine)	King and Sons, Dunn and Company
ALS Agencies	Nantai Shipping Enterprises
Rennies Ships Agency Limited (trading as Freightmarine Shipping, John T Rennie and Sons, and Combine Ocean)	Kien Hung Shipping SA

A container operator's licence enables the line to move containers directly from the ports to an inland port in bond, offering merchants a through service to their nearest port. A through bill of lading is issued to the various inland ports.

5. Documentation

Customs documents

For consignment to be exported in containers, the bill of entry-export must be prepared and presented to customs in the usual way. It should be marked 'CONTAINERISED CARGO' immediately under the heading of the column 'Description and Particulars of Goods'. The prefix and number of the container(s) must, where this information is available, be clearly marked immediately under the heading of the column 'Marks and Numbers'. S ee section on Customs Procedure for Exports for additional information.

Provided that all particulars are correct, permission to export the goods is given by stamping one copy of the bill of entry-export 'Export Authorised'. This copy must be presented to the container operator for customs clearance. In the case of groupage, the bill of entry-export must be presented to the groupage operator.

Note: Containers packed with goods for export may not be loaded on board ship unless the container operator is in possession of the export bill of entry on which customs has authorised the export.

see also 1.6 below Export of Goods under customs supervision.

Portnet revenue requirements

The exporter or his forwarding agent must complete the Portnet combined export document, pay the ad valorem wharfage charge to Portnet Revenue at the port/inland port, and insert the number assigned to him on payment, on the c.t.o. before having it stamped by the carrier. The combined export documents are obtained from Portnet.

After the ad valorem wharfage charge is paid, the receipt is given to the container operator before shipment. Ideally, the container operator should be in possession of this document before the empty container moves to the exporter's premises. In the case of groupage, it should be given to the groupage operator before the cargo is packed.

Shipping documents

Shipping instruction: This is supplied by certain carriers and filled in by the exporter or forwarding agent. It confirms the request for shipping space to be booked and is the source document, giving the carrier full details of each bill of lading consignment. Shipping instructions should be submitted to the carrier as soon as possible after making the booking.

In the case of l.c.l.'s, the shipping instruction must go either to a customs approved depot (if this depot is consolidating the goods on behalf of the container operator/shipping line) and in the case of groupage it must go to the groupage operator consolidating the goods.

Packing declaration (p.d.): This applies only to f.c.l.'s and is not used by all shipping lines. The p.d. is supplied by the carrier and is filled in by the exporter, who signs a declaration that the goods are in good condition, etc., at the time of loading. If necessary, the p.d. can amend the information submitted on the shipping instruction. One p.d. must be prepared for each f.c.l. container.

For dangerous goods, a Dangerous Goods Packing Declaration must be submitted. It is essential that this p.d. be completed by no one other than the exporter/packer. It must be submitted to the carrier immediately after the container has been packed.

Freight invoice: This itemises the freight charges due; it is received by the exporter.

Container terminal orders (c.t.o.): A c.t.o. can be used purely as a transport instruction or shipping instruction, or as a combined transport/shipping instruction.

If the exporter uses 'carrier haulage' that is, door-to-door service, the carrier completes the c.t.o. instructing Portnet /Spoornet CX (Spoornet CX is Spoornet's container division) to deliver the container to the exporter's premises or to wherever the container is to be filled. The carrier then inserts the wharfage clearance number on the c.t.o. If transport is arranged by the exporter that is, by merchant haulage, then the exporter or his forwarder is usually required to complete the c.t.o.

The wharfage clearance number reflected on the c.t.o. must be stamped by the carrier before being lodged with Portnet /Spoornet CX. c.t.o.'s cannot be passed by the carrier without the customs stamped bill of entry for export and the wharfage clearance. These documents should therefore be presented together to the container operator when the c.t.o.'s are presented for stamping. The container operator's stamp on the c.t.o. signifies, inter alia, that wharfage charges have been paid and customs formalities complied with. c.t.o.'s are available from Portnet. Each c.t.o.set comprises seven

documents: two white copies for accounting purposes and five copies with different colour markings for operational purposes.

For dangerous goods, special c.t.o.'s such as the Transport Emergency Card (TREMCARD) apply.

Combined transport bill of lading: Regarding f.c.l.'s, once the freight invoice is paid, the exporter receives his combined transport bill of lading (b/l) or non-negotiable waybill (see below). The combined transport b/l or non-negotiable waybill is a 'received for shipment' bill. If a 'shipped on board' bill is required, this must be noted on the shipping instruction. In this case, the issue of the bill is delayed until the consignment has been loaded aboard ship.

The B/L is evidence that the goods have been accepted by the carrier and is a document of title to the goods. Exporters are reminded that consignees must be in possession of the b/l (but not of the non-negotiable waybill) before they can obtain release of the cargo.

Regarding consolidated services, if the shipment is consolidated by a groupage operator, a 'house' b/l is issued to the exporter as receipt for his portion of the goods in the container.

If the l.c.l. is consolidated by the container operator/shipping line, a negotiable ocean b/l, which may be an onboard b/l and confer title on its holder, is issued to the exporter. Several exporters are thus each issued with a b/l for consignments that are consolidated into one container.

In the former case, the container is presented to the ship as an f.c.l. and the ship's agent issues one b/l to the groupage operator. However, in the latter case, the container is defined by the shipping line as an l.c.l.

Non-negotiable waybill: Although containerisation hastens the movement of cargo considerably, the processing and flow of documents does not always match this speed. As a result, clearance of cargo at destination is delayed while the consignee awaits the b/l. To avoid this delay, the 'non-negotiable waybill' or 'liner waybill' has been developed as an optional alternative to the b/l.

The waybill acts as a receipt for goods and as a contract of carriage. It is not a document of title, but other than this, it serves the same purpose as a b/l. It is not a negotiable document and can only be used for containerised exports.

The procedure for the non-negotiable waybill is as follows:

Export documents are prepared in the normal way but the exporter, or his forwarding agent, must indicate on the shipping instruction that a non-negotiable waybill is required instead of a b/l.
The consignee must be specified because a waybill cannot be made 'to order'.
The waybill should be retained by the shipper because it is evidence of a contract of carriage and is not needed by the consignee to take delivery of the goods.
The bill of entry must be presented with the Portnet combined export document to Portnet Revenue.
The importer needs only the arrival notification issued by the carrier, and suitable identification, in order to take delivery of his goods.

In respect of banking arrangements, the non-negotiable waybill cannot be used when a banker advances finance on the strength of the documents, since it is not a negotiable document and does not confer title on the holder.

However, it can be used when documents or documentary bills are transmitted through banks for collection, or under documentary credits, provided that such credits are suitably worded.

The seller's security and control over the goods can still be exercised in banking transactions by consigning the goods on the waybill to the order of a bank at destination through prior arrangement. Generally, the same arrangements made for this type of banking transaction apply for air freight shipments using the non-negotiable air waybills. In cases involving banks, exporters should discuss the appropriate requirements with their bankers.

The advantages of using the waybill are as follows:

there is no delay in cargo clearance of delivery due to non receipt of documents;
commercial documents can be sent to consignees as soon as they are ready; there is no waiting for issue of the waybill;
the waybill can be converted to a b/l (or vice versa) provided that the cargo has not been released.

Other documentation: This remains the same Form F178, commercial invoice and export permits must be obtained if necessary.

Instructions for exporters

The importance of correctly prepared documents cannot be overemphasised. To avoid problems, the following points should be noted:

The freight forwarder, groupage operator or shipping line must be informed of the final destination of the goods. Exporters should ensure that the delivery address is correct. Post box numbers are not correct for container deliveries.

If exporters require a door-to-door service, only the final destination should be stated, not 'via ....'.

Every package should be marked and the markings should show the final destination. Labels of containers carrying hazardous goods must conform to South African Bureau of Standards (SABS) regulations and IMO specifications. Correct labels must be used and applied to correct areas of the container. Old labels should be defaced or removed.

b/l should indicate whether cargo is f.c.l., l.c.l. or groupage, and the container numbers must be shown.

Container and container seal numbers must be recorded on all documents by the exporter, since the container operator cannot do so.

Documents must be processed quicker than the processing of breakbulk cargo.

6. Export of goods under customs supervision

Where goods have to be exported under customs supervision, as in the case of goods under bond or drawback, it is the exporter's responsibility to arrange for a customs officer to attend.

Containers packed at the exporter's premises: Exporters or their forwarding agents should apply to customs, in writing, for an official to be present when the container is packed and sealed. Application forms are available at customs for this purpose. The normal rates for extra attendance charges apply for supervision at the exporter's premises.

Containers packed by a customs approved depot: Arrangements for packing under customs supervision should be made with the customs representative stationed at the depot.

The bill of entryexport is endorsed to the effect that the container was packed and sealed under customs supervision, and states the container and seal numbers. After being signed and stamped by the customs official, the bill is handed back to the exporter. Exporters must further satisfy customs that a particular container packed and sealed under its supervision is in fact exported with the seal intact. In this regard, exporters must make the necessary arrangements with the customs officer.

In the case of containers shipped from a container terminal, exporters must ensure that timeous arrangements are made for the seal inspection to be carried out at the entrance to the container terminal.

The exporter must produce the copy of the bill of entryexport (referred to above) to the customs officer. If the seal is intact at the port of shipment, the officer endorses it to the effect that the container was placed in the export stack or

loaded on board the vessel under his supervision. After being signed and stamped by the officer, the bill of entryexport is handed back to the exporter.

Note: Exporters should bear in mind that all consignments for export are subject to customs inspection at its discretion. Some carriers pay for the inspection if the contents and documentation are acceptable to customs. Customs formalities must first be complied with before the Portnet combined export document (see above) can be presented for payment. A copy of the bill of entryexport must accompany the Portnet combined export document to verify the declared value.

7. Packing of goods in the container

The container is not a form of packing, it is a means of conveyance. Therefore, the packing of individual items must be strong enough to withstand the hazards of the voyage.

When assessing your commodity for container carriage, consider the following:

f.c.l. or l.c.l. shipment: Since l.c.l. incurs more handling, the packing must be designed for this. For f.c.l., the packing normally used for domestic distribution may be suitable, but extra precautions should be taken if it is to be unloaded before reaching the final destination.
Waterproofing: Despite precautions taken to make containers waterproof, condensation does take place. This can cause rusting, discolouration, mould, caking and clogging of powders, dislodging of labels, and collapse of cardboard packages. Exporters should ensure that all materials used are perfectly dry as moisture can arise from the cargo itself, the packaging, pallets or the dunnage used for securing the goods. Furthermore, containers, if damaged, can allow water to penetrate. It is advisable, therefore, to have cargo susceptible to water damage packed in waterproof materials.
The journey to be undertaken: Allow for violent lorry braking, heavy cornering, railway shunting and vibration. Container ships roll, pitch and yaw, although not to the same extent as conventional ships.

8. Packing the container

Checking the container: It is the exporter's responsibility to ensure that the containers he receives are inspected for damage, otherwise he might be held responsible for damage caused by third parties. To check that there are no holes before packing, someone should get inside the container, close the doors and ensure that no light enters. It should be rejected if there are holes or other damage.

Cargo securing: f.c.l. shippers must take every precaution to see that their cargo is securely fixed inside the container. Use dunnaging whenever necessary and ensure that the goods are evenly distributed by weight over the floor of the box, with heaviest items on the bottom.

9. Overmass containers

The maximum permissible gross mass of a packed 6metre container is 24 000 kg, while that of a 12metre container is 30 480 kg. Containers that have a lower plate rating must not exceed the mass stated on the plate. Exporters requiring a container that takes a maximum load should request a container with such a plate rating. However, since not all countries allow these maximum weights, exporters sending f.c.l.'s should ensure that the countries of transit and destination do transport containers of such mass.

Transnet does not undertake the handling and conveyance of containers that exceed the plate rating. If the gross mass of a container exceeds the plate rating, the container is transferred to a cartage trailer with a higher carrying capacity, and delivered to a container depot nominated by the operator/agent/exporter for unpacking/repacking. A transshipping charge is leviable along with the prescribed cartage charge for the conveying vehicle. The applicable cartage charge for collecting the repacked container from the container depot is recovered from the operator/agent/exporter. These arrangements are effective at all container terminals, depots and stations.

10. Free periods allowed for the packing (or unpacking)/filling (or decanting) of containers

If a container delivered by Portnet/Spoornet CX cartage services is not packed/unpacked within the period mentioned below, a detention charge is levied. These periods also apply to firms that have contracted to accept afterhours delivery /collection of containers. The period is calculated from the time the container is placed at the disposal of the consignor.

12metre (1A) and (1AA) ...............................4 hours

6metre (1C) and (1CC) tank containers .................4 hours

6metre (1C) and (1CC) containers (mechanical or gas refrigerator container included) .................3 hours

6metre 1 C or 1 CC tank container with dangerous goods
(cartage driver in attendance on request of consignor/consignee) .................1 hour

When empty containers in railway trucks are placed in private sidings for loading, a free period of 12 working hours is allowed for packing. Once the free period has expired, detention charges on the truck are levied.

11. Inland movement procedures

Customs approved depots are situated in Durban, Cape Town, Port Elizabeth, East London and at City Deep.

Export of l.c.l.'s: The container operator can arrange for l.c.l.'s to be consolidated at customs approved depots on its behalf. In this case, the exporter delivers his cargo to the nearest depot for packing, with the shipping instruction and customs documents accompanying the cargo.

The exporter can also go to a groupage operator who will consolidate his goods into a container and arrange for a depottodepot service. The groupage operator has an allinclusive rate for this service that is, the rate includes the cost of hiring the container, all transport charges, packing the container in South Africa and stripping (unpacking) it at destination. Some freight forwarders also consolidate l.c.l.'s but do not all offer an allinclusive depottodepot service. The exporter may have to pay separately for certain services for example, transportation or stripping the container at destination.

Export of f.c.l.'s: Containers are transported, normally by Transnet, in the following two ways:

By road cartage service: This is from the exporter's premises to the terminal. Cartage services are provided at all ports at specific rates. The following procedure is followed:

The exporter orders a container from a private operator according to his needs.
Transnet receives the order and, at the container terminal, arranges for a container to be placed at the premises of the user on a semitrailer or trailer.
When the container is delivered to the container user, he must acknowledge receiving it on the c.t.o.
The time at which the container is ready for uplifting must also be endorsed on the c.t.o.
The container operator provides seals for sealing the container. All containers must be sealed prior to dispatch. Unsealed containers will not be recovered from the premises.
The cartage driver calls for the container for onward railing at the time indicated on the c.t.o.
On arrival, the cartage driver must be given the packing declaration; after he has inspected the container and the seals, he acknowledges receipt thereof by signing the c.t.o. and returning one copy to the sender.
At stations where the necessary container handling equipment is not available, the container must be packed by the sender while it remains on the railtruck.

By rail service: A rail service is used for areas outside the road cartage zones. The rate of transporting containers to the terminal applies to the container as such, irrespective of its contents.

Regarding the staggered loading date procedure, a rail permit system is introduced for the railage of containers outside the road cartage zones. The container operator applies for a permit number by advising as to the provisional stack dates of the carrying vessel at the port of loading. A permit is normally issued about 15 days before the provisional stack dates of the vessel.

By using this procedure, exporters are assured that their consignments will not arrive late at the port, nor will they be subject to detention.

12. Carrier or merchant haulage

All inland transportation arrangements can be undertaken by the container operator (carrier haulage) or the exporter (merchant haulage)

13 Fr.eight rates

Sea freight rates vary and are thus negotiable. Exporters may contact their freight forwarder or shipping agent for more information.

14 Railage

A scale of rates is available from Spoornet. The unit (or box) rate depends on such factors as the size of the container, the mass of the contents and the distance over which the container is transported.