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A Clearing agent arranges the customs clearance and pay over any taxes on
behalf of the buyer. The Forwarding agent arranges the movement of the
cargo. The Forwarding Agent may also do clearing.
The clearing or forwarding agent usually provides the C&F instructions form for
the exporter/importer to complete. This form acts as a contract of performance
and payment for services rendered by the agent. The agent will also be held
liable for any deviation from the C&F instruction.
It is quite common for sellers and buyers to change instructions without informing
their agents, which may incur additional costs. If the agents can prove that they
are acting on the C&F instructions they will not be liable for the loss or the
mistake. It is therefore common that agents request a new C&F instruction
should there be any changes by the exporter or importer.
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