Trade is the backbone of business. Without trading, there would not be any exchange of commodities and hence the entire economy would crash. Trade is what makes the commodity exchange hands and thereby generating capital for the seller to be reinvested. This is how the market economy works. Only production is not enough. But for delivering and trading, it is important to know the laws. A regular checkup of the details of the cargo to be shipped is carried out by different government or private agencies. The trading company must be prepared with all the details of the logistics. Inadequate answers may lead to the trade getting hung up over legal entanglements, which is certainly not desirable. The checkup of financial regularity is called Freight audit. Usually, this is done according to government circulars. But sometimes, the task may be too broad to be carried out by the state resources alone. Hence, the job is often outsourced to auditing companies that operate privately. However, they are all licensed and have the right to engage in such task.

Legal requirements must be fulfilled properly, or else the customs department can impose penalties as well. This is certainly not desirable. This is going to have multiple repercussions. First of all, it will result in monetary loss, which is the most obvious outcome. Secondly, the particular deal will have to be scrapped or delayed. This will worsen the relationship with the client. Thirdly, there will be a bad reputation generated and this is not good for business at all. Clients thereafter will hesitate to enter into deals with your company after that. After all, nobody wants to get into legal issues. They would rather look to have Ocean freight delivered by some other company. This is why you should always act responsibly, for your own good.
Freight bill auditing passes through several stages of investigation of both the cargo as well as financial records. The company responsible for the shipping of the cargo will be asked beforehand to complete the financial book keeping and have the records ready. They will be given a certain number of days to complete the task. The auditing field officers will then visit the company and inspect the goods as well as the financial records. If they find everything as per the regulations, then they will give clearance and give a green signal.

Ocean freight rates are usually quite high, hence only the proper logistical company should be availed. You donâEUR(TM)t want to waste money on a logistical company that will result in your loss by damaging your products. The shipping company should have adequate provisions to ensure that products, especially fragile and brittle material get delivered without any harm due to jerks or mishandling. There may even be legal provisions to invoke charges against the trading company if they cannot handle with care. Their licenses too may be scrapped. Keeping this in mind, the logistical company must make sure that they meet all the legal requirements properly. Trying to evade this responsibility regarding Freight audit will only attract bad luck for sure.