A shipping permit application can be a complicated and drawn-out process.
And it becomes even more frustrating when you realize that customs officers decline your company’s appointment for shipment approval after completing all the hectic work processes.
So then comes the question of why your company isn’t getting shipment permission.
Well, it could be because your business is located in a high-crime area, isn’t properly registered, or doesn’t have the correct documentation.
Whatever the reason, if your business isn’t getting shipping permission, it’s essential to understand why.
Thus, here are all you need to know.
1. Your Company Does Not Have Proper Packaging Supplies
If you need help getting shipping permission from your chosen carrier, it could be because your business needs the proper packaging supplies.
Many carriers require businesses to use specific packaging materials, such as packaging a 4DV plywood box, to ship their products. So, to ensure your business has the proper packaging supplies, check with your chosen carrier to see what type of packaging they require.
Then, purchase the necessary supplies for packaging boxes and keep them on hand so that you can quickly and efficiently pack up products when it’s time to ship them out.
With suitable packaging materials, you’ll be able to get shipping permission and send out products without any delays.
2. Not Having Proper Paperwork
Ensure you have all the required documentation, such as a license or permit. If you’re missinng any of the necessary paperwork, your business won’t be able to get shipping permission.
Plus, you need a commercial account with a freight carrier or freight forwarder to ship goods.
This commercial account will allow you to get discounted rates on shipping and ensure that your goods are transported safely.
Additionally, you’ll need to have an authorized representative fill out and sign an export declaration form.
The export declaration form is used to inform customs officials about the contents of your shipment and its value. Without this form, your shipment could be held at customs and subject to inspection fees.
Finally, prepare documentation for each item in your shipment. This includes packing lists, invoices, and bill of lading forms.
Without this documentation, customs officials could seize your goods and hold them for inspection fees.
3. Your Company’s Age is too Young
Many shipping companies require businesses to have been in operation for at least a year before they grant shipping permission, which can be frustrating if you’re just starting.
But there are a few reasons why shipping companies might require this.
For one, they want to ensure you’re a legitimate business, not a fly-by-night operation.
They also want to ensure that you have a good track record with customers; after all, they don’t want to be associated with a company with many complaints and returns.
However, if you haven’t been in business long enough, try partnering with an established company with shipping permission. This can be a great way to get your foot in the door and start building up your shipping history.
Meanwhile, pay attention to other areas of your company and work to improve your quality service and products. You’ll be ready to expand your company when you eventually have shipping authorization.
4. Your Company isn’t Registered with the Correct Shipping Carrier
One of the crucial reasons your business isn’t getting shipping permission is that it isn’t registered with the correct shipping carrier.
So, get your company registered with a carrier that serves your area. If you fail to do so, likely, you won’t get permission to export goods overseas.
Plus, check with the carrier regarding the shipping route you want to use for shipment to another country to ensure the route you’re trying to use is still available.
Finally, ensure your shipment falls within the size limits and has good packaging designs set by the carrier.
Even after all these considerations, if you face trouble getting shipping permission, it’s likely a problem on the carrier’s end, and you’ll need to contact them directly for help.
5. Your Product May not be Eligible for Shipment
If your business isn’t getting shipping permission, it may be because your product isn’t eligible for shipment. Certain items are restricted from being shipped, and if your product falls into one of these categories, you won’t be able to get a shipping permit.
There are several reasons why your product may not be eligible for shipment, such as
- The product has a limited lifespan and is perishable.
- The product is flammable or combustible.
- The product is dangerous.
- The product is restricted by law.
If you’re unsure whether your product is eligible for shipment, you can check with the shipping company or the government agency regulating shipping. They will be able to find you another way to ship your product.
6. You’re not in Compliance with Local Regulations
Not complying with all local regulations is one of the fundamental reasons your business isn’t getting shipping permission. This can vary from city to city, from needing the proper license to not following the correct environmental regulations.
Secondly, it could be because your business needs to be bigger. If you’re just starting, the local authorities will likely require you to prove that you can consistently ship large volumes of goods before they issue a permit.
Another possibility is that there are already too many businesses shipping in your area, and the authorities have placed a limit on the number of shipments they will allow. In this case, there’s not much you can do except try again later or find another way to get your products to market.
If you need help with what to do to comply, you should contact your local authorities and ask. They should be able to tell you what you need to do to get shipping permission.
7. Your Business Hasn’t Paid Its Taxes
If you haven’t paid your company taxes yet, there’s a very good chance of not getting shipping permission. After all, the government will be much more hesitant to trust a business that owes its money.
Not paying taxes can damage your business’s reputation and make it hard to get funding or partners. It can also lead to legal problems.
So if you’re behind on your taxes, you first need to catch up. First, make sure that all its tax obligations are up to date. Following that, submit all required tax returns and payments.
It may require working with a tax professional to get everything in order, but getting your business back on track is worth it.
8. You Don’t Have a State-Issued License
Each state has different business requirements, but in general, you need a business license to get a shipping permit. A license gives you the authority to operate on legal terms.
Without a license, the state will not recognize your business, and you cannot get shipping permission.
There are a few different ways to get a business license, but the most common is to go through your local Chamber of Commerce. They can help you with the paperwork and ensure you follow all the necessary steps.
However, for any issues with getting your company license for shipment, ensure that you’ve filled out all the paperwork correctly. Sometimes businesses make mistakes with their applications, which can hold up the process. So, take the time to fill out everything orderly.
Once you get your license in hand, you should be able to get shipping permission without any problems.
9. Your Business is on the Government’s Blacklist
The blacklist is a list of businesses the government has flagged as high-risk. It means that they’re more likely to be involved in shipping fraud or other illegal activity.
Shipping companies are required by law to check the blacklist before they permit to ship. So if your business is on it, you’re basically out of luck.
It’s not simple, but there are a few ways to remove your name from the blacklist.
You first need to figure out why you were put on the blacklist in the first place. Once you know that, you can start working on fixing the problem.
This may involve changing your business practices, hiring new staff, or cooperating with authorities. It will be challenging, but it’s worth a try if you want to keep your business running.
Conclusion
If you want your company to thrive soon, you must start investing in shipping now.
As a business, it’s your job to build trust with your customers and provide them with quality products and service, which you can only do if customers get their packages on time.
This article elaborated on why your business isn’t getting shipping permission, which is crucial to consider if you want to start shipping goods without hassles.
So, it’s time to start investing in logistics and shipping the right way and get your business on the right path to success.
