General
10 The provisions in this eManual section refer to the functions of international shipping and customs clearance during a health emergency response.
20 International shipping in this context is defined as the sourcing and quality controlling of international freight forwarding services to transport goods to a destination country's port of entry when the supplies are shipped by WHO from the point of origin (normally a supplier's site or a WHO warehouse) based in a different country, irrespective of which WHO team (local, regional, global) procured the goods.
30 Customs clearance, including handling of tax-exempt importation permits, is the function carried out by the supplier, the international freight forwarder, in-country WHO staff, a WHO-appointed customs agent and the Member State's customs authority to ensure that internationally procured consignments enter the destination country. The number of shipments and the volume of goods requiring customs clearance can significantly increase in emergencies. Hence it is important to be acquainted with these processes and shipping instructions.
40 For general policy provisions and guidelines on shipping, including matters such as sourcing and quality controlling freight forwarding services; Incoterms rules; packing, freight and insurance (PFI); handling of insurance claims, etc., please refer to the eManual chapter VI and dedicated SOPs issued by the Procurement and Supply Services department (SUP).
Roles and responsibilities
50 Roles and responsibilities for international shipping and customs clearance are outlined below.
International shipping
- Supplier: the entity or person from which the goods originate (e.g., suppliers, partner UN entities or WHO warehouses). The supplier is responsible for making the goods and the related documentation available to enable their international shipment.
- International and regional WHO warehouse: The warehouse operated by WHO or its partners that holds emergency supplies in stock ready for international deployment. Together with the Global Procurement and Logistics, Global Shipping unit (GPL/SHP), the regional Operations Support and Logistics (OSL) team can source freight forwarding services to support the emergency response in a cost-effective and responsive manner, first by considering options through the corporate WHO freight forwarding long-term agreements (LTAs) and then by exploring other options if needed.
- Global Shipping (GPL/SHP): This team is part of the Global Procurement and Logistics (GPL) unit from the Procurement and Supply Services departments (HQ/BOS/SUP) and has the following main responsibilities:
- establishing and managing the WHO corporate freight forwarding LTAs;
- purchasing, processing, insuring and quality controlling the delivery of shipping services for all internationally purchased goods; and
- managing all related administrative matters, including the corporate Packing Freight and Insurance (PFI) account.
In some emergency responses, shipping officers are embedded in the OSL team in Headquarters or Regional Offices and manage shipments in collaboration with the GPL/SHP unit as Emergency Business Partners.
Further details of GPL/SHP services are available at the following link: https://intranet.who.int/homes/gsc/gscservices/procurementservices/shipping.shtml.
- International freight forwarder: An international third-party logistics (3PL) service provider engaged to deliver a consignment to a pre-designated destination point. In almost all instances, this would be among the various freight forwarding LTA providers established by GPL/SHP.
- OSL team in-country: This team's roles and responsibilities include the following:
- Assess the transport infrastructures, such as the port and airport facilities, as they can impact the receipt, movements and storage of consignment items, particularly those requiring cold chain facilities or special handling. (Note that the UN's Logistics Cluster performs infrastructure assessments regularly).
- Advise on the best point of entry, using Incoterms, and liaise with WHO's international freight forwarders in coordination with GPL/SHP.
- Review shipping instructions (consignee + notify party, delivery address, Incoterms, set of required documents) and assemble the set of documents required for shipping and customs clearance
- Maintain and share the shipment monitoring, which lists all active and pending shipments inbound to the emergency operation across all transport modes. The report should include the estimated date of arrival and additional details on cargo value, number of parcels, weight and volumes (in addition to their operational values, these figures are needed by the communication team or other reporting officers).
- National freight forwarder: A local 3PL provider engaged by the WHO Country Office to provide freight forwarding services from the international freight forwarders Incoterm fulfilment point.
- Consignee: The recipient of the goods shipped or transported, normally the WHO Country Office.
Customs clearance
- The OSL team with the WHO Country Office customs focal point should ensure the following:
- All necessary resources are available to manage the customs clearance and tax-exempt importation process, and all processes are known, documented, and applied correctly.
- The different steps, actors and procedures for customs clearance are mapped in an SOP, and the emergency clearance procedures are considered and applied. These documentation requirements, including for countries following the Green Light process (see below), are maintained as shipping instructions by GPL/SHP, so the OSL team should inform the GPL/SHP team in case of any changes.
- Liaison with other UN agencies to compare the applied customs procedures and related charges to ensure the most efficient and competitive customs clearance process.
- An in-country freight forwarder is identified and selected. In addition, the OSL team should monitor the performance of the freight forwarder based on responsiveness and cost criteria.
- The customs agent appointed by WHO (this could also be the national freight forwarder, see above). Its responsibilities are to act as an interface between WHO and the customs authority and to manage the custom-clearing process on behalf of the WHO.
- The national customs authority is the national administration that enforces a country's import and export processes and regulations.
Partnerships
60 Partnerships are important to support supply chain processes in emergency response situations. Such partnerships aim to enhance the quality of the supply chain by taking advantage of the skills and other resources available from different partnerships. From the onset of the emergency, WHO can coordinate shipping activities and work closely with various partners, such as by
- cooperating with the Global Logistics Cluster Cell in Rome to coordinate logistics activities and organize joint shipments at the onset of an emergency;
- establishing the framework of in-kind transport options with commercial entities; and
- utilizing in-kind services from government entities or institutional partners.
70 During an emergency response, importing and clearing health supplies can be a major bottleneck in implementing health programmes. In its role as lead agency for health activities and in collaboration with the logistics and health clusters, as well as with the relevant national authorities, WHO collects information and updates partners on country-specific customs regulations for the import of health products, as detailed in WHO's regular shipping instructions.
International modes of transport and Incoterms
80 During health emergencies, particularly at the onset of a grading event, air freight is the main mode of transport used, either through individual consignments using commercial flights or dedicated charter flights, as this is the fastest option. However, air freight is considerably more expensive (and generally has a higher carbon footprint) than sea, rail or road freight; hence where possible, as an emergency stabilizes and is enabled by good planning, sea or surface freight should be used instead.
90 For emergency shipments, the most typical Incoterms rules to use when procuring goods from a supplier are EXW, FCA and FOB, i.e., those for which WHO (and not the supplier) is responsible for managing the international shipment through its appointed freight forwarder. This will enable, for instance, managing supply pipelines into a country and actions such as chartering air freight solutions and enabling cargo consolidation from multiple supplier sites. Supplier-enabled freight solutions, such as CPT, CFR or DAP, are normally discouraged for emergency shipments unless WHO is sure of the supplier's (and their appointed freight forwarders') capacity to deliver to the destination country within the desired timeframe.
100 Please note that in certain emergencies, based on logistics or operational criteria, the OSL team, along with the GPL/SHP team, can decide to change the following:
- Incoterms used
- choice of point of entry
- the appointed freight forwarder.
In-country forwarding agent selection
110 Considerable contingency planning to ensure easy and swift access to potential service providers can be completed early by compiling a list of possible service providers for freight forwarding. It is also helpful to draw up this list in collaboration with the customs authorities of the host country if imports are likely. It is worthy of note that the costs involved in customs clearance represent a major but often misunderstood cost centre. The provision of in-country forwarding services is normally structured through a local LTA.
Customs clearance and tax exemption
120 WHO enjoys certain privileges and immunities, including that, as a general rule (established in the corresponding Host Country Agreement), it is exempt from all direct taxes and customs duties on all items imported for its programmes or office use. However, goods must still go through customs clearance procedures. Contingency plans developed as part of each country office's emergency preparedness planning should be in place to manage customs clearance during emergencies. Depending on the system that has been arranged, WHO will have a blanket, partial or individual shipment exemption:
- A blanket exemption allows tax and duty-free importation of any type and quantity of goods for the immediate relief operation. The Ministry of Finance issues it on an exceptional basis.
- A partial exemption is for a list of specific goods drawn up during the annual planning process.
- When neither a blanket nor partial exemption is in place, each shipment must be cleared through customs with an individual exemption. This is the least favourable option (though it is the most common). In this case, the WHO must obtain an exemption protocol, and the national freight forwarder or customs agent appointed by the WHO Country Office then handles the consignment release from the port of entry.
130 Documents required for customs clearance typically include the packing list, sea waybill or original bill of lading (BL, for maritime shipments) or air waybill (AWB, for air shipments), and an invoice (showing the value of the goods). For goods subject to specific import restrictions (medicines, telecommunication equipment, security equipment, etc.), additional documents should be provided as required by the customs authority (e.g., certificate of origin, test and sanitary certificate, authorization for importing IT, drugs or others).
140 All shipping and customs clearing documents should be filed and archived per WHO procedures in the shipping instruction maintained in GPL/SHP. A good filing system that enables easy access to documents required for monitoring, reporting and audit purposes should be implemented.
Green Light process
150 Green Light is a term to indicate that the destination country requested the shipping documents in advance so they are processed and approved before the shipment proceeds. The process involves receiving approval from the government authorities, such as the Ministry of Health (MOH) and the Ministry of Foreign Affairs (MoFA), and tax exemptions.
160 The nominated forwarder will send the shipping documents and draft AWB/BL to the focal contact from the Regional Office or Country Office to start the process.
170 Green Light approval must be obtained before shipment; if not, it might result in delays and additional charges in the destination country.
180 Refer to the GPL intranet page with shipping instructions for each country. Please contact the GPL/SHP team if any need to be updated. https://intranet.who.int/homes/GPL/GPLservices/procurementservices/shipping.shtml,
Advance shipping notification
190 At pre-established times, before or during the shipment, the respective consignee will be informed of the cargo's arrival by the freight forwarder in the form of a shipping pre-alert. The pre-alert notice must identify the order reference number and the order date and contain other relevant information as detailed in the shipping instructions and standing contracts.
200 The consignee must also receive details on the number of parcels, the total weight, volume and value of consignments, and the packing list and waybill or air waybill number. The inclusion of any cold chain consignments in shipments must be indicated to allow the consignee to plan for immediate pickup and, if necessary, transfer.
210 Finally, the expected or actual date of shipment, the expected date of arrival and transportation schedules in the shipment of several consignments should be included.
Receipt and inspection
220 The receipt and inspection stage confirm that the deliverables meet the contract requirements regarding quality, quantity, timing and other specified criteria.
230 For shipments managed through the GPL shipping team, the OSL team should confirm the receipt to GPL and OSL HQ and the OSL RO team and perform the receipt in the WHO ERP for audit purposes.
240 For shipment not executed by WHO's international freight forwarders, such as delivery organized by the supplier (DAP), in-kind transportation or delivery by a partner organization such as UNICEF (CIF or CIP), the OSL team should confirm the receipt to GPL, OSL HQ and the OSL RO team and perform receipt in WHO ERP for audit purposes but also to trigger in GSM the payment to the supplier.
250 It is a good practice to use a standard form to register the actual verification of the goods, such as a Goods Receipt Note (GRN) or Inspection Report Form (IRF).
260 The procurement initiator (OSL team) must identify a person to oversee verifying and certifying that the goods received are in accordance with the purchase order. The receiver must inspect perishable goods within 48 hours. At the reception/inspection stage, the person responsible for the verification should take the following steps:
- If any signs of tampering with the goods exist upon receipt and inspection of the goods, this must be stated on the receipt requested by the carrier or forwarder.
- If any damage is apparent, a claim must be made to the GPL shipping team for further insurance processing.
- If goods are received according to the specifications in the purchase order, the responsible person certifies receipt of the goods.
If goods do not match the specifications, they must be rejected and returned to the supplier.
270 The receipt and inspection must be done by a person who is preferably not one of the following:
- The ordering officer
- The member of staff conducting the procurement
- The PTAEO holder and/or purchase order approver
- The person certifying the payment.
280 For more information on goods lost or damaged during shipment and their replacement, consult the WHO eManual, section VI.2.2, paragraphs 160 to 200.
290 Once the receipt of goods is confirmed, the OSL team, with the administration unit of the WCO, should initiate the process for recording assets (if applicable).
Shipping of medical samples and dangerous goods
300 Health crisis interventions normally involve taking medical or chemical samples from humans, animals or the environment for testing. While it is preferable that such testing occur in-country, there will be occasions where such samples must be tested in specialized laboratories outside the affected country and, therefore, exported from the affected country and imported elsewhere. This requires considerable planning, much of which can be done on a contingency basis early in the operation. The following need to be considered:
- Blood and human/animal waste product samples are classified as biologically hazardous in accordance with international hazardous goods regulations.
- Chemical samples must be handled as chemically hazardous.
- WHO members need to be trained and certified as being qualified to handle, pack and document medical/ chemical samples.
- Special packaging is required to transport such consignments, which should be identified as part of contingency planning.
- In addition to routine shipping and export documentation, all consignments must be accompanied by the appropriate biological or chemical certification, signed by an appropriately qualified medical/chemical professional.
310 The transboundary movement of medical or chemical waste is part of the important subject of dangerous goods cargo (DG). This is a highly regulated type of transportation that includes the following main regulations to be observed by WHO staff when handling and/or planning/implementing the transportation of dangerous goods:
- International Air Transport Association (IATA) Dangerous Goods Regulations
- International Maritime Dangerous Goods Code (IMDG)
- The European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR)
- International Civil Aviation Organization (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air.
Restrictions (specific cases)
320 Importing countries may impose import restrictions. Telecommunications equipment, vehicles (soft skin, ambulances, armoured vehicles), and pharmaceuticals (specifically controlled drugs) typically require prior authorization from the appropriate ministry. For pharmaceuticals specifically, some countries require registration of the products or sample-testing in their laboratories. Other equipment, such as used vehicles older than a certain age, may be banned outright. Some countries prohibit goods of certain origin for political reasons; obtaining the permit to import such goods is generally a protracted exercise. The receiving office must confirm that the permit is in hand before the supplier is authorized to ship the goods.
330 Procurement experts must be aware of these limitations so that the time required to obtain the authorization can be calculated and included in the estimated lead time. The likely consequence of shipping without the import permit is that the receiver must pay the storage cost in the port/airport and applicable demurrage/detention charges until the authorization is issued. This can also affect or deteriorate the quality of health commodities during the process due to inappropriate storage conditions (e.g., a cold chain not prepared).
340 For the importation of medicines and medical equipment in an emergency, the following potential restrictions should be considered in anticipation of customs clearance constraints:
Pre-arrival constraints:
- registered vs. un-registered drugs by national drug authorities
- documentation requirements/restrictions (documents to provide to ministries to obtain import licenses)
- country of origin/manufacture restrictions
- narcotic and psychotropic drugs restrictions
- total or partial import/export bans or in transit (from specific countries or for specific items) (country decision to restrict importation)
- no clear SOP/national guidelines on humanitarian medical importation vs commercial importation processes
- port of entry restrictions (import entry is restricted to specific entry ports)
- restriction on the minimum remaining shelf life at the arrival (procurement and shipping team need to know shelf life ahead of time)
- restrictions on the import of drugs outside the national essential drug list and national treatment protocols.
On-arrival constraints:
- sampling requirements and restrictions
- port/airport of entry facilities: constraints/bottlenecks (e.g., cold chain facilities), infrastructure, workforce, and handling equipment to manage the port during the crisis.
Post-arrival constraints:
- pharmacy licensing restrictions (to transport and store medical items in the country)
- archiving central documentation for possible drug authority and customs audits.
