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How to ship goods from China and avoid risks

By Weintrade   |   23 Jun, 2017
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id="pre">pre{margin:.5em 0;padding:.4em .6em;border-radius:8px;background:#f8f8f8;}</style><style id="loading">.loadingclass{display:inline-block;cursor:default;background: url('js/lib/ueditor/dist/themes/default/images/loading.gif') no-repeat center center transparent;border:1px solid #cccccc;margin-left:1px;height: 22px;width: 22px;} .loaderrorclass{display:inline-block;cursor:default;background: url('js/lib/ueditor/dist/themes/default/images/loaderror.png') no-repeat center center transparent;border:1px solid #cccccc;margin-right:1px;height: 22px;width: 22px;}</style><style id="anchor">.anchorclass{background: url('js/lib/ueditor/dist/themes/default/images/anchor.gif') no-repeat scroll left center transparent;cursor: auto;display: inline-block;height: 16px;width: 15px;}</style><style type="text/css">body{background-color:#ffffff; background-image:; background-repeat:repeat; background-position:0% 0%; height:2135px; }</style> </head><body ><p style="text-align: left;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Shipping products from China has become a huge burden for many importers across the globe.<br/></span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">However, shipping your products should not become a nightmare for companies that want to do business in china. There are countless issues regarding to freight and other related concerns.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">This article will help you understand in brief the process one needs to go through to ship products from China and also avoid some risks. For instance for beginners in the import business, the Bill of Lading, FCL, LCL and all other documents may seem confusing.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">So one may ask how can one ship from China.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">In as much as there are frauds in the system by which suppliers may end up running away with your money, there are still great advantages importing from China and the key issue here is to know the process and the procedures involved so you can relax and wait patiently for the arrival of your goods. In this article we will explain in detail all the documentations needed for your business. &nbsp;Everything, from shipping costs, insurances, to incoterms, FCL and LCL shipping is covered.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">1. It’s better to stick to reliable factory sourcing agencies or trading agents.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;"> Many sourcing agencies are there at your service to help you go through all your importation processes.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">2. Being present at the loading centre as an eye witness. You may contract an agent to do it on your behalf, it is better than leaving everything to the suppliers to ship .The best option is to have an employee or agent inspect the goods and observe the container through the whole loading process. In fact, the loading report is often used to obtain the letter of credit (L/C) payment.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;">Legalities</span></strong></span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">One must know and understand the relevant legalities and regulations even before placing orders in China. For instance there may be different restrictions on importations of certain categories of goods from China. One must be aware before running at a lost since some imported goods may not be allowed in the market of your country. Compliance issues can be very complicated for some products, so you might also want to contract a good customs broker. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Even with the help of a broker, you should track the process step by step. You may need to issue an affidavit of your broker and purchase customs bonds which may guarantee that you will abide by all laws and pay any additional fees incurred. Ignoring legalities can be costly, in the form of unexpected customs duties or clearance delays. But with an adequate planning ahead of time, you can make sure the process goes smoothly.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;">Making preparation towards Landing costs</span></strong></span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Make sure you have a good estimate of the landing costs before you make your order. The import fees vary depending on what you import, the country of origin and destination. Experienced exporters should know how much it really costs to ship to you, but do your homework nonetheless.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">There may be many hidden costs in getting your product from the Chinese factory to your warehouse. To minimize them, you may want to consult an import management company for help. Or make a small order first to collect all costs involved and predict these costs for your intended order quantity. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Delivery from the port of entry to your final destination is often an overlooked cost. To resolve this, contact the many &quot;last mile&quot; service providers in your home country. They’ll deliver from your local port of entry to your company grounds. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">With some good advance planning, you can import products from China profitably – and with very little risk to your bottom line. You can also access the cargo after arrival in the port of destination</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">You may have two options; either you pick it up yourself or you ask your shipping agent to load it on a truck and deliver it to a specific location. </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">If you are ordering a full container load this is certain to recommend. Upon delivery you can expect to have somewhere between 30 minutes up to an hour to unload the cargo. Beyond that, the freight forwarder normally charges the importer on a per hour basis.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;">Damages upon goods arrival </span></strong></span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">This actually happens a lot more often than most importers assume. This is also the time when that insurance turns out to be a pretty good investment. If your cargo is damaged, I advise you to follow this process:</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Take photos and videos of the damages</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Estimate the total number of damaged cartons and products</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Make a calculation of the total value loss. Keep in mind that this should be supported by</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">the value stated on the commercial invoice.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Send the material to your insurance company</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">&nbsp;I have always suggested that you ask your supplier for a copy of the sea freight insurance policy before the cargo is shipped. Then you’ll know who to contact in case your cargo would be damaged during the transportation. It sometimes happens that suppliers fail to get the appropriate insurance. If you really want to be sure that your cargo is insured, you need to book it yourself, via your freight forwarder.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">If you have a valid claim it’s usually a rather quick and painless process to go through in order to get your money back.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">However, keep in mind that most sea freight insurance only covers the value of your products, not the shipping costs.</span></p><p style="text-align: center;"><img width="435" height="293" src="https://img.weintrade.com/attachment/blog_content/2017/8ec0b59c6ad64b34929809a443b73b71.jpg"/></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;"><strong><span style="font-size: 10.5pt; font-weight: bold; font-family: 宋体;">Shipping Documents</span></strong></span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Bill of Lading</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The main freight document issued by the transportation company that specifies the shipping company, exporting company (seller), consignee (buyer), products, volume and incoterm.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The Bill of Lading when shipping from China and shall be delivered (along with Commercial invoice and the Packing list) to the buyer within 2 weeks from the shipment date.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Commercial Invoice</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">A document specifying the order value, types of products and the details of the consignee. This document is used by the forwarder or customs broker for customs clearance and calculation of import duties and other taxes.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The Commercial Invoice is mandatory and shall be delivered together with the Bill of lading, double check that the declared value is correct.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Packing list</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">A document specifying the volume, different types of products and quantity per type of product. The Packing List is mandatory and should be delivered together with the Bill of Lading.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Certificate of Origin </span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">A document specifying the origin of the raw material of the products. This document may be used to determine the import duty rate, however some countries enjoy preferential import duties), but also for statistics and enforcement of embargoes.</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">• Import Licenses</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Normally, an Import license is not required in the United States, the European Union and other developed markets.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Shipping from China involves a multitude of different fees. The cost is closely related to the selected incoterm. Below I list a number of costs that you should keep in mind when shipping from China:</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">1. Transportation to Port of Loading (included in FOB)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">2. Export clearance (Included in FOB)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">3. Sea freight charge (included in CIF)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">4. Insurance (Included in CIF)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">5. Port fees (Included in DAT)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">6. Customs clearance fees</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">7. Custom duties</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">8. Other import taxes (VAT in the European Union)</span></p><p style="margin: 0pt;"><span style="font-family: 微软雅黑, &quot;Microsoft YaHei&quot;; font-size: 10.5pt;">9. Transportation from the Port of Destination</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">However, keep in mind that it can take a few days, sometimes up to a week, before your cargo is loaded in the port of loading in China.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">Shipping by sea is, in terms of lead times, both slower and more unpredictable than air freight. As such, companies importing from China by sea must do a lot of planning, and have serious margins for delays.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The container volume may differ slightly between different shipping companies.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">There is still one way to save quite a lot of money based on the sea freight cost that’s related to the container volume. That is to place orders based on the units that fit in a specific container size rather than a predetermined quantity.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">This way you can avoid situations where you pay for empty space or have to order one FCL container and one LCL container.</span></p><p style="margin: 0pt;"><span style="font-size: 10.5pt; font-family: 微软雅黑, &quot;Microsoft YaHei&quot;;">The latter situation can become rather costly since LCL comes with higher port charges and ‘per shipment administrative fees than FCL shipping.</span></p><p><br/></p></body></html>
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