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Before you shop in Guangzhou wholesale market, read this guide.

It covers everything you need to know about Guangzhou market such as products to buy, mode of transport, and quality verification amongst others.

Take a look.

How to Find Guangzhou Sourcing Agent

You need to have a sourcing agent in China to help free up your time as sourcing for goods can be tedious.

The sourcing agent will make wok easier for you at a very affordable fee.

Here is a guide on how you can find a good sourcing agent in Guangzhou.

· Do Proper Research

You need to do proper research on the sourcing agents that you would like to hire via different online platforms.

Doing a research will help you narrow down your long list of sourcing agents to a few who are credible and trustworthy.

· Choose Specific Sourcing Agents

It is important to narrow down your search to specific people or sourcing agents who specialize in specific goods.

You will settle on a company that has plenty of experience sourcing the type of goods that you need from Guangzhou.

· Have Proper Knowledge of Your Requirements

You should do more research on the sourcing agents to get more information about their resourcefulness.

A proper sourcing agent often has information on the things that you require including specifications and proper paper work.

· Choose Industry Cluster Sourcing Agents

As you narrow down your choices, you should consider choosing sourcing agents within a particular industry.

This makes it easy for you to have proper access to the goods through the sourcing agent with no additional cost.

· Choose One that has Proper Market Knowledge

In addition, you should go for the sourcing agent who understands how the Guangzhou wholesale market works.

This will make it easy for you to find the right goods from favorable suppliers and at friendly costs.

· Choose Experience and Skills

Despite the fact that you will to pay more for experienced sourcing agents, it is important to get one with skills.

Such sourcing agents will make it easy for you to get the goods you need at the Guangzhou wholesale market.

Products to Import from Guangzhou Wholesale Market

You can import quite a lot of products from Guangzhou wholesale market that will suit your requirements.

Here are some of the products that you can purchase and import to your destination from Guangzhou.

Section of Guangzhou wholesale market

• Clothing for different uses such as casual wear, uniforms and even sports clothes.
• Jewelry such as watches, chains, rings and bangles among others
• Electronics such as television sets, computers and even music systems among others
• Communication gadgets such as mobile phones
• Cosmetic products such as make up kits
• Women accessories such as handbags
• Shoes for different purposes such as sportswear and casual fittings.
• Used or second hand products such as mobile phone in great condition
• Restaurant and Hotel Supplies
• Fabric for making different types of clothes or furniture
• Auto parts for your vehicles
• Beauty products for women such as hair weaves
• Toys for kids
• Eye wear and glasses

How to Get Best Prices when Buying from Guangzhou Wholesale Market

When shopping in Guangzhou wholesale market, there are different prices for different things.

You can get the best prices for the materials that you want through the following ways.

· Using a Proper Local Sourcing Agent

Well, you can get the best price when buying from Guangzhou wholesale market by using sourcing agents.

Sourcing agents with plenty of experience and skills will help you get suppliers who have good products at affordable costs.

They will also have the proper language of negotiation thus getting the best prices for the cargo.

· Purchase Goods in Bulk

Apart from that, you can also purchase your products in bulk and get good prices and discounts from suppliers.

Due to economies of scale, the supplier will work out proper prices if you take a huge consignment.

· Purchase from the Factory Outlets

You should consider purchasing from the main factory outlets which often offer lower prices or factory prices.

In this case, you will find at the factory outlets that supply the kind of goods that you need.

Where to Buy Clothes in Guangzhou Wholesale Market

You will purchase clothes from the clothing market in Guangzhou which is the leading market for clothes.

Depending on your location, you should consider going for the clothes at the Guangzhou wholesale market.

Some of the clothes wholesale markets that you will find in Guangzhou include:

· Baima Clothes Wholesale Market

Here you will purchase the women high end clothes at wholesale prices for you to retail.

You can access Baima clothes market through this address “No. 16, Zhannan Road, Yuexiu District, Guangzhou, China”.

· Shisanhang Clothes Wholesale Market

In this market, you will purchase middle- end clothing for both gender of different age groups.

You can access Shisanhang clothes wholesale market through “Shisanhang Road, Guangzhou, China” address.

· Shahe Clothes Wholesale Market

In case you are looking for low-end clothing, then you can go to the Shahe clothes wholesale market.

You can use “No.57, Zhanxi Road, Yuexiu District, Guangzhou, China” as the main access address to Shahe clothes market.

· Zhanxi Clothes Wholesale Market

You will find the best type of men’s clothing are at the Zhanxi clothes wholesale market.

You can access this market through “No.57, Zhanxi Road, Yuexiu District, Guangzhou, China” address.

How to Buy Electronics in Guangzhou Wholesale Market?

You can also purchase different types of electronics such as television sets and mobile phones from Guangzhou market.

In Guangzhou, there are two main wholesale markets where you will purchase the electronics from.

New Asia International City of Electronic Science & Technology Wholesale Market

You can purchase different types of electronic products from this market at affordable prices.

You can get to this market through “55 Xidi 2ndd Rd, Changti Road Shipping Leisure street in Liwan District of Guangzhou”.

· Nanfang Building Wholesale Market

You can get access to different electronic materials such as laptops, mobile phones and their accessories in this building.

The main address of the building is at the “Nanfang Mansion, in the Liwan District”

Where to Buy Souvenirs from Guangzhou Wholesale Market

Well, just all the other products, you will purchase the souvenirs from the souvenir market in Guangzhou.

The main markets where you can buy souvenirs in Guangzhou wholesale market include:

· Cantonese Embroidery Wholesale Market

The main location for the Cantonese Embroidery wholesale market is No.100 Yuehua Road.

It is famous for different types of souvenirs that have different and very bright colors.

· Jade Sculptures Wholesale Market

You will purchase the souvenirs from “Xia Jiu Lu, Hualin Jade ware Street” at the most affordable prices.

Modes of Shipping from Guangzhou Wholesale Market

Well, after shopping from Guangzhou wholesale market, you will package your cargo to the nearest port.

Depending on the mode of transport you can take it to any of the following ports:

• Sea port for transporting the cargo from Guangzhou to your destination via sea freights
• Airport where you will transport the cargo via air freight mode
• Train station where you will load the cargo on a train to your destination. Rail freight only works where there is infrustructure
• Road transport to closer destinations with proper road network connections

Top Guangzhou Wholesale Markets to Shop from

When shopping from Guangzhou, there are specific markets that you should consider visiting.

Here are the top wholesale markets in Guangzhou that you should consider visiting.

• Clothes wholesale market which include Thirteen Hong Kong Wholesale Market, Shahe Wholesale Market and Baima Market
• Electronics Wholesale market located at New Asia International City of Electronic Science & Technology and Nanfang Building
• Watch Wholesale Market located at the Zhan XI watch market and South Watch Center.
• Hotel and restaurant wholesale markets located at Nantian International Hotel Supplies wholesale market and Shanxi International Hotel Supplies wholesale market.
• Wedding Dress Markets which id found at the Jiangnan North Avenue.
• Jewelry wholesale market located at Xijiao Building Jewelry Wholesale Market, Liwan Plaza Wholesale Market and Taiking Jewelry City
• Guangzhou handbag wholesale market which you will find in Jinyi Leatherwear Plaza and Zhongyang Leatherwear Mall.

• Jeans wholesale market located at Xingtang International Jeans Mall.
• Cosmetic wholesale market located at Guangzhou Beauty Exchange Center and Guangzhou Xingfa Plaza.

Benefits of Buying from Guangzhou Wholesale Market

When you purchase from the Guangzhou wholesale market, there are particular benefits that you will enjoy.

Some of the benefits include:

· Affordable Cost

You will enjoy affordable prices for different types of goods that will fit your needs.

· Efficient Transport System

After purchasing your products, you can easily transport them to different destinations through the efficient transport system.

· Variety of Goods

Guangzhou wholesale markets have a wide variety of goods that you can choose from depending on your specifications.

· High Quality Products

Most of the products that you will purchase from Guangzhou wholesale market are of very high quality.

Location of Guangzhou Wholesale Market

Guangzhou wholesale market is a very big market with different goods at different locations in Guangzhou.

For instance, you will find the clothes wholesale market in a different location from that of watches.

Here are some of the locations where you will find different types of products.

• Fabric Wholesale Market located at Guangzhou International Textile City and Ruikang Lace Accessory market.
• Auto parts wholesale markets located at Guangdong Yangpu International Automotive Supplies Center and New Guangdong Auto Parts Trade Market.
• Eyewear wholesale market located at Guangzhou Glasses City.
• Toys wholesale market located at Onelink Plaza and Guangzhou Zhongyang Toys Wholesale Market.
• Underwear wholesale market located at Guangzhou Xinxiang Underwear City.
• Shoe wholesale market located at Guangda Foreign Trade Shoes Plaza and Buyuntiandi Shoes World.

Buying Second Hand Electronics from Guangzhou Wholesale Market

You can purchase second hand electronics that are in very good condition from the Second hand electronics wholesale market.

All you have to do is walk into the second hand electronics market and choose the type of electronics you need.

Common Challenges when Shopping from Guangzhou Wholesale Market

Shopping in Guangzhou wholesale market can be a little bit challenging especially for a foreigner.

Some of the challenges that you might experience include:

• Language barrier as most of the traders do not understand English and often trade in their native language.
• Currency barriers where the main currency in use is RBM thus rendering the dollar unacceptable as mode of exchange.
• Locating some of these markets can also be a challenge in case you do not have a proper guide to help you.
• You might be a victim of fraudulent behavior from different suppliers who might want to steal from you instead.

How to Travel to Guangzhou Wholesale Market

You can travel to Guangzhou wholesale market through different routes using different modes of transport.

The mode of transport that you will use will depend on your current location.

Here are some of the modes of transport that you will use to travel to Guangzhou.

Baiyun Airport

· Non-stop Flights

You can get on a non-stop flight all the way to Guangzhou airport from other cities in China.

· Road Transport

As soon as you alight from the plane, you can use a taxi to access Guangzhou market via road network system.

· High Speed rail

You can also get on the high-speed rail that will help you move from different cities in China to Guangzhou.

Food to Eat when Visiting Guangzhou Wholesale Market

Well, China has some of the best delicacies that you will enjoy while on the shopping trip to Guangzhou.

Some of the delicacies that you will enjoy while on your shopping trip include:

• The White Radish and Beef Offal
• Wonton noodles
• Steamed Vermicelli Roll
• Guangzhou Special Soup

Modes of Payment to use when Importing from Guangzhou Wholesale Market

Guangzhou suppliers do not accept other currencies such as the dollar or British pound.

The main currency in use while importing from Guangzhou is the RBM.

In case you have to pay cash for the cargo, then you must have the cash in RBM.

Apart from that, you can do bank transfers especially with more organized suppliers who have established bank accounts.

How to get Warehouse Services when Importing from China

As the goods await shipping, you will have to store them in a warehouse which can be a challenge to find.

Here are some of the options that you can explore to get very good warehouse services for your cargo.

• You can get proper warehouse service through the help of the sourcing agent who can ensure proper storage.
• Apart from that, there are suppliers who offer the complete package which involve storage of the goods as well.
• Additionally, your freight forwarder can organize for warehousing of the cargo as it waits to ship to your destination.

How to Find Guangzhou Freight Forwarder when Importing from Guangzhou Wholesale Market

A freight forwarder will be the main link between your goods and the destination of the goods.

You can get a freight forwarder through references from other credible suppliers or through proper research.

You must, however, be careful not fall victim of inefficient freight forwarder who will mishandle your cargo.

In that case, here are some of the factors to consider when choosing a freight forwarder:

• Credibility of the freight forwarder in terms of how efficient they are in handling cargo
• Experience of the freight forwarder to understand the skill level of the freight forwarder
• Proper documentation to know that the freight forwarder is complying to the rules and regulations.
• Membership to particular known organizations as an indication of proper financial power.

Disadvantages of Shopping in Guangzhou Wholesale Market

Guangzhou electronics market

Unfortunately, shopping from Guangzhou may not be as rosy as it has certain pitfalls.

Some of disadvantages that you may experience in Guangzhou wholesale market include:

· Unreliable Suppliers

Simply because a supplier has a booth in Guangzhou wholesale market, there is no guarantee that they are reliable.

You might come across shady suppliers who will supply you with very low-quality products.

Apart from that, there suppliers who can also defraud you of your money in Guangzhou wholesale market.

· Language Barrier

Most of the suppliers that you will meet on different booths do not have the ability to speak English.

You might have to hire a translator to help you with the translation the terns under use.

· Mode of Monetary Currency

In Guangzhou, most of the trades will not take US Dollars and will only accept RMB.

Implying that you will have to change your currency to RMB for easy payment options.

· Lack of Export Transport

Here, most of the suppliers in Guangzhou do not transport cargo overseas except for locally.

You must, therefore, look for a freight forwarder who will organize proper transport for your cargo.

· Unsuitable Products

You may also find products in Guangzhou that are not suitable for export to your destination country.

In this case, you will only purchase the products that will easily gain access into your destination country.

Where to Buy Bags in Guangzhou Wholesale Market?

Guangzhou has 24 wholesale markets with different types of bags for you to choose from.

Some of the top markets where you can consider purchasing the bag include:

• Zhongyang Leatherwear Mall located at 11-21, Sanyuanli Avenue, Baiyun District in Guangzhou
• Jinyi Leatherwear Plaza located at 1453, Jieffangbei Road, Baiyun District in Guangzhou

You can purchase different types of bags such as wallets, backpacks, and handbags that are made of leather materials.

How to Verify Quality of Products in Guangzhou Wholesale Market.

It is very important to verify the quality of the products that you intend to purchase from Guangzhou wholesale market.

This will help you avoid being a victim of counterfeit goods from fraudulent suppliers.

You can check the quality of the good by checking if they meet the technical specifications.

In case of machines, you can conduct tests on the machines to ensure that it is of good quality.

A credible supplier should also be able to provide after sales services such as installation to ensure quality products.

Using such tests, the supplier will ensure that the machines meet the right technical specifications.

As you can see, there are many products you can get in Guangzhou whole same market.

At Tj chinafreight, together with our partners, we make sourcing and shipping from Guangzhou simple.

If you’re importing from China, most probably, you have come across NVOCC.

Maybe, you don’t know what it is.

Or, you’re wondering how NVOCC compares to freight forwarders.

Today’s guide covers everything you need to know about NVOCC.

Keep reading.

What is NVOCC?

NVOCC is an abbreviation for Non-Vessel Owning Common Carrier.

It refers to operations involving sales, stuffing, and transportation of containers to various gateways ports.

This ocean carrier transports shipments without operating any ocean shipping vessels under its house bill of lading.

You can also describe it as a shipper to carriers and a carrier to shippers.

It may operate as a freight forwarder in some circumstances.

Loading ship

Functions of an NVOCC

It plays several roles in international trade and shipping such as the following;

• To establish a contract with ship-owners and for a predetermined number of slots in their vessels. This is in exchange for relatively lower rates.
• To contract shipping lines and ocean freight cargo to allow for movement of consignments from one point to another.
• To issue a bill of lading and assume any responsibility and liability for the consignment.
• To consolidate smaller container loads and charge for the occupied space.
• To pay for port space and transportation of the shipments. It is also responsible for payment of demurrage
• To liaise with the port authorities in ensuring the vessel berths on time. It also facilitates commencement and completion of the vessel’s operations within the specified timeline.
• To act as intermediaries in the transportation of shipments.
• To facilitate faster movement of shipment from one point to another. The essence of this is to reduce imminent inconveniences likely to arise at the port.

Types of NVOCCs

Ideally, NVOCCs are divided into three main categories based on the nature and scope of their business;

On-Carrier type NVOCC

It is a type, which engages in trans-shipment.

It has its agents and offices at major transit, as well as destination points.

The agents and branches are responsible for receiving the items from inland or road carriers and issuing the bill of lading.

The items are then transited to ocean carriers who complete the process to the destination and consignee ports.

On-Carrier NVOCC does not have restrictions when it comes to routes.

Carrier NVOCC

It is a type, which transports goods on their specific routes.

It accepts your shipments, offers a bill of lading, and accepts liability for the consignment.

Ideally, they are contractual carriers and do not necessarily complete the transportation process themselves.

Instead, they deliver the shipment to actual carrier and receive once the goods get to the destination to deliver to the consignee.

Broker NVOCC – This type gets the shipment from different importers, consolidate them and find transport means from a carrier or on-carrier NVOCCs.

Broker NVOCC engages in the organization of transport, distribution, and choice of modes of transportation.

It also focuses more on determining the best routes and service improvements, among others.

Difference between NVOCC and Shipping Line

There is a thin line between the roles and functions of these two entities.

Some of the differences between them include the following;

NVOCC refers to an agent whose principal function is to coordinate with different partner lines.

The essence is to obtain relevant paperwork to facilitate stowage plans and seamless operations.

A shipping line refers to the entity responsible for the direct or indirect carriage of the consignment by air, sea, road, inland waterway, or combination of all.

This undertaking usually arises under a contract of carriage.

COSCO Shipping Line

The core function of a shipping line is to provide containers for domestic and global trade.

This is in the form of carriage of domestic cargo in international containers movement.

On the other hand, NVOCC’s main role is to act as intermediaries in the transportation of shipment to and from different destinations.

NVOCC is responsible for handling different aspects of commercial activities if shipping vessels.

Such activities may include booking, issuance of own bill of lading, and other relevant documentation.

Shipping line, on the other hand, handles the actual operation of the vessel.

This involves navigating the vessel and ensuring the shipment arrives at the expected port of destination.

NVOCC works with different shipping entities as long as both parties agree on the specific terms and conditions of engagement.

A single NVOCC entity can work with numerous shipping lines simultaneously.

Shipping lines are independent entities.

They are licensed as individual operators for transporting goods to and from different places.

Why you should consider an NVOCC when Shipping from China

Sipping goods from China can be quite demanding.

It requires meticulousness and high efficiency to guarantee the best results.

And that’s where considering NVOCC becomes handy.

Some of the beneficial reasons why you need to choose NVOCC in this process include the following;

Visibility of supply chain through high-touch service;

You rarely get consistent visibility and communication throughout entire transport process in ordinary carriers.

Considering reliable NVOCCs guarantees dedicated and single point of contact, which provides you with constant communication.

It enables you to know the status of your shipment, all through until it gets to your hands.

Visibility and communication between transition points are vital since it averts inaccuracies and delays, among others.

It mitigates risks;

Direct carriers’ contracts are potentially risky whenever there is a shift in market conditions.

NVOCC becomes critical when there are sudden transportation needs outside the scope of your ordinary contract.

Ideally, NVOCC is versatile and has resources to neutralize all inevitable risks and guarantee a smooth delivery process.

While at it, NVOCC still maintains affordable pricing.

You obtain supply chain insight from professional from expertise forecasting;

It is a daunting task to analyze different reports, contracts, industry trends, and price volatility, among others.

You also need a professional with a specific bias in global markets to manage costs effectively.

Considering NVOCC herein becomes fundamental since it has a formidable network with various players in this industry.

It makes it easy for them to read, analyze, and interpret reports and data with authority.

Working an aptly credentialed NVOCC with reliable partners can establish unforeseen risks and have an impact on your supply chain.

It offers flexibility;

In international trade, your transportation needs may vary from time to time, depending on various prevailing circumstances.

NVOCC provides the necessary flexibility in regards to the carrier base.

It can also leverage it to enable it to find relatively favorable pricing or capacity.

How NVOCC compare to Freight Forwarders

Many people often consider NVOCC and freight forwarders as the same thing.

However, they differ both functionally and legally.

Some of the main differences between these two include the following;

A freight forwarder is an entity in international trade handling different activities related to shipments of imports and exports.

NVOCC, in contrast, refers to an entity, which provides services related to ocean freight as a carrier.

Even so, it could either have or lack its own or operated vessel.

Freight forwarder acts as an agent for shippers, whereas NVOCC acts as a carrier to the shipper and also shipper to carriers.

Freight forwarders may as well work as the agent for some NVOCC entities.

On the contrary, you can hardly find an NVOCC acting as an agent for a freight forwarder.

NVOCCs tend to own and operate and own their fleet of containers.

On the other hand, freight forwarders use containers provided by shipping lines.

NVOCCs are covered under carrier liability, as stipulated in the terms and conditions outline in FIATA.

On the contrary, forwarders are covered under their liabilities as outlined in FIATA terms and conditions.

NVOCC issues own house bill of lading.

This document may or may not be used depending on global standards.

Freight forwarder issues own bill of lading and other necessary paperwork.

All these documentations are based on standardized documentation provided by FIATA.

Most freight forwarders own and operate their warehouses.

It is essential when it comes to adding value to its shipping services.

NVOCC comparatively, do not own nor operated warehouses.

Functions of VOCC

To begin with, VOCC is an acronym for Vessel operating Common Carrier.

Essentially, they are the owners of the massive vessels you often see carrying numerous containers traversing the ocean.

They perform various roles more or less similar to NVOCC only that the latter does not own the vessel.

Some of these functions include the following;

• To provide transportation of different types of shipments between two or more countries for compensation.
• It is responsible for transportation of the cargo from the port of loading to port or point of destination.
• To issue the bill of lading and assume responsibility of the shipment all through until it gets to the recipient at the port of destination.
• To use a vessel operating between different ports for all or part of the transportation.

Difference between VOCC and NVOCC

In VOCC, the owners or the company operating the vessels who own them.

They maintain and control different aspects regarding transportation of the various consignments to and from numerous places.

In HVOCC, the entities do not own any shipping vessel.

Even so, they facilitate transportation of various items to different ports of destinations through other shipping lines.

In essence, these two perform a more or less similar function.

The major difference is VOCC owns and operates the vessel, whereas NVOCC does not own a vessel but still manage to transport goods.

The other difference is VOCC is independent and only works as a single operator.

In contrast, NVOCC is flexible and can work with carriers from multiple alliances.

Disadvantages of Using an NVOCC for International Shipping

Using NVOCC for shipping your cargo can have drawbacks, albeit a few. Some of these include the following;

Information lapse – In most instances, there will be slow information as far as shipment tracking is concerned.

NVOCCs do not operate the ships; hence cannot necessarily be in the position to know obtain all the tracking information when required.

Only suitable for small volume cargo – NVOCC is ideal for shipping a few containers.

If you are shipping thousands of containers every time, NVOCC would not necessarily be a suitable choice.

This is from the perspective of both cost-effectiveness and time-consciousness.

Efficiency of NVOCC is subject to its acceptance to all the responsibilities for the shipment.

It also must issue its bill of lading document.

Otherwise, it can derail the shipping process leading to unprecedented delays and inconveniences.

How to Select a Reliable NVOCC Service Provider

NVOCC service providers are many in this sector, making it quite challenging to pick on the most suitable one.

You need to be careful since not all providers are reliable in different aspects of providing this service.

Some important tips of obtaining and working with reliable NVOCC service provider include the following;

Are they experienced? – In this industry, experience is fundamental.

It is an illustration of exposure to all relevant information, which guides in the best decision making.

Always consider a provider with relative experience in handling such businesses.

Go for a credentialed entity – It always gives you peace of mind when dealing with accredited NVOCC service provider.

It becomes easy to trace the whereabouts of this agent.

Most importantly, it shows you are dealing with a recognized entity.

It should have multiple service contracts – It is a fundamental aspect when you are seeking alternative means.

And this is common after the availability of space on vessel, trucking, or Airline Company becomes an issue.

Should handle multiple types of shipments – The service provider should be versatile and able to provide alternatives in shipping different types of items to various destinations.

It should have relevant partners, experience, and know-how on how to go about shipping unique consignments.

Should have a network of agents in the destination country – This is an added advantage.

It facilitates easy, convenient, and faster movement of the consignment to your place.

In this case, the NVOCC service provider only coordinates with their network on the other end to enhance the efficiency of shipment.

Do they have the capacity? – An ideal NVOCC must have adequate human capital, facilities, and systems in place.

This enhances the efficiency of overall service delivery.

Required Qualifications for an NVOCC Service Provider

Before becoming an NVOCC service provider, you need to conform to specific regulations stipulated by the regulatory body.

Some of the requirements herein include the following;

You must obtain an operational license – Any NVOCC service provider must be credentialed by a particular organization regulating this trade.

An entity can only obtain a license after meeting all the required standards for the trade.

Proof of financial responsibility – The essence of this is to display the ability to pay off claims should they arise.

Ideally, it acts as a cushioning measure, which comes in handy when there is a claim repayment raised against the entity.

Published tariff – It is the document, which outlines the cost and guiding principles of NVOCC services. The tariff is vital since it guides the customers on determining the best suitable for them.

It also helps as a guide for payment of claims should they arise.

Benefits of Working with a Licensed NVOCC

1. It guarantees a certain level of protection. All licensed NVOCCs comply with stipulated regulations, including the shipping Act. Failure may so lead to risk of facing unprecedented fines.
2. A licensed NVOCC is well-cushioned in the business since it has to deposit a mandatory base capital upon registration. This provides a safety net for the customers in case the NVOCC goes out of business while having your consignment in their custody.
3. There is always a price catalog, which all registered NVOCC must adhere to. In this case, you can always raise a complaint; in any event, you are overcharged.
4. Licensed NVOCCs are also held to rules and regulations by a regulatory body. It makes it possible for you to get relative support as a shipper whenever you feel aggrieved or feel unfairly treated.

Risk of Working with Un-licensed NVOCC

1. There is no level of protection. It is a 100% risk since unlicensed NVOCC service provider can hardly be traced to determine any fine in case of gross misconduct.
2. Any form of price control does not apply to unlicensed NVOCC. It can choose to extort you irrespective of the existing conditions, and there is nowhere you can report about it.
3. There is no cushioning amount of money unlicensed NVOCC service provider subjected to. It operates freely, and should the business go under, you’re like not to obtain your cargo in case it has it in possession.

The difference between OTIs, OFFs, and NVOCC

OTIs refers to a Federal Maritime Commission-licensed entity to operate as an NVOCC or ocean freight forwarder or both.

It merely implies that OFFs and NVOCC are or can both be OTI.

OFFs refer to Ocean Freight Forwarders responsible for arranging international cargo shipments.

It may involve booking a space on a vessel or merely dispatching a consignment.

To become an OFFs, you must be FMC-licensed.

You must also provide financial responsibility for any imminent claims, which might arise from cargo transportation.

NVOCCs refer to carriers providing ocean transportation but hardly operate their vessels.

They contract transportation to a vessel owner, but the NVOCC is liable for the shipment.

Cost of NVOCC Services

The cost of these services varies significantly depending on many factors.

For instance, the quantity of the shipment determines the specific price you’ll pay for these services.

Large consignment is usually more expensive to ship using NVOCC compared to smaller shipments.

The distance is also another element determining the NVOCC shipping cost.

The longer the distance, the higher the charges.

Also, the specific mode of transport used influences the amount payable for this service.

The cost for air, trucking, and ocean freight vary hence determines the specific amount of money you will pay.

Moreover, the NVOCC entity you choose to work with also determines the actual price you’ll pay in the long run.

Even so, it would be important to understand a regulating body often controls the prices for this service.

Ocean freight

How to handle the Unexpected Situations when Shipping with NVOCC

Effective communication is vital.

You need to be in contact with the NVOCC agent at their respective office.

It enables you to know the specific status, and you can find a better solution jointly if need be.

You can raise a complaint to the licensing board regarding the situation, especially if it a case of gross misconduct.

The licensing board will look into the matter and come up with a fair solution to both parties.

How to Determine NVOCC Charges

A Non-Vessel Working Standard Transport(NVOCC) is an ocean carrier that transports stock under its own Home Bill of Recharging.

Or indistinguishable documentation, without working ocean transportation vessels.

Charges at NVOCCs are dictated by the taxes and rates unveiled following the (FMC) Government Sea Commission.

In most cases, you will find that the charges of NVOCC vary broadly.

It is important that you identify a reputable NVOCC services provider to discuss these charges

Also, the levy records are information based on tax distributors.

All the NVOCCs should hold bills of replenishing and related archives for a long time from the date of shipment.

The FMC reviews tax records and loads under levies of authorized NVOCCs practically on interest.

Finally, NVOCCs should not take part in unjustifiable or irrational segregation to treat transporters under taxes.

How House Bill of Lading Compares to Master Bill of Lading

The House Bill of Lading is a necessary document to move a cargo shipment.

It functions as a receipt of cargo benefits, an agreement between a cargo transporter, and an archive of title.

In contrast, a Master Bill of Lading is a record made for delivery organizations by their transporters as a receipt of the move.

The form incorporates the terms for moving the cargo and the distributor’s name.

Or the transporter and the representative, the individual who has the products.

Difference between Carrier Owned Container and Shipper Owned Container

Transporter Possessed Holder likewise saw as a ”COC” is a compartment claimed via transporter.

For this situation, the carrier asserts the Holder and controls most of the entire vehicle chain.

COC is regularly used for standard shipments on very clamoring courses.

Simultaneously, Transporter Possessed Compartment (SOC) gathers that a load holder is claimed by a proctor(consignee) or a holder possessed by the products’ transporter.

An extraordinary piece of a room of this is the cause of confinement or routine arrangement of costs charge and Demurrage portions.

They form part of the charges for drawing out the compartment’s usage.

When the transporter claims the container, it is called Transporter Possessed Holder (SOC).

When the Holder is possessed, worked, or rented by the transporter is called Transporter Claimed Holder (COC) of Carrier Owned Container.

Benefits of Neutral NVOCC

Since NVOCC can probably go as a carrier, they can give their Home Bills of Renewing (HBL).

These provide both the NVOCC and their customers the advantage of time-adequacy.

Consequently, leaving one-less development during the time spent getting your payload from its early phase endpoint.

NVOCC’s gives you more considerable flexibility with rates.

Much of this has to do with the setup associations, and associations kept up by NVOCC’s.

These are now and again prepared to figure out or lower rates on shipments gatherings.

Utilizing an NVOCC can diminish your costs.

Furthermore, an NVOCC works with both upsides of a payload forwarder and a carrier.

And your cargo can get from its beginning stage to objective without the impedances achieved by working with another airline.

NVOCC straightforwardly consents to a cargo arrangement with delivery organizations.

They upgrade venture competitiveness available.

NVOCC acknowledges transfer solicitations of cargo forwarder partners and, in conclusion, gives sea bills of replenishing for the organization’s sake.

Documents NVOCC Issues when You’re Importing from China

Some of the key documents include:

· Bill of Filling (B/L)

The bill of replenishing should have the name of the representative, name of the boat, the inception and objective, and the imprint and amount of the products.

There are two sorts of bills of replenishing.

A non-debatable statement of filling is a straight bill of replenishing.

The products recorded in the packing account must be received by a particular representative on the bill of replenishing at the port destination.

Besides, the conveyor bill of replenishing is negotiable.

In case the transporter may convey the merchandise to the proctor determined in the statement of filling at the port of destination.

Airway Bill

The transportation archive is given via air transporters of their representatives.

It is a receipt of the transporter’s products and the agreement between the transporter and the transporter.

 Airway bill is proof that the transporter is liable for taking care of your products to the assigned objective.

Commercial Solicitations

The record is delivered by the merchant, containing the name, amount, and transfer cost.

Consular Receipt

It is a particular type of invoice issued by the consul of the importing country.

Usually, the exporter fills in a form provided by the importing country’s consular office.

It is done at the customs office of the importing country.

Certificate of Cause

It is a certificate given by the consul of the government of the exporting country.

It certifies the origin or manufacture of goods to be exported.

Import Permit

A few countries require importers permit before the importation of goods.

It is a mandatory document for some countries, while others do not need it.

Fumigation Certificate

It is given to prove that an exterminator has fumigated the goods before exporting and importing them.

Mostly fumigated goods are grains, oilseeds, beans, and other different items.

Packing List

It is a document entailing what is contained in the shipment.

Packing list acts as an alternative form of an invoice.

It gives more details on the credit letter between the seller and the buyer.

Certificate of Hazardous Products

When importing and exporting certain dangerous goods to the environment such as shipping lithium battery, one needs the certificate before importing and exporting.

Insurance Certificates

An insurance certificate is offered by the insurer.

This is when you accept insurance goods during importation and exportation.

Cargo insurance is purchased at the export before shipment.

When goods are lost, stolen, or damaged during the transport, the insurance certificate will claim.

How NVOCC compares to Ocean Freight Forwarder

Ocean Freight Forwarders are agents to transporters who work independently under their own rules.

While NVOCC is carriers to transporters who oversee or hold freight holders.

How LCL Shipping compares to FCL Shipping

FCL is a type of shipments for which all merchandise in a compartment are possessed by one individual.

While LCL includes various transporters ‘products pressed together.

For example, LCL permits you to keep a more modest, more versatile item stock, while FCL is ideal for large and enormous volume items.

Difference between Less than Truckload (LTL) Shipment and Less than Container Load (LCL) Shipping

Less than Truckload (LTL) movements are mainly over the road shipments, while less than container (LCL) is a combination of both ground and water transportation.

Top NVOCC Companies in China

Some of the most common NVOCC companies include:

• Expeditors International of Washington
• Orient Express container
• Apex Shipping
• Phoenix International freight service
• Blue Anchor Line
• Top ocean Consolidation service
• Schenkerocean (Hong Kong)
• Honour Lane Shipping
• Henchy Shipping
• Ceva Logistics
• SDV/Boll ore Group
• Nippon Express
• Sino trans Limited
• Pantos Logistics
• Hellman Worldwide Logistics
• Kintetsu World Express
• Zhen Hua Logistic Group
• Keene + Nagel Inc.
• Sipco Transport Ltd
• AONE (HK) Cargo Service Co Limited
• Shenzhen Jialing International Freight Agency

How NVOCC Business Models Works when Importing from China

When NVOCC takes part in transportation, it gets into a contract with the client, issues transport reports (FCT, FBL), and bears liabilities for the transport.

NVOCC ensures it engages in legal transportation during shipment.

The NVOCC Plan of importing from China is in three categories.

1) Carrier – type NVOCCs

Such NVOCCs complete transport exercises on their transport courses, recognize the transportation items, issue bills of filling, and bear liabilities for adversities or damage to the product during transportation.

They convey the products to real carriers, receive the goods at the destination, and then deliver the consignee’s goods.

They are legally binding transporters and don’t complete the transportation themselves.

2) On – Carrier Type NVOCCs

Such NVOCCs only take part in the shipment.

They have several branches at various destinations, get products from transporters, and issue bills of filling.

After this completion, they then continue with transportation, transit, and ship goods to carriers.

The carriers then complete the transport, by receiving goods at the destination and then deliver new goods to the consignee.

3) Broker – type NVOCCs

This type does not directly provide transport services for shippers.

Instead, they take goods and deliver them in smaller packages to on- carriers.

This depends on the mode of transportation and directions then issue a bill of lading.

How to Verify NVOCC in China

Find the organization’s location, address, and the profile from the website on the internet.

In most cases, organizations will send their business license to potential clients.

You will use this to verify NVOCC in China.

If the information prov

Today, I will answer all questions you have been asking about another important import document – pro forma invoice.

You’re going to learn everything including what it is, the content, how it works, who issues the document, its purpose, among other important aspects.

Keep reading to learn more.

What is a Pro Forma Invoice?

A pro forma invoice is a shipping document that is sent by the seller to the buyer before the shipment of goods commences.

This document describes the items being purchased together with any other information regarding the shipment and payment of the goods.

Not forgetting that it also helps in calculating the cost estimates of your shipment.

Why do you need Pro Forma Invoice when Importing from China?

Sample pro forma invoice

There are several reasons as to why a pro forma invoice would be quite necessary when importing from China.

Some of the reasons why most importers use a pro forma invoice when importing from China include;

• Calculating cost estimates – When importing from China, a pro forma invoice will help in coming up with cost estimates of the shipment.
• A pro forma invoice facilitates smooth operations when goods are passed through customs.
• With a pro forma invoice, you can easily change your order if the need arises. You will only be required to update and convert your pro forma invoice into a full invoice.
• A pro forma invoice comes in handy in times when you are lacking the full details for a commercial invoice.
• Additionally, a pro forma invoice will help boost your profits as a business.
• A pro forma invoice also acts as a binding agreement ensuring that buyers know what they’re committing to.
• When importing from China, some financial institutions might use a pro forma invoice to open the letter of credit.
• A pro forma invoice is important in examining and reducing errors as the terms are clearly outlined.
• Not forgetting that a pro forma invoice forms a basis for bookkeeping as well as accounting.
• A pro forma invoice declares the value of the goods for customs which in turn helps speed up the payment process.

What is the difference between Invoice and Pro Forma Invoice?

A pro forma invoice refers to a trade document provided by the seller to the buyer giving clear information on what the buyer should expect from the sale.

In simple terms, a pro forma invoice states the quotation before you make your order.

On the other hand, an invoice serves as a proof of sale between the buyer and the supplier outlining the total amount to be paid.

An invoice will be issued after your order has been cleared.

Sample Invoice

Can you Pay Chinese Suppliers on Pro Forma Invoice?

No, you can’t.

A pro forma invoice is primarily used to clarify or establish the terms of a particular order and cannot be used for payment or accounting purposes.

However, there are several other payment methods that Chinese suppliers accept such as PayPal, wire transfer, and telegraphic transfers among others.

Can Pro Forma Invoice be cancelled when Importing from China?

No, it cannot be canceled.

However, you can choose to change the status of the same.

A Pro forma invoice doesn’t have any impact on accounting and therefore cannot be canceled.

Cancellation can only apply to account documents.

How do Pro Forma Invoices Work?

A pro forma invoice is a bill of sale sent by the seller to the buyers before the delivery of goods.

It is meant to ensure an efficient sales procedure.

Before you understand how a pro forma invoice works, let’s first have a quick look at contents of a pro forma invoice;

• The Payment terms
• The total amount due
• Reference number
• Buyers and seller’s contact details
• Country of origin
• The incoterms applicable
• All taxes including VAT
• Date of issue
• Signature and the title
• The unit pricing
• Description of the goods

After the seller sends the pro forma invoice, the buyer goes through it and decides whether or not he agrees to the invoice.

This includes the price indicated, the quantity of goods to be delivered together with any other inclusions contained in the pro forma invoice as stated above.

In as much as it includes cost details, a pro forma invoice does not demand payment of goods.

Its main purpose is to streamline sales operations as all terms are agreed upon upfront.

After the buyer is satisfied with the pro forma invoice, he or she issues a purchased order to the seller, and thereafter the sales process begins.

How does Pro Forma Invoice vs Commercial Invoice Compare?

Commercial invoice

Pro forma invoice and commercial invoice are two important documents in the import and export industry when dealing with any type of client.

One of the most asked questions is whether or not these two are the same. The answer is no.

A pro forma invoice and commercial invoice differ in a manner that;

Pro forma invoice is issued before the commencement of sales whereas a commercial invoice is issued after the acceptance of the sales contract.

To gain a better understanding of the two, here is a brief description.

Once a buyer shows interest in making a purchase, the seller sends him or her a pro forma invoice.

The invoice is meant to give the buyer a clear understanding of what he or she should expect.

After going through the pro forma invoice and accepting the terms stated, the buyer sends a purchase order or letter of credit to the seller.

It’s at this moment that the sales process begins as per the date stated in the pro forma invoice.

A commercial invoice prepared by the seller is sent to the buyer for the confirmation of sales made.

The contents of both the pro forma invoice and commercial invoice are more or less the same.

Nevertheless, the price might differ because the price stated in the pro forma invoice is not final.

Can you use Pro Forma Invoice for Advance Payment?

Yes, you can.

A pro forma invoice can be used to serve as a request for payment of goods that haven’t been sold yet.

In addition to that, it speeds up the payment process as the buyer is aware of what he owes to the seller.

How does Pro Forma Invoice vs Quotation Compare?

In as much as a pro forma invoice and a quotation might appear to serve the same purpose, they are different from each other.

A quotation refers to a document sent to the buyer detailing the goods needed together with their estimated costs.

On the other hand, a pro forma invoice is issued before the sales process and its main purpose is to give a clear outline of what the buyer should expect.

As compared to a pro forma invoice that shows commitment to a particular purchase, a quotation is normally sent in case of any inquiries.

Who Issues Pro Forma Invoice when Importing from China?

A pro forma invoice will be issued by your Chinese supplier.

They are responsible for preparing and sending you the pro forma invoice.

Sample pro forma invoice

Is there Specific Format for Writing Pro Forma Invoice?

Yes, there is.

Pro forma invoices have a specific format.

Preparing a pro forma invoice has been made simpler by the availability of several pro forma invoice templates as well as software.

Depending on your choice and preferences, you can choose one that is suitable for your business.

How do you Prepare Pro Forma Invoice?

The presence of several templates online has facilitated easier and faster preparation of pro forma invoice.

Once you download a template that best suits your needs or rather business, the next step will be to fill in your pro forma invoice.

First, fill out your contact details and business name.

You can also choose to customize it using your business logo.

Also, fill out your clients’ contact details, name, and business information.

Thereafter, include the payment due date, a unique invoice number as well as the invoice date.

Make sure that you have all the goods and services listed together with their costs.

Finally, do a calculation of the total costs and include them at the bottom part of your invoice.

Ensure that you have added the payment terms as well as any other additional information and specify that the pro forma invoice is “not a VAT invoice”.

Having done all these, your pro form invoice is ready to be sent to your buyer.

What is the Content of Pro Forma Invoice?

A pro forma invoice has a couple of contents that must not be omitted at any given time. Some of these contents include;

Content of Pro Forma Invoice

• The contact details of both the buyer and seller
• The terms of payment
• A full description of the goods in question
• The total amount due
• The date of issue
• Country of origin
• The seller’s banking details
• The unit pricing
• Incoterms applicable
• The reference number
• Signature and the title
• The validity of the pro forma invoice
• Al taxes applicable including the VAT

Can you use Pro Forma Invoice to Pay for Imported Goods from China?

No, you can’t.

Keep in mind that a pro forma invoice is not an actual invoice, it’s a “dummy” invoice.

Therefore, it’s not suitable and cannot be used for accounting purposes.

Is there Standard Format for Pro Forma Invoice?

No there isn’t.

A pro forma invoice can take different formats based on the seller’s preferences.

The different formats available are designed to suit different functions such as retail, services, as well as contract pro forma invoices among others.

Should Pro Forma Invoice include VAT?

Including VAT in a pro forma invoice is not mandatory.

However, including it in your pro forma invoice attracts other benefits such as;

• Creating awareness about the total amount to pay which in turn prevents any form of misunderstanding about the costs later on.
• Including a VAT will make it much easier and faster for you to convert the pro forma invoice into an invoice. To achieve this make sure that you make use of the same template.

What is the Difference Between Purchase Order and Pro Former Invoice?

A purchase order (PO) refers to a commercial trade document prepared and issued by the buyer to the seller to show interest in the purchasing of goods.

Once the supplier or seller receives the purchase order, he or she sends a pro forma invoice to the buyer.

The pro forma invoice states what the buyer should expect in terms of payment, delivery, and description of the goods among others.

What comes First – Purchase Order or Pro Forma Invoice?

A purchase order comes first followed by the pro forma invoice.

Remember a pro forma invoice is sent after the buyer sends a purchase order which shows the buyer’s interest in buying goods.

Does Pro Forma Invoice have a Number?

No, it doesn’t.

Invoice numbers are only held in reserve for finalized or completed invoices.

Who Signs the Pro Forma Invoice?

A pro forma invoice is signed by the buyer once he or she accepts the terms in the pro forma invoice.

Thereafter, the buyer submits the pro forma invoice together with a purchase order to the supplier.

What are the Best Practices when Creating a Pro Forma Invoice?

When creating a pro forma invoice you need to make sure that it is effective.

By this I mean, it should be easily understood, and be straight to the point.

To achieve this;

• As a buyer, ensure that you don’t mark the pro forma invoice as account payable. Keep in mind that the pro form invoice is only meant to clarify what you should expect and that you haven’t made any purchases yet.
• Including the dates is an important factor to remember as prices of goods and commodities fluctuate from time to time.
• As a seller, you should not mark the accounts as receivable as you are yet to make any sales.

When should you use a Pro Forma Invoice?

Pro forma invoices are important for most if not all types of businesses involved in buying goods and services.

Here are some instances that will prompt the use of a pro forma invoice;

• When acquiring import permits.
• A pro forma invoice can be used when paying for custom duties.
• Additionally, you can use it when opening a line of credit for a particular purchase.

Not forgetting that Pro forma invoice is applicable in most industries not excluding; manufacturing, import/export, wholesalers as well as trading industries among others.

What is the Validity Period of a Pro Forma Invoice?

The validity period of a pro forma invoice varies from one business to the other.

The validity is as stated on the pro forma by your supplier.

Is a Pro Forma Invoice Legally Binding?

No.

A pro forma invoice lacks legal validity and therefore it is not legally binding to either party.

It is used to highlight the terms of sale once an order is made.

I hope you this guide did answer all your questions on pro forma invoice.

In case you have any additional questions, Tj chinafreight team is here to help.

This guide will take you through the machine shipping from China process.

It’s starts by helping you identify the machine, evaluate costs, choose Incoterms to actual shipping process.

By the end of this guide, you can easily ship any machine from China.

Keep reading.

Identify the Machine to Import from China

The machine manufacturers in China have invested in technology, human capital, and general capacity building.

This makes it easy for many importers to procure machinery from China.

Even so, it is vital to confirm the type of machinery you’re seeking to import from China.

You must identify your area of specialization.

Picking the wrong machine is a complete waste of resources and time.

Where possible, you can obtain product information, test reports, and descriptive literature.

It could be pharmaceutical, food processing, milling packaging, packaging, and home improvement, among others.

Capsule filling machine

It is the only way of ensuring you get equipment, which meets your demands.

Some of the common machines you can import from this country include the following;

• Agriculture/food production machines
• Compressors
• Welding machines
• Engines
• Packaging and printing machinery
• 3D printers
• Lathe machines
• Pharmaceutical machines
• Roll forming machines
• Refrigerator and air conditioner
• Turbines
• Brewery equipment
• Washing machine
• Injection molding machines
• Industrial sewing machines
• Milling machines
• Wheel loaders
• Floor care machines
• Labeling machines
• Vending machines
• CNC machines
• Laser cutting machines

Other than the machines, you can as well find different components and accessories for the same.

It is vital since it enhances efficiency in the overall operation.

Find a Machine Supplier in China

It is arguably the most critical aspect of importing machinery from China.

Finding the supplier is what determines whether or not your efforts, resources, and time will be worthwhile.

You must do thorough background research of your preferred suppliers.

You must delve into details to identify various elements revolving around their modus operandi.

You can find a supplier by searching online.

Most of them have webpages, which you can easily access and asses on the internet.

You can as well choose to visit the warehouse physically.

It will enable you to find and negotiate with the supplier on the ground without involving third party.

Most machinery suppliers are located in the eastern provinces of China.

If you’d wish to visit them, you can fly to Shanghai and connect the provincial cities with a high-speed train.

If you’re unfamiliar with the exercise, it would be ideal to hire services of a sourcing agent.

It is the best approach to consider, especially if you do not understand the dynamics of this trade.

If you are looking for a reliable and reputable machine sourcing agent in China, you may consider Tj chinafreight.

Upon finding your preferred one, you will agree on various basis regarding the payment methods and suitable incoterms.

It then allows you to initiate the buying process, which eventually leads to shipping and delivery of the machine.

Know the Location of the Machine

While finding the supplier, it is imperative also to know the exact location of the machine.

The manufacturers are spread in various regions of the country.

You thus need to ensure you determine where the warehouse is situated when buying the machinery.

It enhances efficiency, particularly when you are visiting the place physically.

It also helps to organize various logistics, especially for inland transportation.

While determining the location of machinery also figure out whether or not it is acceptable in your country.

Ensure your Country Permits the Importation of the Machine from China

Some governments have banned the importation of certain equipment on various grounds.

Before importing any type of machine from China, establish whether or not it is acceptable in your country.

As an importer, it’s your responsibility to ensure the machinery conforms to the specific rules and regulations.

Transporting excavator for shipping

The machines you are importing must also exhibit compliance with the safety and health code requirements.

Compliance with local machinery regulations is binding.

Importing machinery, which violates restrictions, might culminate in a costly and inconvenient affair.

You’ll end up paying hefty fines and penalties.

In some instances, importing non-compliant machinery often results in seizure of the units by customs authorities.

At times, the equipment may face a forced recall and probably destroyed.

Also, make sure the machine meets the required mechanical and electrical quality standards a country or market has set for the units.

For instance, the European Union has a CE Machinery Directive (MD), applicable to any type of equipment manufactured in the EU region or imported to the region.

The machinery must also be compliant to the mechanical and electrical regulations.

Also, the supplier must provide a declaration of conformity and technical certification.

In the US, ASTM is the commonly used standard for most imported machinery.

Different ASTM standards apply to different types of product units.

Additionally, the machine you are importing can as well be subjected to other consensus standards administered by various organizations.

Such standards include UL, ANSI, RIA, and ISA, among others.

Nevertheless, in Australia and New Zealand, imported machinery is not necessarily regulated by a uniform set of standards.

Evens so, various directives apply to different types of product units.

Some of the common standards, however, include AS/NZS and ERAC Equipment Certification System, among others.

Most countries, in general, accept machinery, which complies with American and European standards.

Some of the common machinery quality standards include ISO, CE, SGS, RoHS, and HQTS, among others.

The compliance rates in some industries can be as low as 5%.

Therefore, you must understand the directive and standards relevant to the market you are importing to.

Choose Mode of Machine Shipping from China

In essence, the meticulousness helps to make sure the machine stays safe and in right position during transportation.

This prevents it from possibility of damaging during the transit process.

When importing machinery from China, there are three major modes of transport you may want to consider.

They include the following;

· Sea Freight from China

It involves using water vessels to ship the machinery from loading port in China to the destination port in your country.

Upon clearance, the machinery is packed in containers then loaded into the sea vessels.

You can opt for an LCL or FCL container depending on the size and quantity of the machinery.

You can as well choose either based on your budget and urgency for the shipment delivery.

The choice for an ideal sea freight carrier from China depends on numerous factors.

You need to consider whether or not it plies your route.

You must also consider the overall cost for the carrier before settling on one.

Some of the popular sea freight carriers you’d need to consider for this service include the following;

COSCO Shipping Line

• COSCO
• Evergreen Line
• Yang Ming Marine Transport
• Ocean Network Express
• CMA- CGM
• Mediterranean Shipping Company
• APM-Maersk
• Hapag-Lloyd

Sea freight is comparatively cheaper than any other mode of machine shipping you may think of.

Secondly, this shipping mode allows you to carry bulk items conveniently. Most machines are designed to be bulky or come in numerous pieces and accessories.

It is thus imperative to consider sea freight since it guarantees safer and convenient shipping for any quantity, size, or type of machine.

Even so, it is a bit slow, and in some cases, it can take up to about 60 days to reach the destination port.

It is thus essential to always work with a reliable schedule to prevent a last-minute rush.

Also, sea freight needs a competent freight forwarder to enhance efficiency of the entire process.

· Air Freight from China

China southern cargo

It merely entails use of cargo planes to transport machinery from China to the country of destination.

These airlines have a subsidiary entirely dedicated for transporting cargo by air.

Airfreight is arguably the fastest mode you can utilize for machine shipping.

Upon clearance of the unit, it is transported to the airport via trucking then loaded to the cargo plane.

Several cargo carriers provide air freight services for shipping different types of machines.

Some of the popular ones you can use to ship equipment from China include the following;

• China Southern Airlines
• British Airways
• Air China Cargo
• Qatar Airways
• Lufthansa
• American Airlines
• Singapore Airlines
• Xiamen Air
• Air Cargo Global
• Qantas Airlines
• Cathay Pacific
• Delta Airlines

Some of the aspects to look into when choosing air freight carrier include convenience, cost, time-taken, and specific routes they ply.

One advantage of using air freight is swiftness.

You get your consignment within the shortest time possible.

In some instances, you can receive the units within hours, depending on your destination.

This is vital, especially if you have a tight deadline, which you have to meet.

It is also a safer option to consider for shipping machines.

However, air freight for machine shipping never comes cheaply.

It is an expensive option to consider, particularly if your destination is a bit far from China.

Airfreight is often charged based on the weight of the consignment.

Machines are typically, heavy and it thus means you’ll have to spend a significant amount of money.

The second shortcoming of this machine shipping mode is space limitation.

Ideally, the size and quantity of machines you are shipping is limited to availability of air craft’s space.

The bottom line is if you have a flexible budget and in need of the machines urgently, you may consider air freight.

But ideally, it is not necessarily the best mode for shipping machines

· Rail Freight from China

It involves using a cargo train to transport machines from China to the destination country.

Rail freight is also reasonably affordable compared to air freight.

However, one of its limitations is that it is restricted to specific regions.

For instance, the Silk train route covers specific countries between China and Europe.

The other shortcoming of rail freight is it crisscrosses different countries’ borders.

Every country has its rules and regulations regarding imports and exports.

Some countries where the train transverses may not approve the machines you are importing due to various directives, rules, and restrictions.

The bottom line is there is flexibility when it comes to finding the ideal shipping modes for machines from China.

Importantly, is to determine the most efficient method, which meets your demands.

In most instances, though, sea freight is seemingly the perfect choice for machine shipping from China.

Know the Airport/Port of Departure and Airport/Port of Destination

Machine shipping involves transportation of the units to the relevant airport or port of departure.

It also entails transporting the machinery from the airport or port of destination to the buyers’ factory or warehouse.

These are usually referred to as inland transportation.

It is imperative to know these two types of ports.

In China, you can choose to use different airports and sea ports, depending on the location of your supplier.

For machinery, ports and airports attached to cities in eastern provinces would suffice.

More than 50% of China’s machinery exports come from cities in the eastern provinces of Jiangsu, Shandong, and Zhejiang.

Some of the major airports of departure in China you may consider using include,

• Shanghai Pudong International Airport
• Hangzhou Xiaoshan International Airport
• Shenyang Taoxian International Airport
• Shanghai Hongqiao International Airport
• Dalian Zhoushuizi International Airport
• Ningbo Lishe International Airport
• Wenzhou Longwan International Airport
• Jinan Yaoqiang International Airport
• Qingdao Liuting International Airport
• Sunan Shuofang International Airport
• Yancheng Nanyang International Airport
• Yantai Penglai International Airport

The common sea ports of departure you are likely to use for machine shipping in China include the following;

• Port of Weihai
• Port of Suzhou
• Port of Shanghai
• Yangshan Port
• Port of Yantai
• Port of Shenzhen
• Port of Guangzhou
• Port of Ningbo-Zhoushan
• Qingdao Port
• Qingdao Qianwan Container Terminal

The specific choice is subject to various regulations and government directives regarding machinery exports.

In essence, this knowledge helps in reducing transportation costs.

Machines are typically, heavy and you’ll need to pay more for longer distances.

But the airport or port of destination would entirely depend on several factors.

For example, your government directive for such imports and distance from your warehouse, processing plant, or factory.

On the other hand, sea port or airport of destination is entirely dependent on your preference and your government directives.

Some countries must use a single airport or sea port for all imports.

If otherwise, you may as well consider checking with your customs department to determine the best one.

Knowing the airport and sea port of both ends helps in cutting costs and unnecessary inconveniences significantly.

Calculate Cost of Machine Shipping from China

If you understand the tenets of machine shipping, you can project a rough estimate of the total cost.

Some of the elements, which you need to figure out when calculating cost of machine shipping include these;

1. Tips for Reducing Cost of China Heavy Machinery Shipping

You have to know how to cut costs when shipping heavy machinery.

You may consider the following;

• Pick a regional carrier
• Negotiate with different carriers to determine the cost-effective option
• Use online shipping services where applicable
• Ensure your suppliers are using your shipping account number
• Obtain an insurance cover for the heavy machinery shipment
• Invest in a prepaid shipping system
• Use the service of a reliable shipping agent

2. Choose Appropriate Incoterms for Machine Shipping from China

For machinery, you have to be particular when it comes to choice of incoterms you are using.

It plays a significant role in determining the overall cost of shipping.

You must negotiate with the supplier to determine the feasible incoterm for shipping heavy machinery.

Some of the ideal options include the following;

• Free on Board (FOB)
• Cost Insurance Freight (CIF)
• Ex Works (EXW)
• Delivered At Terminal (DAT)
• Delivered At Place (DAP)

To reduce shipping costs, it is advisable to order on FOB terms from your supplier and DAP shipment from your forwarder.

Where possible, avoid using CIF terms.

It entails several hidden charges, which in the long run, tend to inflate the overall landed cost.

3. Calculate Duty/Taxes during Machine Shipping from China

Duty or taxes for machine shipping vary from one country to another.

You have to know the category of the machinery you are importing to calculate duty.

The customs authority in every country determines evaluation of taxes and duty for machinery.

Duty is determined as a percentage of the customs value of the product unit.

4. Know the Cost of the Mode of Shipping

Each shipping mode for machine shipment is priced differently.

The choice is always dependent on various variables.

However, for heavy machinery, sea freight is relatively cost-effective.

Find and compare rates from different carriers before settling on one.

The cost of, course will vary depending on the port of destination from the port of loading in China.

5. Factor in Logistics Cost during Machine Shipping from China

Logistics costs primarily involve the charges for other special services in machine shipping.

Lift-gate and inland transportation form the major expenses of logistics from the warehouse to port of loading.

On the other end, loading and trucking of the consignment to supplier’s warehouse also form logistic expenses.

Ideally, you have to factor in all these plus other minor expenses involved in the process.

It enables you to determine the approximate cost for machine shipping.

6. Calculate Landed Cost in China Heavy Machinery Shipping

Landed cost is generally the total price of the shipment once it arrives at the importer’s warehouse or doorstep.

Landed cost, in other words, is the actual amount of money the importer spends to acquire the machinery to their warehouse.

It gives you the final figure of the amount it cost you to import the machinery from China.

How Freight Forwarder Help Reduce Cost of Machine Shipping from China

In general, the entire machine shipping process can be a costly exercise.

A freight forwarding agent can help you to cut on the overall cost in the following ways;

• Preventing delays and detention of shipments

There is no shipment, which is immune to delays. Several aspects often result in delays of a consignment.

However, as normal as it may sound, the worst bit arises from the chargeable fees for goods after Last Free Day (LFD).

A freight forwarder is more likely to hasten the process and prevent the consignment from delaying beyond deadline.

They monitor the progress and turn of events as they keep their eyes on the deadline date.

· Providing more Affordable Shipping Solutions

A freight forwarder like Tj chinafreight deals with hundreds of shipping carriers.

It becomes easy for the agent to suggest and provide a relatively cheap carrier if you are on a tight budget.

In a great way, it helps in reducing cost, which possibly you wouldn’t have foreseen.

· Facilitating Advance Customs Clearance

A freight forwarder knows how to deal with all the demands at the customs.

It will save you time and resources moving from one office to another, trying to clear with the customs department.

· Determining the Right Container

A freight forwarder will assess the size of the cargo and suggest the right type of container, which suits it.

Container sizes usually vary, so is the cost.

It will allow you to save on cost and time as well, depending on the quantity of your shipment.

· Facilitating Special Services

Special services in machine shipping include lift-gate, inland pick-up, and delivery, as well as limited access, among others.

These services can be relatively expensive since you’ll possibly be dealing with independent providers of the same.

A freight forwarder often works with such service providers quite often.

It thus becomes easy to seek, find, and negotiate with some of the best ones at affordable rates.

Conducting Factory Acceptance Test (FAT) for the Machine

The ideal way to conduct a FAT for the machine is by performing an on-site quality inspection.

You can choose to do it yourself or hire an inspecting agent based in China.

While performing FAT, you should never limit it to a simple component checklist and visual control.

Ensure you involve actual functional testing.

If the minor defects and functional errors are detected, the factory workers can resolve them immediately.

Functionality inspection is a significant part when importing machines from China.

Always verify the machine is fully functional.

Also, ensure it is compliant with your quality demands before shipping.

In China, it is almost impossible to return defective items.

The Chinese customs authority will hardly allow them to get back to the country.

And in a few instances, they agree, a refund from the supplier is never guaranteed.

The best would be to revamp and re-ship it to you after paying all the relevant costs.

Documents for Machine Shipping from China

Machine shipping documents from China are quite a number.

However, in some instances, they tend to vary depending on different policies for different countries.

Shipping document

Several nations also have wide-ranging bilateral agreements with China as far as importation of machinery is concerned.

In most cases, this leads to exemptions in terms of paperwork requirements for machine shipping.

Nonetheless, the standard documents you must always have in this case, include the following;

• Commercial invoice
• Bill of lading
• Packing list
• Bill of entry
• Insurance certificate
• Technical write-up
• Test report
• Import license
• Country of origin certificate

Understanding and Evaluating Liability Limits for Machine Shipping from China

Liability limits refer to a concept, which allows a carrier to limit the liability for claims.

The liability claims are limited up to a specific sum irrespective of the actual monetary value of the claim.

Every machine shipment has limited liability coverage.

The carrier determines this amount and it depends on the type of machinery you are shipping.

In liability limitation for machine shipping, the carrier may be liable in principal.

However, the extent of its liability is reduced by this limitation.

Consider Safe Mode of Packaging for Machine Shipping from China

It is necessary to ensure your machinery is sufficiently packaged and wrapped before and during shipping.

It helps in protecting the unit from a dusty factory floor or damp warehouse.

Most suppliers tend to use substandard export packaging materials.

So you have to ensure your cargo is protected using the following checklist;

• Five layers of inner cartons
• Five layers of outer cartons
• Plastic wrapping on the outer carton
• Pallets
• Printed freight remark on the outer carton

At this point, the supplier should have clear and explicit packaging specifications.

Never let any chance for their interpretation.

Other than export packaging for protection, you also need to take into account the regulations safeguarding the same.

Also, remember to consider the labeling aspect during packaging.

It comes in handy when the machine you’re shipping shares container space with cargo from other buyers.

You must also confirm the various shipping regulations applicable in your market and product unit.

Book Vessel/Space for Heavy Machinery Shipping from China

Ideally, the best mode of shipping machinery is sea freight considering they are bulky and heavy.

Whenever you’re shipping machinery, you have to ensure you book a vessel for the same.

Booking a vessel should be done in advance, especially if you are going for an LCL.

Heavy machinery is always treated as special hence the need for early booking.

It enables the carrier to preserve enough space for the shipment.

Several consignees are required for LCL; hence may take longer to book it.

If the machinery exceeds 12 cubic meters, it would be ideal to consider booking an FCL.

It is even cost-effective to go for this option.

Loading Machine Ready for Shipping from China

Loading container at the port

You can agree with the supplier to facilitate transportation of the machine to airport or sea port of loading.

Alternatively, you can task your shipping agent with this responsibility.

Once the consignment arrives at the port of loading, all the clearance formalities are undertaken.

The Chinese customs authority ensures details on the export documents match the content of the cargo.

Fortunately, you do not necessarily need to pay export taxes when importing from China.

Even so, other costs related to export clearance documents are chargeable at varying rates.

The consignment is loaded to the identified vessel as a way of preparing it for transit.

After loading, the consignment may take a few days awaiting the vessel to load cargo from other buyers.

Track Cargo During Machine Shipping from China

It is suitable to seek tracking assistance from independent service providers.

Machine shipping ordinarily takes time.

It is always appropriate to know the status of your cargo upon leaving the port of loading.

On the contrary, small businesses rarely deal directly with shipping lines.

Instead, it is outsourced from a freight forwarder, who seeks an ideal shipping line.

Tracking your cargo requires you to know the shipping line transporting it, booking number, container number, or document number.

All these details are available in the Bill of Lading.

If you do not find the container number, the Bill of Lading number should suffice tracking purposes.

Receive Machine at Airport/Seaport of Destination

Once the machine arrives at the airport or sea port of destination, the next cause of action is receiving it.

You may decide to either pick it up yourself at the port of destination or ask your shipping agent to do so.

However, the shipment has to go through the routine customs clearance procedures at the port of destination.

The clearance process for machinery is quite thorough.

The verifications are meticulous to ensure the machinery meets all the required quality, safety, and health standards.

You’ll also need to pay the import duty accordingly for customs clearance.

Transport Machine to Warehouse

The machine is loaded on a truck from the sea port or airport to your warehouse.

You can decide to pick it up yourself or seek the services of a shipping agent to coordinate transportation to your warehouse.

The cargo is transported and arrives in your warehouse in a specific location, as instructed.

You can then have your team to unload it from the truck.

Also, your team can inspect and test it to ensure it is functioning appropriately.

Moreover, you can assemble the machine if at all, it was imported while dismantled.

Conclusion

At Tj chinafreight, we offer an all-in-one machine shipping solution.

We assist you in seamless and effortless shipping of the machine from the supplier’s warehouse floor to your precise location.

Feel free to contact us for any machine shipping needs from China to any country in the world.

Before you import from China, you need an inspection certificate.

Without it, some countries will not allow products within their jurisdictions.

Below are critical aspects you must know about inspection certificates.

What is an Inspection Certificate?

An inspection certificate refers to a trade document that certifies the conformity of goods to terms stated in a sales contract.

It ensures that the quality, quantity, import eligibility, price of goods for customs purposes, and tariff classifications are appropriately met.

An inspection certificate is mainly issued by an inspection company and does not apply to all types of goods.

Some of the goods that might need an inspection certificate include perishable items and industrial equipment among others.

Sample of inspection certificate

What is the Importance of Inspection Certificate in Import-Export Business?

An inspection certificate otherwise referred to as pre-shipment inspection certificate is important in the import-export business in the sense that;

• Guarantees quality of goods – All goods are thoroughly inspected to meet the desired quality expected not only by the importer but also by the consumer.
• Ensures that the quantity of the goods is as stated in the sales contract.
• An inspection certificate serves as a piece of evidence for any future claims by a 3rd party.
• Reduces risks associated with imports and exports such as frauds.
• An inspection certificate prevents the use of fake transport documents such as the Bill of lading.

Who Issues Certificate of Inspection when Importing from China?

An inspection certificate is issued by a general inspection company. Some of the inspection companies that issue inspection certificates in China include;

• The General Administration of Quality Supervisions, Inspections and Quarantine of P.R.C (AQSIQ)
• China Council for the Promotion of International Trade (CCPIT)

What Details should Inspection Certificate have?

Some of the contents that an inspection certificate has are not limited to;

• Date of issue
• Date of inspection
• Place of inspection
• Applicant contact details
• The country of origin
• The description of the goods
• Number and date of the pro forma invoice
• The insurance policy number
• Number of packages
• The number and date of the bill of lading
• The gross weight
• Port of discharge
• Contact details of the supplier
• The code number of the custom tariff
• Type of packing
• Place of issue
• The name and signature of the authorized person

How do you Know the Authenticity of Inspection Certificate?

Before purchasing your products, making sure that they are certified is a key factor.

However, when importing from China, you should beware of fake certificates.

This includes fake inspection certificates.

For you to authenticate your inspection certificate here are some tips you might consider;

A real certificate will be issued in PDF format.

• Any other certificate issued as .doc, .jpeg, .png, or scanned document should be an alarming factor.
• Do your research – By this, I mean contact your inspection company and request to verify the certificate from their online database. Note; not all companies will agree to participate in this. Therefore it’s also crucial to wisely choose the inspection company you are working with.
• Alternatively, you can easily do your research on Google and confirm if your inspection company is certified.

As the buyer, most of the responsibility is inclined to you.

Therefore, make sure that you have the right documents to avoid any risks afterward.

What is the need of Pre-shipment Inspection?

Pre-shipment inspection refers to inspecting goods before the actual shipment begins.

It confirms that the goods in question have met the terms as stated in the sales contract.

Here are some reasons why pre-shipment inspection might be of great importance to you;

• A pre-shipment inspection confirms that the products are in good condition and without any malfunctions.
• Ensures that your goods have met the expected quality as well as quantity.
• A pre-shipment inspection also issues reports for billing as well as import.
• Your product safety should be one of the most important factors to consider. A pre-shipment inspection will ensure that your goods have met the required safety standards for the market.

What Types of Inspection do you need when Importing from China?

When importing from China, there are several inspections that you need to conduct.

Investing some little cash in the inspection procedures might save you from risks as well as inconveniences later on.

Quality and safety inspections are one of the most important types of inspections for any importer to invest in.

Here are four main types of quality inspections you will need when importing from China;

· Pre-shipment Inspection (PSI)

As the name implies, pre-shipment inspection is conducted after the production process has been completed.

· Pre-Production Inspection (PPI)

Pre-production inspection otherwise referred to as Initial Pre-production Checks is carried out before the production process commences.

The materials, as well as components used in the production of your goods, are tested to ensure that they meet your requirements.

· Container Loading Check (CLC)

Soon after your goods have been produced and loaded into containers, a container loading check will be conducted.

Its main purpose is to check that the packaging materials, barcodes as well as labeling are as per your requirements.

· During Production Check (DUPRO)

Performing early checks on your goods are important as such will prevent you from experiencing delays and other inconveniences later.

For this, you will need to perform a During Production Check (DUPRO).

As compared to other inspections, during production check inspection is carried out while goods are still in the manufacturing process.

For this to be carried out, 10% to 50% of your goods should be completed and packaged.

Components are then picked randomly and tested to ascertain if they meet your product specifications.

Is there a Specific Inspection Certificate Format for Export in China?

Yes, there is.

Inspection certificates for export in China have a specific format as they are also different from other export documents.

When should you Request for Third-Party Inspection Certificate in Import-Export Business?

SGS Inspection certificate

You can request for a third party Inspection during the production stages or before packaging of goods.

A third party inspection is carried out by an inspection company to ensure that the quality, safety as well as performance standards are complied to.

This is an ideal option if you want a thorough inspection without having to travel to China.

However, most if not all inspection companies request upfront payment.

Your inspection company will either provide you with a “pass, fail, or pending answer after conducting the inspection.

There are several third-party inspection companies in China and making use of them might save you big time from the unforeseen risks.

What is included in the Report after a Third Party Inspection?

After the inspection is finalized, the inspection company will submit a report regarding the inspection conducted.

The report should include the following;

• The number of shortcomings found in inspected components.
• The type of defects found in the inspected units
• The total amount of the finished and packed goods in the factory. This will ensure that your order quantities, as well as production timelines, are met.
• Photos of the inspected goods, test results together with any other findings
• Safety, performance, and functionality results for any on-site testing.

Third-party inspectors are there to represent you when visiting the factory and should not have any form of relationship with the staff.

Failure to this might result in integrity issues.

Is there a Validity Period for Certificate of Inspection?

Yes, there is.

The validity period of a certificate of inspection is 5 years after which you will be required to apply for a new one.

Keep in mind that you might be denied the certificate of inspection if by chance your products fail to have maintained the required standards.

Are there Countries that don’t Require a Pre-Shipment Inspection Certificate?

Yes, there are.

However, most if not all countries advocate for a pre-shipment inspection certificate.

Some of the countries that require a pre-shipment inspection certificate include;

Cambodia, Kenya, Iran, India, Indonesia, Congo (Brazzaville), Niger, Senegal, Togo, Mexico, Mauritania, Ethiopia, Kuwait, Sierra Leone, Malawi, Mali, Central African Republic, Bangladesh, Benin, Guinea, Mozambique, Cameroon and Comoros among many others.

Are all Certificate of Inspection the Same?

Not all certificates of inspection are the same.

There are different types of inspections available and therefore the tests and reports vary from one inspection to the other.

Some of these inspections include;

• Pre-production inspection
• Pre-shipment inspection
• Container Loading Supervision
• Post shipment inspection
• During production inspection

When is Inspection Certificate Issued?

An inspection certificate is issued after completion of a related inspection certifying that the goods meet the stated requirements.

In addition to that, the inspectors also take part in the signing of the inspection certificate.

Which Inspection Companies should you Hire when Importing from China?

There are several inspection companies you could choose to hire from China.

Therefore, coming up with your ideal choice might seem quite challenging.

Nevertheless, here are some inspection companies from China that you might consider;

• Quazoom
• SGS
• Bureau Veritas InSpec
• Bay Source Global
• KRT Audits
• V-Trust
• Asia Quality Focus
• InTouch Manufacturing Services
• QUIMA
• Sofeast Limited

How do you Control Quality when Importing from China?

Importing from China does not guarantee you quality products.

China is a massive manufacturing hub and you shouldn’t be surprised encountering both quality and fake products.

The existence of fake products is one of the main issues that discourage most first time importers.

Quality issues can range from;

• Substandard products
• Damaged products
• Wrong color of items
• Substandard packaging
• Cosmetic defects

To avoid falling into such, here are some ways you could control the quality when importing from China;

Quality control elemtnts

• Conduct Quality Inspection –Use quality inspecting agents to ensure that your products meet your required quality standards.
• Work with a certified and reputable manufacturer – With a certified manufacturer, you are guaranteed of quality products as compared to dealing with an uncertified manufacturer.

Most if not all reputable companies will always focus on maintaining their clients.

Therefore, to match this, they ensure that the products manufactured are of high quality as expected.

• Work with sourcing agents and freight forwarders –This mostly comes through for newbies in the import/export industry.

Sourcing agents and freight forwarders know the best manufacturers and suppliers in the market.

Therefore, working with them will not only lower risks associated with fake products but also scammers.

• Inform your manufacturer that you work with quality inspection agents –This will ensure that your manufacturer doesn’t compromise with the quality of your products.
• Purchase products under a contract –By so doing, your manufacturer will be geared towards maintaining the required quality standards without failure.
• Specify your product requirements –Never assume that the manufacturer knows what they’re doing.

Always make sure that you specify each of your requirements such as color, sizes, and materials to avoid disappointments later.

What other Document do you need alongside Inspection Certificate in Export-Import Business?

In the Export-import business, you should be prepared to have proper documentation for your goods.

Apart from an inspection certificate, other shipping documents that will be crucial are not limited to;

Import Export Documents

• Bill of lading –A bill of lading is a trade document that described the quantity, destination, and type of goods. Additionally, it is used as a shipment receipt once the goods arrive at the destination.
• Insurance Certificate –An insurance certificate confirms that the goods are protected against loss or damage. All information regarding the insurance coverage of goods is stated in the insurance certificate.
• Import/export license – These two documents confirm that your goods have been granted permission to be imported or exported into and out of a country.
• Test report – A test report approves that your goods have been tested and they meet the required standards.

How can you Solve Quality Inspection and Certification Disputes?

First, you can solve quality inspection and certification disputes by submitting the product samples to a third party.

This method shall be unbiased for both the importer and the exporter.

The third-party method could involve conducting a third party inspection or simply through mediation.

Quality inspection and certification disputes can also be solved through arbitration and litigation.

Arbitration involves the disputing parties choosing an arbitrator who will decide on their fate in a binding, unbiased, and confidential manner.

If the disputes get out of hand, another way to solve it would be through a court (Litigation).

With this method, the judge will listen to both parties and decide on the case.

What is the Cost of the Inspection Certificate in China?

You are bound to spend from $268 onwards per single man day of work.

Remember, additional costs such as transport costs might be incurred.

Therefore, the prices might fluctuate due to a couple of factors including the type of product.

A product with a complex production process would require extensive inspection and therefore you are likely to spend more.

However, if this seems out of your budget, you can choose the easy and cheaper way;

Request your supplier to send you as many photos and live videos. Also, request them to send you a product sample.

Also, when making your purchases, ensure that your risks are minimized.

Is Certificate of Conformity the same as Inspection Certificate?

Yes, it is. Both certificates are issued to certify that the goods in question meet the required terms stated on the sales contract.

Which kind of Check does a Quality Inspector do?

A quality inspector is expected to do all kinds of tests and checks on the product.

The types of tests done will vary depending on the type of product. Some of the tests include;

• Packaging test
• Drop test
• Water pressure test
• Labeling test
• Function tests
• Wear and tear tests
• Visually look for any damage or defect on the product
• Material test

Is there a Process for Arranging a Quality Inspection in China?

Yes, there is. After identifying your preferred inspection company all you have to do is inform them of your requirements.

Here are some of the important items to highlight.

• Your supplier’s or manufacturer’s contact and location details
• Description of your products. You may send them photos as well as videos for extra clarification.
• Describe the quantities that are being produced.
• Description of the packaging and labeling
• Outline your quality standards.

While doing this, it’s advisable to provide a physical sample as it will enhance the accuracy of the entire process.

At Tj chinafreight, we will help you meet your quality requirements when importing from China.

Contact us today for faster quality verification and issuance of inspection certificate.

In today’s guide, you’re going to learn about yet another important item in import and export documents tool kit – export letter of credit.

So, if you intend to use export letter of credit, read this guide so that you don’t make any mistake.

What is an Export Letter of Credit?

It is a financial instrument, which a bank issues to represent its commitment on importer’s behalf.

It guarantees payment will be made to the exporter provided the specified terms and conditions are met.

Ordinarily, the specified conditions on export letter of credit are evidenced by presentation of particular documents.

The issuing bank relies on the creditworthiness of the importer to issue export letter of credit.

Sample letter of credit

What is the Purpose of an Export Letter of Credit?

Its purpose is to guarantee the exporter regarding the payment for goods the importer is purchasing.

It acts as a conditional guarantee, which the importer’s bank offers to the exporter upon purchasing goods.

It acts as a contractual payment agreement between the importer’s bank and exporter to facilitate shipment of goods upon purchase.

It also serves to protect the importer.

The documents needed for triggering the payment provide evidence that products have been shipped accordingly.

How does an Import Letter of Credit compare to an Export Letter of Credit?

There is a thin line between import and export letters of credit.

Ideally, the importer’s bank issues import letter of credit with the supplier as the beneficiary.

On the other hand, once the exporter’s bank receives the same letter of credit, it becomes an export letter of credit.

In simple words, an import letter of credit is issued by the importer’s bank, whereas the exporter’s bank receives an export letter of credit.

However, the terms and conditions in the import letter of credit are legally binding.

Comparatively, the terms and conditions in export letters of credit are more flexible.

Import letter of credit tends to increase creditworthiness of the importer.

On the other hand, export letter of credit seemingly enhances cash flow of the exporter.

Materially, both import and export letters of credit are similar.

They only vary in terms of perspective.

What are the Advantages of Export Letter of Credit Financing?

It offers a wide range of benefits both to the importer and exporter.

Some of the advantages include the following;

1. Risk mitigation – It reduces risks of non-payment to almost zero. The exporter is wholly guaranteed of the payment provided they meet the demands of the letter.
2. Flexible terms and conditions – It provides room for negotiating the stipulated terms and conditions. It can be tailored to meet the exporter’s requirements. This makes it easy to facilitate the purchase and shipping of particular products.
3. Enhances exporter’s cash flow – Ordinarily, the more payment the exporter receives, the higher the cash flow they experience. This mode credits payment on exporter’s account, thus improving their cash flow.
4. Upfront payment – It allows the exporter to receive payment way ahead before the consignment arrives to the buyer. The exporter is guaranteed the payment prior to shipment.
5. Increases importer’s creditworthiness – It enhances the solvency of the importer, thus making it easy to obtain such facilities for future business financing.
6. It offers access to post-shipment non-recourse funding and reduces the need for a credit control instrument.

Is an Export Letter of Credit (L/C) the same as a Bank Guarantee (BG)?

Yes.

To some extent, in regards to business application and instilling confidence in the transaction and participating parties.

Even so, they vary slightly in regards to the terms and conditions on which they apply. Here are some of the differences;

An export letter of credit is more or less like a commitment a bank takes to pay the beneficiary once particular criteria are met.

A bank guarantee is a bank’s commitment to honor the beneficiary’s payment should the opposing party fail to fulfill their contractual compulsions.

Export letter of credit protects both parties in the transaction but leans more towards the exporter.

Bank Guarantee, on the other hand, covers both parties in the sale but favors the importer more.

Export letter of credit is commonly used with merchants involved in the business of imports and exports of goods.

Bank guarantee, however, is often used by contractors who bid on larger projects like infrastructure.

Export letter of credit reduces the risk involved by confirming a transaction goes ahead.

Bank guarantee, on the other hand, mitigates incurred loss should the transaction fail to go to plan.

Export letter of credit is comparatively affordable than a bank guarantee.

BG is seemingly costly since it protects both parties and covers wide-ranging high-value transactions.

What Documents do you need to Open an Export Letter of Credit?

In an export L/C, the buyer must request different types of documents from the seller to facilitate the entire process.

Some of these documents include the following;

1. Commercial invoice – It is necessary to demonstrate proof of the value of order.
2. Packing list – It shows the items packed in the shipment
3. Bill of lading – It shows proof of shipment
4. Certificate of origin – It acts as proof of origin of the items you are purchasing.
5. Health certificate – It is necessary to prove the goods meet stipulated health and sanitation requirements.
6. Inspection certificate – It proves the product conforms to the required quality standards.
7. Insurance certificate – It shows the shipment is covered in case of any risks.
8. Bill of Exchange – It is a negotiable tool issued to the bank to facilitate payment.

Primarily, the documents required for opening and processing an export letter of credit fall into various categories.

The categories include; commercial, financial, shipping insurance, and customs documents.

How does an Export Letter of Credit Work?

The process starts when the importer requests for the export letter of credit for financier, creditor, or bank.

Here, the buyer submits all the necessary documents required for opening the Export L/C.

The importer arranges for the issuing bank to open a letter of credit in favor of the exporter.

Also, the importer’s bank issuing the instrument then transmits the L/C to the exporter’s nominated bank.

Besides, the exporter then releases the items and forward them to the freight forwarder.

Next, the goods are dispatched for shipping.

The exporter or dispatcher then take the documents to the nominated bank.

Then, the bank confirms the documents to ensure compliance with the L/C and collects payment from the issuing bank.

Next, the importer’s account is then debited accordingly.

The importer’s bank then releases the documents to the importer to enable him/her to claim the goods from the shipper

It is the same documents that the importer also uses to facilitate customs clearance.

How Secure is Letter of Credit as a Payment Method in the Export Business?

It is a highly secure payment method, which guarantees safety and can be used for almost any international business transaction.

It safeguards the exporter or seller, which is critical, especially in terms of reducing non-payment risks.

The buyer can never cancel or alter the terms and conditions of export L/C without the consent of the exporter.

However, this payment method only becomes risky should the issuing bank fail to credit the payment to the exporter’s bank account.

This often arises should the exporter fail to meet all the set-out conditions on the export L/C.

Even so, it doesn’t imply the seller will never get paid at all.

It only leads to delayed payment or non-payment until the conditions are met.

Letter or credit

What is a Documentary Letter of Credit?

It refers to an arrangement in international trade in which the importer’s bank facilitates exporter’s payment for goods upon receipt of relevant documents.

The buyer’s bank must receive documents showing the commodities have been dispatched and shipped.

It is the responsibility of the importer’s bank to pay the seller according to the terms of a letter of credit.

This only happens upon provision of relevant documents by the seller, which must meet the conditions of L/C.

It should also confirm the shipment of goods within a specific time-frame.

Who are the Main Parties to an Export Letter of Credit?

Letter of credit has several parties with different undertakings, which include the following;

The opener – this refers to the importer, who is responsible for opening the export L/C upon request. You can also refer to it as the buyer.

The issuer – This is the institution where the buyer opens the request for export L/C. It is the bank in the importer’s country, which issues the letter of credit.

The beneficiary – Also referred to as the seller or exporter. The export L/C is issued in favor of the beneficiary.

Confirming bank – This is the primary party to the credit, which assumes all the obligations of the bank issuing export L/C.

Notifying bank – It is the party, which alerts the beneficiary regarding credit, which has been opened to their favor. This player advises the beneficiary accordingly upon confirmation of the export L/C.

The paying bank – It is the ultimate party responsible for crediting the amount into the beneficiary’s account. In many instances, the paying bank is usually the confirming and notifying bank.

The negotiating bank – It is the party, which accepts or pays the draft to the beneficiary. The seller is obliged to go to his preferred bank, present the draft and relevant documents under the credit.

It happens where there is no specified paying bank in the export letter of credit.

What is the Difference Between an Export Letter of Credit and a Loan?

Export letter of credit is a letter from a bank or financier guaranteeing to pay the seller on behalf of the buyer for goods purchased.

It is submitted to the seller upon verification that commodities have been shipped.

A loan refers to a sum amount of money borrowed from a third party to facilitate payment of purchased goods or products.

The transaction for a loan is usually directly between the importer and the exporter.

A loan facility ordinarily accrues interest, unlike the export letter of credit facility, which is usually on fixed terms.

How much Does it Cost to Acquire a Letter of Credit?

It is wholly dependent on the fee policy of a specific bank you are requesting this facility from.

Different banks charge different rates for issuing the export letter of credit.

Some factors, which determine the chargeable rates, include importer’s credit rating, export letter of credit margin, and tenor, among others.

Even so, most banks often charge a range of about 0.25 to 2% based on varying deliberations.

Who Pays for the Cost of a Letter of Credit?

It depends on different aspects surrounding the customs and practices of jurisdictions where export L/C is issued and advised.

It is also dependent on the sales contract binding the applicant and the beneficiary.

In most instances, though, both the seller and the buyer incur some cost related to opening and completing the export L/C.

The entire process is negotiable.

It makes it easier to find common ground on who pays or how to share the cost of letter of credit.

The buyer pays opening, advising, and related bank charges.

Seller, on the other hand, pays for negotiation, amendment, discrepancy, and completion fees of the L/C.

Nonetheless, the buyer tends to incur more costs compared to the seller.

How Long does it take for a Letter of Credit to Open?

It depends on the specific bank, which is issuing the export letter of credit.

However, the duration is pegged on various prevailing and underlying issues between the bank and the applicant.

The applicant’s L/C limit and bank’s approvals from the checker, as well as other authorized signatories, determine how long it takes.

However, if all factors remain constant, the export letter of credit should open within a few minutes to two days upon request.

At what Point is an Export Letter of Credit considered Revolving?

When the export L/C recurs every month for a similar transaction in a predetermined period.

The value of the L/C remains the same, but you can use it for different transactions over some time.

It is when the amount of money you can withdraw is reinstated and becomes available until the agreed time frame.

The duration and maximum value for the credit can revolve in is often outlined beforehand.

Moreover, the revolving credit also captures the replenishment clause and maximum amount of credit utilization.

Is an Export Letter of Credit the same as an Export Credit Insurance?

Not at all!

Export credit insurance covers the seller from the risks associated with non-payment by a foreign buyer.

It mitigates the risks arising from non-payment when doing international business.

This facility gives the exporter a conditional assurance regarding payment of the commodities in case the foreign buyer forfeit.

It covers risks such as insolvency and bankruptcy of the buyer.

On the other hand, the export letter of credit provides conditional assurance to the exporter regarding payment of the commodities by the buyer.

It gives the seller surety of payment for goods delivered as long as the demands of the document are met.

Letter of credit

What is a Letter of Acceptance, and how Different is it from a Letter of Credit?

Letter of acceptance is a document, which confirms mutual agreement between the buyer and the seller for purchasing specified items.

The buyer lists and sends all the items with all the documents duly signed to the exporter.

The exporter confirms the deal and terms and conditions in form of documentary evidence.

It is different from the export letter of credit since it does not necessarily guarantee payment of the commodities purchased.

It only demonstrates the exporter’s acknowledgment and comprehension of the buyer’s conditions, including mode of payment.

What are the most Common Discrepancies in an Export Letter of Credit Document?

Discrepancies in an export letter of credit refer to errors or defects usually arising as a result of human err or general paperwork mismatch.

Some of the usual discrepancies you are likely to encounter include;

1. Inconsistent documents – All the documents submitted for opening an export letter of credit must be consistent. Any inconsistency identified at any stage of processing this document is considered a discrepancy.
2. Expiry of letter of credit – It happens when there is a delay in presentation of the relevant documents.
3. Insufficient documents – All the required documents for opening and completing a letter of credit should be submitted accordingly.
4. Insufficient insurance coverage
5. Inconsistency in description of goods or it is stated differently from the letter of credit
6. Unauthorized charges on the invoice contrary to the letter of credit.
7. Unsigned invoice or it hardly specifies the terms of shipment as quoted in the export letter of credit

How can you Reduce the Risks Associated with Export Letter of Credit?

• As an exporter, ensure to consult with the bank before the buyer requests for export letter of credit.
• Assess all rectify all the elements leading to discrepancy opportunities to prevent delay or non-payment
• Establish that all the terms of letter of credit can be met within the specified time limits.
• Determine whether or not the export letter of credit is necessary for the transaction.
• Negotiate with the importer and agree on detailed terms and conditions to include in the letter of credit.
• Make sure all the documents are consistent with the terms and demands of the export letter of credit.

What is the Difference Between a Confirmed and Unconfirmed Letter of Credit?

Confirmed is the type, which a second obligation is added to the export L/C by a different bank.

Unconfirmed is the type, which only carries the obligation of the issuing bank to guarantee paperwork is in order.

In a way, this helps to guarantee payment to the exporter.

Is a Sales Agreement Part of an Export Letter of Credit?

Not at all!

A sales agreement is a contract between the buyer and the seller regarding the purchase of commodities.

It may also capture other details such as mode of payment.

If need be, you may include it in the documents for opening an export letter of credit, but it is not part of it.

When does a Seller get Paid when Using an Export Letter of Credit?

Once there is a confirmation that the commodities have been shipped, the seller can initiate the process of completing the export letter of credit.

Thus the seller is legible for payment upon confirmation of shipping the items and meeting other demands of the export L/C.

The payment can be within a few minutes or after a few days once the issuer confirms the seller has met the stipulated conditions.

Can you Transfer an Export Letter of Credit?

Absolutely correct!

You can request for transfer of export letter of credit.

It creates a secondary beneficiary, which allows you to transfer part or all of the credit to.

In this case, you become the primary beneficiary given you are the first party to accept the transferable letter of credit from the bank.

Can you Amend an Export Letter of Credit?

Absolutely correct! You can always amend an authorized export letter of credit anytime as many times as possible.

Even so, it has to before it expires.

You only need to instruct the issuing bank on the ideal amendments you want to incorporate in the export letter of credit.

However, it is not advisable to amend it too many times since it stands chances of causing discrepancies due to inconsistent data.

And in case you have any questions regarding export letter of credit contact Tj chinafreight now.

I know you want to learn more about certificate of origin.

Or, you would like to know what it is, who issues certificates or origin.

Or maybe, you want to know why a certificate of origin is important.

If that’s the case, then read this guide since it covers everything you’re looking for about certificate of origin.

• What is a Certificate of Origin?
• Why is a Certificate of Origin Necessary?
• What Details are included in a Certificate of Origin Form?
• Which Countries need a Certificate of Origin?
• When is a Certificate of Origin Required?
• What is the Difference Between a Certificate of Title and a Certificate of Origin?
• How does C/Os Work in the Import/Export Process?
• What are the Different Types of Certificate of Origins?
• What does Preferential Origin Mean?
• Who can issue a Preferential Certificate of Origin Document?
• What are Preferential Rules of Origin?
• How do you Fill Certificate of Origin Form?
• What is a Generic Certificate of Origin?
• Who Signs a Certificate of Origin Form?
• Which Party Provides a Certificate of Origin Form?
• What are the Formats of a Certificate of Origin?
• What is an Electronic Certificate of Origin?
• Why should you Consider an Electronic Certificate of Origin?
• How do you Determine Country of Origin?
• Is Country of Origin the same as made in?
• What do you need to Apply for a Certificate of Origin?
• Should you only Apply your C/O at the Local Chamber of Commerce?
• What is the Cost of Obtaining a C/O?
• Can you get a Certified Certificate of Origin Replaced?
• What Happens if you’re Importing Goods from different Countries of Origin?
• What does a Certificate of Origin need to Comply with?
• Can a Certificate of Origin Reduce Import Duties?

What is a Certificate of Origin?

It refers to an importing document often used in international trade transactions issued by the exporter.

Normally, it authenticates the product imported or shipped was obtained, manufactured, or processed from a specific country.

Additionally, certificate of origin contains vital information regarding the item, country of export as well as destination.

It is a necessary document required for cross-border trade by many treaty agreements.

In most cases, certificate of origin is issued by the exporter or supplier and authenticated by the Chamber of Commerce.

It is also anchored by a commercial invoice, which declares the same information.

Certificate of origin

Why is a Certificate of Origin Necessary?

1. It helps in determining whether or not particular products are eligible for importing from China.
2. It helps to establish whether the goods are subject to duties and taxes or if they are exempted from the same.
3. It enables products to clear seamlessly at the customs department of the country of destination. Many customs authorities require this document to validate country of origin.
4. It sets controls management of imported products by informing importers the countries subjected to foreign quotas.
5. It determines the rate of customs duty the product is charged. The importer must always submit a copy of CO at the time of making a declaration.
6. It helps to differentiate the product from competitors and providing statistical reporting
7. It is essential in fulfilling appropriate product marking requirements. The markings must be of adequate size and clear enough.

What Details are included in a Certificate of Origin Form?

A certificate of information contains numerous details, which include the following;

• Exporter’s information including name of the company, address, and contact details
• Consignee details including name, address, and contact details
• Port of loading
• Port of discharge
• Name of the vessel and voyage number
• Departure date
• Final destination
• Letter or credit where applicable
• Certificate number
• Product details – These include description, weight, quantity, HS code, shipping marks, etc.
• Statement of country of origin of products
• Third-party details where applicable
• Name, date, and signature of the representative of authorized company

Which Countries need a Certificate of Origin?

Any country, which is involved in international trade requires a certificate of origin.

It is a requirement for any country, which imports goods manufactured in a different nation.

In other words, any country which imports goods and products from different countries requires a CO.

When is a Certificate of Origin Required?

• It is a requirement when there is a bilateral Free Trade Agreement between the exporting and importing countries. In this instance, it enables the importer to reduce or eliminate import duties pegged on the goods.
• It is also required during clearance of the imported products by the customs authority. The customs at the buyer’s country use this document to determine tariffs, duties, and taxes.
• It is required during customs clearance to determine the actual origin of the goods.

What is the Difference Between a Certificate of Title and a Certificate of Origin?

Certificate of origin refers to an affidavit or document, which accompanies the product or item.

It outlines the company, which manufactured it and denotes transfer to the importer.

CO is a critical document required for cross-border trade.

It is used in clearance at the customs to determine the payable tariffs and duties pegged on the item.

On the other hand, a certificate of title refers to a document issued to a person upon purchasing or possessing a property.

It is often issued after the property is transferred to the buyer to denote legal ownership of the same.

Certificate of title is given out locally by the respective authorities overseeing such transactions.

How does C/Os Work in the Import/Export Process?

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Ideally, there is no standard C/O or global trade.

This document is often prepared by the supplier who must have the basic information about the product and country of origin.

The exporter documents all the relevant information based on knowledge of border control requirements of importing countries.

The exporter then ensures the Certificate of Origin is notarized by the chamber of commerce of the exporting country.

Then the form is submitted to the importer or agent with the shipment.

Detailed information and requirements depend on the type of products being shipped and the specific country they are headed to.

The importer submits the C/O at the customs department of importing country.

This is alongside other import documents, including the commercial invoice and packing list, among others.

At this point, the customs official will determine all the applicable functions of the C/O and provide a conclusive report.

Mostly, it helps to reduce or eliminate customs duties payable on imported goods.

The goods are then allowed into the country subject to the report by the customs authority.

The importer must meet specific conditions where applicable before goods are cleared to get into the country.

What are the Different Types of Certificate of Origins?

Certificate of origin come in two types, which include the following;

Certificate or origin document

1) Non-Preferential

It is the most common and largely used in many cross-border trades.

It is a type of CO, which specifies the product is ineligible for lower tariffs or preferential treatment.

In other words, goods under non-preferential CO do not qualify for tariff-free treatment or lower tariffs.

Different rules are used in application of all types of non-preferential commercial policy measures.

Some of these measures include anti-dumping duties, trade statistics, government procurement, trade embargoes, and countervailing duties, etc.

This type of CO is obtained in circumstances where the goods are entirely sourced in one country.

It can also apply where two or more countries are involved in manufacturing of the product.

Even so, its origin is obtained for the country where the goods went last.

Essentially, each product has a non-preferential origin, and it can be different from its preferential origin.

2) Preferential

It refers to a certificate attesting products in a particular shipment of a particular origin under the conditions of a bilateral or multilateral free trade agreement.

It shows a product qualifies for relatively low or reduced tariffs.

It also specifies any other exemptions, which may exist in the trade agreement.

Essentially, preferential CO is conferred on products from specific countries upon fulfilling stipulated policies.

Notably, not all goods necessarily have a preferential origin.

What does Preferential Origin Mean?

It refers to products conferred from specific countries, which have met the set criteria hence allowing claiming of preferential rates of duty.

It has a connection with trade agreements, which enable members to access domestic markets at preferential tariffs.

Preferential origin sets out the minimum amount of processing or working needed on non-originating materials.

The essence is to make it possible for the resulting products to attain the originating status.

To obtain preferential origin, the products must attain the relevant conditions set in the origin protocol of concerned country.

Preferential origin provides two grounds, which a product must meet to be considered as originating;

• The products must be manufactured from components or raw materials produced in beneficiary country.
• The products must undergo a particular amount of processing in the beneficiary county.

Who can issue a Preferential Certificate of Origin Document?

It is issued by a competent authority of an exporting country appointed by a relevant body overseeing the operations of this trade.

It is considered as an effective option to undertake since they are verified by the chamber of commerce of the particular country.

In some instances, the certificate of origin can as well be issued by a supplier, manufacturer, exporter, or importer.

These are often referred to as self-issued certificates of origin and declarations of origin.

However, self-issued CO’s are often subjected to thorough scrutiny by the customs department during clearance.

At times this can lead to unprecedented delays, especially if the goods are coming from a country with unclear bilateral trade agreements.

What are Preferential Rules of Origin?

They refer to a set of criteria, which products must comply with to be considered as having originated from when exported to FTA partner.

They are policies used in determining whether or not a product is legible for preferential tariff offered under the agreement.

Preferential rules are based on HS classification, but it has to be product-specific. Negotiations for these rules is independent for each FTA.

Preferential rules of origin come in two main types, which are wholly obtained and substantial transformation.

Wholly obtained goods are products acquired entirely within the territory of an FTA party.

This is without factoring in any addition of non-originating materials.

Substantial transformation is a rule, which requires products to undergo a particular process to be considered originating from a particular country.

How do you Fill Certificate of Origin Form?

It is quite a simple exercise, which requires you to provide the specific details outlined in the document.

Even so, the information required may vary depending on the originating and destination countries.

Basically though, in filling out the document, you need to provide the name and address of both the shipper and consignee.

You must also indicate the name of the shipper or the shipping company used.

Ensure you list the numbers, marks, or identities identifiable on the outside surface of the shipment. Provide the number of units for the particular product on the form.

Also, give the full weight of the consignment and incorporate packaging in kilograms or applicable mass units. Provide a detailed description of each item.

Ensure you sign, stamp, and date the form upon filling all the relevant details accordingly.

What is a Generic Certificate of Origin?

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It refers to a non-specific form, which you can use for any country that lacks Free Trade Agreement, particularly with the USA.

It is also issued in circumstances where the goods do not qualify for FTA.

It is used for facilitating importation of goods from partners who do not have unilateral or bilateral trade agreements.

It contains exporter’s and importer’s information, description, and harmonized tariff or products and country of origin.

A local chamber of commerce must authenticate a generic certificate of origin.

It also has to be legalized by the commercial department of the consulate of the country of destination.

Who Signs a Certificate of Origin Form?

It is prerogative of the exporter to sign the certificate of origin form.

It has a provision, which allows the exporter to declare knowledge of the details provided on the form.

Additionally, the local chamber of commerce of the originating country must also append a rubber stamp on this form.

The essence is to corroborate the items are indeed originating from the country.

Which Party Provides a Certificate of Origin Form?

The shipper can choose to create their template for declaration of origin and make declaration on behalf of the company.

For non-preferential certificates, the local chamber of commerce is responsible for giving it out to the exporter.

The exporter fills out the form by providing relevant details regarding the products and country of destination.

The exporter, in this case, could be a manufacturer, supplier, or general merchant.

The chamber of commerce acts as the third party, thus responsible for verifying the shipper’s declaration.

The chamber of commerce then reviews the form and notarize it before it is submitted to the importer.

However, if it is a preferential certificate of origin, it is the Global System of Trade Preference (GSTP) that issues it.

But the country must be a member of GSTP to obtain this document through Export Inspection Council (EIC)

What are the Formats of a Certificate of Origin?

Certificate of origin is available in two major formats;

Generic format – It refers to the general format, which is non-specific and can be used in situations where goods do not qualify for FTA.

It is a simple format, which only captures the basic information of the exporter, importer, products, and country of origin.

Special format – It refers to a customized template, which captures specific information regarding the exporter, importer, products, and country of origin.

It offers detailed information relevant to the requirements of local chamber of commerce stipulations.

What is an Electronic Certificate of Origin?

It refers to a web-based certificate created and completed online.

Most chambers of commerce around the world have started adopting electronic certificates of origin in various export operations.

The exporter needs to fill all the relevant documents on the application and submit it to the chamber of commerce for approval.

Certificate or origin

Why should you Consider an Electronic Certificate of Origin?

• It increases transparency, saves time, and significant cost in the overall trading environment.
• It accelerates the speed at which the document is created, approved, and submitted to the importer for customs clearance.
• It enhances safety of trading environment hence increasing efficiency of forwarding and clearing goods from between exporting and importing countries.
• It reduces the need for paperwork, which is increasingly becoming tedious, bothersome, and frustrating.
• It enhances safety as far as keeping records for future reference is concerned.

How do you Determine Country of Origin?

Primarily, it refers to the country of production, manufacture, or growth where the product comes from.

Determining the country of origin in international trade is essential and relatively simple.

You merely need to figure out the specific country the product is wholly obtained or wholly produced from.

There is a label, which you will always find on the product indicating either or both.

For example, if the product is wholly produced in China, the label will indicate “Made in China.”

It shows the country of origin for the item is China since labor, materials, and other production factors are entirely obtained from China.

The product can be produced in China, but materials and other elements sourced from other countries.

In this case, the label can only indicate “Made in China” claim conditionally.

Nevertheless, you can also determine the country of origin if the product ships directly from beneficiary country.

Is Country of Origin the same as made in?

Not necessarily. Country of origin may vary from made in on different grounds.

For example, if the product is entirely manufactured in a country using the local labor and resources, it becomes a country of origin for the product.

Where the goods are processed in country using imported materials and sourced labor, there is a caveat.

It becomes made in the country from imported materials.

Generally, the terms depend on the FTA or duty preference programs.

What do you need to Apply for a Certificate of Origin?

You need to provide the following documents;

• A duly filled and approved affidavit
• Supplier’s corresponding commercial invoices indicating where goods are sourced from.
• A duly filled certificate of origin request form

There is also a fee, which you must pay at the chambers for stamping the certificate of origin.

The fee is usually subsidized for members but varies from one authority to the other.

Should you only Apply your C/O at the Local Chamber of Commerce?

Yes! It is highly recommended you apply for C/O at the local chamber of commerce.

It is the only officer with authority to notarize the certificate of origin and make it valid for use.

What is the Cost of Obtaining a C/O?

It varies from one country to another.

The authorities responsible for issuing the C/O usually peg small facilitation fees for the same.

Even so, the fee is usually reduced for members of the association as an incentive of becoming a member.

The bottom line is there is no standard cost for acquiring a certificate of origin.

Prevailing factors determine it.

Can you get a Certified Certificate of Origin Replaced?

Yes! In exceptional circumstances, the local chamber of commerce can accept requests for replacing a certified C/O.

However, the request is accompanied by a letter, which explains the reasons behind the wish.

What Happens if you’re Importing Goods from different Countries of Origin?

It depends largely on your country and the specific types of goods you are importing.

Some countries will require that you have a certificate of origin for every type of product you are importing.

For analytical purposes, it is recommended you record them separately.

This may require utilization of supplementary sources of information to determine countries of origin.

In some instances, you’ll need to consolidate the goods and obtain a single certificate of origin.

And this should be issued in the last country where consolidation occurred.

In essence, it is deemed the last country ought to have confirmed origin of the other products.

However, it is a requirement to get binding origin information.

This is a written document by the customs authority, confirming the origin of products.

What does a Certificate of Origin need to Comply with?

A certificate of origin documents must meet certain stipulations required by countries of destination

Even so, many nations across the world rarely put strict measures, which these documents must comply with.

The most important thing is making sure the document is in line with a strict format and content.

Additionally, some countries of destination would also demand third party approvals for the document.

Other demands for this document, however, may depend on the specific destination country.

Therefore, it is advisable to confirm with your local chamber of commerce to determine any specific requirements to adhere to.

Can a Certificate of Origin Reduce Import Duties?

Most definitely!

If you’re importing products from countries, which have bilateral or unilateral trade agreements, a C/O can eliminate or reduce import duties.

This document ostensibly, acts as proof of origin of the commodities.

Therefore, it comes in handy in determining whether or not goods are exempted from duty.

It also allows you to know whether it is eligible for preferential duty tariffs.

But this is dependent on the specific trade agreements between the country of origin and destination country.

At Tj chinafreight, we help you import from China by processing all your shipping documents.

Contact us today for questions or inquiries about import and export documents.

I know you’re are probably wondering what a bill of exchange is.

Or, you just want to know what it entails and its importance when importing from China.

Well, today’s guide answers it all.

What is a Bill of Exchange Document?

It refers to an instrument in a written form containing unconditional order by one party to another to pay a certain amount of money for received goods or services.

The payment can be immediately or on a fixed date.

In simple words, it means a bill, which drawn by an individual who instructs another person to pay a certain amount of money to another person.

The drawee must sign the bill as an indication of acceptance the converts it to a post-dated cheque and legally binding contract.

In some cases, it is also known as a trade draft. Even so, the selection is negotiable instruments.

Sample bill of exchange

What is the Purpose of a Bill of Exchange?

The purpose of this instrument is to bind one party to pay another party a particular amount of money at a predetermined date.

It enhances efficiency when it comes to facilitating payment in international trade.

Who are the Parties involved in Bills of Exchange?

Bills of exchange has five major players with different roles, and they include the following;

Drawer – This is the party, which creates the bill of exchange. He is responsible for making and signing the instrument thus at times referred to as the maker.

In an export transaction, it is the seller who draws the bill as money owned to him.

Also, a creditor entitled to receive money from a debtor can as well draw this instrument.

Drawee – This refers to the individual upon whom the bill of exchange is drawn. It is the debtor who must pay the money to the drawer.

In export business, it is the seller who draws the bill on the buyer, who is the drawee.

Payee – This is the person to whom payment has to be made. It can be a third party or better still the drawer himself.

Endorser – This is the person who has appended his signature on the back of the bill of exchange. The essence is to signify he has obtained title for bill on his/her account of the original payee.

Endorsee – It refers to the individual whom the bill is endorsed. The endorsee can receive the money from the drawer.

What are the Features of a Bill of Exchange in Import/Export?

When handling a bill of exchange in the import/export business, you must comprehend its essential features.

Some of its key features to look into in this instrument include the following;

• It must be unconditional
• It contains a confirm order to make a payment and not merely a request.
• It contains a predetermined date, which the money should be paid to the creditor
• It contains an absolute order to pay a particular amount
• The amount should be paid on-demand or upon expiry of a fixed time.
• The money is paid to particular beneficiary of the bill, specific individual or against a definite order.
• The maker must duly sign and stamp it, and the drawee must accept it.
• It must contain a revenue stamp

What are the Benefits of Paying by Bill of Exchange in International Trade?

It is a legally binding document.

Thus it becomes easier for the drawer to recover the amount legally in case drawee fails to make the payment.

It is possible to exchange it from one party to another for adjustment of the debt.

The bill bearer must wait for the due date of the bill to receive payment. It thus comes out as a discounting facility.

It provides a fixed date on which the amount is to be paid.

It, therefore, makes it easy for the person collecting it to know precisely when to expect the money.

The borrower also knows when he’s to make the payment.

It is quite flexible and allows the importer to purchase commodities on credit and make payment of predetermined date.

It has a wider acceptance, particularly where a foreign bill is concerned.

It allows both parties to make and receive the payment.

How many Types of Bill of Exchange are there?

They are quite several, and in most cases, the particular type depends on its purpose of objective.

Some of the common types include the following;

Types of bill of exchange

Clean bill – It does not have proof of paperwork or document.

The relative documents, in this case, are sent directly to the importer to facilitate delivery of the shipment.

Interest, in this case, is comparatively higher than other bills.

Documentary bill – It is the type, which is supported by the relevant paperwork confirming the genuinity of a transaction that took place between seller and buyer.

Usance bill – It refers to the type, which is time-specific hence the payment must be made within a specific period.

Accommodation bill – It is the type in which the bill is drawn and accepted on the basis of mutual assistance.

Also, it is designed for mutual benefit without necessarily a trade function.

It hardly involves sale or purchase of any commodities or services.

Sight bill – It is the type, which compels the drawee to make payment upon presentation.

It does not have a fixed date of payment; hence must be cleared when presented.

It is also known as demand bill of exchange.

Foreign bill – It refers to the type, which can be paid outside the country.

Export and import bills of exchange are examples of a foreign bill.

Who is the Drawer in Bills of Exchange?

This is the party that obliges the drawee to make the payment to the payee.

It is the individual responsible for writing and signing the bill of exchange.

The drawer and the payee are same entities unless in circumstances where the drawer transfers the bill to the third party.

Is Cheque a Form of a Bill of Exchange?

Absolutely correct!

Section six of Negotiable Instrument Act stipulates that a cheque is a bill of exchange, which is drawn on a particular banker.

It further states a cheque is payable on demand and incorporates an electronic image of shortened cheque and a cheque in electronic form.

A cheque and bill of exchange have quite a number of differences.

However, a cheque resembles and contains several features of a bill of exchange.

Therefore, it is considered a form of a bill of exchange.

Cheque

What is the Difference Between a demand Draft and a Bill of Exchange?

A demand draft refers to a special bill of exchange drawn by a particular branch on another branch who is a drawee.

In this case, the payee is the beneficiary of a demand draft.

Demand draft just like bill of exchange is negotiable but relatively difficult to revoke.

A bill of exchange, on the other hand, involves three major parties, including the drawer, drawee and payee.

What’s the Difference Between a Promissory Note and a Bill of Exchange?

There is a thin line between promissory note and bill of exchange.

Ideally the former is primarily a promise to pay written documents containing a maker and the lender.

Promissory note

Bill of exchange is a written order with non-interest bearing used in international business.

It binds one party to pay another party a certain amount of money within a specific future date.

The parties involved in promissory note are two; the payer and the payee.

In bill of exchange, the parties involved are three; the drawer, drawee and payee.

A promissory note is unconditional whereas, a bill of exchange provides room for negotiation hence accepted conditionally.

The maker cannot self-pay in a promissory note.

On the other hand, the drawer and payee in bill of exchange may be one entity or person.

A drawee must accept the bill of exchange before it’s presented for payment.

A promissory note hardly requires any acceptance given it is signed persons liable to pay.

Promissory note presents unconditional promise to pay, whereas the bill of exchange provides for unconditional order to order to pay.

In a promissory note, the maker’s liability primary and absolute.

Contrary, in bill of exchange, the drawer’s liability is secondary and conditional.

What is the Importance of a Promissory Note in Bill of Exchange?

It provides legal proof – the importance here is that it binds the involved parties thus helpful should you wind up in court due to non-payment.

It determines a payment schedule – The process of creating this document compels the payer to come up with predetermined terms. It thus enables the payee to work with a fixed payment schedule for convenience.

Resolves issues surrounding tax – In some instances, there could be tax implications you need to consider depending on the amount. This note thus helps to demonstrate the money was loaned and not necessarily a gift.

It makes it less personal – The legal terms and conditions on promissory note reduces or eliminates possible future disagreements. It makes it clear the debtor must repay the amount of money accordingly.

Who can issue Bills of Exchange?

It is issued by the creditor, who in turn instructs the debtor to pay a specific amount of money within a certain period.

What is Acceptance of Bills of Exchange in Import/Export Business?

It refers to the procedure involving acceptance of exporter’s bill of exchange by the drawee.

The drawee usually confirms his acceptance by ensuring he signs under the word accepted on the face of the bill.

Simply put, it is a guarantee of payment, which the drawee extends towards the order of the drawer.

It is essential since, without it, the drawee has no legal obligation to make a payment on any bill addressed to him.

How does a Bill of Exchange compare to a Letter of Credit?

Bill of exchange can be a written export document with unconditional terms of payment from the payer to the payee within a specific period.

It involves the drawer, the drawee and the payee.

The payee is guaranteed to have a specific amount of money within the stipulated fixed date in a bill of exchange.

Letter of credit is an instrument issued to the seller by the buyer’s bank guaranteeing payment upon meeting the stipulated demands.

The parties to the letter of credit include the buyer, seller, and banker (third party).

How letter of credit works

Both bill of exchange and letter of credit offer flexible terms.

It means the involved parties can negotiate and agree on feasible terms before committing to the same.

A drawee has to accept the bill of exchange before the payment is effected.

In letter of credit, the commodities must be dispatched before the buyer’s bank can release money to the seller’s account.

What does “Discounting of a Bill of Exchange” mean?

It refers to the process of converting the bill of exchange into cash before its actual maturity date.

It usually happens when the receiver needs the money urgently before the specific date of maturity.

Bills of exchange typically have a fixed maturity date.

However, if you want to get cash before the actual maturity date, you can choose to cash the bill and get the money.

In the end, the creditor receives comparatively less cash than the face value of the bill of exchange, thus the discount.

The discount is the difference you get between the maturity value and the actual amount you receive.

How do you Calculate Discount on a Bill of Exchange?

The rates for a discount on a bill of exchange varies depending on different prevailing circumstances, especially variance in periods.

Also, the bank charges the discounting rates from drawer at a specific rate.

The bank deposits the net amount of and charges a certain amount as the discount.

So;

Discount = Actual amount of bill – Net amount of bill (Based on period)

Can you Exchange a Bill of Exchange at the Bank?

Absolutely right!

You can exchange this instrument at a commercial bank.

All you need is to ensure the payee’s bank advises the payer’s bank on terms surrounding the bill of exchange.

When importing from China, you need to understand whether or not the specific bank you are transacting on accepts exchange of this instrument.

You also need to know the rates for varied transactions surrounding exchange and use of this instrument.

Why is a Bill of Exchange often Unconditional?

It involves negotiation amongst the involved parties to enhance practicality of this instrument as a mode of payment.

The parties agree on feasible terms and conditions then set a predetermined date for effecting the payment to the payee.

It is this flexibility, which also makes it an unconditional financial instrument for payment even when you’re importing from China.

You can also transfer the bill of exchange as many times as possible until its maturity.

What Happens when you’re unable to Pay the Amount of Bill on a Bill of Exchange upon Maturity?

There is a provision, which allows you as the maker to cancel the old bill and draw a new bill of exchange.

The process of canceling and drawing a new bill of exchange is known as Renewal of Bill.

However, the drawee will pay applicable interest to the acceptor often paid in cash or can be transferred and added to the new amount of new bill.

What is the Process of Bill of Exchange Renewal?

Once the new bill of exchange is issued, it implies all both parties involved are affected.

Therefore, entry of renewal is effected on the books of both the drawer and acceptor.

In case the drawer discounts or dishonors the similar bill entries are made as for dishonor.

Subsequently, second entry for interest is effected.

It is either payable in cash or by cheque.

Then the third entry is in regards to renewal of the bill.

Renewal of bill of exchange is often effected on three grounds;

• Renewal due to failure to pay the bill upon maturity
• Renewal in case of partial payment
• Renewal in case of dishonoring the bill

Is a Bill of Exchange Transferrable?

Most definitely!

It is transferrable such that the drawee may find himself paying a different participant than it initially accepted to pay.

As a payee, you can transfer the bill to another party by ratifying the back of the document.

In this case, the risk is should the entity accept the bill of exchange, and the drawee fails to pay.

What does “Bill of Exchange after Sight” mean?

It merely implies the days of for honoring the bill of exchange shall be considered from the date the drawee accepts it.

So basically, the period, in this case, starts from the date after acceptance by the drawee.

How are due Dates/Maturity Dates given in a Bill of Exchange?

They are given based on the prevailing situation as follows;

Months – It is calculated depending on the number of months in a calendar year.

It entirely ignores the days in the month, but three days of the grace period are added.

Days – It is calculated in days, including the day of payment but excluding the day of transaction. A three-day grace period is also added.

National holiday – When maturity date falls on a national holiday, the actual maturity date of the bill becomes the preceding business day.

Emergency holiday – Should the due date be declared an emergency holiday, the actual maturity/due date becomes the first day from maturity date.

Bill of exchange sample

What does it mean when Maturity Date is Bill after Sight?

It means the period commences from the date of accepting the bill.

Even so, the bill after sight is payable at a predetermined period after sight.

Also, there is a three-day grace period allowed on this kind of bill.

What are the Usage Options available to the Holder of a Bill of Exchange?

The bill of exchange holder can use it in any of the following available options;

• It can be endorsed or negotiated in favor or creditor
• The bank can discount it
• It can be retained until the maturity date
• It can be forwarded to the bank for collection

What is the Concept of an Accommodation Bill of Exchange?

It arises whenever a bill of exchange is drawn and accepted for the sake of mutual help.

The drawee accepts the accommodation bill of exchange as a way of accommodating the drawer.

In this case, the drawee becomes the accommodating party, whereas the drawer becomes the accommodation party.

The entries for accounting for accommodation bills are designed the same way as other bills.

When is a Bill of Exchange said to be Dishonored?

It happens when the drawee forfeits payment on the date of maturity.

In most instances, the bill gets dishonored when the drawee has insufficient funds to pay.

It also becomes dishonored when the drawee becomes insolvent.

Such a situation culminates to restoration of the acceptor’s liability.

At Tj chinafreight China, we handle all your shipping needs.

In case you want any clarification about any shipping documents, you can contact Tj chinafreight now

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Probably, you’re thinking furniture shipping from China is a complicated process.

Or, you want to import furniture from China and you don’t know how to do it.

In this guide, I will show you how to ship furniture from China easily and faster.

Read this guide first before you import furniture from China.

Understand the China Furniture Market & Identify Supplier

Before embarking on furniture shipping from China, you first need to understand the China furniture market.

China’s furniture market has gained popularity in furniture export since the year 2004.

Before, Italy was the leading furniture exporter but due to China’s cheap labor and manufacturing cost, China emerged as the leading country in furniture export until date.

In recent times, more people are embracing home décor and China’s huge population has also boosted the furniture industry.

There are several markets that you can purchase furniture from in China the largest one being the Shunde furniture wholesale market.

You can either choose to visit China and get first-hand information about the furniture markets or conduct online research.

Through this, you will get to identify your preferred supplier.

Keep in mind that there are thousands of suppliers, both genuine and fake.

Therefore I would highly recommend that you keenly assess your supplier before initiating any business deal.

Some of the popular methods you could use to identify your supplier include;

• Websites – Online sites such as Alibaba, Made in China, Ali express, and Global sources among others offer great platforms for importers and suppliers to link up.

In addition to that, some of these sites include ratings of each supplier thereby making it much easier for buyers to identify their preferred suppliers.

• Plan a visit to China – In as much as visiting China could consume more resources, it’s one of the best ways that you could use to find your supplier.

The reason being you will get first-hand information and get to create a stronger bond with your supplier for future purchases.

• Expos and Trade fairs –China has several Trade expos that happen yearly with some taking place twice every year.

Attending such trade fairs will expose you to several suppliers available in the China furniture market.

Some of the trade fairs i China include;

• Canton fair
• Furniture China
• Hong Kong Houseware fair
• China International Furniture Fair
• Shanghai International Furniture Machinery & Woodworking Machinery Fair

 Where to Find China Furniture Manufacturer

Locating furniture manufacturers in China should be one of the easiest steps when shipping furniture from China.

There are several manufacturers in all cities and therefore the main agenda could be to find a genuine and ideal manufacturer for your furniture preferences.

Some of the places where you can find China furniture manufacturers are not limited to;

• Fujian
• Shanghai
• Zhejiang
• Shandong
• Jiangsusuperhero
• Guangdong

Apart from these cities, you can identify your manufacturer from other platforms such as;

• Alibaba
• Aliexpress
• Trade fairs
• Google
• Global sources

  Reasons why you should Import Furniture from China

From your research, you might realize that most furniture importers ship from China.

There are several reasons as to why China is the preferred market for furniture. Some of these include;

• Quality furniture – In as much as China is known for substandard products, people always forget that the quality products also come from China.

It all depends on your cautiousness when purchasing.

China has quality furniture some made of very high-quality wood therefore guaranteeing you longer service.

• Uniqueness – You could get very unique furniture pieces from China.

Take, for instance coming across furniture with no glue or nails used, sounds like a total dream right.

However, that’s not the case in China.

Some pieces of furniture are manufactured in a way that they neither have nails, screws nor glue.

That aside, there are several other unique designs for you to choose from.

• Cost-effective –China offers competitive prices not only on furniture but also on all other products manufactured in the country.

The availability of raw materials and convenient marine transportation are some of the reasons behind the affordability of furniture in China.

With cost-effective prices, you are bound to save and increase profit margins for your business.

• Diverse designs and options –China has any type of furniture you might think of.

From different designs, sizes, colors, and materials, you are presented with several choices.

Therefore, it’s wise to plan for what you want before visiting China to shop for furniture. Failure to these you might consume more time trying to figure out which furniture best suits your taste.

• Customization services –Most interesting, is the fact that you can design your furniture and have it manufactured in China.

Most if not all China furniture manufacturers offer room for customization allowing you to have your dream furniture manufactured.

This is a great option more so furniture importers who are very specific in their tastes.

Buy Furniture from China Direct or use Sourcing Agents

You can either choose to purchase your furniture directly from China or hire sourcing agents.

Sourcing agents come through in several ways when shipping from China as they will help in the following;

• Communication and translation -Chinese is the main language in China and therefore you are bound to experience a language barrier.
• Identifying the appropriate supplier –A sourcing agent does all the research work for you and selects the best supplier.
• Shipping and logistics duties
• Purchasing furniture of your behalf
• Investigation of supplier’s qualifications
• Quality control – A sourcing agent will ensure that the quality of your goods meets your required specifications.
• Customs declaration
• Negotiation of prices

A sourcing agent does all the work for you and therefore you are left to continue with your daily routines.

Shipping directly from China can be very challenging due to several factors such as;

• Language barrier – Lack of knowledge of the Chinese language will make it difficult for you to easily communicate with Chinese businesses.
• Scams- There are several scammers in the market and several importers have fallen for such traps before.
• Unreliable suppliers – It’s not new to find a supplier who makes your shipping very difficult. This is one of the reasons why shippers choose to hire sourcing agents.
• Quality control – Having met your manufacturer online, it might be difficult to tell whether the furniture they are manufacturing for you to meet the quality as per your requirements.

Having said this, you can easily tell that there is more to do than just directly shipping.

That is why sourcing agents come through and help you maneuver through all these processes and challenges.

Check if you Can Find Furniture from China Free Shipping Offers

You can find free shipping offers for your furniture from China.

However, don’t be naïve and believe that Chinese suppliers will offer you free shipping without any catch.

They are not that generous.

If by chance you come across a free shipping offer, just know that the shipping fee has already been calculated in the total cost.

In such cases, once you make payment of your goods you will not pay any other fees.

Estimate the Time Furniture Shipping from China Takes

Furniture shipping from China might take from 3 to 7 days when using air freight and 6 to 8 weeks when using water freight.

The shipping time from China will depend on:

• Distance –The longer the distance the longer the delivery time.
• Mode of transport used – Air transport is the fastest of them all and therefore using it will guarantee you faster delivery as compared to water transport.
• Holiday factors – Shipping during a holiday will lead to delays in your shipment as some businesses remain closed.
• Routes taken – Straight routes tend to be shorter as compared to curved routes. Therefore, the route taken will affect the delivery time of your furniture.

  Verify Quality of Items before Furniture Shipping from China Begins?

Verifying the quality of your furniture before shipping commences is an essential step for any importer.

You can choose to hire a sourcing agent or verify the quality by yourself.

By so doing, you will identify faults or substandard furniture earlier and avoid losses later.

Quality verification should be done when the furniture is in the factory so that any adjustments can be made right away.

Calculate the Cost of Shipping Furniture from China

There are several costs that you will incur when shipping from China.

If you decide to ship by yourself the costs might be cut or might be more expensive.

This depends on your knowledge and experience in the shipping industry.

By this I mean, you can identify genuine suppliers and know the tricks in the import/export business.

When using a sourcing agent, you will have to pay for his services which can range from as low as $35 to as much as $90 and more.

Not forgetting that you will also be required to pay for the container cost which ranges from $3000 to $5000 depending on the size.

However, the container cost might be lower more so if you are not shipping many items.

Remember, you also need to have all the required trade documents for your furniture shipment and this adds up to your total costs.

Aside from these, there might be other additional costs associated with your shipment and therefore planning and budgeting will help you have a smooth shipping process.

How LCL vs FCL Furniture Shipping from China Compare

With LCL (Less than Container Load) furniture shipping, the load doesn’t occupy the full container.

Therefore, it is shipped along with other merchandise and later on the goods are separated at the destination port.

As compared to LCL furniture shipping, FLC (Full container Load) furniture shipping will occupy the whole container.

The shipment will not be mixed with other merchandise from different consignees.

Choose Mode of Shipping Furniture from China?

The different modes of shipping will determine your cost and how fast you want your goods delivered.

You can choose to ship furniture using one of the following modes of shipping;

• Airfreight
• Sea freight
• Road freight
• Rail freight

If you want a faster delivery, air freight would be the ideal one.

However, be prepared to dig deeper into your pocket as compared to the other modes of shipping.

The cheapest and slowest of them all is sea freight and it’s mostly suitable for transporting bulky goods such as furniture over long distances.

When transporting your furniture using sea freight, there are two common modes of container shipment that you can use.

• Less than container Load (LCL) – Using this method would mean that your furniture will not occupy all the container space.

They will be shipped together with other merchandise.

This is the ideal container shipping mode to use when shipping smaller quantities.

• Full container load (FCL) –As with FCL, your furniture will take the full space of the container.

Therefore, you have to be shipping large amounts to use this mode of container shipment.

Rail and road freight is suitable for countries bordering China who are linked by the Chinese road and rail transport networks.

Among all these modes of shipping furniture, you are free to choose one that well suits your preferences.

Calculate the Amount of Taxes when Shipping Furniture from China

Paying taxes is mandatory for any type of shipment from China.

The amount of tax charged when shipping is 17% against the CIF value.

Remember, the amount of tax charged normally depends on the type of goods being shipped from China.

How to use China Shipping Agent in Furniture Shipping from China

Using China shipping agents will save you big time from all the shipping processes that you will have to encounter.

A China shipping agent will help you navigate the following waters;

• Loading and unloading –Once your furniture gets to the port, they will need to be unloaded from the truck. Therefore you could use a shipping agent to efficiently perform this task.
• Freight documentation – Shipping agents also take care of all your documentation processes and duties.
• Collection of goods –If your goods are with your supplier, shipping agents collect them and deliver to your port of choice.
• Custom clearance – Passing your goods through customs can be such an overwhelming process. Instead of having to go through this, you could hire a shipping agent for a faster and efficient process.
• Booking of cargo space – A shipping agent will ensure that your shipment has been allocated a cargo space.
• Planning your storage space – As compared to other smaller items, furniture occupies a larger space. Therefore, you could use a shipping agent to get storage space for your furniture while they wait to be shipped.

Consider Insurance during Furniture Shipping from China

Not only will insurance protect your goods against loss but also damage.

Therefore, it’s necessary to consider insuring your furniture when shipping from China to avoid unforeseen risks.

Shipping lines offer insurance cover but it’s wise to add extra insurance for proper coverage.

Remember, the value of your furniture will determine how much you will pay for your insurance.

The higher the value the more it will cost you.

Insurance mostly covers shipwrecks, sea accidents as well as piracy and excludes damages that occur as a result of poor packaging.

Document you Need when Shipping Furniture from China

You will be required to provide trade documents when shipping any item from China and this includes furniture.

Some of the documents you need to have include;

• Bill of lading –Provides more information about the quantity, type, and the destination of the goods being shipped.
• Insurance certificate –An insurance certificate provides information on particular insurance coverage. Some of the details included are; type of coverage, policy number, and the name of the insured just to mention a few.
• Commercial invoice –Not only does a commercial invoice serve as a proof of sale but it also facilitates the passing of your goods through customs.
• Certificate of origin – it will certify that your pieces of furniture have been obtained, manufactured, and processed from China.
• Packing List – A packing list gives information about the quantity and type of goods being shipped.
• Shipper’s letter of instruction – This document outlines all the shipping requirements as per the shipper’s preferences on the handling of goods.

Best Packaging Solution during Furniture Shipping from China

Packaging will determine whether your furniture will arrive in one piece or otherwise.

Keep in mind that your furniture might encounter several loading and unloading processes.

Owing to this you should choose quality packaging that will be able to sustain all these movements.

Factors such as moisture, weight, pilferage, and breakage should be considered when packaging your furniture.

Most importantly, always ensure that you have effectively given clear instructions to your suppliers on how you want your furniture packaged.

Here are some tips for packaging your furniture;

• Wrap delicate parts using bubble wrap
• Wrap the furniture legs with an extra layer of bubble wrap.
• Use corrugated cardboard to protect the corners of your furniture
• Use special blue tape and pieces of flat cardboard to protect glass surfaces. Afterward, ensure that they are wrapped in a bubble wrap.
• Additionally, using high-quality tape will help secure your goods.

Understand Import Clearance in Furniture Shipping from China

Import custom clearance might determine how fast or slow your shipping takes.

Make sure that you or your suppliers know how to obtain the required permits and authorization.

Here are some of the documents that you should possess;

• Documents for conventional cargo
• Cargo clearance documents
• Documents for containerized furniture
• All other trade documents for shipping

If you choose to use a freight forwarder, you don’t have to worry about all these processes as they will help you navigate through.

Let China Furniture Supplier Handle the Shipping or Do it Yourself

You can either import furniture from China by yourself or choose to let your China furniture supplier handle your shipping.

Either way is good.

However, this is what I have to say.

Shipping by yourself requires you to keenly do adequate research before commencing any shipment process.

If you have zero knowledge of the Chinese language, this should be the time to learn or else look for a translator.

If you’re still new to the import/export industry then you have to understand all the fundamentals of shipping.

Letting your China furniture supplier handle your shipment might be a good idea.

I’m stressing on “might” since it also comes with its drawback.

Looking at the brighter side, a supplier will carry all the shipping duties on your behalf.

Therefore, you will be at ease knowing that your goods are being taken care of.

However, using a supplier for your shipping processes is pricier.

This brings us to the reason why several importers hire freight forwarders and shipping agents for such duties.

Hire Freight Forwarder during Furniture Shipping from China

If you want peace of mind when shipping furniture from China – hire freight forwarder.

A freight forwarder is responsible for offering forwarding and clearing services.

There are several freight forwarders in China and therefore identifying one shouldn’t be a hassle.

However, you need to select a genuine freight forwarder to work with.

Freight forwarders come in handy in several ways not excluding;

• Booking space for your cargo
• Advising the shipper on possible challenges or negotiations and give recommendations where possible.
• Submitting documentation and performing custom clearance
• Take care of all Packaging, storing and distribution processes
• Keeps the shipper notified while goods are on transit

Working with a freight forwarder is not only time saving and cost-effective but also efficient and versatile.

Freight forwarders are versatile in that they can respond to any arising issue with immediate effect.

Consider Appropriate Incoterm when Shipping Furniture from China?

When choosing the appropriate incoterm for your furniture shipments, always ensure that it works in your favor.

Select one that will give you more control over your shipment.

Once you leave your supplier to manage your shipping, you will have less control over the price and terms agreed between him and the freight forwarder.

It’s always wise to reach out to the freight forwarder and directly negotiates on the freight prices.

There are several incoterms some of them include;

• DAT
• FOB
• CIF
• EXW
• CPT
• DAP
• DDP
• CFR
• FAS
• FCA

Therefore, choosing the right incoterms will not only determine the supply chain efficiency but also transit times.

The suitable incoterms to use when shipping furniture from China would be FOB, CIF, and EXW.

Keep in mind that each of these incoterms varies in terms of risks, security, and responsibility.

Know MOQ when Importing Furniture from China

The minimum Order Quantity refers to the minimum amount of products that a supplier is willing to sell at a given time.

Different suppliers offer different MOQ’s for their furniture.

Also, the MOQ might vary depending on the size and type of the product.

In most cases, smaller items tend to have a higher MOQ as compared to larger products.

Like for instance, a dining table set manufacturer might have an MOQ of 10 while a stools manufacturer might set an MOQ of 500 pcs.

There are two types of MOQ;

• MOQ based on container volume (e.g. 1*FCL 40” container)
• MOQ based on the number of units (e.g. 1000 pcs)

Keep in mind; you can negotiate the MOQ with factories if you choose to use their materials such as type of wood.

Use Secure Payment Options when Shipping Furniture from China

There are several payment options to choose from when shipping from China.

The common payment methods used by shippers include Telegraphic Transfers, PayPal, and Letter of Credit.

Of the three, a letter of credit would be suitable when shipping furniture from China since it’s considered the most secure.

However, a letter of credit is mostly ideal for large transactions, and owing to this; it creates a way for a lot of financing options.

Most Chinese suppliers don’t advocate for the use of PayPal because of several reasons.

Not only does it have high fees but also the supplier risks having chargebacks after dispatching goods.

PayPal would only be ideal for sample orders or any other small orders.

Telegraphic Transfers is one of the oldest payment methods and it is suitable for low to medium transactions.

Other payment options in China include;

• Online escrow
• Cash
• International credit cards
• Western union

All in all, always make sure that the payment option not only favors your supplier but also yourself.

Tj chinafreight has been shipping furniture to various destinations globally, including thePhilippines, Singapore and other countries.

Contact us today and a let Tj chinafreight handle all your shipping needs.

If you’re exploring China toys market, this guide will help you get the best prices.

Whether you want to know about the safety of Chinese toys, quality marks, regulations, material types or location of the toys market – they are all here.

Read this guide to avoid losses, time wastage, and unnecessary inconveniences.

Is it Safe to Buy Toys from China?

Yes, it is.

In as much as China had been on the limelight regarding some low quality toys, there exist several manufacturers who can get you safer toys.

However, you can never be sure and believe that all toys are safe.

Always ensure that you are dealing with a certified manufacturer to avoid falling into a mess.

The main toxic ingredient in toys is Lead.

China requires that all consumer products contain a maximum of 90 parts of lead per million.

By so doing, children are safeguarded from the harmful effects of the chemical materials used to manufactures toys.

Therefore, it’s also advisable that you ensure proper quality control of your toys before importing from China.

Quality inspectors and freight forwarders could come in handy in performing this task.

How do China Toys Factory Control Quality?

There are a couple of ways through which most China toy factories control the quality of their products.

The first step to manufacturing quality toys is the use of quality raw materials.

Chinese factories ensure that the raw materials used not only meet the required standards but also are of high quality.

Also, conducting lab tests has proved to be an essential step when manufacturing quality products.

The reason being in the past, low-quality toys had been found to contain a high amount of lead which is harmful to human health.

Owing to this, China requires that all factories of consumer products not to exceed 90 parts of lead per million.

Therefore, not only is the quality of toys upheld but also safety.

Chinese factories also control quality by allowing rooms for corrections.

Take, for instance, you purchase your products and afterward discover some defects.

Therefore, by allowing for corrections, importers can have their product defects sorted out before being released from the factories.

Remember once your toys have been released from the factory it’s hard to follow up with all the corrections required.

Which are the Top China Toys Market?

China has several markets for everything and therefore if you are planning to purchase toys here are the top wholesale markets you might consider.

· Yiwu Toys Wholesale Market

Yiwu Toys wholesale market is not only huge but also offers a wide variety of toys at much-discounted prices.

If you are planning to visit this market, head over straight to building 1 as this is the central location to find toys.

Here, you will come across thousands of suppliers selling different types of toys including inflating toys, regular toys, electronic toys, and fabric plush toys.

· Guangzhou Toys Wholesale Market

If you have happened to attend the Canton Fair, you must be familiar with Guangzhou.

If not, Guangzhou has 4 toys wholesale market namely

• Zhonggang Boutique toys Wholesale Market Guangzhou – in front of International Yide Stationery & Toy Plaza you will find Zhonggang Boutique toys wholesale market.

The main products sold here are stationery industries and toys.

• Liwan toys wholesale market –Covering an area of 2000 square meter, this market contains over 80 stalls inside it.

Some of the toys to purchase from here include; Electronic toys, stuffed toys, voice control toys, and remote control toys.

Address; No. 36-38, Zhongshan Eighth Road, Liwan District.

• Wanling plaza Guangzhou –Wanling plaza is known for its toys and stationery.

The toy markets start from the ground floor up to the 4th floor of the building.

• International Yide stationery & Toys Plaza Guangzhou – Guangzhou Toys wholesale market is located in Guangzhou city in Yide Toys and Gifts wholesale center.

Here, you will find more than 1200 stalls with several suppliers of different toys.

· Shantou Toys Market

Shantou is a toy exhibit mall comprising of over 8000 suppliers.

The main toys sold here are plastic toys and are of much higher quality.

Owing to this, you are bound to pay more for toys in this market as compared to other toy markets.

Also, the MOQ is much higher.

On the other side, instead of dealing with middlemen, you will be making your purchases directly from the factory.

· Zhengzhou Toys Wholesale Market

Zhengzhou toy wholesale market is located in Zhengzhou city near Zhengzhou train station and it’s well known for having low prices on toys.

In addition to that, the MOQ is also lower and this explains why there are low-quality toys in this market.

· LingyiYongxing Toys Market

Lingyi is considered the largest toy market in North China.

With over 4000 wholesalers, the market is divided into three main parts which deal with different types of toys.

• Area A – inflated toys, children’s bicycles, and electronic toys
• Area B – Plastic toys
• Area C – Plush toys

· Baigou Plush Toys Market

If you are planning to purchase toys at low prices, you should make a stop at Baigou plush toys market.

In as much as low prices attract low quality; you might end up getting out with quality toys from this market.

With a little extra effort.

The market has a total of 380 suppliers selling toys on a wholesale and retail basis.

· YangjiangWutinglong International Toys Market

Just as Baigou plush toy market, YangjiangWutinglong toys market sells plush toys(stuffed toys).

It is one of the biggest plush toys market in China with more than 2,500 shops.

The products sold here are purely plush toys, plush gifts, and plush materials.

The good news is you can purchase as little as a single product from this market.

Meaning, the MOQ starts from zero.

Nevertheless, expect the price of a single unit to cost more as compared to the wholesale price.

· Yunhe Wooden Toys Market

Located in Zhejiang province, Yunhe wooden toy market mainly consists of factory dealers.

As the name implies, the toys sold here are made of wood.

There are several shops with some factories displaying their toys on showrooms.

Therefore, you can easily choose your preferred toy and directly make an order.

As I mentioned earlier, you are bound to find both quality and low-quality toys in China.

Therefore, here is a quick tip;

• Be cautious of cheap toys. There’s a high possibility of getting low-quality toys as a result of purchasing them at very cheap prices.

When negotiating with your manufacturer weigh the price and options carefully.

If your manufacturer insists on a certain price avoid getting too low as this will force them to minimize their production cost.

Meaning, they will go for the cheapest materials to meet your budget thereby compromising the quality of your toys.

• Quality can as well be compromised as a result of unclear product specifications.

Always ensure that you communicate what you want without leaving any single detail.

How Big is Toy Industry in China?

China leads in both manufacturing and exportation of toys worldwide producing over 70% of the world total.

The market size of toy manufacturing in China stands at $41bn with close to 10,000 manufacturers in the industry.

Some of the top companies with the largest shares in the toy market include;

• NanhaiHongjing Co Ltd
• Goodbaby Group
• Nanhai Sino-U.S.A Toy Factory
• Lerado Group Market Share
• Alpha Group Market Share

With the advancement in technology, the demand for toys is shifting from decorative and traditional toys to electronic toys.

China’s potential growth has led to the emergence of both domestic and international toy manufacturers.

This has in turn led to the expansion of the toy industry over the years.

Which Quality Marks should Toys from China have?

One of the main quality marks found in all Chinese toys is the CE mark.

The CE marking confirms that the toy conforms to the EU directives.

This includes environmental, health, and safety standards.

The China Compulsory Certification (CCC) is another quality mark that you need to ensure your product complies with.

Failure to include this mark might result in your goods being held at the border or further enough returned to the sender.

Additionally, before printing the CCC mark on your products, always ensure that you already have the certification.

Failure to this attracts penalization of your products or subjection to fines.

Should you buy Wholesale Toys China on Alibaba or Toy Factory in China?

You can either choose to purchase your toys from Alibaba or a toy factory.

However, this is what I have to say.

toys directly from a factory have greater benefits as compared to purchasing from Alibaba.

Here is why;

• Competitive prices –Alibaba has both manufacturers and suppliers. Therefore the prices can be higher if you purchase from a supplier as compared to making direct purchases from the factory.
• Build stronger bonds –As you buy direct from the factory, you can negotiate on prices one on one with your manufacturer.

In the process, you end up building stronger bonds for any of your future purchases.

• Reducing the risks – The probability of getting scammed in Alibaba is higher as compared to purchasing directly from the factory.

Don’t get me wrong, Alibaba is not a scam, the only thing you need to know is that you should not expect all vendors to be genuine.

Just like any other online business platform you know, some scammers will try to get it the easy way.

If you are making big purchases especially for a longer period, buying directly from the factory is the ideal option.

What determines China Toy Prices?

China is known to be the leading producer of toys worldwide.

Wondering why this is so, one of the main reasons why most toy importers choose China is due to the competitive prices.

You could purchase a toy and sell it at thrice the buying price.

This is a steal!

Nevertheless, getting to understand why the prices are so affordable is not difficult.

The main determinants of toys prices in China are;

• Cost of raw materials – China acquires most if not all of its raw materials locally and therefore these impacts the general prices of products including toys.
• Quality –Quality is a key determinant of the toy prices in China.

You are bound to come across both quality and substandard products when purchasing from China.

The higher the quality the pricier the toys and vice versa.

• Availability of cheap labor –China’s huge population immensely contributes to the cheap labor for the manufacturing industries.

Owing to this, the products manufactured go for cheaper prices as compared to other countries.

• Size – Bigger toys cost more as compared to smaller ones due to the extra cost incurred in the production process.

What are the Most Popular Toys in China?

With the many types of toys in China, you might find it difficult deciding on which toys to purchase.

To make your selection easier, here are some of the popular toys in China;

• Plush toys
• Building and construction toys
• Dolls
• Baby and Infant toys
• Remote control toys
• Games and puzzles
• Sports and outdoor play toys
• Activity toys
• Ride-on vehicles
• Arts and crafts
• Model vehicles

Why is Yiwu Toys Wholesale Market Popular?

Yiwu is the largest commodity wholesale market worldwide and Yiwu Toys wholesale market is part of it.

One of the reasons why Yiwu toys wholesale market is popular is due to the many varieties of toys available.

And that’s not all; the toys here are sold at relatively cheaper prices.

In addition to that, Yiwu toys market keeps up with the current trends in the toy industry every single day.

Therefore, if you’re planning is to purchase trendy toys at the best prices, this is the ideal market for you.

Are there Regulations that Control Toy Manufacturing Industry in China?

Yes, there are regulations.

One of them surrounds the use of lead and any chemicals on toys.

China requires manufacturers to use a maximum of 90 parts of lead per million.

This is because lead is considered hazardous.

Therefore, to ensure that kids are not exposed to such, manufacturers are required to abide by this regulation.

In addition to that, all toys need to meet the required standards.

Therefore, manufacturers need to have the required certifications, licenses, registrations, and marks on their products.

How do you Import Toys from China?

Importing from China is such a profitable business and this includes importing toys from China.

First, you need to decide on what type of toys you want to import.

Choose the type of toys that will bring your business.

Having done that, identify your manufacturer.

Visit the prime areas as this guarantees you that the manufacturers there are experienced in production.

Getting the right manufacturer is the key factor as this will ensure a smooth flow of operations in the production process.

Clearly outline what you want in terms of quality, quantity, designs, and any other feature you want.

Make sure that you acquire the necessary documents including tax for your import.

To save on costs, it’s always advisable to import large quantities.

After your products are ready, you can choose to ship them via air, water, sea, or rail freight.

Airfreight is the fastest yet the most expensive among them all.

It is ideal for shipping urgent products.

In as much as sea freight is the slowest, you will hugely save on costs.

Rail and road freight are applicable when shipping to countries that share borders with China.

This is because the rail and road networks only cover such countries.

However, these two methods will be applicable when transporting products from your manufacturer to your port of choice.

In case you need assistance in shipping your toys, Freight forwarders are available to make your work much easier.

They shall advise you on the favorable options surrounding shipping and take care of every shipping process until you receive your goods.

Hiring freight forwarders will have you continue with your day to day activities without worries of your shipment.

Important tips and tricks when shipping from china;

• Never import unlicensed toys as this might cause complications afterward.
• Importing in bulk will save you money as compared to small purchases.
• Beware of scammers in the import/export industry therefore be keen on who you engage in Business. Properly do your research before embarking on any agreement.
• You will spend more when using a supplier to take care of your shipment as compared to hiring a freight forwarder.
• Always request for a sample product before the actual production process begins

How much Duty will you Pay when Importing China Toys?

You will pay an import duty of 17% when importing toys from China.

The import duty is calculated on the total cost of the toys, insurance cost as well as the cost for shipping.

It’s important to have full knowledge of all the extra expenditure that you might incur before you import your toys.

How do you Barging in China Toy Market for Best Prices?

One of the benefits of buying from China is that the suppliers and manufacturers are always willing to lower their prices.

Almost everything is negotiable in China.

Keep in mind that the prices of commodities in China are already affordable.

Therefore, to effectively have your manufacturer agree to your prices, here are some secrets to bargaining in China;

• Start from the least price you can. This can mean less than half the price being proposed by your manufacturer.

By so doing you create enough room to maneuver your way to your desired price.

Always take your time; nothing hurts more than starting at a high price and the manufacturer agreeing too quickly.

• Learn some basic Chinese phrases. This does not mean that you will directly get a huge discount on your items.

By including some Mandarin phrases in your conversation you put your seller into a smiley and relatable mood.

In addition to that, your seller might also think you are not new in the market therefore he or she might start from a “lower” offer.

• Another trick would be to walk away. Once you have negotiated on the price but still haven’t agreed on your maximum price, make the last offer and start walking away slowly.

Not fast, walk as if you are looking at the surrounding vendors.

Commonly, you will be called back but if not then move forward to the next and hope for a better price.

• Never empathize with your seller –Many are the times you shall come across sellers who will try to make you reach their price through empathy. For instance, you might hear” my family won’t feed today” or “I did not even get this at half the price you are paying”.

All these are just psychological bargaining games that are meant to force you to feel sorry and buy the product at the seller’s price.

No worries, play your cards cool and respond with something like “I know.

But now I can’t afford to catch a train back leave alone having dinner!”.

• Don’t express too much interest- This is another rule for bargaining. Expressing too much interest shows the seller how bad you want the product.

Therefore, the bargaining might not yield much.

Let the seller know that you can either take it or leave it.

Why do you need Sourcing Agent when Buying from Wholesale Toy Market in China?

Sourcing agents come in handy in several ways especially if you want your purchasing to flow smoothly.

Here are some reasons why you might need a sourcing agent;

• Sourcing agents identify a suitable manufacturer or supplier for your products.

They ensure that they get a manufacturer who will produce quality products for you.

• In addition to identifying a supplier, they also negotiate with the seller to get you the best prices on your toys.
• A sourcing agent is like your business partner and therefore he will ensure that the toys are of good quality as per your requirements.
• English is not spoken by many in China and this might hinder successful business deals. Sourcing agents can communicate clearly in English and the local language.

Therefore, they easily secure great deals with manufacturers.

• With a sourcing agent, you can continue with your day to day activities without having to worry about your purchasing procedures.
• Sourcing agents eliminate the probability of being scammed.

Since they have experience in the industries they are aware of all the ins and outs of the business.

Therefore, be sure to find a trusted manufacturer for your products.

• Finally, the main aim of any importer is normally sticking to the budget. Sourcing agents help you achieve this as they eliminate the use of middlemen and being offered foreign prices other than normal prices.

What are the Limitations of Buying from Wholesale Toy Market in Yiwu?

In as much as Yiwu might be a heaven for toys, here are some drawbacks of buying from this market.

• Quality issues –Since Yiwu is known to have cheap products, the probability of getting low-quality products is high.
• Less control over customization –Most sellers in Yiwu consist of traders and not factories. As a result, it will be difficult to customize your toys to your liking.
• Language barrier –Most Chinese people are not familiar with English and therefore communicating with the sellers might be quite challenging.

Why are Chinese Toys Popular?

Not only are Chinese toys unique and cheaper but also the materials used to manufacture them are safe.

In addition to that, there are several designs to choose from both traditional toys and trendy ones.

All these contribute to the popularity of Chinese toys worldwide.

What is the MOQ in China Toys Market?

The MOQ varies from one manufacturer or supplier to the next. Smaller toys have a higher MOQ as compared to larger toys.

Some toys have an MOQ of one piece whereas others have as high as 1000 units.

However, you can negotiate the MOQ with your manufacturer.

Nevertheless, you have to keep in mind that it should be fair for both parties.

It’s difficult for Chinese manufacturers to lower their MOQ without them benefiting in one way or the other.

Therefore, you need to weigh options well so that your manufacturer agrees with your proposal.

What Materials are used for Toy Production in China?

Some of the main materials used to manufacture the different types of toys in China are not limited to;

• Plastic
• Wood
• Clay
• Metals
• Fiber
• Cotton

Keep in mind that chemicals might also be used in the manufacture of some toys.

Some of these chemicals include; lead, PVC, Cadmium, Chlorine, arsenic, and BPA.

Due to this, China has some regulations on the use of chemicals to ensure the toys produced are not harmful.

Also, it’s advisable to have your toys inspected just to confirm if your toys conform to the safety standards.

How does China Toy Market compare to Global Toy Market?

China is ranked the top country in the manufacture of toys as it produces 70% of the world’s toys.

When making global comparisons, China generates the most revenue out of toys.

In the year 2010, the export value of toys shot up to 29.4% as compared to 9.9% in the previous year.

In the same year (2010) the European toy market declined to third place.

China’s market can maintain its competitive nature due to factors such as; cheap available labor, availability of raw materials, and a variety of designs available among others.

As compared to China, it might be difficult for some global markets to achieve some of these factors as the wages might be higher.

Additionally, the availability of raw materials might be a challenge and that’s why China takes the lead.

Why do you need Freight Forwarder when Importing from China Toy Market?

A freight forwarder is someone in charge of making sure that all your shipping processes run smoothly until you receive your goods.

There are a couple of reasons why several importers choose to work with freight forwarders.

Some of them include;

• Cost-saving –Freight forwarders easily negotiate prices with carriers in turn securing the best prices for you.
• Versatility –Freight forwarders respond to unforeseen circumstances with immediate effect.

They work to make sure that they have met deadlines and the shipment process goes on smoothly.

• Guaranteed arrival time –Freight forwarding is a profession on its own and therefore freight forwarders ensure timely delivery of your goods.

From planning to transportation freight forwarders will handle your cargo until you receive it.

• Warehousing -In case of any delays in shipping, freight forwarders provide storage for your goods in a warehouse.

This also applies when your shipment lands in a foreign country.

• Custom clearance –With a freight forwarder, you don’t have to worry about passing your cargo through customs as they will have it done.
• Flexibility –Freight forwarders can quickly adapt to any changing situation. You can easily change your shipping options without much of a hassle.

To make the shipping toys from China easy and simple, Tj chinafreight will handle all logistics operations for you.

Whether you want free container, warehousing facilities or customs clearance, we are the best freight forwarder you can count on.