LTL Freight: The Ultimate FAQ Guide

I know you’re wondering whether LTL freight is good for you or not.

Or, when to use LTL freight, how much it costs, benefits and how it works –  among other important aspects.

This guide explains everything about LTL freight that will help you save time and money.

Keep reading to learn more.

What is LTL Freight?

Less than truckload (LTL) freight is a type of shipping used for transporting shipment that hardly requires a full 48 or 53-foot trailer.

You can also use this shipping to transport a consignment weighing between 150 and 15,000 pounds.

In LTL freight, the shipper pays for the part of the standard truck trailer their freight covers.

Other shippers and their respective consignments fill the unoccupied space.

How does LTL Freight Work in International Shipping?

LTL freight works on an aspect you would consider as a hub and spoke model.

This is contrary to traveling directly from the shipment pick-up location to a delivery station.

In this model, there are relatively small local distribution centers, which act as spokes.

In essence, shipments are collected in such spokes and transported to comparatively large hubs.

From the hubs, the consignments are sorted onto another truck to carry on with the journey to the next hub or spoke enroute final destination.

So basically, this system works by combining partial loads in a bid of creating full multi-stop truckloads.

The cost is dependent on the space utilized, shipment class, and pick-up and drop-off points.

What is the difference between LTL and FTL Freight?

LTL and FTL tend to differ from a wide range of perspectives.

Some of these varying elements of truck freight include the following;

In FTL, you utilize the entire space on the truck to ship your commodities to the respective destination.

LTL freight, however, entails shipments from various shippers sharing one trailer space.

FTL freight requires a semi-truck or full truckload.

Ideally, FTL consignments range from 150 pounds to thousands of pounds.

In this case, it is only economical if you’re shipping a substantive volume or weight.

By contrast, LTL is ideal for shipping loads, which cannot fit in a full truck but weighs around 150 pounds.

LTL freight is often shipped through a common shipper who handles freight above parcel shipping levels.

LTL carriers also accept loose freight or what’s known as pallet-free shipment more than FTL.

LTL shipping accommodates between one to ten pallets for every shipment, and the weight can range from 150 to 15,000 lbs.

On the other hand, FTL freight can carry up to at least 26 pallets with weight ranging from 5,000 to 45,000 lbs.

Your freight in LTL is handled severally due to transfers from one truck to another.

However, on FTL, your shipment hardly leaves the truck.

LTL shipping for refrigerated shipment transit times is dependent on a set of delivery routes and schedules.

In contrast, transit times for refrigerated consignment on FTL freight aren’t affected since refrigerated trucks are readily available.

When should you Consider LTL Shipping?

If you are shipping a comparatively light freight, LTL seems to be an ideal option for cost-effectiveness.

Therefore, if you’re working on a tight budget but still need your consignment to reach the destination, consider LTL freight.

LTL shipping can also be a suitable option if you don’t buy items often.

How does LTL Freight compare to LCL Freight?

In LTL freight, you purchase the portion of space on the trailer to ship your commodities.

Hence you’ll notice that in LTL, shipments tend to carry several consignments for different customers in one truck.

However, in Less than Container Load (LCL), shipments only tend to take up a portion of the container.

It involves paying for a space in a container for your shipments rather than paying for the entire container.

Both LTL freight and LCL freight are ideal for small businesses, which often ship smaller shipments.

Who are the Top LTL China Carriers?

In China, competition in LTL freight is quite intense.

Many companies are offering these services, including other ancillary facilities.

However, some of the highly-rated carriers in China include the following;

  • Deppon Logistics
  • Shenzhen Global Express Logistics
  • FedEx Freight
  • Linde Beijing International Transport Agency
  • JJ Shipping
  • UPS Freight
  • Beijing Fansite International Transport Agency
  • China Railway Special Freight Co., Ltd
  • Shengyu Freight
  • Shenzhen Marine shipping agency
  • China Railway Express

What is the Cost of LTL Shipping?

Calculating LTL freight factors in a wide range of elements hence the need to understand what is included.

Typically, the weight of LTL freight shipment range from 100 to 20,000 pounds.

Most LTL carriers often provide discounts based on weight increase and LTL carrier weight class.

Some of the factors, which influence the cost of LTL shipping include the following;

· Weight

LTL freight carriers will always charge less per-hundred pounds the more the weight increases.

Ideally, the more the weight of the consignment, the higher the shipping cost.

· Base Rate

Different LTL freight carriers determine their primary base fare.

The base rate is based on freight classification.

However, carriers usually adjust the based rates depending on their volume needs.

· Distance

Typically, the longer the transportation distance, the higher the cost.

Most of the LTL freight carriers thus specialize in providing their services in specific regions.

Therefore, there is a need to understand the particular areas your preferred carrier often targets.

In case your area falls outside the carrier’s normal service area, it will likely require the interlining process.

And of course, interlining process entails transferring shipments to other LTL carriers hence inflating the cost.

· Freight Classification

Every freight has a specific classification, which is essential in determining the freight rates.

Some of the elements determining the freight category include handling, product density, stow-ability, value, and liability.

· Density

Density is a vital cost and freight classification determinant.

You can figure out freight density by dividing the total weight by total cubic feet.

· Negotiated Rate Tariffs

You can always negotiate tariff rates with different LTL freight carriers rather than settling for a base rate.

You can obtain best deal possible on your LTL freight if you understand your lane activity and freight data.

The bottom line is that all these factors determine the ultimate LTL freight rates to a significant extent.

Therefore, acknowledging and understanding these elements can enable you to save a considerable amount of money.

How long does LTL Shipping Take?

Several variables influence LTL freight times, depending on the specific carrier and routes.

Some of the common factors, which determine the overall LTL shipping duration include the following;

· Distance

Most trucks are restricted to the number of miles they can cover over a particular period.

Speed limits and other traffic regulations also affect delivery speed.

Ordinarily, inter-cities may take between 1-2 business days, regional shipments between 2-4 days inter-countries about 4-6 days.

· Weather

Bad weather conditions such as heavy rains, snow, mist, and others, which affect movement and visibility, may hinder LTL shipping speed.

Such weather elements can cause delays, which can be difficult to make up.

· Unexpected Delays

In LTL shipping, there are numerous aspects, which can result in unexpected delays.

For instance, mechanical breakdowns and traffic issues such as poor road and infrastructure conditions.

Such instances may affect the overall duration it takes to ship the LTL consignments.

· Route

The route for delivery destination is a vital aspect that you must consider.

In many cases, shipments, which head to sparsely populated areas, tend to take longer than otherwise.

In such situations, fewer trucks are heading in that direction; hence may cause your LTL shipment to wait longer for FTL to be assembled.

Number of Stops and Transfers

LTL shipments typically take several stops and transfers in transit.

Therefore, your consignment is likely to first head to the regional terminal, sorted onto another truck heading towards the ultimate destination.

In some instances, the number of transfers may happen more than twice, depending on the specific carrier.

The more the stops and transfers your shipment is subjected to, the longer it takes to get to the delivery destination.

Does Common Carrier Mean a Truck used for LTL Freight?

Not necessarily.

A common carrier essentially refers to any public or private entity offering shipping services of different types of consignments.

Therefore, a common carrier has enough capacity to facilitate transportation of LTL, FTL, or partial truckloads.

What is the Advantage of LTL Over other Freight Alternatives?

LTL freight has a myriad of benefits compared to other freight options.

The common advantages include the following;

· Cost-effectiveness

The truckload in LTL freight comprises several smaller consignments, which all together fill up the whole trailer.

Since your shipment is only utilizing a portion of the truckload space, it means you’ll only pay for that particular space.

In the long run, you end paying a fraction of what normal full truckload consignment would ordinarily cost.

· Eco-friendliness

LTL freight process results in comparatively few trucks carrying full loads instead of more trailers transporting less than their capacity.

The net effect, in this case, is a reduction of emission since it lessens the number of trucks required to deliver goods to respective destinations.

· Inventory Safety

LTL shipping uses palletized shipments.

Therefore, combining a consignment onto a pallet or crate creates greater stability for the shipments throughout transit.

This secures the inventory and prevents them from any potential damage when in transit.

And hence making LTL freight an ideal option for transporting fragile shipments over other alternatives.

· Easy Tracking

LTL freight carriers enable you to track the shipment at varied stages of the delivery process.

It provides status updates and notifications when the consignment reaches the hub.

Moreover, recent developments in tracking have enabled more granular insight into where your LTL shipment is.

· More Service Options

Ordinarily, most LTL freight carriers provide various special service options you’re unlikely to get from other shipping alternatives.

Some of these services include handling, freeze protection, inside pick-up, and delivery, among others.

· Faster Delivery Times

In many instances, LTL freight tends to be faster as far as getting your products in the hands of your end-users is concerned.

Ideally, you don’t need to wait for the customers to place a particular quantity of orders to fill up the whole truck.

What is Freight Class in LTL Shipping?

It refers to a standardized system of classification for various shipments shipped via LTL freight.

The essence of freight class is to establish constant parameters between LTL freight carriers.

This classification system guarantees customers of receiving unbiased prices when shipping freight.

Freight class in LTL shipping is often assigned to a shipment depending on a specific commodity or density of freight being shipped.

How do you Choose a Forwarder for LTL Shipping?

When looking for an ideal forwarder for LTL shipping, you need to be meticulous to obtain the right one.

Some of the ways of determining the right one include the following;

· Experience

Experience is a fundamental element when choosing an LTL shipping forwarder.

An experienced forwarder will facilitate the movement of your consignment irrespective of the prevailing conditions.

Experienced LTL shipping forwarders also understand various aspects of dealing with issues hence guaranteeing efficiency.

· Formidable Network

An ideal forwarder should have a host of networks in various sectors surrounding LTL shipping.

The essence here is to help in facilitating efficiency of shipping your LTL consignment.

· Accreditation

If possible, ensure you pick an LTL freight forwarder with relevant certifications from respective bodies overseeing operations of this trade.

It is important since it demonstrates the reliability of such an entity or individual discharging these tasks.

· Good Reputation

Forwarders depend on their reputation and connections to drive their business.

You can always check from the relevant bodies and associations to determine whether they are suitable for your needs.

You can find details of a reputable LTL freight forwarder by doing background research.

Moreover, you may choose to review their financial statements to determine their capacity.

·  Cost-effective and Understandable

An ideal LTL freight forwarder will offer their services at affordable rates.

At the same time, they help you to understand and strategize with you on means to decrease the shipping costs.

Can you Consolidate Packages for LTL Shipping?

Yes.

Consolidation is one of the core elements of LTL shipping.

Ideally, whenever the volume goes up, it means shipping unit cost per unit goes down.

Practically, it thus implies consolidation of the shipments whenever possible as a way of obtaining a higher total volume.

Packaging consolidation for LTL shipping is advantageous; it enhances higher service levels, faster transit times, and pricing simplicity.

However, you always need to figure out if and where the shippers have enough quantity to take advantage of freight consolidation.

What are the Limitations of LTL Freight?

Some of the shortcomings of LTL freight include the following;

· Higher Risk of Damage

Since LTL shipment rarely stays on one truck throughout the shipping period, consignments become prone to damage.

In essence, the shipments are often loaded and unloaded at every terminal along the way.

Thus, you need to follow the industry-standard guidelines for packaging the shipment securely.

· Longer Transit Time

LTL shipments often take more time to get to the respective delivery destinations.

This is always a result of freight taken back to the carrier terminals for consolidation with other goods going the same route.

As a result, the transit time is always estimated hence not assured.

· Unsuitable for many Pallets

The cost of shipping LTL shipments may be unfavorable for consignments with more than eight pallets or weighs over 10,000 pounds.

In such instances, it may be relatively cost-effective to use FTL or partial shipping.

What Information do LTL Carriers require to Provide a Freight Quote?

In most instances, you’ll need to provide some basic details to obtain an LTL shipping quote from your preferred carrier.

Remember LTL freight quote is only accurate as of the information you provide to acquire it.

The information you’d need to provide include the following;

·  Origin and Destination

The pick-up point and drop-off location are the fundamental elements in getting an LTL freight quote from your preferred carrier.

In the freight business, they are referred to us as the shipper and consignee.

Therefore, you need to provide the state, city, and zip codes for both the shipper and consignee.

· Cargo Details

Cargo details consist of three essential components, which you ought to understand, and they include the following;

  • Unit count – It refers to the number of handling units you are transporting
  • Dimensions – This is the length, width, and height of the handling unit from the exterior points.
  • Piece count – This refers to the quantity of items on every handling unit.

· Weight

Weight is a vital element, especially when it comes to developing your freight rate.

Typically, all LTL freight rates are dependent on the weight of the shipment.

You shouldn’t estimate the weight of you your shipment because if you do, you must be ready for charges to change after pick-up.

· Freight Class

You’ll need your freight class if, at all, you are obtaining an LTL rate from a common carrier.

Of course, it can be a bit challenging to determine your freight class.

In case you’re uncertain, ensure to inquire from an expert, especially your LTL freight forwarder.

· Ancillary Services

In some instances, you’ll require special services from the carrier, which don’t come easily with the ordinary business.

Therefore, you need to outline the specific special services to make it possible for the carrier to generate a comprehensive quote.

Do carriers offer LTL Freight Pick-up Goods?

Yes.

Most of the LTL freight carriers provide pick-up goods.

They have structures in place to ensure the coordination of pick-up of shipments from different destinations is effective.

This is vital since it helps in facilitating the shipping process of the different consignments.

It also helps in reducing delivery time, which is critical as far perishable shipments are concerned.

What is the Ideal Load Weight for LTL Freight?

Typically, the ideal load weight for LTL freight often varies from one carrier to another.

However, the suitable LTL shipment would weigh between 151 and 20 000 pounds.

Some carriers enlist the minimum weight as 100 and maximum weight as 10,000.

While at it, the load should never contain more than six pallets in size.

But in some instances, some carriers carry up to eight pallets.

What are the Ideal Tips for Packaging LTL Freight?

In LTL shipping, lost or damaged shipments are the major causes of delays, additional charges, and other related issues.

To prevent or reduce such happenings, it is recommended to ensure the packaging of your LTL shipments correctly.

Some of the vital areas to focus on in packing LTL freight to ensure they arrive in good shape and condition include the following;

Understand the minimum packaging requirements – Make sure you follow all the rules and regulations guiding the packaging of LTL freight.

Figure out the items’ weight, dimension, handling, and liability as outlined in the regulations.

Keep the loading options in mind – Loading options are essential when it comes to cost-effectiveness.

For instance, you can package freight to load vertically rather than horizontally.

This latter is likely to ship for less since the volume of space is reduced.

Select the right pallet, box, or crate – This is an important measure for preventing everything from misplaced items to crushed boxes.

Of course, there are stipulated maximum loading weights for such packaging materials.

Therefore, it’s vital to ascertain you’re following the right guidelines.

Use protective materials – once you choose the right external packaging material, use other substances to cushion freight, and provide stability.

Some of the available options include paper padding, bubble wrap, loose-fill, and foam cushioning, among others.

Correct labeling – All LTL freight shipments must be labeled before pick-up.

Ensure you clearly indicate the shipper’s and consignee’s details.

Where applicable, make sure the precautionary labels are applied accordingly and secured with adhesive, tapes, or staples.

You can always use a tag in case the labels don’t adhere.

Is it Necessary to use a Third-party LTL Freight Shipping Company?

Yes.

You may consider using a third-party agent to facilitate shipping your LTL shipment.

There is no regulation, which restricts the use of 3rd party LTL freight shipping companies.

The most important thing is making sure that the specific 3rd party LTL freight company complies with all the stipulated shipping policies.

Who Bears the Liability in LTL Freight Shipping?

It is the responsibility of the LTL freight company to bear the liability when shipping a consignment.

The shipper takes control of the shipment immediately; it is issued from the seller.

The buyer only takes responsibility when the shipment is signed off after delivery by the shipper and declaring it is in good condition.

However, the degree to which the carriers accept liability in LTL freight is dependent on different qualifiers.

If the incoterm is on the FOB contract, the seller loads the shipment at their own risk and can be held accountable for negligence in loading.

Once the cargo is loaded, the career accepts liability for damage.

However, under many standard contracts and regulations, the carrier is not liable for damage arising from the following aspects;

  • Inadequate packaging
  • Acts of nature
  • Acts of public enemies

Can you Track your Shipment in LTL Freight?

Absolutely correct.

One of the main advantages of using LTL freight is that it is relatively easy to track your shipments in transit.

You can use several measures to track your LTL consignment.

Most of the LTL freight carriers have integrated their systems with different effective tracking platforms.

Therefore, you can choose to track the shipment directly from the carrier’s website as long as you obtain the tracking number for the same.

Another option would be to seek the services of a third-party tracking company.

In this case, you need to have an online tracking application for tracking your LTL consignments.

It is often regarded as the best alternative for tracking LTL freight shipments due to reliability.

The only issue with using 3rd party tracking company is that it can be somewhat expensive.

What Paperwork is required for LTL Freight?

The documentation needs for LTL freight depend on many things, such as the type of products you are shipping.

Even so, the most fundamental document for this type of freight is arguably the Bill of Lading.

In principle, this document must always be completed in the hands of the carrier during pick-up.

Bill of lading contains useful information such as consignee’s information, shipment date, type of packaging, freight class, types of goods, and dimension.

Other paperwork, which you might require for LTL freight include;

  • Commercial invoice
  • Insurance certificate
  • Test report where applicable
  • Packing list

Who Benefits most with LTL Shipping?

If you’re a small business owner, you stand a chance of being the greatest beneficiary of LTL shipping.

Principally, you’ll be saving considerable costs when using this mode of shipping for your consignments.

And this is also beneficial, especially if you are not a frequent buyer.

What are the Best Practices when using LTL Freight?

When preparing LTL shipments, there are essential things you need to keep in mind.

Notably, these may include dimensions, paperwork, labeling, and packaging.

In terms of dimension, when measuring the length, width, and height of shipments, round up to the next inch or a couple of inches.

For your carrier to make the most use of trailer capacity, you need to get accurate measurements.

It also allows you to avoid paying excess fees.

When it comes to documentation, always make sure you complete the Bill of Lading to complete shipping transactions.

This document works as a receipt for your products, and it should be as detailed and precise as possible.

In regards to packaging and labeling, they need to be in good standing.

Always load your shipments on pallets to help in condensing the space they’ll cover in the truck.

Set heavier items on the bottom of the pallets to prevent them from damaging the light ones.

Additionally, always purpose to make your labels entirely visible from the outside of the pallet.

In LTL freight, always take advantage of the tracking services the carrier offers.

In case your preferred shipper hardly provides tracking services, seek a third party, or implement your tracking technology.

And now, we would like to hear from you.

Maybe you can tell us your experience with LTL freight.

Or, ask us anything you need to know about LTL freight.

Tj chinafreight offers a perfect solution for all your LTL freight needs – contact us now.

Import License For Different Countries: The Ultimate FAQ Guide

If you’re importing from China, it is important to know the requirements for import licenses for different countries.

This way, you will prevent unnecessary delays and inconveniences that come with customs clearance.

Let me take you through everything you need to know about the import license.

What is an Import License?

Import license refers to an official document issued by a nation’s government.

This document authorizes the importation of particular goods into a territory of a specific country.

An import license specifies the number of goods you need to transport.

In principle, carriers ensure they hardly exceed the already determined quota.

Why is Import License Important in International Shipping?

Primarily, different countries have varied policies guiding the importation of commodities from numerous destinations.

Therefore, the essence of import license becomes apparent in international shipping.

One of the importance of this document is it helps in regulating the commodities allowed in a country.

Certain commodities may be restricted in a particular territory or country, subject to a specific quota or monitoring.

For instance, HAZMAT shipments must meet certain conditions before they are allowed inside a country. Hence an ideal way of enforcing such regulations is by using import licenses.

Another significance of import license is it helps in protecting domestic manufacturing from foreign competition.

Ideally, an import license specifies the quantity or volume of imports permissible in a particular country.

Moreover, the total volume acceptable should never exceed the quota.

Considerably, this helps in regulating the number of imports.

This safeguards the local industries from foreign competition, which would otherwise dilute the market.

Who Provides an Import License?

The national government of the destination country is responsible for issuing import licenses.

There’s a specific agency in every country mandated by the government to issue this official document.

It provides this document after careful assessment of your application.

In essence, the national government ensures your application meets the required standards before issuing this document.

When do you need an Import License?

Different circumstances define the elements under which an import license becomes a necessity.

These factors may vary from one country to another.

However, the common instances when this document becomes essential include the following;

1. When you’re importing commodities for purposes of reselling and not necessarily for personal use.

In this instance, it implies you are importing the goods for commercial purposes and not essentially for domestic use.

Thus there’s a need to obtain approval from the government to allow you to import the commodities.

2. When value of the consignment, you’re importing exceeds the stipulated limit.

In most countries, there is a limit under which you can import items from a foreign land without the need for this document.

The value often varies from country to country.

Thus in case, your shipment exceeds the limit, you’ll require to obtain the import license.

3. When you want to receive or make international payments for imported goods

Several financial institutions often request for an import license before you make or receive international payments for the commodities.

It is a way to ascertain the authenticity of the transaction.

4. When you have more than three imports in a calendar year.

It also varies from country to country.

Some will always request you to obtain an import license when you surpass three imports in a year.

What are the Contents of an Import License?

The contents of an import license often vary from one issuing country to another.

However, there are basic information, which the document must capture across the board, including the following;

  • Name and the address of both the consignor and importer
  • Details of the responsible official agency
  • Country of origin
  • Declared point of entry for the consignment
  • Quantity of the consignment
  • Name of the commodities (Scientific name where applicable)
  • Type of material
  • Any additional information if applicable
  • Official stamp of the responsible issuing body

Are Import Licenses the same for Different Countries?

No.

Import licenses vary from country to country.

Each country has specifics regarding the commodities you need to import.

Therefore, it makes it apparent for every country to design a unique import document.

Nonetheless, there could be a few elements, which can be similar in import documents issued in different countries.

Is there a Cost for Obtaining an Import License?

It depends on the specific country you are applying to this official document from.

In some countries, you do not need to pay any amount of money to obtain it.

All you need is to ensure you provide the correct details regarding the consignment you’re importing.

However, in other countries, you can be required to pay a facilitation fee to obtain an import license.

Thus the essence of inquiring from the respective destination country for certainty regarding cost.

Is Import License Mandatory in International Shipping?

Not in entirety.

The need for import license in international shipping is based on various factors.

These may include the value of the shipment, purpose (commercial or domestic), types of goods, and destination country.

Ideally, there are some countries, which do not necessarily require you to present this document when importing goods.

Do you Apply for an Import License in your Business or Personal Name?

The choice, in this case, is entirely dependent on your preference.

You need to figure out whether you are importing goods for commercial or domestic purposes.

If you’re importing goods to resell, generate income, and pay taxes, it would be ideal for applying for the license in your business name.

Nevertheless, the name on the commercial invoice must always match the name on your import license.

How do you Apply for an Import License?

The application for this document in most countries is made electronically.

The agency issuing import license have platforms, which you need to access, fill the details, and submit your application.

Notably, the specific type of goods you are importing determines the license requirements.

Here are some insights surrounding the application of import license in the USA;

  • If you plan to import commodities under your business name, obtain the Employer Identification Number from the IRS.

If you’re importing as an individual, you only need to use your Social Security number.

Alternatively, fill out the US Customs and Border Protection Form 5106 if you lack either of these numbers.

  • If you are importing high-value goods, buy a surety bond to ensure the commodities during transit.
  • Confirm with the country’s consulate whether it’s in good standing with the US as far as trade is concerned.

Otherwise, you’ll need to await the resolution of the pending issues between the countries.

Nevertheless, the shipping country may have its requirements regarding exporting commodities out of the country.

  • Determine the ideal port of entry. You also need to understand that tariffs often vary between different ports of entry.
  • Determine the regulatory agency dealing with the type of commodities you are importing and apply for the import license.

What are the Types of Import Licenses available?

Import licenses generally come in two main categories;

a) General Import License

This refers to the type of import license that you can use to import various commodities from all countries.

The exception is countries, which the particular commodities are prohibited.

b) Special Import License

This is a type of import license, which can be used to import commodities from specific countries.

It outlines the goods that you need to import from a particular country.

How Long does it take to Process Import upon Application?

It varies from one country to another.

In most countries, the official turnaround for obtaining this document upon application is between 5-10 days.

You, however, must ensure to submit all the necessary documents to receive these licenses within the stipulated timeframe.

One of the reasons this document may delay is from customs departments changing their computer systems.

It is also bound to delay due to staff shortage at the customs, public holidays in between, and authentication taking longer.

Can you Change your Existing Import License from a Personal to a Business Name?

Not necessarily.

Technically, your import license is always linked to a particular business registration or ID number.

These numbers are, of course, unique hence making it difficult to change the license from personal to business name.

Nonetheless, you can change the business name or registered address to reflect on the current import license you are using.

Which Products Require an Import License in International Shipping?

This is dependent on a specific government, which has the mandate to put a restriction on certain commodities.

In principle, an import license outlines the number of the specific commodities hence the reason for issuing it.

Nevertheless, most of the products often regulated by import license fall under the following categories;

  • Technology
  • Agricultural products
  • Wood products
  • Chemicals
  • Pharmaceutical products
  • Military weapons
  • Food products

Is there a Difference Between Import License and Import Certificate?

Import certificate refers to an end-user assurance document recognizing the government’s awareness to the proposed import of specific goods.

It exhibits the government has no immediate objections to the proposed importation of goods by the particular importer.

Moreover, it recognizes the purpose of the stated end-use and end-user.

On the other hand, import license is an official document issued by the government approving the movement of goods into a country.

It outlines the volume of commodities you need to import and it is usually a requirement at the customs clearance department.

What are the Benefits of an Import License?

Obtaining an import license for international shipping is beneficial in a variety of ways.

Some of these advantages include the following;

  • It enables you to expand the overall scope of your business.

You can import outside your country and increase the possibility of gaining more profits.

  • There is no annual subscription for an import license.

Most countries offer a longer validity for this document at times up to 10 years.

In some countries, it is permanent for as long as your business exists.

  • It is easy to obtain an import license as long as you have the correct details.

Most applications are made electronically, thus making it more convenient.

  • It takes a few working days to have your import license upon application.

This is advantageous since it prevents any inconveniences, which may arise due to delays.

Do all Countries Require Import License for International Shipments?

No.

There are some countries, which hardly require an import licenses for international shipments.

However, they have put stringent measures in regulating the types of products getting into the country.

This is essential because it makes it easy to determine the prohibited goods from acceptable commodities.

Moreover, countries that do not require an import licenses for international shipping have a clear stipulation on products allowed in their territories.

Can you use One Import License for Different Types of Products?

Yes.

In many cases, a single import license covers all types of products you’re importing to the country.

Notably, all the prohibited and regulated commodities indicated in a particular country may need an additional permit.

Does an Import License Expire?

It depends on the specific country you’re obtaining this document from.

In some countries, the validity of an import license is ten years from the approval date.

After which you’ll need to re-apply for another one.

In such instances, however, your import license is never subject to annual subscriptions or fees as long as it is valid.

But this is also dependent on the changes if the customs department decides to alter the prevailing practices.

In some other countries, however, import license tends to be valid for a lifetime as long as your business continues to exist.

It thus implies you do not need to re-fill or renew the document ever once you receive it.

Even so, you may choose to close the business or stop using the document.

Thus you’ll need to surrender the same by informing the relevant issuing body through a written application.

Who do you Present the Import License to in International Trade?

You will need to issue the import license document to the customs if you choose to clear the goods yourself.

However, if you choose to work with a clearing agent, you will present it to the agent, who’ll then issue it to the customs.

Also, you may need to present the import license to your financial institution or foreign exchange broker.

This is specific when you need clearing international payments.

Is Import License Document Transferrable?

Not at all.

It is impossible to transfer the details of an import license from one party to another.

Therefore, you can hardly use someone else’s import document to clear your items.

In essence, the details on the commercial invoice must match the information on the import license.

If not, it will be difficult for customs department to clear your shipment.

Can you use One Import License for Different Countries?

Yes.

You can use a single import license document to import a variety of products from different countries.

However, there are some countries of economic blocs, which may require additional certificates or permits.

Moreover, some countries also require you to register with relevant bodies to benefit from import duty tax reduction.

Notably, you need to understand that your import license is only valid with the borders of your destination country.

For instance, you cannot use a USA import license to import commodities to other countries outside the USA terrain.

Can a Foreigner Apply for Import License?

Yes.

If you’re a foreigner, you can apply for an import license document in a particular country you’re importing the items to.

Two scenarios are guiding this circumstance and include the following;

  • If you’re a foreigner with a valid bank account and address in a foreign country, you can apply for this document under normal procedure.
  • In case you’re a foreigner without a valid bank account and address in a foreign country, you’ll need to have a nominated native agent. The nominated native agent will then apply for the import license on your behalf.

What is the Difference Between Import License and a Permit?

An import license is essentially a customs code, which authenticates that you’re a registered importer of different commodities.

The customs code comes in the eight-digit number assigned to you as the importer.

And it is this code that you use when clearing your imports at the customs department.

You can also use the code to pay or receive payment for the particular commodities you’re importing.

On the other hand, a customs permit refers to an additional certification document ascertaining the importation of the particular commodities.

Principally, certain items are often regulated by customs. In essence, it means you’ll require to obtain additional certification for such items before they are allowed in the country.

Nonetheless, the specific type of import permit you need is dependent on the regulation of the commodity imported under customs laws.

Are there Any Exemptions for Import License?

Yes.

Typically, every country has its restrictions regarding goods or particular commodities imported to its terrain.

It is also the same way each country has exemptions on particular items you can import within its borders.

Therefore, if your business is considering importing items to a particular country, you’ll need to confirm if you require a license.

To stay on the right side of the law, you need to be aware of all the responsibilities of your import license.

You also need to know the relevant authorities issuing respective import license to guide the specific exemptions available.

So, in case you’re importing from China, Tj chinafreight will handle all your shipping and import documentation needs.

Contact us today for free warehousing, shipping container and affordable freight forwarding needs.

Custom Clearance Process- The Step by Step Guide

Step By Step Guide On Custom Clearance Process

Customs clearance is a significant part of the international shipping process for both importers and exporters. It ensures hassle-free approval from the origin and destination governments to move goods across the borders.

This process involves inspecting the imported or exported goods and calculating their taxes, duties, and excises.

Below is how the customs clearance process works step by step.

Step 1: Goods Arrive At Destination Port

First, the goods arrive at the importing country following the specifications outlined in the arrival notice.

The custodian (appointed by the commissioner of customs) will hold the shipment until it clears with customs.

Step 2: Filing Bill Of Entry (BOE)

Customs requires that shippers make a bill of entry application before continuing with the customs clearance process.

This application is made before or on the arrival of goods, either manually or electronically. It is submitted to customs as part of the clearance procedure. The formats for the bill of entry tend to differ based on the rules prescribed by the destination country’s government.

But most importantly, it should indicate the following:

  • Port code
  • License number
  • Importers name and address
  • Vessels name
  • Origin port name
  • Country of shipment
  • Receiving country and its code
  • The issuance date for the bill of lading
  • Description of goods and assessable value
  • Basic rate/amount of duty levied (assed by the importer based on the applicable exchange and rate of import duty)

Here is a sample bill of entry document:

After applying, you will get a bill of entry number.

Step 3: Paperwork Review

The most crucial aspect of customs clearance is documentation. In this process, customs must first check and verify that your paperwork is in order. Otherwise, your shipment will get stuck at this stage leading to frustrations and costly delays.

Documentation Needed For Customs Clearance

The main freight forwarding documents you’ll need in international shipping and customs clearance will depend on several factors that include:

  • the type of goods you’re shipping
  • where you’re shipping from/to
  • The transportation system you use.

Based on these factors, the paperwork needed to clear your goods may differ.

Also, it is essential to stay on top of the import-export policies in the countries that you trade-in. It is because legislative changes could impact your shipping procedures, including customs clearance and documentation.

So make sure to confirm the customs requirements beforehand. It is easier to solve issues of missing or incorrect paperwork before shipping.

That said, these are the export documents you’ll need for clearance in the origin country:

  • Export declaration
  • Goods packing list
  • Certificate of origin (for materials or products)
  • Cargo insurance documents detailing the terms and conditions under which your shipment is insured
  • Transport document (bill of lading for sea shipments, airway bill for air shipments, and CMR for road shipments)

You may also need to provide export licenses and permits depending on the type and nature of goods you’re exporting.

As for the import documents, most countries’ requirements are the same as for export clearance. However, the following are the most critical:

  • Commercial invoice: Customs officials will use the details to determine the applicable taxes and duties for your shipment. So you’ll need to provide an additional copy of the commercial invoice import clearance.

Note that the seller is the one to generate the commercial invoice as a part of the sales contract. They will supply a copy of the invoice to accompany the goods during shipping and another copy for the buyer’s records.

  • Import Declaration: The requirements for this document vary from country to country. Generally, though, most countries allow shippers to submit the declaration electronically/manually before shipment arrival.

It helps speed up the shipment’s discharge, verification, and clearance process.

  • Transport document: Customs officials will want to see the bill of lading or airway bill for your shipment. This should be completed and signed by your freight forwarder or carrier.
  • Other documents: You may need to provide a detailed packing list describing the goods in your shipment. Depending on the importing country, you may also need to provide copies of import permits and the inspection, origin, and insurance certificate.

Remember that the origin certificates must always relate to the country from where your goods or materials originate.

These are not all the documents you may require for your export/import clearance.  As such, you must research your specific requirements based on the factors we mentioned earlier.

Step 4: Processing The Bill Of Entry

Remember the bill of entry of application? Yes, it stays in ‘queue’ as customs officials examine your shipping documents and other details.

Suppose all formalities are in order and with proper documentation. In that case, the customs official will approve and pass over your cargo for assessment.

If additional documentation or further clarification is needed, the same will be queried before approving the BOE.

You, your forwarder, or customs broker can always view the bill of entry status online. You can see if your application has passed or failed and if there’s an additional ‘query’ to fill out.

But like I said, if everything is found to be in order, your shipment passes over to the next stage.

Step 5: Your Shipment Will Be Assessed For Applicable Tax And Duties

Here, customs will assess your shipment’s import duty and export duty based on the paperwork you provide.

There is no fixed cost for this. Instead, customs determine the applicable charges based on various factors such as:

  • The declared value of goods: refers to a shipment’s worth as indicated in the commercial invoice. This value comprises all costs the load has incurred up to the point of clearance. It includes the buying price of goods, freight costs, and insurance costs, if any.

So shippers need to ensure that the value declared for goods is accurate. Inaccurate values can lead to customs disputes and lengthy clearance delays.

Most countries have a minimum threshold for dutiable goods.

For example, if the minimum threshold is $2500, goods under $2500 will not incur duties.

But beware; some restricted items may incur duties and taxes regardless of their economic value.

  • Description of goods: aside from the value of goods, customs officials also use the type of goods to determine duty and tax information.

Customs authorities worldwide list tariff (duty) rates by each product’s HS Code (harmonized system number). A HS code or harmonized system number is a 6-digit number used to classify physical goods in cross-border delivery.

So, customs officials must first classify your cargo based on the product/s HS Code before determining its applicable tariff.

There is a harmonized system number for every physical product, from toys to clothing. Most countries have a free online tool where shippers can search their product’s classification number. The number can also be found on the commercial invoice.

  • Free trade agreements: where possible, customs may consider the trade agreements between the origin and destination country before applying tariffs on goods. The existence of a free trade agreement between the export and import countries may mean that you pay little to no duties.

As you can see, your shipment paperwork is significant in calculating your tariff rates.

Therefore, you must ensure to supply truthful information in your documents. Erroneous data may result in you paying more than necessary in duties and taxes.

Step 6: Payment Of Duties

If your shipment incurs duties and taxes, customs will request payment.

So, if you are liable for tariff payment, customs will send you an invoice detailing the applicable charges.

You’ll need to pay these charges and provide proof of the same before customs can release your cargo for final delivery.

You can let your forwarder or customs broker pay the tariff on your behalf. It’ll help save you the hassle of paying and processing the payment by yourself.

In other cases, you (the importer) may not be liable for the payment of duties. It will depend on which incoterm you agreed on with your supplier.

For example, in DDU shipping, the importer is responsible for paying customs charges. In this case, customs will forward the invoice to you, your forwarder, or customs broker requesting payment.

On the other hand, if shipping on DDP incoterms, the supplier is responsible for paying duties and taxes. So the price you pay for the products covers any customs clearance charges.

If you cannot pay the requested duties, some countries like the UK allow you to apply for a duty deferment.

A duty deferment application allows you to delay payment of most customs charges to a later date.

If you’d like to defer your duties when importing to the UK, this link on how to use your duty deferment account may be helpful.

Step 7: Inspection

Depending on the product and country of importation, customs may subject your cargo to quarantine inspection.

For instance, animals, some plants, human remains, and certain minerals must undergo inspection and/or treatment before being cleared for entry.

Step 8: Your Shipment Clears Custom

As soon as you clear all customs charges and your shipment is confirmed safe for entry, customs will clear it.

But for the shipment’s release, customs has to provide you with a copy of the processed bill of entry. Your assigned customs official will sign on the BOE, after which you will submit the signed copy to your carrier.

After paying any pending carrier charges, the carrier will issue delivery order to the custodian who will release your cargo.

Note that after the customs clearance process is done, it takes an average of 24hrs for shipments to get clear.

However, this can be delayed for several reasons that include:

  • Prohibited products
  • Faulty paperwork
  • Incorrect product code
  • Seasonal holidays such as Christmas and new year
  • Poor packaging of goods, especially if they are fragile or hazardous
  • War
  • Natural calamities such as flooding
  • Incorrect shipment value
  • Poor description of goods

If your shipment delays to clear, then try to find a solution as soon as possible. Issues with paperwork, incorrect valuing, or prohibited products can invoke a customs hold on your goods.

When this happens, customs will move the cargo to a holding facility. Here, it will incur demurrage, storage fees, and other surcharges.

The longer the shipment stays in holding, the more costs you incur. That is why it is essential to ensure that your cargo meets all import requirements, paperwork is in order, and timely payment of duties.

Step 9: Take Delivery Of Goods

Once your shipment is released, you are now ready to take over ownership and deliver it to the final destination.

It could be to your warehouse, distribution center, or direct delivery to the customers.

The delivery of goods from the destination to the final location is called last-mile delivery.

You will contract a trucking company/courier service to transport the goods from the clearance point to the end destination.

To summarize;

There are several things you must consider to ensure a quick and successful customs clearance process. For instance, custom rules vary from country to country.

So make sure you’re familiar with the requirements of your respective origin and destination countries.

You must know the type and number of documents needed and the items that are prohibited or legally banned for export/import.

Make sure you learn all about the customs regulations before beginning the shipping process.

Experts in international shipping, such as Tj chinafreight, can make things much easier for you.

They will ensure your shipments meet customs requirements and even assist in document preparation and tariff payments.

An expert will also help in many other aspects of the international shipping process, such as warehousing and pickup and delivery.

It’s in your favor if you work with an experienced and reputable custom brokerage service provider.

Tj chinafreight China has a vast knowledge of international shipping and the customs clearance process.

We can help with shipping from China and ensure your shipments’ safe, secure, and fast clearing.

Yiwu Market Guide: The Ultimate Guide

Yiwu is the largest trading city in the world for different types of small commodities.

Every year, more than half a million foreign traders come to Yiwu to source various small commodities.

In this definitive guide, you’ll learn various aspects of the Yiwu market for wholesale.

You’ll also know a step by step process on best ways to navigate this market and ultimately get the best out of your visit.

Where is Yiwu Wholesale Market

Yiwu market is located in Yiwu City, a central part of the larger Zhejiang Province, China.

This business center evolved from a small agricultural town to become the largest city built on markets and small commodity businesses.

Yiwu market is surrounded by some of the major cities such as Shanghai and Hangzhou.

These neighboring cities are also essential when it comes to supplying goods to Yiwu wholesale markets.

The prime setting of Yiwu market plays an integral role in its continuous growth and development over the years.

Its central location makes it an ideal distribution source for different types of products used in Zhejiang province daily.

How to get to the Yiwu market

You can quickly get to the Yiwu market irrespective of the part of the world you are coming from to source for products.

Ostensibly, the Yiwu market is accessible from different directions since it offers an array of convenient transportation options.

Here are some of the ways you use to can access the Yiwu market from the major cities in China;

· Getting to Yiwu Market from Shanghai

You can use four means of transport to get to the Yiwu market if you are coming from Shanghai.

The fastest mode of transport, in this case, would be using a train, which takes approximately 2 ¼ hours.

You can as well choose to use buses, which are regarded to be a relatively economical option.

However, buses take about four hours to get to Yiwu from Shanghai.

Another option you can choose is boarding a taxi.

Taxis are quite a several in this route and take around three hours.

Finally, you can opt for a self-drive by hiring a car, which also takes approximately three hours to get to Yiwu.

· Getting to Yiwu from Beijing

Since Beijing is the Chinese capital city, there’s a likelihood of making it your first choice when traveling to China.

You can get to Yiwu from Beijing by any of the following options, depending on your choice;

  • You can take a flight, which often takes approximately 4 ½ hours, quite faster but relatively expensive.
  • You can opt to take a train, which takes around 6 ¾ hours but still save some considerable fortune.
  • Also, you may decide to hire a taxi or self-drive car for a journey, which takes about 14 hours.

· Getting to Yiwu from Guangzhou

Ideally, Guangzhou is relatively far from Yiwu city.

Thus if you’re not on a tight budget, it advisable to simply take a flight.

Most domestic flights take around 4 ¾ hours, and the price range from $100 to $200.

However, if you are working on a tight budget, you may opt for other alternatives such as train, bus, and self-drive.

· Getting to Yiwu from Shenzhen

Traveling from Shenzhen to Yiwu presents an array of options.

You can take a flight at a cost ranging from $100 – $200 for a 4 ¾ hours trip.

If you’re on a budget, you can perhaps consider other cheaper alternatives such as bus, self-drive, and train.

The duration for these options are 21 hours, 12 hours, and 8 hours respectively.

· Getting to Yiwu from Ningbo

Ningbo is relatively close to Yiwu; thus, the ideal mode of transport, in this case, is using a train.

A train takes about 1 ¾ hour and is fairly cheap, often ranging from $20-$35.

You may as well choose to board a bus, which costs $9 and takes about 4hours.

If you choose self-drive or hire a taxi, you’ll take approximately 2hours from Ningbo to Yiwu.

Moreover, whichever option you choose to use to get to Yiwu, the distance from such facilities to the actual Yiwu market is usually short.

It’s about 10 km from Yiwu train station to the Yiwu market, a 20-minute drive.

From Yiwu airport to Yiwu market, the distance is about 11.4 km, a 25-minute drive.

The distance from Yiwu market to Yiwu bust station is 1.5 km, a 7-minute drive.

The Best Time to Visit Yiwu Market

There is a need to carry out thorough background research before visiting Yiwu for business purposes.

Of course, the market is opened every day throughout the year.

However, there are specific times when your visit allows you to get the best deals ever.

During trade fairs would be the most appropriate time to visit Yiwu.

In essence, it becomes easy for you to get better deals and also create rapport with several suppliers and manufacturers.

Weather patterns and annual holidays in China are also a vital consideration when planning to visit Yiwu.

Essentially, the ideal time to consider visiting this market would be between March and June and between September and December.

While at it, you also need to determine the number of days you’ll spend sourcing for products in Yiwu.

This way, you can figure out the best seasons when perhaps hotels and accommodation are relatively affordable.

And this makes economic sense, especially if you’re going to spend more time in Yiwu of at least 7 days.

The Best Wholesale Markets in Yiwu

Ideally, Yiwu market is a general term.

Typically, this market is regarded as Yiwu International Trade Mart.

In many cases, it is referred to as the Futian Market.

In other words, Yiwu market is a cluster or market.

Technically, the entire Yiwu city serves for market trade.

That’s the reason you can see there are numerous booths along the streets full of products for wholesale.

These numerous sub-markets in Yiwu wholesale market are often categorized based on products sold.

The wholesale markets in Yiwu include the following;

i. Futian Market

This wholesale market is located in District 1.

It is the largest and most famous wholesale market in Yiwu.

Several products such as toys, bags, jewelry, hair accessories, belts, and scarfs are available in wholesale.

This market has over 50,000 booths across all five Districts.

Futian is also famous for artificial flowers as well as small home appliances.

It opens from 8 am to 5 am.

ii. Yiwu Material Market

This market has become a large-scale center for sourcing building and decoration materials.

It is also synonymous with ceramics products, stones, and aluminum.

Yiwu material market has over 350 booths.

iii. Digital Market

The digital market in Yiwu is the largest place for sourcing cell phones, computers, LEDs, and a variety of tech equipment.

In most instances, businesses in the digital market tend to focus on retail for individual usage rather than a wholesale business.

It is located in Binwang Road and always open from 8 am to 5 pm.

iv. International Production Material Market

This market concentrates on production and selling a wide range of production materials.

Such materials include glass, woodwork, ceramics, and equipment you can use to produce raw materials and machinery.

It also serves as the center for lighting products as well as leather items.

The market is located along Chouzhou North Rd. and always open from 8 am to 5 pm.

v. Communication Market

Most of the available products here include networking devices, cameras, walkie-talkies, radios, cellphones, and cables.

Anything you might require to sort your communication needs can be sourced from this particular market.

It is located in Binwang Rd and opens between 8 am and 5 pm.

vi. Zhejiang Timber Market

This market is synonymous with the largest and highest grade of timber and related accessories.

It is also the best place to source a wide range of building materials, including wood for flooring and other infrastructure.

It is located along Huancheng W Rd and also opens between 8 am and 5 pm.

vii. Yiwu Furniture Market

This is the only professional market approved by the government in Yiwu City, where you can source all types of furniture products.

Yiwu furniture market has modern infrastructure and regarded as the largest single scale market in the entire Zhejiang province.

It is located in the central parts of West Yiwu City along Xincheng Rd.

 viii. Huangyuan Clothing Market

Huangyuan is regarded as the largest professional market located in the middle zone of Zhejiang province.

It complements selling wholesale and retail business for clothing and garments.

This market is located at the intersection of Huangyuan road and Jiangbin middle road.

Types of products you can buy in Yiwu Market

Ostensibly, it would be relatively difficult to explain all the types of products you can source from Yiwu Market.

In this market, you can find over 400,000 types of different products.

We cannot exhaust all the products in writing.

This merely means you can get most types of products you can imagine, if not all.

The products are numerous and available in various categories.

Some of the common item categories include the following;

  • Machinery and equipment
  • Hardware and tools
  • Fashion accessories
  • Packing materials
  • Apparel, shoes, and parts
  • Pet supplies
  • Consumer electronics
  • Homeware and decoration
  • Sports and outdoor
  • Toys
  • Health and beauty products
  • Auto and motorcycle accessories
  • School and office supplies
  • Apparel, shoes, and parts

Advantages of Shopping Products from Yiwu Market

Sourcing products from Yiwu wholesale markets, whether for commercial or domestic purposes, presents a lot of benefits.

With the right information, you will always get the best deals ever when shopping from this particular world’s largest small commodities market.

Some of the obvious advantages include the following;

1) Availability of a Variety of Products

With over 400,000 thousand types of products, you can be certain of getting any variety of the item you’re looking for.

This is fundamentals, especially for commercial purposes, since you’ll need to get a wide variety to choose from.

In essence, it allows you to get specific products, which meet your particular demands.

2) There is No Sales-pressure

Typically, whenever you are sourcing products from wholesale markets, you are bound to give in to pressure from various quarters.

At times this can lead you to make wrong decisions as far as purchasing the products is concerned.

However, the good thing about shopping from Yiwu Market is that you are hardly subjected to such sales pressure.

You have the liberty to make an independent choice based on your specific demands.

And the reason here is always as a result of a variety of options all-round.

Ultimately, you make end up making a sound decision and leave the market with a satisfied conscience.

3) High Level of Convenience

Generally, Yiwu wholesale market is perfectly structured, of course, to meet international requirements.

As such, the structures are put in place accordingly to enhance mobility and other related elements.

Suppliers have reasonable lead-time for obtaining products.

The stocks are always available and ready-to-ship irrespective of the quantity you may need.

This is convenient and cost-effective since you’ll be able to save on a considerable amount of money and time.

4) Flexible MOQ

When shopping for small commodities from Yiwu wholesale market, the MOQ should be the least of your worries.

Many suppliers here offer different types of products without necessarily minding about the MOQ.

Some suppliers can get you even a single piece of the specific product you are looking for.

Moreover, you can always negotiate with the supplier on a reasonable MOQ, especially when sourcing assorted products.

In essence, it allows you to obtain commodities even when you are working on a budget.

5) Affordability

In Yiwu market, one element you can be guaranteed of is obtaining goods at relatively affordable rates.

The products are usually available at discounted rates, which is something you can rarely find in other markets around.

There are several options where you can find similar products at relatively cheap rates irrespective of the MOQ.

Moreover, the products are as well of good quality, making the undertaking worth it.

6) Operational Throughout

Yiwu Wholesale Market is hardly closed down on weekends or holidays.

Most stalls here operate every day of the year, mostly from 8:30 am to 5:00 pm.

The only time the market is closed is during the Chinese New Year, which is often about two weeks.

In essence, this gives you the liberty to plan on flexible dates where you can conveniently visit and source products.

7) Easy Accessibility

You can get to the Yiwu market via different means of transport from anywhere in the world.

This makes it easy for you to get to the market and source for your products conveniently.

There is also a BRT bus, which moves visitors to different districts of the market at fast speeds regardless of traffic.

Moreover, Yiwu city has a host of hotels, which offer accommodation services.

It makes it easy for you to find comfort as you continue sourcing for different small commodities irrespective of your stay.

8) Security

At Yiwu market, there are hardly incidences of insecurity.

This means you can comfortably go around with your business without worries about your safety.

In essence, this gives you peace of mind while sourcing products.

And this is vital when shopping for different products in different sub-market within Yiwu wholesale market and city in general.

Categories of Yiwu market

As far as organization and planning are concerned, there is no other market globally, which matches the Yiwu wholes market.

Yiwu International Trade City is innovatively organized and regarded as one of the most advanced in the world.

Since the market is relatively vast, it is divided into regions based on the category of products.

And this is to make it easy for you to get access to the market and source your respective products accordingly.

· District 1 of Yiwu Wholesale Market

This region consists of a 4-story building erected in October 2001 but started the operations a year later.

It occupies an area of approximately 34,000 square meters and about 11,000 trading booths.

Different categories of products are stocked on various floors for easy accessibility.

At least 70% of the products in this district are purposed for export.

Additionally, this district consists of vending machines, financial institutions, and various multinational serving restaurants.

Floor Product Categories
1 Toys;  Artificial flowers; Ornaments; Flower accessories
2 Jewelry;  Ornaments; Hair accessories,
3 Ceramic and crystal; Tourism craft;  festival craft; Ornament accessories; Decorative crafts; Picture frames
4 Taiwan Mall ( Craft, Flower, Ornament) Factory Outlets (Toys, Flower, Ornaments)

District 2 of Yiwu Wholesale Market

This is a 5-story building officially opened in October 2004.

It occupies 600,000 square meters and has over 10,000 trading booths.

All the shops from 1st to 3rd floor in District 2 are cubed.

Like District 1, this region also has various service facilities such as banks, restaurants, and telecommunication firms.

Floor Product Categories
1 Suitcases; Bags; Raincoats; Umbrellas
2 Electrical Accessories; Locks; Hardware tools & Fittings; Vehicles
3 Kitchen & Sanitary Products; Clocks &Watches; Small home appliances; Telecommunication products; Shavers; Flashlights; Batteries; Lamps
4 Electronics; Suitcase & bags; Hardware & Electric Appliances; Clocks & Watches; Factory Outlets ( Hong Kong Mall, Korean Mall, Anhui Mall, Sichuan Mall)
5 Featured products; Export agencies

District 3 of Yiwu Wholesale Market

This district is a 5-story building covering about 460,000 square meters with more than 7,000 stalls.

Various products are put on different floors of this building as illustrated in the table below;

Floor Product Categories
1 Pen; Paper; Ink; Eyeglasses
2 Stationery; Office products; Outdoor products; Cultural & Sports products
3 Beauty products; Cosmetics; Zipper outlets; Garment accessories; Button; Cosmetic accessories
4 Beauty outlets; Cosmetic outlets; Apparel accessories outlets; Cultural and Sports outlets

District 4 of Yiwu Wholesale Market

This is the sixth generation market of Yiwu commodity city regarded as the strongest and arguably best-bred district

It started operating in October 2008 and occupies an area of 1,080 000 square meters.

District 4 consists of more than 19,000 trading booths, mainly selling textile and related products.

Floor Product Categories
1 Stockings; Socks
2 General merchandise; Consumables; hats; Gloves; Supermarket products; Earmuffs; Knitted products
3 Shoes;  Sewing threads & Tapes; Towels, Yarns; Textile accessories; Buckles; Neckties
4 Bras; Belts; Shawls; Scarves; Innerwear; Scarves

District 5 of Yiwu Wholesale Market

This is the latest district in the International Trade City.

It features a 5-story building and was officially opened in May 2011.

This district has over 7,000 shops covering a total area of 640,000 square meters.

Many of the products available in this district are imported.

Most of the stalls in this district are often open between 10 am and 4:430pm.

Floor Product Categories
1 Daily Consumables; Jewelry; Imported commodities; African products Exhibition center; Clothing; Food products; Health Care products; Handcrafts;
2 Beddings; DIY products; Chinese knot
3 Curtain materials, Needles, Knitted fabric; Knitted cloth;
4 Auto accessories; Ceramics; Hotel supplies; Commodity distribution; Pet products; Motorcycle parts

How to Source products in Yiwu Market

Sourcing products in Yiwu wholesale market can be an uphill task, especially if you are a newbie.

With over 75,000 trading booths available in the market, it can be difficult to find exactly what you need.

Nevertheless, there are several ways you can use to source items in this vast market;

· Going Alone

In this case, you’ll need to physically visit the different booths as you search for the specific products you need.

It is an ideal method, especially if you are an experienced buyer or familiar with the market.

· Hiring a Translator

This method is always effective where there is a communication challenge when it comes to sourcing of the commodities.

Technically, it is more of going alone but seeking assistance from translators to make the sourcing process effective.

· Using a Sourcing Agent

You may choose to seek services of a sourcing agent when purchasing products from Yiwu wholesale market.

This technique is regarded as the most effective, convenient, and relatively cost-effective.

Most of these agents here are experienced and understand various booths to obtain specific products, which meet your demands easily.

· Using e-commerce Platforms

Most of the Yiwu wholesale markets have partnered with different types of e-commerce websites.

Alibaba, AliExpress, Amazon, E-bay are among the common online platforms you can use for sourcing products from the Yiwu market.

It is also a convenient and cost-effective approach to undertake, especially if you have knowledge and experience.

How to Deal with Yiwu Market Suppliers

Yiwu market has thousands of suppliers. Dealing with such a multitude of people requires meticulousness and comprehension of prevailing factors.

The specific ways of dealing with Yiwu market suppliers are quite broad and entail the following aspects;

1. Finding the Right Supplier

A fundamental aspect when sourcing commodities from Yiwu wholesale market is making sure you get the right suppliers.

This is one way of guaranteeing best results and overall experience in this entire undertaking.

There are several options you may explore when it comes to finding the right supplier.

Never limit yourself to a specific supplier; instead, check all available options and deal with the right one.

Also, there are no fixed prices for products in this market.

Always endeavor to bargain strike a beneficial bargain guaranteeing you profits when you resell the items.

Ostensibly, suppliers of similar product categories are usually stationed within the same area.

In case you’re visiting the market in person, never miss the instructions signs and maps at every entrance.

It thus becomes easy to find suppliers you need through instructions.

If you are unfamiliar with space, which can be apparent, you can seek assistance from a reputable agent.

Alternatively, you can download a navigation map on your mobile device.

It contains product distribution of the entire market hence making maneuvering through quite easily.

You can as well do an online search on the official website of Yiwu wholesale market called Yiwugo.

This platform allows you to locate the suppliers and products you need.

All the booths are numbered for easy and fast location.

2 Communicating with Suppliers

It is another aspect of dealing with Yiwu suppliers you ought to understand.

Most suppliers in Yiwu hardly communicate in English.

Even so, it never deters their enthusiasm for doing business.

They use simple numbers, use translation pens, and Basic English words.

You can point a product you see at the booth using your fingers.

The suppliers will show you the price in RMB; then, you convert to your currency.

It thus makes it easy for you to pay for your orders in cash, especially when you’re buying a small quantity.

If you need to know more details regarding manufacturing, customizing, or developing your products, find a translator or sourcing agent.

The essence of a translator, in this case, is to enhance communication between yourself and the supplier.

Other aspects, such as product inspection and delivery after purchase is not part of their task.

3. Price Negotiation

Yiwu International Trade City is synonymous with price negotiations.

However, you need to visit the market thoroughly and also talk to different suppliers.

This allows you to compare prices before you finally have an idea of a better supplier to buy from.

After comparing the rates vis-à-vis quality, it’s when you can comfortably engage a specific supplier and start negotiating price.

4. Payment

This is another fundamental element as far as dealing with Yiwu market suppliers is concerned.

Ideally, most vendors here deal with a local currency known as RMB.

In essence, they deal with small commodities, which makes sense.

Therefore, you’ll need to have enough local currency for paying your purchase.

In Yiwu wholesale market, suppliers rarely accept foreign currencies.

Luckily, there are numerous banks and foreign exchange point in Yiwu where you can get local currency.

If you’re making large quantity orders, suppliers will often need you to pay a certain amount in form of a deposit.

You can then settle the balance right before shipment of the consignment to the respective warehouse.

Cash payments are always acceptable and often come with better discounts.

Therefore, if you never mind carrying a lot of cash with, you can explore this option.

5. About Quality

At times, the products you receive are what you see in the market.

However, quality problems are always bound to arise from time to time.

Quality issues are never a concern if you are buying on-site or awaiting delivery in your hotel room.

If you have time, always consider picking up the items yourself in the warehouse.

This way, it becomes easy to identify any possible quality issues such as wrong package, insufficient quantity, wrong color, damaged products, etc.

Moreover, you can choose to consider the following elements when it comes to quality of products;

a) Go for Suppliers with Specialized Product Categories

Suppliers with specialized categories tend to offer better quality than general product suppliers.

Specialized category suppliers are also professional and more familiar with the products.

This is contrary to various categories of suppliers.

b) Verify Product Quality

Always purpose to confirm the quality of the product you’re purchasing.

Never assume that once you place your order based on sample products, the quality is guaranteed.

You can task a sourcing agent with this role if you are not within or ordering online.

How to Find and Deal with Yiwu Market Agents

Yiwu wholesale market has tens of thousands of agents.

And given the excellent services they offer in product sourcing, you may wonder the ideal way of getting a reliable one.

If you’re abroad, it is advisable to find a YiWu sourcing agent before visiting the market.

However, if you are already in Yiwu, the easiest way to find a sourcing agent is by searching online.

A simple Google search would suffice.

Moreover, there are several advertisements for sourcing agents in different areas within Yiwu City.

For instance, you can find some ads at the airport, train station, bus station, as well as some hotel entrances.

In such instances, you need to pick a few and research their whereabouts online.

A few tips to guide you in finding a reliable, knowledgeable, and experienced sourcing agents include the following;

· Send an Inquiry Request

The response you get upon sending an inquiry to the potential agent determines professionalism and experience.

This way, you can choose to sort out the sieve the ones you need and leave the rest.

· Pay the Agents a Visit

It is necessary to consider visiting the offices of the potential agents you are courting.

Check their business licenses and other relevant certifications.

Don’t trust online information too much since some are mere crooks who are taking advantage of unsuspecting clients.

Physical visit also makes it easy to know where to find them in case an issue arises.

· Give them a Try

This merely involves engaging them to take you through the actual process.

Let them take you for a tour as you gauge whether or not they are suitable for your needs.

It becomes easier to gather more information on how they conduct their trade.

However, if you are a customer from Africa or Middle-East, you can deal with people who import directly from Yiwu.

They communicate in your local language and also fully understa

What is CBM: A Complete Guide

In international shipping, the weight of a consignment is a vital aspect in determining numerous elements.

Many carriers use the weight to determine the price quote.

Determining the weight also allows you to move the shipments effectively.

In this guide, you will know all the fundamentals regarding CBM. And this will enable you to have an idea of the essence of weight in international shipping.

Meaning of CBM in International Shipping

CBM is an acronym of Cubic Meter.

Ideally, it refers to freight volume of the shipment for domestic and international shipping.

CBM is the predominantly used unit of measurements in transportation of different types of cargos globally.

This unit of measurement is vital in shipment, transportation and air cargo, given overall shipping cost is dependent on the same.

Moreover, CBM is also essential in calculating the freight class, chargeable weight, and dimensional weight.

Dimensional weight refers to an approach of creating a theoretical figure representing bulky but relatively light consignments.

It is used in calculating the chargeable weight.

Chargeable weight simply the greater of the dimensional weight.

Ideally, pricing for ocean freight is often fairly averse to weight and more focused on size.

On the other hand, air freight is relatively more sensitive; hence the dimensional weight often plays a critical role than the actual weight.

Freight class is a theoretical number created by trucking carriers to compensate truckers for transporting oversized loads.

Most items shipped by trucks often go by simple freight class categories determined by weight.

Even so, CBM can play an integral role in determining the freight class.

All these are fundamental calculations in international freight, be it courier, ocean, or sea.

It is thus pertinent to know how to calculate the CBM of your consignment and the container as well.

How to Calculate CBM in Shipping

Calculating volume of your shipment is a common subject in international shipping.

If your cargo is Full Container Load (FCL), the freight charge for the same will be on a full load container basis.

However, where the cargo is Less Container Load (LCL), the freight charge will be on the basis of shipment volume.

Nowadays, there are several CBM calculators online.

Such online calculators enable the manufacturers to measure their consignments in terms of cubic meters easily.

Using online CBM calculators also makes it possible for you to convert a wide range of units into the standard ones.

In calculating CBM, the total weight of the cargo should never exceed 1 ton.

In other words, where the cargo’s weight is over 1000kgs, its volume is treated based on weight.

Typically, freight forwarders often charge the LCL rate per CBM or per weight of 1000kgs basis depending on which is higher.

Technically, the CBM calculation formula is relatively simple.

The formula entails calculating product of the quantity of items by length by width by height.

CBM = (Length x Width x Height) x Quantity of Items.

If you have a shipment with different sized items, you’ll need to repeat formula for each size then add up volumes.

Nonetheless, you must take note of the unit length, width, and height that must be converted into meters.

In some instances, you may have large items with a light overall weight charged depending on the space it covers on aircraft.

In such instances, it is the volumetric or dimensional weight used to calculate the cost of shipment.

It is thus recommendable that you calculate a volumetric weight for each shipment you are sending then compare it to actual weight.

Of the two weights, you’ll use the greater one to determine the price the air shipping company charges you.

The formula for calculating volumetric weight is;

Volumetric weight in Kilograms = (Length x Width x Height in centimeters) / 5000

This way, you’ll get the volumetric weight. You can always use the online calculators to calculate the actual figure.

Moreover, there are other applications you can as well download and have on your mobile gadget for easy and effective calculation.

Calculating CBM for Small Parcel Delivery

Calculating CBM for your product is quite easy.

You just need to pack it deftly into a cuboidal box to map the dimensions correctly.

After packing the parcel, measure the length, width, and height of the box, preferably in meters.

In case you have taken the measurements in other units other than meters, it is recommended that you convert it first.

After converting the units into meters, you can go ahead and calculate the CBM.

Similar to air freight, volumetric weight is also essential to calculate when you’re using courier service for small order.

The greater weight between volumetric and actual weight is used to determine the precise price the courier company will charge you.

Once you have the measurements of all three dimensions, multiply them to obtain the CBM value of your package.

The following is an example is the formula of how to calculate CBM for a small parcel delivery;

  • If the length, width, and height of your package is 1.5m, 2m, and 2m, respectively, the resultant CBM would be;

1.5 x 2 x 2 = 6CBM

Most carriers always provide a free CBM calculator to enable you to calculate the exact volume of your shipment.

You can as well utilize other reliable online calculators to determine the CBM of your parcel.

How to Ship Products from China via CBM

In many instances, CBM shipping from China involves the use of third party shippers.

Every entity has its respective policies and procedures when it comes to shipping items from China via CBM.

In general, though, irrespective of the entity you choose to use for this service, you must have an account.

Creating an account on any of the entity’s platforms is quite easy; you simply need to follow the prompts provided.

Once you create the account, you will obtain a unique China address, which you’ll need to copy and paste into the entity’s platform.

If you choose, you can make the address default one.

You then need to purchase all the items you need from the platform as you would ordinarily do and check-out once done.

However, you need to double-check to make sure the shipping address is correct.

In many instances, you’ll see the specific courier company the seller used to ship out your item.

In short, the entire process involves four main steps;

  1. Purchasing the item on the ecommerce platform
  2. Input the courier name and tracking number of your shipment
  3. Consolidation of the shipment and shipping it out
  4. Awaiting arrival of the shipment

Use of 3PF in CBM shipping

Third party forwarders are integral in CBM shipping.

In China, there are several third party forwarders you can choose to use when shipping your CBM products.

The ultimate choice, of course, is dependent on a variety of aspects such as cost, route, and duration.

Moreover, other ancillary services such as warehouse storage also play a role in determining the ideal 3PF for your needs.

Most of the 3PF in CBM shipping have relatively simple and user-friendly websites.

This makes it easy to navigate through when in need of the CBM shipping services.

It is also easy to gauge size and total cost of your CBM shipment when using 3PF.

They have calculators hence allowing you to determine the price before committing.

Using 3PF in your CBM shipping needs is also cost-effective.

For instance, some offer free warehousing and doorstep delivery services for parcels less than 0.5 CBM.

Some of the 3PF platforms also come with personalized features.

In essence, this allows you to determine various elements regarding storage, shipping, and delivery of your shipment.

However, it is also important to understand that shipping all your items with 3PF at once is always a cheaper option.

Nevertheless, it is the best method for shipping different items such as furniture, fittings, and décor to your home or office.

Types of Containers and their Respective CBMs

Determining the volume of your shipment is necessary when estimating the quantity of products which fit in a specific type of container.

Ocean shipping container often come in different varieties, as described in the table below

Container Type Length Width Height Capacity (CBM) Maximum (CBM)
20’ 589 cm 234 cm 238 cm 26-28 33
40’ 1200 cm 234 cm 238 cm 56-58 66
40’ High Cube 1200 cm 234 cm 269 cm 60-68 72
45’ High Cube 1251 cm 245 cm 269 cm 72-78 86

In calculating CBM for the container, you don’t use a simple arithmetic formula of comparing total shipment volume and maximum container capacity.

In principle, each time a container is loaded, it becomes relatively difficult to use up the entire space.

The amount of unused space in the container is dependent on size and shape of items you are loading.

It could as well depend on the type of packaging and how the items are stowed.

In most instances, however, the actual capacity within the container is about 80% of its maximum capacity.

Therefore, the table above allows you to get an idea of the quantity of items you can fit in respective types of containers.

Top carriers in China to consider in CBM delivery

In China, there are several carriers you may choose to consider for all your CBM delivery demands.

You just need to carry out thorough background research to determine the best one for your needs.

While at it, ensure you also consider the charges for each service provider.

Some of the common carriers you may choose include the following;

  • Global Fulfillment Solutions
  • JJ Shipping
  • China Railway Special Freight Company Limited
  • Shengyu Freight
  • Zhongtong Express
  • Linde Beijing International Transport Agency
  • International Transportation Limited (COMTRANS)
  • Shenzhen Marine Shipping Agency
  • Beijing Fansite International Transport Agency
  • Shanghai Tieyang Multimodal Transport
  • Guangzhou Trinity Marine International Freight Services
  • Everglory logistics
  • China Railway Express
  • Guangzhou Xiyang Logistics

Documents you need in Shipping CBM Packages

There are important documents, which you must have when shipping different types of CBM packages.

Some of these documents include the following;

· Bill of Lading

This refers to a ticket outlining the cargo’s journey from the country of origin to country of destination.

The carrier issues it to the shipper, and it describes the method of shipment irrespective of the path.

· Commercial Invoice

This is a document with a list of contents, which the supplier issues to the buyer.

It includes information such as name, specification, unit price, quantity, and total cost of the item.

A commercial invoice is vital since it allows foreign buyers to confirm the goods are paid for.

It is also vital in the customs clearance process.

· Packing List

This refers to a document that lists all the details of the consignment.

Often, it is used as a supplementary document of the invoice.

Some of the details in the packing list include packing method, packing materials, quantity, specification, and weight, among others.

· Insurance Certificate

This is a legal document proving the consignment is covered from any imminent damage or loss during transit.

· Certificate of Origin

This document ascertains the products you are shipping were manufactured in the specific country indicated on it.

It is essential, especially during customs clearance.

·  Import License

Depending on the type of product you are shipping, you may be required to produce an import license.

Products regulated or restricted may require you to obtain an import license since it is necessary during customs clearance.

· Test Report

This is usually common when importing different types of machineries.

In many instances, the authorities require a test report document to ascertain it to prove it meets all the required standards.

Determining the Better Shipping option Based on CBM

When shipping your consignment based on CBM, it is always important to figure out the best method to suit your needs.

Ideally, when shipping small parcels, it would be suitable to consider using airfreight.

It is faster and safe for such consignments hence making it cost-effective.

However, if you are shipping a relatively bulky shipment, which is always common with CBM, consider using ocean freight.

It is affordable but comparatively slow compared to other means of shipping, especially airfreight.

Tracking CBM Shipments

Once you have tasked a certain carrier with your CBM shipments, you can always track it throughout the transit process.

Most carriers usually integrate their systems with a tracking system.

Therefore, it becomes easy for you to track the progress of your consignment from the carrier’s platform.

Importantly, ensure you get the tracking number for your consignment.

It is the code you’ll use to monitor the progress of your shipment.

Alternatively, you may consider using third party tracking companies.

In this case, you’ll need to use the tracking code and key it into the third party system.

This way, you will easily track your shipment throughout the transit process.

As you can see from this guide, CBM is an integral element in international shipping.

Therefore, there is a need to make sure you get it right always.

Next time you think of shipping your shipments, ensure you review the CBM of your shipment.

Just in case you have any question, feel free to contact Tj chinafreight team.

What is ISF: A Comprehensive Guide

The U.S government has put stringent measures for goods entering the country to enhance efficiency of the process.

If you are importing goods to the USA, it is always important to know much about ISF.

In this guide, I will explain to you all the fundamental elements surrounding ISF.

You will also know why ISF is necessary when shipping to the USA and how shippers can create ISF documents.

Meaning and Scope of ISF in Shipping

ISF is an abbreviation for Importer Security Filing.

It’s a process, which requires importers or their respective agents to file data electronically with Customs and Border Protection (CBP) for inbound sea vessel shipments.

It is also referred to as “10+2,” described as CBP regulation assigned for ocean cargo imports only.

Essentially, the ISF requires importers to provide 10 data elements to the CBP and two additional documents from the shipping line.

It is required to file the ISF with the U.S CBP 24 hours before sailing from the penultimate origin port.

This data is vital since it enables the CBP and Department of Homeland Security to determine high-risk shipments.

As an importer, you need to send all the necessary data to the United States customs broker before shipping the consignment.

You can create an Importer Security Filing document containing all of the vital information to be passed to various parties.

The Essence of ISF in Shipping

The Importer Security Filing process is a vital undertaking whenever you import goods to the U.S from other parts of the world.

One of the reasons for undertaking this process is to help in detect high-risk shipments.

Most of the time, some goods are always considered harmful as far as health, safety, and environment are concerned.

It thus makes it necessary to ensure such products do not get into the country without any prior certification from relevant bodies.

ISF, therefore, makes it easy to control hazardous materials since it necessitates a prior check.

Another reason for the ISF in shipping is to enable the Department of Homeland Security and CBP to prevent smuggling of goods.

From the information you provide when filing the ISF, the security agents will detect any possibility of smuggling restricted goods.

Ostensibly, ISF gives the Customs and Border Protection a head-up whenever there is a potentially high-risk shipment en route to the U.S.

Therefore, it enhances the overall safety of the U.S borders.

Circumstances under which ISF is needed

Ideally, ISF only affects shipment getting into the U.S via ocean vessels.

It thus implies that cargo entering within the U.S borders through other means of transport such as air freight is not affected.

You will also need to complete the ISF process when importing relatively small cargo.

In essence, the ISF hardly applies to bulk cargo.

Types of ISF Available

ISF requires you to submit electronic digits of ten, two, and five data elements.

All these data elements depend on the specific type of shipment or party filing.

a) 10 + 2 ISF

This refers to a filing with a set of 10 data elements required to conform to the rules and regulations for products imported into the U.S.

The first 10 data elements in this type of filing are your responsibility as the importer.

You must thus file it within 24 hours before cargo is loaded aboard a vessel ready for delivery to the U.S.

The shipper handles the other two data elements containing container status messages and a vessel stow plan.

Similarly, these shipper data elements are also needed within 24 hours before the arrival of the vessel at a specific U.S port.

b) ISF 5

It entails FROB (Foreign cargo remaining on board), I.E, and T&E consignment needs only five data elements.

The data element in this type of filing includes;

  • Booking party – Name and address of the entity initiating reservation of cargo space for shipment.
  • Foreign port of unlading – Plan K port code is acceptable
  • Place of delivery – The foreign location where the shipper’s role in transporting the items ends.
  • Ship to party – Name, and address of first deliver to the party planned to physically receive the goods once released from customs custody.
  • HTS number – Not necessary to file in the bond filing before ISF

Basics of ISF Filing

When importing to the U.S via ocean freight, it is necessary to compliantly and efficiently to get your imports approved.

Some of the fundamentals you need to know regarding ISF filings include the following;

  • All ISF filings are carried out electronically
  • Where applicable, corrections or adjustments must be made before the items dock at U.S ports
  • The party submitting the ISF filings is the only one that can make the changes

Since inception of ISF in 2009, it has undergone several changes in terms of updates and modifications.

Some of the vital updates since then include the following;

  • The leniency method is over. It thus implies that in ISF, you only have three strikes, and you’re out.

In other words, ISF filings into additional filings are now subjected to fines.

  • A consignment may be detained for inspection where applicable. The citations that the CBP issues for ISF infractions result in fines.

In case you fail to file or incorrect file your ISF filing, you will have to pay if you obtain a citation.

In many instances, the ISF citations often cost approximately $5000 per violation.

And for every late or incorrect ISF filing, the maximum payable fine is $10 0000.

However, commodity import paperwork and other requirements of the CBP or any government agency can be handled by a licensed customs broker.

Here are some of the vital documents that must always be included;

  • A commercial invoice listing the cost of the items, country of origin, and tariff classification.
  • A packing list, which outlines all the items you are importing
  • A bill of lading listing all the items you are importing in the form of a receipt
  • An arrival notice from a licensed U.S agent

Technically, working with a licensed customs broker is the ideal way of making sure your ISF documents are filed correctly.

And this goes a long way in enabling you to avoid unnecessary fines, which apparently tend to be quite costly.

Required Data Elements for ISF

An Importer Security Filing document must contain 10 fields of information filed by the importer or supplier.

These data elements include the following;

1. Seller Name and Address

This refers to the name of the last known entity by whom the products are sold or agreed to be sold.

If you have to import the commodities otherwise than pursuing a purchase, the name and address of the owner of the goods must be provided.

Generally, you can find the name and address of the seller on the commercial invoice.

2. Buyer/Importer Name and Address

This is the name and address of the last known party to whom the commodities are sold or agreed to be sold to.

In case importation of goods is otherwise than in pursuance of purchase, name, and address of the owner of the goods must be provided.

The importer or buyers’ information can also be available on the commercial invoice.

In case the items are sold while the shipment is in transit and buyer’s information changes, the ISF must be amended accordingly.

3. Importer of Record number EIN/IRS Number

This can be described as EIN, IRS number, Social Security number, or Customs assigned importer number.

This number is usually assigned to the entity accountable for payment of all duties incurred during importation.

The entity is also responsible for meeting all regulatory and statutory requirements arising from importation.

4. Consignee Number

This includes the Social Security Number, EIN IRS Number, or Customs assigned imported number of the entity importing the consignment.

It could be an individual or company in the U.S on whose account the merchandise is shipped.

5. Manufacturer/ Supplier Name and Address

This is the name and address of the entity that manufactures, produces, grows, or assembles the product.

It could also be the name and address of the entity supplying finished goods in the country of origin.

You need to understand that for textile products, the customs broker must have the actual manufacturer to facilitate entry purposes.

6. Ship to Party

It contains the names and addresses of the first deliver-to-party planned to physically obtain the products after being released from Customs custody.

There is a notion in customs that this information provides predictability to targeting.

Where ship-to party is unknown, the facility where the items will be delivered can be reported.

If there are numerous delivery stop-offs, then it’s only the first one that shall be reported.

7. Country of Origin

This is merely the country where the goods are manufactured, produced, or grown.

It is the same information declared on the customs entry.

8. Harmonized Tariff Schedule Number

This is a specific tariff number under which the product is categorized in the HTSUS.

The ultimate rule needs six digits, but customs often accept eight digits or, in some instances, the entire 10 digits HTS Number.

In essence, it implies that all products must be pre-classified accordingly.

9. Container Stuffing Location

This entails naming and address of the physical location where items were stuffed into the container before leaving for the U.S.

In case of breakbulk shipments, you must provide the name and address of the physical location where products were declared read-to-ship.

A planned stuffing location is also acceptable, but the ISF must be amended once you establish the actual stuffing location.

Ideally, the broker doesn’t necessarily need to report where a specific container was stuffed.

10. Consolidator

This comprises the name and address of the party responsible for stuffing the container or organized for stuffing of the same.

For break bulk shipments name and address of the entity that declared the items ready-to-ship must be provided.

Additionally, there are +2 data elements, often the responsibility of the steamship line. They include

  • Vessel stow plan
  • Container status message

Notably, the manufacturer/supplier, country of origin, and HTS number must be interconnected at the ISF line item level.

Customs only allows filing or entry summary concurrent with the ISF.

The Cost of ISF Filing

Generally, the ISF filing fee is usually included as part of customs clearance charge.

It thus means the cost takes care of lodging in compliance with CBP’s 10+2 advance cargo reporting requirements.

In a nutshell, the cost often varies depending on a wide range of prevailing aspects.

ISF Filing Fee Tips

When filing ISF, you need to be thorough with the process.

CBP has the mandate to impose a hefty fine on late filing if you fail to the information at least 24 hours before the shipment is loaded.

Therefore, never hold back on filing because you don’t have the required information.

Understandably, you may update the information right up until the moment the cargo arrives in the U.S.

Another instance is CBP may decide to carry out a thorough inspection of your goods hence increasing the total cost.

The total cost may run into several hundred or, at times, thousands of dollars even for relatively small shipments.

Moreover, any delivery delay may result in additional costs.

Therefore, ensure you include a clause in your supply contract compelling the supplier to take responsibility for the cost if they are at fault.

To avert costly deliveries, ensure your forwarder files for customs entry prior to arrival of a ship at the port.

Also, ensure the entries on the commercial invoice, ocean manifest, and ISF are all identical.

Understanding ISF Bonds

ISF bonds are a guarantee from the surety entity to the U.S government.

This surety outlines the importer’s willingness to faithfully and timely abide by all the stipulations governing importation of goods into U.S.

An ISF bond is not designed to shield the importer nor relieve the importer of any of their rightful obligations.

The surety company, by bonding the importer, assumes similar roles and duties of the importer.

In case the importer fails to honor any condition of the bond, the surety is compelled to do so instead.

Finding a Customs Broker for ISF

Ultimately, it is always advisable to seek assistance or services of a licensed customs broker to help you in ISF process.

There are several ways you can use to find a suitable one. However, the ideal ways you can always use to find reputable customs brokers include the following;

· Online Search

Ideally, the first place to look for a potential customs broker for ISF is on the CBP website on the customs brokers’ page.

This platform lists all the customs brokers certified by CBP.

It also organizes them depending on your desired port of entry in the U.S.

· Referral

You may also find a customs broker through referral.

Most of your business partners and acquaintances have details of the customs brokers always helping them out with ISF needs.

In short:

As you can see, ISF is a relatively fundamental process in international shipping.

Most importantly is to always ensure you file the correct documents within the right timeframe.

Our company is always ready to assist you with all aspects revolving around ISF process.

Feel free to contact us if you need more information, and we will be ready to assist.

China Leather Market: The Ultimate FAQ Guide

If you’re looking to visit or buy from China leather market, then read this guide first.

It will help you save time and money, besides, finding better deals, knowing how to check the quality of shoes, amongst others.

Let’s take a look.

How Big is China Leather Market?

China leads not only in the production but also exportation of leather globally.

More than 6.15 billion sq ft leather is produced every year in China.

In 2020 alone it is estimated that the sale revenue from luxury leather products amounted to $7,243m.

On the other hand, revenue from leather footwear has grown in the year 2020 mounting to $9759.

This quite much explains why China remains to top the production of leather globally.

Which are the Leading China Leather Markets?

There are several leather markets in china some of the leading markets including;

  • Guangzhou Baiyun World leather trading Centre
  • Guangzhou Hongsheng Nations Leather Hardware Market
  • Fair Price Leather wholesale market
  • Huadu Shiling International Leather City
  • Yi Sen Leather Market
  • Leather products Wholesale market of Baigou
  • Leather products wholesale market of Hehuachi Si Chuang
  • Xiangmao Leather city
  • Zhonggang Leather City
  • Xiangsheng Leather City
  • Xiangtian Leather city
  • Guihua Gang Leather bags market
  • Guangzhou Leather market
  • Leather product wholesale market of Yiwu, Zhenjiang
  • Nantai Bags and Cases Leather products wholesale market of Liaoning
  • Zhuolong Leather Wholesale Market
  • Qianse Leatherwear Wholesale Market
  • Shengyi Leather Market
  • Parklane Leather City
  • Jinyi Leatherware Plaza
  • Yifa Leather City
  • Mingju Leather Trade Center
  • Tianhong Leather City
  • Senmai Leather City
  • Ziyuan Leather Mall
  • Shengjia Leather Center
  • Xingan Leather World

Can you get Luxury Good in China Leather Market?

Yes, you can get luxury products in China leather market.

Some of the well-known brands such as Prada, Dolce & Gabbana, Burberry have their production done in China.

China has several luxury leather markets that sell a diverse range of products.

Therefore, be ready to be spoilt for choices in the market.

Which Leather Product can you Import from China Wholesale Market?

You can import any type of leather product you could think of from China.

Here are some of the leather products you might consider importing from the China Wholesale Market.

  • Shoes
  • Bags
  • Belts
  • Wallets
  • Apparel
  • Furniture cover
  • Watches

Why should you Buy from China Leather Market?

There are several reasons why most importers choose to import leather from china and not from other countries.

One thing you need to understand is that every importer seeks to get quality products at the lowest price possible.

This is purposefully meant to ensure that the business profits are increased while at the same time remain credible to their customers.

That said, China stands to be a suitable option for most leather importers.

Let’s have a look at some of the reasons;

  • Affordability – Most if not all goods produced in China are sold at relatively affordable prices.

You could easily buy a product and sell it three times more than the buying prices.

The lower prices of products are due to the lower labor costs and availability of raw materials.

  • Customization –When planning to import from China, you might choose to seek customization services for your products.

Most Chinese manufacturers are willing to customize your leather products to meet your tastes and preferences.

  • Quality – Quality is very critical in ensuring that your business remains credible to your customers.

You are bound to come across both qualities as well as low-quality products in China.

The key here would be to do your research thoroughly and work with the right people.

Also, be aware that manufacturers are not the right people to seek advice on the quality of your leather.

In as much as you might think they are the best fit for this, they aren’t.

Most expect you to provide details and instructions on your preferred leather selection.

Failure to do so might result in disappointments later after production.

  • A diverse range of leather designs – Any type of leather product you could think of can easily be sourced from China leather market.

Whether you want leather bags, shoes, belts, or watch just to mention a few you can find from the several available leather markets.

  • Availability of raw materials –The availability of raw materials for leather products is one of the top reasons that result in affordable prices.

Not to mention that you won’t have to worry about the delay of raw materials being imported as they are readily available.

  • Uniqueness – Most of the Chinese manufacturers and suppliers follow emerging trends in the leather industry.

Therefore, expect to come across several unique leather products in the market.

  • High-profit margin –Leather products in China are cheaper as compared to purchasing from other countries.

You can purchase leather and sell thrice the buying price thereby increasing your profit margins.

However, you also need to be aware of scammers who purport to be selling genuine leather.

Not all leather is genuine and not all expensive leather is genuine.

Get me right, some of the scammers are smart and will present higher prices for fake leather.

Therefore, it’s important to do your research well before embarking on your purchasing process.

If not, hire an expert to source leather products for you.

What Types of Leather can you Import from China?

Any type of leather can be imported from China. Let’s have a look at some of them;

  • Split leather
  • Full-grain leather
  • Corrected grain leather
  • Top grain leather
  • Nubuck Sueded grain leather
  • Bonded or fiber leather
  • Bicast leather

Do you need a Sourcing Agent When Importing from China Leather Market?

No, you don’t need a sourcing agent when importing from China leather market.

However, if you are a newbie in the business a China sourcing agent will be of importance in several ways that I’m about to explain.

If you choose to do all the sourcing by yourself ensure that you carefully study the market before indulging in making your purchases.

Here are some of the benefits of hiring a sourcing agent when importing leather from china.

  • Avoid being scammed –Sourcing agents are experienced and skilled in what they do in a manner that they can easily spot a scammer.

This way you don’t have to worry about being ripped off while sourcing for your leather products.

  • Help you navigate the market effectively – Knowing which market is best for what and the best suppliers for your product is key.

Sourcing agents will save you time when trying to get the right market for your leather products.

  • Negotiate prices on your behalf –Owing to their vast network and experience, sourcing agents have the skill to effectively negotiate prices with different suppliers.
  • Source product on your behalf – Working with a sourcing agent allows you to continue with your daily routines as they handle all your purchasing processes.
  • Identify suitable manufacture or supplier – Identifying the ideal manufacturer for your products would be the first step of your importation process.

Some importers find it quite challenging as there are several manufacturers in the market.

Sourcing agents can identify a suitable manufacturer without much hassle as they have established networks with several of them.

  • Break language barrier –China is one of the countries where English is not known by many and this might have a major impact on your sourcing process.

To avoid this, you can choose to hire a sourcing agent to purchase your selected products on your behalf.

By so doing, you not only save time but also avoid misunderstanding during your purchase.

How do you get the Best Prices from China Leather Market?

The good thing about shopping in China leather market or even any other Chinese market is that it’s easy to get the best prices on items.

Therefore, most importers flock to the market intending to buy quality products at the best prices.

What most importers won’t tell you is that you need to be extra skillful when purchasing in these markets.

By this I mean you not only need to be knowledgeable on how Chinese suppliers operate but also how to get the best prices.

Here are some important tips for you;

  • Bargain – Some importers are easily lured to fast buying due to the already affordable quoted prices on products.

This is a big mistake if so you are looking forward to buying at the best prices.

Often, the prices quoted are achieved after the supplier has considered the bargaining rate of the customer.

Therefore, it’s very important to always bargain.

I recommend that you start from lower than half the price quoted and negotiate your way to reach equilibrium.

  • Buy directly from the factory – Another trick to land at unbeatable prices would be through making direct purchases from the factory.

Most Chinese leather manufacturers are not mean when it comes to offering larger discounts on bulk purchases.

You will be surprised at how much profit you might end up earning from doing this.

Remember, buying directly from the factory also eliminates middlemen and thus reduced prices on products.

  • Make bulk purchases – Buying in bulk is advantageous as you are more than likely to get discounted rates on your purchases.

The more you buy the more the discount you get.

How do you Ship from China Leather Market?

Shipping from the China Leather market shouldn’t be such a hassle.

One advantage of importing from China is the flexibility in shipping as it has several ports.

There are four main methods through which you can ship leather from China;

The choice of your shipping method will depend on these three main factors;

  • Distance – Air and sea freight are ideal for longer distances.
  • Urgency –Air freight being the fastest of them all is suitable for transporting urgent goods.
  • Size of shipment –Sea freight is a suitable method to use if you are importing bulky goods and want to save on costs.

That said, Air freight is the fastest yet the most expensive of them all.

Owing to this it is not preferred by most big exporters due to its high prices.

Most importers use sea freight as not only is it cost-effective but also suitable for transporting bulky products.

The only disadvantage of using sea freight is that it is the slowest of them all.

Therefore, you will have to wait several days or weeks before receiving your products.

Alternatively, you can choose to use rail transport as it is faster than sea freight and less costly than air freight.

The use of rail freight will mostly apply to countries that border China or are connected to China via a railway transport network.

Road freight is always present in any type of importation.

Remember, you will need to transport your goods from the supplier/ manufacturer to the warehouse.

Thereafter your goods can be packed and shipped to the stated destination.

Are there Quality Standards for Leather Product from China?

Yes, there are quality standards for leather products from China.

Let’s have a look at some of them below;

  • The leather product should have a genuine leather mark that certifies the quality of the leather product.
  • Any leather product should undergo chemical testing.

Chemical testing is meant to identify certain restricted chemical substances in leather products.

  • Leather products should comply with international inspection quality tests. Some of the compliance inspection quality tests include
  • Physical test
  • Ignitability tests
  • Fastness tests
  • Comprehensive analysis
  • Individual chemical test
  • Microscopy
  • Specialist leather testing
  • Biochemistry and microbiology test

How do you Verify Quality in China Leather Market?

Quality verification is key if so you want to remain reliable to your customers.

To achieve this, here are some tips for you.

  • Check out for quality marks –Quality marks confirm that the product has undergone testing and inspection.

Thus, they meet all the required quality standards.

  • Quality leather has natural rough edges as opposed to smooth and perfect edges seen in fake leather.
  • You can identify quality leather just by taking a whiff.

Quality leather always has a smell that can’t be replicated.

You could first test with some of the leather items you have and identify the distinctive smell of leather.

  • Study the pores and patterns in the leather.

The pores and patterns in quality and real leather will be inconsistent.

Low quality or fake leather will have consistent pores and patterns that appear to have a repetitive pattern.

  • Check the label and confirm if it has any “manmade materials” writing on it as this is a clear indication that it’s not quality leather.

Also, beware of leather products with no label as they might be made of low quality or fake leather.

What Challenges will you Encounter when Buying from China Leather Market?

Just like any importation process, you are bound to encounter some challenges. Some of the shortcomings you might encounter when buying from China leather market are not limited to;

  • Language barrier –The language barrier is one of the major challenges because China is a non-English speaking country.

To make your work easier, you might either choose to use a sourcing agent or translator during your buying process.

  • Low-quality products – When planning to buy from China markets expect to find both quality and low-quality products.

This includes leather products.

To evade purchasing low-quality products, do your due diligence and research about your product.

Seek to identify the key players in the market together with their reviews. By this, I mean known suppliers or manufacturers.

Alternatively, you can take the shorter route and hire sourcing agents to take care of all your sourcing procedures.

  • Scammers– Just like any market, expect to come across scammers when buying from China leather market.

You can easily identify a scammer by checking the product price.

Too good to be true prices should be an instant red flag.

  • Unavailability of some products on stock – Keep in mind, not all suppliers keep stock of their products.

Some might require you to make order days or weeks before you receive your leather products.

This in turn causes delays in your business.

Are there Restrictions on Leather Imports from China?

Yes, there are. This mostly depends on your country’s regulations.

The restrictions mostly differ from one country to the other.

It’s important to confirm your country’s restrictions before importing leather from China.

How does Freight Forwarder Help you Import from China Leather Market?

Freight forwarders make your importation process much simpler and easier due to the following reasons;

  • Identify storage space for your goods – Freight forwarders are responsible for identifying the proper storage of your products.

Not to mention that they also pick your products from your supplier or manufacturer and transport to the selected warehouse.

  • Handle your custom clearance procedures – Custom clearance is often a very hectic procedure.

This is when you are required to present all your documentation.

Freight forwarders make your work easier by handling all these on your behalf leaving you to continue with your daily routines.

  • Versatility – In case you decide to make any changes, freight forwarders are quick to adapt.
  • Cost-effective – Owing to their experience in the field freight forwarders have established connections and this helps them get better rates.
  • Timely delivery of goods –Freight forwarders plan routes taken by the freight and work on a strict schedule to ensure timely delivery of goods.
  • Freight forwarders also help in selecting the packaging equipment for your products.

Do Suppliers in China Leather Markets have Flexible MOQ??

Yes, they do. You can always negotiate MOQ with your supplier more so if it will be of mutual benefit.

However, you need to understand that most suppliers find it difficult to lower their MOQ.

Therefore, you need to have a good strategy to convince them.

Also, the MOQ might differ from one supplier to the other due to the following factors;

  • Size of products –The smaller the size the higher the MOQ and vice versa.
  • Customization – Customized products will attract a higher MOQ.
  • Type of product –Cheap products such as pens will have a higher MOQ.
  • Availability of raw materials – Subcontractors might request a specific number of orders on the raw materials which in turn leads to an increase in MOQ.
  • Factory size – Bigger and established factories often quote a higher MOQ on their products as compared to smaller factories.

Who are the Leading Leather Suppliers in China?

With several leather suppliers in China, it might be difficult to identify your suitable or best suppliers.

To make your work easier, here are some of the leading leather suppliers in China;

  • Guangzhou Huashone PU Leather Co.Ltd
  • Jiangyin LaishunPlastic company
  • Wenzhou Haoshan Import & export Co.Ltd
  • Wenzhou Simple Trading Co.Ltd
  • Sole World Material Co.Ltd
  • Jiangsu Albrich Textile Co.Ltd
  • Wenzhou Fangchi International Trade Corporation Ltd
  • Yobon industrial Limited
  • Ningbo K.G International Trade Co.Ltd
  • Guangzhou Dashang Leather Technology Co.Ltd

Is there Online China Leather Market?

Yes, there is.

With the current trends in technology, most manufacturers and suppliers are expanding their operations towards online platforms.

If you don’t wish to physically visit the market, here are some of the online platforms that you might consider sourcing from;

  • Alibaba
  • Dhagate
  • Made In China
  • Global Sources
  • Chinabrands
  • Lightinthebox

How do you Pay Suppliers in China Leather Market?

China suppliers accept a wide range of payment options not excluding;

  • Telegraphic transfers – Telegraphic transfers are one of the widely accepted payment methods in China by most suppliers.

However, the risks will be borne by both you and the suppliers.

For this reason, most suppliers request for deposit in a bid to lower their risk.

  • International Credit Cards – International credit cards are not broadly used in China owing to the risks involved.

Not forgetting that International credit cards are often prone to scammers and therefore you will also be at risk.

This makes most suppliers have low trust in using them.

  • PayPal– Payment using PayPal is mostly suitable for small purchases.

Also, it’s not widely accepted by most suppliers owing to the high amount of fees involved.

  • Letter of Credit – Letter of credit would be the best payment option when making huge purchases.

Not to mention that it is secure for both you and the supplier and thus widely accepted.

  • Western Union –If you are making small to medium-sized transactions, Western Union would be the ideal option for you.

However, it’s important to factor in the high risks involved.

Ensure that you trust your supplier before making any transactions through western union as there is little protection once a transaction is made.

  • Cash – Cash payment would be a risky payment method for the buyer in case you are dissatisfied with the goods.
  • Online escrow – Online escrow works by allowing the buyer to send payment which is then withheld by a third-party until the set terms are met.

To ensure the effectiveness of this payment method, verify the conditions surrounding quality, product design, compliance, and quantity.

When is the Best Time to Buy from China Leather Market?

When planning to buy from China leather market it’s important to check on the Chinese calendar.

This will help you know when the public holidays are held.

Try to avoid these dates as most businesses remain closed during such periods.

Also, most shops open from as early as 9.30 am and close at 6 pm.

Arriving at the market shortly after opening time gives the vendors time to clean and prepare their businesses.

Leave before closing time preferably from 3 pm or 4 pm to avoid being caught up in traffic.

What Documents do you need to Import from China Leather Market?

Documentation is an important aspect of the import-export business.

Some of the documents that you will need when importing from China leather market are not limited to;

How do you Identify Fake Leather from in China Leather Market?

Having the skill to determine the credibility of leather is important especially as a business person.

This will not only ensure the credibility of your business but also enhance your business growth.

If you don’t have the skills to do so, here are some tips for you;

  • Check the edges. Real leather has rough edges while fake leather tends to have perfectly done edges
  • Dot the fire test. Light up a flame near the leather and observe the reaction and smell.

Real leather smells like burnt hair while artificial leather will have a burning plastic smell.

  • Another quick way to test for leather would be through smell.

First, you need to have smelled real leather to know the difference.

Therefore, go to a store that you know sells real leather and smell it then you will have an idea of what to check out for when testing leather.

Alternatively, if you have any leather product you could smell it beforehand.

  • Be observant of the pricing. Real leather is always pricier as compared to fake leather.

Any too good to be true prices should be a red flag.

It’s hard to find cheap genuine leather and additionally, most leather is sold at a fixed price.

  • Splash some water on the surface of the leather and observe the absorption rate.

Genuine leather absorbs some water while fake leather doesn’t.

  • Check the weight as genuine leather weighs heavier as compared to fake leather.

Color shouldn’t be a determinant when confirming the realness of leather.

There is colored leather that is genuine and therefore it’s important to focus on the above-listed checks.

How much Duty will you Pay to Import Leather from China?

The import duty charged when importing leather from China ranges from 5% to 7%.

This mostly depends on the animal used as different animals will provide different types of leather.

At Tj chinafreight, we help you save on cost and time when importing from China leather market.

We will handle all logistics – including customs clearance, warehousing, and offer free shipping containers.

Additionally, we help you book space when shipping – and all these at affordable rates.

Contact us today to boost your leather business.

What is TEU: A Comprehensive Guide

If you are relatively new to the shipping business, you’ll come across some across the list after a list of several ocean freight acronyms.

This, however, doesn’t imply that the shipping industry is complex and convoluted.

In this guide, I will take you through one of the most basic but common acronyms in the shipping world known as TEU.

Let’s dive deeper and get to know more about this acronym;

Meaning of TEU in Shipping Terms

TEU is an abbreviation, which stands for the Twenty-Foot Equivalent Unit.

Primarily, TEU refers to the unit of measure based on the dimensions of a 20-foot standard container.

In other words, TEU refers to an internationally standardized unit used for counting the standardized ISO containers.

The dimensions of a standardized 20-foot container are 8.5 feet high, 8 feet wide, and 20-feet long.

These measurements represent an approximate volume of 38.5 cubic meters.

TEU is also a unit used in calculating the volume of containers loaded on a vessel or stored at a terminal.

Moreover, this unit also serves to calculate the loading capacity of a particular container ship.

Most of the container ship operators also depend on TEU to formulate their specific transport capacity.

Simply put, TEU in anything and everything ranging from determining merchandise and cargo capacity on shipping vessels.

It is also useful when it comes to selecting the type of container to help in determining the port activity.

History of TEU

When discussing TEU, it is always vital to understand how this universal unit of the measure came about.

Moreover, knowing the person who invented it and how it applies currently in the shipping world is also fundamental.

Principally, understanding the history of TEU is similar to comprehending the history of shipping containers.

TEU influenced how shipping containers became standardized.

Malcolm McLean is the person behind the invention of TEU.

He was an entrepreneur who realized that cargo loading and unloading in the early 1900s was quite challenging and time-consuming.

Back then, a structured system was hardly in place.

Goods in different forms were being moved across different forms of transportation one by one.

The cargo was also loaded and unloaded onto and from different shipping vessels using the same approach.

The entire method was inefficient; hence McLean saw the need for finding a better approach to streamline and standardize the process.

And this is where the concept of creating and using standard-sized containers for hauling cargos came into realization.

Containers became efficient in transporting cargo both on trucks and ships without loading and unloading it each time transportation mode changed.

Even so, McLean’s containers measured 35-feet long, whereas his competitor’s measured 24-feet long.

It is this discrepancy that became more challenging to the US government, which had the interest to ship more efficiently.

And this is what led to the standardization of the shipping containers we currently use.

20-foot and 40-foot were devised later on as the standard shipping containers.

This was after two rounds of standardization by ISO in 1968 to define container classification, dimensions, and identification

At this point, the 20-foot went to known as Twenty-Foot Equivalent Unit hence TEU we have today.

Comparison between TEU and FEU

A Twenty-Foot Equivalent Unit (TEU) refers to a shipping container with internal dimensions measuring about 20 feet long, 8 feet wide, and 8 feet tall.

TEU can hold between 9-11 pallets depending on whether they are standard or EUR pallets.

A Forty-Foot Equivalent Unit (FEU) refers to a shipping container with internal dimensions measuring about 40 feet long, 8 feet wide, and 8 feet tall.

FEU can hold between 20-24 pallets depending on whether they are standard or EUR pallets.

Both TEU and FEU are used to describe the container size.

Additionally, TEU and FEU are also used as a measure to standardize the amount of cargo volume being referenced.

Key Aspects of Understanding TEU

Several fundamental elements revolve around TEU.

Such aspects help in understanding the role and efficiency of TEU in shipping.

These aspects include the following;

  • TEU is the unit for counting the shipping containers irrespective of their dimensions.
  • A standard container typically counts as 1 TEU.
  • A 40-foot container corresponds to 2 TEU
  • Containers bigger than 40-feet, such as 45, 48, and 53 feet in length, corresponding to 2, 2.4, and 2.65 TEUs, respectively.
  • The essence of TEU invention was to facilitate the calculation volume of ships equipped with slots for 40-feet containers.

Technically, these slots can stock two 20-feet containers.

  • High cube containers and half-height containers count as 1 TEU.

How to Calculate TEU

The formula for calculating TEU is relatively simple.

All you need is to divide the length of the container in feet by 20.

This will enable you to get the TEU units, which also allows you to calculate the cost of shipping for your containers.

Versatility and Practicality of TEU

In the present shipping world, TEU plays an integral role.

It is the unit of measurement for the most popular types of shipping containers.

Moreover, it is also used to determine the vessel size and capacity and calculate the overall port activity.

The size of vessels varies hence categorized by different names depending on their TEU capacity.

For instance, some of the largest containerships in the world today have a carrying capacity of over 14,000 TEU.

On the other hand, the smaller feeder vessels can manage a capacity of 1,000 TEU.

Here is a list of how vessel sizes are commonly classified based on their TEU capacity.

  • Small feeder – up to 1,000 TEU
  • Feeder – Between 1,000 to 2,000 TEU
  • Feedermax – Between 2,000 to 3,000 TEU
  • Panamax vessel – Between 3,000 to 5,000 TEU
  • Post panamax vessel – Between 5,000 to 10,000 TEU
  • New Panamax vessel – Between 10,000 to 14,500 TEU
  • Ultra Large Container Vessel – 14,500 TEU and above

Presently, the largest shipping vessel is Swiss-Italian owned carrier know as MSC.

It measures 400m long, 61.5m wide, and 33.2m high.

This vessel can hold up to about 23 756 TEUs.

TEU in Figures

Understanding TEU in numbers is vital in knowing how the shipping world conducts its business.

Ideally, in 2017 there was a representation of close to 753 million TEUs in the world traffic of containers.

Maersk, a Danish company regarded as the biggest container ship operator globally, had a capacity of almost 3.3 million TEUs in 2017.

Mediterranean Shipping Company (MSC), a Swiss-Italian shipping company, had a capacity of 3 million TEUs in 2017.

CMA CGM, a French-based shipping company, came third with a capacity of 2.1 million TEUs in that same year.

Over time, container ships tend to get bigger and bigger, with the capacity increasing every passing year.

Top Busiest Container Ports in China

During the calendar year, Chinese ports have been leading in handling containers in the world.

1. Port of Shanghai

It is arguably the busiest port in China and is regarded among the busiest one in the entire world.

In 2019, this port recorded a throughput of 43.3 million TEUs.

This port is located in Shanghai Municipality, East China.

2. Port of Ningbo-Zhoushan

This port is also considered among the leading busiest ports in the world.

In 2019 it handled a container capacity of 27.54 million TEUs.

It is located in Ningbo & Zhoushan, Zhejiang province, China.

3. Shenzhen

This port is situated in Shenzhen city, Guangdong province.

It consists of different ports along the coastline of Shenzhen, which collectively form this busy and fast-growing container hub.

In 2019 it handled a container capacity of 25.77 million TEUs.

4. Port of Guangzhou

This is the main seaport located in Guangzhou city, Guangdong province.

In 2019 it recorded a container capacity of 23.22 million TEUs.

5. Qingdao Port

This port is located on the Yellow sea within the vicinity of Qingdao in Shandong province.

It is among the fastest-growing and busiest ports in China.

In 2019, Qingdao port handled a container capacity of 21.01 million TEUs.

6. Port of Hong Kong

Thus port is situated in the South China Sea.

It is dominated by business in containerized manufactured products.

In some instances, it is often referred to as the Victoria Harbor.

In 2019, this port recorded a container capacity of 18.3 million TEUs.

7. Tianjin Port

Formerly known as Port of Tanggu is the largest one in Northern China.

It is also the main maritime gateway to Beijing.

It handled a container capacity of 17.3 million TEUs in 2019.

The essence of TEU in Shipping

TEU is vital in a variety of aspects surrounding port and shipping activities.

Some of the advantages of TEU in the shipping world include the following;

· Offers Possibility of Traceability

TEU makes it easy for you to track your cargo from the port of loading to the destination port.

It hence essential since you’ll know the status of your consignment when in transit.

This way, you can easily arrange with your customers to know the precise time to start the distribution process.

· Offers Protection

The construction design of all containers entails a lockable door.

This is significant since it guarantees the safety of your cargo inside the container throughout the transit process.

The essence of this is it gives you peace of mind knowing you will receive your goods as they were packed from the supplier.

Moreover, the material used for constructing the containers is also weather resistant.

Thus it offers protection to your cargo from unfavorable weather and environmental conditions.

· Easy to Regulate the Atmosphere

The use of containers in shipping makes it easy for you to determine the specific atmosphere suitable for your goods.

You can choose to ventilate, refrigerate, or heat the container to provide the necessary conditions that fit your items’ needs.

· It is Intermodal

You can easily ship containers by freight trains or trucks.

This usually happens mostly during inland transportation, where trucks and trains aid in moving containers to respective warehouses.

In essence, this enhances convenience, thus making it ideal for you to receive your cargo to your respective destination effectively.

· Offers Stacking Capability

It is easy to stack containers when loading on a vessel.

You can stack up to eight containers, especially when you are using a forklift.

It is also possible to load the containers on the vessel with mobile cranes, boom lifts, or gantries.

Difference between TEU and Ton

In the USA, a ton refers to a unit of measuring weight equal to 2000 pounds.

In other parts of the world, tonne is equal to 1000 kilograms or approximately 2204 pounds.

On the other hand, TEU is a standard shipping container that is twenty feet long, eight feet wide, and eight feet high.

Most containers can take up to 28 tons.

However, weight restrictions on local roads may determine the precise tons your container can have.

An ideal way of figuring out this is to find a reliable and reputable freight forwarding company.

This way, you will be advised regarding the rules and regulations surrounding TEU weight and any related aspect.

The container always has a tare and max gross weight indicated on it.

When loading the container, therefore, you need to ensure it is undertaken with the utmost care and attention.

The essence is to help in attaining uniform weight distribution.

Measures should also be taken to make sure the cargo does not shift or move when in transit.

A competent freight forwarder will always come in handy in such incidences.

Eventually, you’ll attain the best overall results and a remarkable shipping experience.

As you can see, TEU plays an essential role in the overall shipping process.

It is always important to get this information to guide you in knowing the different aspects of the shipping world.

You can use TEU for shipping different types of items, including heavy machinery.

However, you must also consider safety since it is paramount when it comes to shipping.

If you have any inquiries regarding TEU and related services, feel free to contact us.

We are always available for help – contact us now.

How to Import Toys from China: The Complete FAQ Guide

I know you want to import toys from China.

Or, you’re looking for more information about the China toy market.

That’s why this guide will answer all questions you have been asking about importing toys from China.

Whether you want to know the various markets, importing documents, requirements, or quality certifications, you will find everything in this guide.

Keep reading to learn more.

How Big is China Toys Wholesale Market?

China’s toy market is so big that the factories for toys are located in different geographical areas.

This is mainly according to the different types of toys they produce.

You must research and have a list of the China toy manufacturers and the appropriate market before purchasing the toys.

The toys wholesale market that you will find in China include:

  1. Yiwu toys wholesale market.
  2. Guangzhou toys wholesale market.
  3. Zhengzhou toys wholesale market.
  4. Baigou plush toys wholesale market.
  5. Yunhe wooden toy market.
  6. Yangjiang and Wutinglong are known as international toys and gift city.
  7. Shantou China toy market.
  8. Lingyi Yongxing China toy market.

Is it Safe to Buy Toys from China?

Yes, it is safe to buy toys from China.

However, it’s crucial you know some toy-buying basics.

To ensure that you are buying quality toys, you should avoid toys that contain lead, bisphenol A(BPA), and polyvinyl chloride (PVC).

Look for the following features to be sure you are buying safe baby toys:

  • The toys should contain an ASTM international label to ascertain that they have met the US safety standards.
  • You should ensure that the toys have a 100 percent PVC-free label.

The label is the best way for you to guarantee that the toy does not contain harmful phthalates.

  • It will be a great label if you choose wood or bamboo toys as they do not contain any chemical-filled plastics.
  • You may also avoid toys made from organic cotton or hemp material, as conventional cotton is unsafe due to being heavily sprayed with many chemicals.

How do you Get the Best China Toys Prices?

To get the best China toys prices, you can use the following three tactics:

  • Bulk buying
  • Buying directly from the manufacturer
  • Market research

Also, remember to use a sourcing agent.

They will help you get the best toy prices in China.

Guess what – China toys suppliers like long term cooperation.

So, if you’re working on a long-term partnership, Chinese toy manufacturers and suppliers will definitely offer the best prices.

More importantly, learn the art of negotiating for the best prices.

What are the Quality Certifications for Electronics Toys from China?

Some of the quality certifications required for electronic toys from China include:

  • CNCA-C22-02:2020
  • GB 19865
  • GB 6675.1
  • GB 6675.2
  • CCC
  • RoHS
  • CE
  • UL
  • REACH Regulations
  • CPSC Requirements

You should buy toys that have passed all the test safety standards.

Remember, different geographical locations may have varying safety toys standards, and requirements.

Which Types of Toys can You Import from China?

You can import virtually all types of toys from China.

Any types of toys you think of; China’s toy market offers the perfect solutions.

Even if you want your new designs, you will get all the toys in China.

Toys that you can import from China are classified into the following categories:

  • Remote control toys: these include RC helicopters, cars, boats, Quadrocopter. These are mainly produced in Chenghai and Shenzhen.
  • Diecasts and toy vehicles: this category comprise cars, trucks, and car models. These are mainly produced in Chenghai.
  • Toy Figures: this category comprises lego toys and animation figures. These are mainly produced in Chenghai.
  • Doll and stuffed toys: this category comprise toy animals, puppets, and mascot costumes. These toys are mainly produced in Yangzhou and Qingdao, Yiwu, Shenzhen, among other cities in China.
  • Classic toys: this category comprises Yoyo, balloon, balls, and Kaleidoscope. These are produced mainly in Chinghai and Yiwu.
  • Learning and educational toys: this category comprises toy musical instruments and is mainly produced in Yunhe (Zheijiang province) for wood toys.
  • Outdoor and playground toys: this category comprises of kids slide and see-saw. These are produced in Yongjia, a small town in Wenzhou.
  • Models and building toys: this category comprise of building blocks. They are mainly produced in Shanghai and Yiwu.
  • Baby toys: this category comprises baby rattles and baby walkers.

Manufacturers for this category are not in specified cities, but mainly you will find them in Zhejiang and Guangdong Province.

  • Puzzles and DIY toys: this category comprises puzzles and magic cube. You will find manufacturers of high-quality puzzles in Chenghai while those for DIY crafts in Yiwu.

Which are the Toy Wholesale Markets in China?

The toys wholesale markets that you will find in china include:

  • Yiwu Toys Wholesale Market
  • Shantou China Toys Market
  • Lingyi Yongxing China Toys Market
  • Yangjiang Wutinglong international Toys & Gift City
  • Baigou Plush Toys wholesale market
  • Yunhe Wooden Toys market
  • Zhengzhou Toys wholesale market
  • Guangzhou Toys Wholesale market
  • YS win-win exhibition hall
  • Hoton Exhibition hall
  • CBH exhibition hall
  • HK exhibition hall
  • T exhibition hall
  • Union exhibition hall
  • K exhibition hall
  • W exhibition hall
  • Lingyi Yongxing Plush toy market
  • Lingyi Yongxing education toy market
  • Yangzhou stuffed toy market
  • Yangzhou toy market
  • Wanling Plaza Guangzhou
  • International Yide stationery and toys plaza Guangzhou
  • Zhonggang Boutique toys wholesale Market Guangzhou
  • Liwan Toys wholesale market
  • Liwan toy wholesale market
  • Sungang stationery toy and gift wholesale market
  • Yide International Exquisite toy and stationery square in Guangzhou
  • Sham Shui Po toy street
  • Yide road wholesale market
  • China Market
  • Yiwu electric toy market
  • R India lamps China led lari
  • Jing exhibition hall
  • Yiwu in flat toys market
  • Yiwu regular toys market
  • Chenghai toys exhibition Centre
  • Dubai business village
  • China Toys and gifts city
  • WuTingLong international toy market
  • Guangzhou Huangpu International
  • Dongguan world toys manufacture town
  • Huile toy market
  • Weili Toy market
  • Shantou Chenghai Guangyi Jinguang toys factoty
  • Shantou Chenghai Plastic toys market

Who are the Leading Toys Suppliers in China?

You will find the top toy suppliers in China, depending on the ‘factory location, manufacturing the types of toys you need.

The top toys suppliers in China will include:

I. Chenghai, Guangdong Province

It is the world’s capital of toys.

Chenghai is the choice location for business people that deal with toys.

Chenghai is known for its specialization in quality toys on a large scale.

Buying toys from manufacturers in Chenghai will help you significantly reduce the cost, save you a lot of time, and guaranteed quality.

Some of the toy categories that you will find in Chenghai include:

  • Chinese baby toys.
  • Plastic toys.
  • China’s electronic toys.
  • High-tech toys.

II. Yiwu

Yiwu is the right place if you need small and low-value toys.

The toy categories that you will find in Yiwu include:

  • Kids DIY crafts: in this category, you will find fad toys, loom bands, and magic sand.
  • In Yiwu, you can also be able to find plastic toys that are a lot cheaper as compared to other suppliers.
  • Besides DIY toys and low-value plastic toys, you will also find many pool rafts and inflatable ride-owns suppliers.

III. Yangzhou/Qingdao

Yangzhou is where you will find many suppliers of plush and stuffed toys.

The toy categories you will find in Qingdao include:

  • Kid’s slide.
  • Toy animals.

IV. Yongjia, Zhejiang Province.

Yongjia is known for outdoor toys.

Qiaoxia is the exact location in Yongjia, where you will find factories specialized in outdoor toys in China.

V. Yunhe, Lushui – Wooden Toy City

If you would like to find wooden toys suppliers, you can go to Yunhe, Zhejiang province.

Yunhe has a lot of wood, which led to the development of the wooden toy industry.

Should you Buy Toys from Online Marketplaces of Directly from the Factory?

If you are buying in bulk, it is recommendable to buy directly from the factory.

You can buy directly from the manufacturer or place your orders through China’s online buying platform Alibaba.

China has an excellent logistics infrastructure and can ship products to all corners of the world.

It is also easy to make payment for your goods and tracking your order shipment.

The toy industry in China is big and modernized, capable of meeting any MOQ from customers worldwide.

The above factors make it easy and favorable to purchase toys from the Chinese market.

Which are the Leading Toys Fair in China?

The top toys fair in China will include:

· China Toy Expo (CTE)

This event is held annually since 2020.

It is the largest B2B toy trade show in Asia that brings together:

  • China’s manufacturers.
  • Innovative new products.
  • They are leading international brands.
  • Industry development trends.
  • Informative forums and activities.
  • Business professionals of all functions throughout the toy industry attend CTE.

CTE is a significant foreign brand to tap into the Chinese market and a one-stop sourcing hub for international buyers.

If you are looking for a wide range of toys from different manufacturers, you should visit CTE.

It is one of the most recognizable trade fairs that bring all toy manufacturers under one roof.

In the China Toy Expo, you will have a chance to see exhibitors showcase their latest product portfolio.

Some of the products that you will encounter in the CTE include:

  • Non-electronic plastic toys.
  • Toy figures
  • . Educational toys.
  • Wooden toys.
  • Mechanical toys.
  • Plush toys
  • Electronic toys.
  • Outdoor toys
  • Electrical toys.

· Toy and Edu China (Shenzhen International Toy and Education Fair)

It is among the main toy events organized in South China.

Toy and Edu China is a fair where you will find global insiders demonstrating and promoting new products and innovations.

The first edition fair was launched in 1989, and it has expanded almost ten times over the past quarter-century.

And Edu China has attracted many corporations’ attention, both multinational and commercial, and the exhibit space has reached 100,000 square meters.

· Canton Fair

Canton fair started in 1957 and involved showcasing of items like:

  • Cloth toys.
  • Action toys
  • Baby toys.

How do you Find the Right Toys Suppliers in China?

Finding a supplier is the first and most important step for importing from China.

Different regions in China manufacture other toys.

Most toy suppliers do not have their personal sales team, and their English level is not right.

So, most China suppliers will send you samples to choose from.

From here, you can determine the right supplier of the toys that you need.

As a trading company, you should ensure that product’s uploads are affected on the Alibaba page.

Next, put your orders to the suppliers under an international order.

As a customer, you can visit showrooms, choose the toys you want, and then place orders.

You must note that most toy suppliers do not have good English-speaking people; thus, you should have a translator to assist.

In fact, using a sourcing agent is an effective way of finding the right toy suppliers in China.

Problems will you Encounter when Importing Toys from China?

Toys are one of China’s most important exports.

Importing from China might be a hustle because you will not know how to choose the toys.

Some of the problems that you may encounter when importing toys from China include:

  • Compliance and safety issues: different countries require different standards for imported toys.
  • Commodity inspection required by China customs: when importing from China, you will need to do commodity inspection.
  • The problem of design infringement: you may encounter design infringement where manufacturers like to print some famous animation characters on the toys.
  • Shipping: the most popular and economical way to import goods from China is through sea shipping.
  • Language barrier – so you need a translator or sourcing agent
  • Identifying the right toys’ supplier in China

How do you check the Quality of Toys from China?

You should check the toys to ascertain that they comply with the standards like ASTM F963 4.6, EN71-1998 8.2, GB6675-2003 A.5.2,16 CFR 1501, UL, RoHS and CE, just to mention a few.

Physically check on:

  • You should always check for the safety and certification marks, which will help you ascertain that the manufacturer ensured the toys met the regulatory requirements.

Products without this mark may not be safe for children to play.

Remember, the safety and certification marks will vary depending on the geographical location.

  • You should look for bad grammar or misspellings on the packaging, as this may indicate that the toy is fake.

If you doubt, you should refer to the manufacturer’s official website and compare the packaging and description with authentic toys.

  • To avoid fake toys, you should buy from suppliers who have a good reputation for reliable and safe toys.
  • Ensure the toys have been labelled properly
  • Use a third party company or your team to inspect the toys
  • For custom orders, try to be involved in the manufacturing process to follow up on various quality control measures
  • If possible, buy toys directly from the manufacturer
  • If a toy manufacturer in China offers warranty, then will be an indication of quality products.

This will imply that the manufacturer has confidence in the toys they manufacture.

How do you Ship Toys from China?

Toys that you buy from China can either be shipped through the air or as sea cargo.

Through the ocean freight, cargo is carried by huge containers of about 20 by 40 feet.

A full cargo container holds about 2400 cubic feet. A forty-foot box carries approximately 61000 lbs. which is a lot of room for toys.

If you want to save costs, it is recommendable to choose bulk shipping.

If your toy cargo is at least five pallets, it is better to transport it utilizing a full container load (FCL).

For smaller toy cargo volumes, you should choose less than container load (LCL) shipping.

This method will mean that your toy cargo will be with other kinds of shipments.

It is essential to have your cargo insurance.

Many international shipping companies have limited liability insurance for any damage that your cargo may encounter.

The insurance by the carriers will cover just a small percentage of your cargo.

For insurance assistance, you may reach out to custom brokers.

Once the toys you have imported from China reach the seaport, they might be transported to avail location near you.

The toys are then shipped through rail or road to your final location, your final destination.

Alternatively, if you want your toys from China to arrive faster, then you can choose air freight.

Although it’s faster, you will pay more for the entire shipping process.

Moreover, you can also opt for rail freight as long as there is existing infrastructure.

How do you Identify Fake Toys from China?

You can buy fake toys online or from dubious retailers.

Despite looking like genuine toys, these Chinese toys are often of low quality, have missing parts, or do not work.

These toys might even cause significant injuries and accidents.

To identify fake toys, you should use the following tips:

i. Compare prices – most fake toys are extraordinarily cheap because manufacturers use low-quality materials.

ii. Request for test and quality standard certification documents

iii. Check if quality marks exist

iv. Inspect labeling requirements – improper labeling implies the toy could be fake

v. Check if there are spelling errors in the labeling

vi. Evaluate the China toys manufacturer or supplier

vii. Check whether the manufacturer offers a warranty and has a product return policy

Why should you Work with Freight Forwarder when Importing Toys from China?

When importing from China, it is crucial to work with a freight forwarder because of the following reasons:

  • Freight forwarders will help you move the shipment from China to your location in the most effective method.
  • Freight forwarders will smoothen your toys’ passage through the series of processes and regulations required by different countries.
  • Freight forwarders are experts in the logistics process and will contract the airlines, shipping lines, or haulers on your behalf.
  • Freight forwarders will ensure that your toy shipment is insured from loss or damage as they supply insurance.
  • You must use a freight forwarder as they can leverage their buying power to reduce transport costs.
  • Freight forwarders will also provide you with confidence to import from new markets as they will help you ship your toys effectively.
  • The use of freight forwarders will also grant you the ability to focus on your business and not on the complex transport and customs procedures.
  • You can also benefit from warehousing and free shipping containers

In short, a freight forwarder will help you save time and cost when importing toys from China.

What Are The Documents do you need to Import Toys from China?

Before importing from China, some formalities are required.

As an importer, you should prepare and have the necessary documents and present them to the appropriate authorities.

The following are some of the essential documents used in importing toys from China:

1. Commercial Invoice

It is a formal note for payment and is used in customs as a declaration that the toys are exported across international borders.

The exporter prepares this invoice.

Some sellers might want to pay fewer taxes to escape some formalities.

If the commercial invoice is checked carefully, and this is established, your toys might be withheld, and you may suffer losses.

2. Bill of Lading (B/L, BOL)

The Bill of landing is a document that will give you details of a shipment of merchandise.

It states the goods’ title and requires the carrier to release the payload in a specified port.

The Bill of landing is issued to you by the shipping company, and you can use it as proof of shipment for insurance companies and customs.

You can also deliver it to the bank as proof so that the seller can execute the letter of credit.

This document mailed to you as the buyer to pay off the contract.

3. Packing List

A packing list is issued by the cargo company that will show you all toys shipped and the packing information.

It informs all the parties involved in the importation process about the contents of the baggage.

4. Pro Forma Invoice

Proforma invoice gives you all the critical information about the shipment: how many toys are shipped, the features and dimensions of the toys.

This invoice also contains the final pricing of the toys’, which helps you make the final purchasing decision.

A Proforma invoice is not a valid invoice but is viewed as a legally binding agreement. The exporter of the toys prepares it.

5. Certificate of Origin

It is a document that will help you prove that the products on transit or waiting to be transported.

A certificate of origin indicates that the cargo is wholly obtained, produced, manufactured, or processed in the place of birth.

The exporter has the prerogative to provide this document to you.

Certificates of origin have two components, namely:

  • A non-preferential certificate of origin specifies where the toys were produced, but the toys do not qualify for exceptional treatment.
  • Preferential certificate of origin: this will state that the goods were manufactured in the country with some trade agreement with your government.

For example, when you are trading within the Commonwealth of Nations.

6. Import/Export Declaration

Import/ Export declaration is a document prepared by either you or the exporter, and you will be required to submit it to the customs office.

The form of this declaration will be different depending on the requirements of a particular customs office.

You may find the samples online for your perusal.

7. Quality Inspection Certificate

It will ensure that all toys from China conform to all safety requirements and standards.

These include conforming with the CE, RoHS, ASTM, and UL quality requirements.

Remember, there are countries that insist toys from China must have quality inspection certificates.

Why should you Import Toys from China?

China’s toy industry has risen over the past years, making it among the top manufacturers in the market worldwide.

The industry has significantly invested in manufacturing technology and pieces of training.

The workforce has perfected skills in the production of durable and high-quality toys.

Some of the reasons why you should import toys from China are:

a. Uniqueness: Manufacturers in China produce toys that are of their kind and, in most cases, not like any other toy in the world.

b. Price: most toys manufactured in China are relatively affordable.

c. Quality: manufacturers in China have highly skilled personnel and make high-quality toys that last for long periods.

d. Quantity: most of the manufacturers in China sell in bulk. That is, you can purchase as many toys as.

The toy manufacturers industry in China is massive and modernized, capable of meeting any MOQ from customers worldwide.

e. Variety to choose from: they provide an extensive range of toys where one can choose from and select that design that suits their preferences.

f. Infrastructure: China manufacturers have excellent logistics infrastructure and can ship products to all corners of the world.

g. Payment: It is easy to pay for your goods using online banking systems established, and you are also able to track your order shipment.

What are the Requirements for Toys Imports from China?

When importing from China, you should make sure all the toys comply with the federal requirements.

Some of the requirements for toy imports from China that you should include:

  • You should ensure that all the toys you import from China are compliant with all the safety regulations.
  • You should also ascertain that all the toys are tested at a CPSC-approved laboratory.
  • It is vital to ensure that a tracking label is attached to all the toys to facilitate easier tracking of the shipment.
  • Information from CPSC highlights that some materials such as phthalates are harmful to toys and can harm when large amounts are ingested.

Therefore, when importing from China, you should avoid toys that contain such materials.

  • Lead is also limited for use in toys as it is carcinogenic material; thus, you should avoid toys containing it when importing from China.
  • You should also be keen on the mechanical regulations when importing from China to ensure the toys are safe for children.

Should you Label Toys from China?`

Yes, all toys from China have a certified tracking label on the toy or the toy’s packaging.

The labels provide essential information about toys such as:

  • The manufacturer’s name.
  • The location and date of manufacture of the toy.
  • The specific information on the manufacturing process of the toy.
  • Any other additional information about the toy that may be of importance.

How do you Pay Toy Manufacturers and Suppliers in China?

There are many ways you can pay toy manufacturers and suppliers in China.

Chinese manufacturers accept a wide range of payment methods.

Also, note that many manufacturers demand you to pay a deposit before they commence production.

Then, you pay the rest after they complete output.

So, you need to be prepared to make two transactions to the manufacturers.

Some of the payment methods include:

i. Wiring money straight to the manufacturer through an international transfer.

ii. You can open an account in China and make a local transaction.

iii. There is also ALIPAY or Alibaba Trade Assurance.

iv. You can use a broker.

v. Transfer funds via western union.

vi. You can also use PayPal.

Are there Special Requirements for Importing Wooden Toys from China?

Yes, wooden toys like the wooden playground and building blocks are controlled by the same regulatory standards for importing woods.

When importing wooden toys from China, you have to follow the laid down rules and regulations to prevent illegal logging and pests.

The requirements to be observed when importing wooden toys from China include:

  • Imported wooden toys must always undergo sanitization procedures to eliminate pests.
  • You should ensure sanitization is done by either heat or electrical treatment.
  • You must note that heat treatment will entail treating the wooden toys in a unique microwave energy dryer.
  • Chemical treatment of the wooden toys will involve fumigation of the wooden toys on the surface with a pesticide.
  • Ensure that you get the necessary permits required for importation of timber products,

PPQ Form 585 is available to apply the various permits required for the importation of timber products.

You should be aware the form takes about a month to be ready; therefore, file in advance to avoid delays in your toys’ shipment.

  • Another essential document that you will need to import wooden toys from China is the phytosanitary permit.

Why is Market Research Important Before you Import Toys from China?

When you use market research correctly, it will minimize the risks involved in making critical business decisions.

Importance of market research before you import toys from China include:

  • Market research will significantly help your marketing strategy of the toys, as it will provide you with crucial insights and information about the business.
  • Market research will provide you with a deeper understanding of your customers and competitors.
  • Market research will also help you understand who will buy your toys, who will not accept them, what motivates them, and their loyalty to your brand.
  • Market research will, over time, provide you with increased sales over time.

How do you Import Toys from China Online?

To import toys from China online, you may use online trading companies like Alibaba.com to purchase the toys wholesale.

Alibaba will ensure that you can access the millions of products available directly from the manufacturer or the source.

Online global trade is a current trend that you should adopt as an importer and work with onl

What is Consignee: A Definitive Guide

There are numerous parties often involved in the entire freight process with varied responsibilities.

It doesn’t matter whether you are moving overseas or shipping your merchandise with FCL or LCL shipping.

To guarantee that nothing goes wrong along the way, it is vital to understand the process and roles of each party.

In this guide, we will discuss several aspects revolving around a consignee in the shipping world.

Ultimately, you’ll know what it takes to be a consignee as well as the roles and responsibilities of this party in the freight process.

Meaning of Consignee in Shipping Terms

Consignee refers to the entity or party to whom ownership of goods transfers to when the cargo is released at the destination.

You can also describe a consignee as the importer of record for your consignment.

In simple terms, a consignee is a party financially responsible for the receipt of the shipment.

In most cases, but not always, the consignee is the same as the receiver.

A consignee may be an individual or a company.

You, as the buyer of the commodities from overseas or the person who placed the order, can also be the consignee.

You may also have a representative to receive the goods once they arrive at the final destination.

In many instances, it is always a requirement that the consignee is listed on the Bill of Lading.

Quite often, the carrier will always find it difficult to complete the delivery without the consignee’s or authorized representative’s approval.

Thus, the party listed as the consignee on this document must always be physically present to collect the goods.

The only exception, in this case, is when it is clearly outlined as otherwise in the bill of lading.

Role of Consignee in Bill of Lading

A consignee plays several critical roles in the bill of lading and the entire shipping process of goods.

Once the goods are imported and get to the final destination, they are cleared through customs.

At this point, the consignee assumes ownership of the landed shipment.

Technically, a consignee is responsible for paying import duties and taxes in a simple import-export transaction.

The other role of a consignee is to pay any additional freight charges.

Often, the seller may choose to pay part of the freight charges or not pay, depending on the agreement the two parties had.

In such instances, it becomes the responsibility of the consignee to pay for any additional freight charges.

The other role of a consignee is making sure the items received are in mint condition as outlined in the bill of lading.

In essence, the consignee inspects the shipment to determine if there are any missing or broken items when the cargo arrives.

In case the consignee finds a short-landing, over-landing, or damaged item, he will file a claim immediately with the carrier.

The carrier will then be responsible for carrying the request for reimbursement or removal of the incorrect consignment.

Importantly, the consignee is responsible for signing all the necessary receiving documents.

And once this happens, they earn the full responsibility and ownership of goods.

At this point, any obligation of the carrier ends, excluding the responsibility related to transmitting paperwork.

The other exception would be the obligation of returning the items to the seller.

Who does a Consignee Interact with?

A consignee is a critical party in the shipping process.

However, this party is only part of the broader team of officials that must work together to complete the shipment process.

Some other parties the consignee will always interact with when facilitating the shipment process include the following;

1. Consignor

This refers to the sender responsible for dispatching the goods from a warehouse to their respective destination.

Consignor is the party that compiles the bill of lading together and issues it to the carrier.

This party is also responsible for ensuring the goods are in proper condition before they are dispatched to their final destination.

2. Carrier

This refers to the party responsible for delivering goods to their respective destination.

In most cases, a carrier can either be an independent provider or a company with a large fleet.

The other responsibility of a carrier in the shipping process is to receive the bill of lading.

They are also under the obligation of making sure the consignment are safely delivered in good condition to the consignee.

3. Notify Party

This refers to the entity responsible for receiving notification the moment the cargo arrives at its destination.

In some instances, such as in a busy warehouse shipment, a consignee will hardly receive and inspect the cargo physically.

Now, this is the instance the notify party comes into play.

This party is also responsible for arranging customs clearance for all international shipments.

4. OS & D Official

This refers to an individual whose role is to receive, inspect, and manage all claims.

Most relatively large shipping companies employ an OS & D official to focus on Over, Short, and Damaged (OS & D) item claims.

Typically, the OS & D official always works out of the consignor’s warehouse or premises together with other staff of the shipping department.

Difference Between a Consignee and Notify Party on Bill of Lading

In some incidences, it can be easy to confuse a consignee with a notify party.

In simplest terms, a consignee is a person or entity entitled to deliver goods according to the carriage contract outlined on the Bill of Lading.

On the other hand, the notifying party is an individual that should be notified by the carrier and consignee once the shipment gets to the port of discharge.

The two parties play different roles in the overall shipping process on the following grounds;

· Goods Delivery

Carriers deliver goods to the stated entity or individual on the bill of lading.

However, the notified party can hardly claim items from the carrier, particular under ocean shipments

· Title of Goods

The consignee field determines the delivery method for the title of goods from the shipper to the respective consignee.

By contrast, the notifying party does not have any connection with the title of goods.

· Optional versus Mandatory Fields

The consignee field on Bill of Lading is usually mandatory and must be completed on all occasions.

On the other hand, you can use notify party as an optional field; hence need not to be completed on all occasions.

· Single Versus Multiple Entries

You can only enter a single entity on the consignee field on the bill of lading.

However, under the notify party field, it is possible to enter multiple company names.

Is the Consignee and Shipper the Same Party?

It depends on several underlying factors.

On a bill of lading, the consignee and the shipper can be the same party.

There are two instances where such sort of things tend to happen frequently;

In one instance, it involves a company with two entities in different countries.

Therefore, in this case, the shipper and the consignee can be the same party.

The other instance in which these two parties can be the same is when the customer buys the merchandise in the country of origin.

In this case, you have to be based in the country of origin and ship the product to yourself in the country of destination.

This way, you become the shipper and the consignee at the same time.

In strict terms, the shipper is the contracting party in the bill of lading.

The consignee, on the other hand, is the recipient of the merchandise.

In these two outlined circumstances, both the shipper and the consignee are the same party.

Can a Freight Forwarder be a Consignee?

Not really!

Freight forwarder refers to an individual or corporation in charge of organizing goods on behalf of seller or buyer.

The consignee is the party that is supposed to receive the shipment once it is delivered at its respective destination.

Therefore, it can be difficult for a freight forwarder to facilitate transportation of the shipment and double up as the consignee.

What happens is that the freight forwarder can take up all the legal liabilities of acting like a carrier but not necessarily a consignee.

Basic Principles Governing Consignee in Shipping Business

This is a subject, which lies in the specific person you booked the cargo through.

Booking your consignment through a specific agent or company without involving a third party becomes easier to pursue the entity directly.

A forwarder can issue their in-house Bill of Lading, which constitutes a legal document.

Often, the freight forwarder is usually responsible for contracting the carrier to ship your consignment.

They will then issue the house Bill of Lading indicating the details you provided to them.

The freight forwarder also has the power to instruct the shipper not to release the consignment.

The company shipping your container should also prepare your export documents.

This is an addition to arranging any necessary inspections and obtaining any special documentation.

Moreover, the company should provide marine insurance and payor prepay origin or destination CSC.

Import Documents for a Consignee in Customs Clearance Process

As a consignee, you need to have a wide range of documents to facilitate the customs clearance process.

In many instances, the shipper will always send the documents to the consignee in advance, awaiting the shipment’s arrival.

This is essential since it helps in faster facilitation of the customs clearance process.

However, some of these documents often arrive with the consignment.

Some of the documents the consignee will need include the following;

  • Bill of entry
  • Commercial invoice
  • Bill of Lading
  • Import license
  • Insurance certificate
  • Technical write up where applicable
  • Test report where applicable
  • Inspection certificates where applicable
  • Packing list
  • Certificate of origin

What makes the Consignee an Important Party in Shipping

Ostensibly, the consignee is the ultimate important party in a shipping transaction.

If anything, the consignee is regarded as the customer or party the shipper needs to please to receive compensation.

In the recent past, customer experience is regarded as a vital business metric.

The moment the consignee is unhappy with the services they are receiving, they can easily switch to other providers.

And since competition is stiff in this industry, it becomes easy to lose a client, in this case, the consignee.

Therefore, there is a need for businesses to go above and beyond in serving and making the consignees happy in all transactions.

Ideally, fleet managers should endeavor to be in direct contact with the consignee or representatives during the process.

Moreover, businesses should also provide shipping updates and general customer service to guarantee strong experiences.

How to Improve Consignee Efficiency and Experience

Ideally, the consignee is an important party; you always need to keep happy.

And an ideal way of keeping the customer happy is to ensure you provide accurate and speedy services.

In other words, this can be tricky to attain, especially if you’re using paper-based systems.

At times a consignee may reject a shipment due to incorrect order.

However, you should never let the consignee wait several days or weeks later to get an update of the request’s status.

Instead, the consignee ought to get immediate notification about a review that is underway along with other important frequent updates.

An ideal start to attain this kind of service is by digitizing the paperwork workflows.

Working with a reputable freight forwarder is also an essential aspect of attaining improved consignee efficiency and experience.

You can choose to work with a freight forwarder offering mobile applications for documents sharing and processing paperwork with involved parties.

In essence, this helps in keeping every party in the loop regarding the progress of the process.

As you can see from this guide, a consignee is an equally important party in the entire shipping process.

Without a consignee, the shipping process cannot be complete.

Moreover, it makes you understand and appreciate the need for having a consignee and how to incorporate the party in the process.

Therefore, if you are in business, it is always vital to understand the essence and specific roles of this party in shipping.