Category: <span>China Freight News</span>

I know you’re looking for the best Clothes supplier in China.

Or, you want to learn more about China clothes market.

That’s why in today’s guide, I will explore everything about how to import clothes from China.

Whether you want to know China wholesale clothes market, clothes manufacturers in China or how to get the best prices – all information you’re looking for is right here.

Keep reading to learn more.

Which are the Main China Wholesale Clothes Market?

China wholesale markets include:

• Yaosheng Clothing Wholesale Market
• Shahe Clothing Wholesale Market in The Third Breakthrough
• Shanghai Kaixuancheng Clothing and Accessories Wholesale Market
• Xindadi Fashion Plaza
• Yuehe Shoes Wholesale Market
• Guangzhou Baima Costume Market
• Shenzhen Buji Textile Wholesale Market
• Jihong Zhanxi Wholesale Clothing Market
• Wanjia Costume Wholesale Square
• Shisanhang Wholesale City
• Dongding Clothing Wholesale Market
• Guangzhou Kyushu Fabric Market
• Jiahua Foreign Trade Clothing Market
• Liuhua Fur and Fashion Market
• Fabric Market
• Guangzhou World Trade Clothing City
• Fair Price Leather Wholesale Market
• Wufenpu Shopping District
• Hong Kong Market
• Shisanhang International Fashion City
• Hongbiantian Costume Exchange Centre
• Shoe And Bag Centre
• Seg Electronics Market
• Yulong Market
• Jardine’s Crescent Market
• Qinping Chinese Clothes Market
• Jinxiang Underwear Market
• Guangzhou Tianna International Fashion
• Zhonggang Xiangtian Leather City Two
• Baiyun World Elaborate Leather Trading and Exhibition Centre
• China Town Shopping Centre
• Guangzhou Shahe clothing market
• Hangzhou evergreen clothing wholesale market
• Hangpai Boutique Costume market
• Xinhangpai Leisure Fushicheng

Some of the leading clothes manufacturers include:

• Shandong Jining Ruyi woollen textile co. ltd
• Shandong Demian Incorporated company
• Huafang Textile Co ltd
• Jiangsu Sunshine Co Ltd
• Shijiazhuang Changshan Textile co ltd
• Weiqiao Textile Co ltd

What Are the Top Websites for Wholesale Clothes from China?

Some of the top websites where you can shop for clothes from China include:

• AliExpress
• Alibaba
• China brands
• DHgate
• Lighting TheBox/ DropIn TheBox
• Banggood
• com
• Tom Top
• Global Sources
• Made in China
• Zaful
• LovelyWholesale
• Wholesale 7
• Tasha Apparel
• Maxuce
• Yaaku Wholesale

How can you Find China Wholesale Clothing Suppliers and Manufacturers?

There are numerous clothing suppliers and manufacturers in China.

As a buyer, you have a wide selection to choose from the suppliers.

Some of the ways you can go about finding clothing supplier and manufacturers include:

• Trade fairs of the clothing manufacturers and suppliers have done various times of the year.
• Online B2B marketplace such as AliExpress, Tom Top, China Brands, among others.
• Sourcing companies, agents or buying brokers in China.
• You can also find suppliers and manufacturers on social media platforms such as Facebook, Twitter and linked, among others.
• You can also utilize Google search, especially google maps, to locate clothing manufacturers and suppliers in China.
• Fashion exhibitions are done throughout the year. Some of the famous fashion exhibitions include;
• Intertextile Shanghai home textiles
• ACLE
• Centerstage
• Global Sources fashion
• Referrals by related business partners.
• Using catalogues and coupons

How do you Verify Clothes, Manufacturers and Suppliers in China?

Some of the ways you can go about verifying clothes, manufacturers and suppliers from China Include:

• Use search engines and Chinese suppliers’ directories. Some of the things you can check include:
• Returns policies
• Damages
• Backorders
• Suppliers’ or manufacturers’ contact information
• Suppliers’ or manufacturer’s physical address
• Check B2B directories such as Alibaba, Global Sources etc. for the suppliers’ or manufacturers’ profiles.
• Use the various verification services offered by B2B platforms such as Alibaba to verify the supplier or manufacturer.
• Check suppliers’ or manufacturers’ recent activities, such as attendance of trade shows.
• Make a phone call to ensure the contacts provided by the manufacturer are genuine. Once connected to the supplier or manufacturer, ask for:
• Company registration number
• Business license number
• Ensure supplier has a landline number
• Check business licenses; lack of a business number means the supplier or manufacturer is non-existent.
• Ask for references. Some of the connections you can ask for include;
• Bank reference letters.
• Previous customers
• Other brands reference.
• Get a sample
• Check the payment method; the best way is to use your agent to link with the manufacturer or supplier. Pay cash on delivery through the agent.
• Conduct factory audits.
• Make fair use of databases such as the database of the Chinese Supreme Court. It is to ensure that the supplier or manufacturer has no pending cases with previous clients.
• Do background checks using authentication services such as GloBis or China Checkup.
• Visit the factory or company in person if you can.

How much do Clothes from China Cost?

Clothes from China range in prices depending on the quality, quantity and sizes of the clothes.

Customization and branding also affect the overall cost of the clothes.

Your MOQ, FOB Port and lead time will also determine the prices of the clothes you buy from China.

Depending on the above factors, prices may range from US$ 0.8 TO US$ 8.25/ Piece.

Is Importing Clothes from China Profitable?

Yes, importing clothes from China is profitable.

It is because of:

• Cheap labour is used in the production of clothes bringing the prices of clothes down.
• There is available skilled labour for the production of clothes.
• The Chines government supports the clothing industry in a big way.
• There is a readily capital base for production that ensures clothing prices remain low.
• There is the availability of cheap raw material for making the clothes, ensuring prices remain low.
• The supply chain ecosystem is well established, making logistics cheap and affordable.
• There is healthy competition between suppliers and manufacturers.

How does Buying Clothes from China Online compare to Visiting China Clothes Wholesale Market?

Buying clothes from China online is different from visiting China in that;

• Buying online is cheaper because you save money for air tickets and other transportation costs in China plus accommodation costs.
• Visiting China is advantageous because you get to choose from a wide range of brands and different manufactures.
• 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 online.
• The clothes industry in China is big and modernized, capable of meeting any MOQ from customers worldwide.
• You can visit the manufacturer and deal with them one on one, unlike online shopping.
• Online shopping is susceptible to scam, unlike going to China.
• Visiting China is advantageous because the buyer can get other items from what he needs, unlike online shopping.

How do you find the Best Prices when Importing Clothes from China?

To get the best China prices when importing clothes from China, you can use the following tactics:

• Bulk buying
• Buying directly from the manufacturer
• Market research
• Familiarize yourself with the import rules of your country to avoid incurring unnecessary costs.
• Be aware of the taxes you need to pay in China.
• Get the necessary licenses to import clothes to avoid costs as a result of fines.
• Look out for the right supplier and manufacture to save on switching costs or breach of the Contract.
• Check the minimum order quantity (MOQ) required.
• Check the shipping charges and if drop shipping is available.
• Always ask for sample pieces to avoid buying items that you cannot sell and recoup your money
• opt for an agent to guide you on the best prices around.
• Buy insurance for safety, especially in importing from China.

What are the Quality and Certification Marks on Clothes from China?

Some of the quality and certification marks on clothes from China include:

• CCC (China Compulsory Certificate)
• CE (Conformité Européenne) mostly for protective clothing
• Kite Mark
• Ral-GZ 992 certification
• China Quality Certification (CQC)
• GB 18401-2010: China’s National General Safety Technical Code for Textile Products
• GB 20400-2006: Leather and Fur – Limit of Harmful Matter
• GB 21550-2008: Restriction of Hazardous Materials in Polyvinyl Chloride Artificial Leather
• GB 28480-2012: Adornment – Provision for Limit of Baneful Elements
• GB 5296.4-2012: Instruction for the use of Products of Consumer Interest – Part 4: Textiles and Apparel

How do you check the Quality of Clothes from China?

Clothes from China come in different designs, quality, shapes and sizes.

The rate also depends on the material used in making clothes.

Some of the ways you can check the quality of clothes from China include:

a) First, you should touch and feel the quality of the material used. Make sure the material is soft to the touch and that it settles comfortably.

b) Check the colour of the clothing; it should be sharp and uniform. Check for smears.

c) If your clothing is printed or has images, the images and the prints should be of the highest resolution and sharp.

d) Check the edges, seams, buttons and sleeves for any handing or lose threads. The finishing should be of the highest standards.

e) Check that the material used is absorbent and comfortable for all weather. The clothing should allow air circulation.

f) Check for the quality marks and certifications. It should guide you in ensuring you are buying a genuine product.

Which Types of Clothes can you Import from China?

You can import any clothing you might think of from China.

Some of the clothes you can import from China including but not limited to;

• Men pants
• Ladies pants
• Underwear
• Men shorts
• Ladies short.
• Any type of sportswear,
• Coats
• Kid’s clothes
• Fur coats
• Jackets
• Suits
• Jumpsuits
• Rompers
• Blouses

How Big is China Clothes Wholesale Market?

China’s clothes wholesale market is so big that the factories for clothes are located in different geographical areas according to the different types of clothes they produce.

You must research and have a list of the clothes manufacturers and the appropriate market before purchasing the clothes.

China wholesale markets are the biggest in the world, both in physical locations and online.

China’s textiles and clothing exports account for more than the world’s 55% total production.

It shows the size and impacts of China’s strength in clothing trade.

The Chines can be found in every sector of the clothing industry.

China deals with every process of clothe production from acquisition of raw materials to the shipment of the final product to the market.

How do you Find Genuine Clothes Suppliers in China?

Finding a supplier is the first and most important step for importing from China.

Different regions in China manufacture different clothes.

Most clothes suppliers do not have their personal sales team, and their English level is not right.

So, most Chinese suppliers will send you samples to choose from and determine the right supplier of the clothes 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 clothes you want, and then place orders.

You must note that most toy suppliers do not have good English-speaking skills; thus, you should have a translator to assist.

What Problems will you Encounter when Importing Clothes from China?

Clothes are one of China’s most important exports and imports.

Importing from China might be a hustle because you will not know how to choose clothes.

Some of the problems that you may encounter when importing clothes from China include:

• Compliance and safety issues: different countries require different standards for imported clothes.
• 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 use brand names and logos without the required authorization.
• Shipping: the most popular and economical way to import goods from China is through sea shipping.

How do you Ship Clothes from China?

Clothes that you buy from China can either be shipped through the air or as sea cargo.

Through the sea, 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 clothes belonging to different owners.

If you want to save costs, it is recommendable to choose bulk shipping.

If your clothes cargo is at least five pallets, it is better to transport it utilizing a full container load (FCL).

For smaller clothes cargo volumes, you should choose less than container load (L.C. L) shipping.

This method will mean that your clothes cargo will be with other kinds of shipments.

It is essential to have your cargo insurance.

This is because 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 clothes you have imported from China reach the seaport, they might be transported to avail location near you.

The clothes are then shipped through rail or road to your final location, your final destination.

How many Duties/Taxes will you Pay to Import Clothes from China?

The taxes and import duties in China are manageable, thus encouraging people to import more from China.

VAT on imported goods in China varies from 9% to 13%.

Which Incoterms should you use when Importing Clothes from China?

Incoterms will help you get business clarity as they define who is responsible for shipping and or insurance of goods at varying times during transit.

As a buyer, you must have information on the individuals preparing:

• Internal delivery.
• Shipment documents.
• customs, etc.

Some of the incoterms that you should use when importing clothes from China include:

· EXW

The incoterm in this category is EXW (Ex Works plus a named place).

In this term, the seller is not responsible for the costs, risks and obligations.

The seller’s job is all done when the goods are ready at their factory.

The seller will not be even responsible for loading the clothes into the truck you sent to pick up the goods.

Some buyers choose this incoterm to enjoy maximum control.

However, it is not advisable to use EXW due to the risks involved.

· Free on Board (FOB)

FOB will allow you and the seller to do what each of you knows best.

The seller should frequently secure more competitive pricing at origin as they know their country’s requirements and processes.

As the buyer, you have access to an extensive network of vendors as you know what is required in your country.

I highly recommend using FOB as it will result in a few chances of obtaining errors.

· Cost Insurance and Freight (CIF)

In CIF, the seller assumes the risk and is the one who is responsible for purchasing insurance for the importation of your products.

CIF can only be used for sea transport.

· Free Carrier (FCA)

FCA is a very flexible term as it allows your goods to be delivered at your seller’s premises and various points located in the seller’s country.

· Cost and Freight (CFR)

In CFR, the seller will not pay for the insurance of your products. You can only use this incoterm for only shipping by sea.

· Carried Paid To (CPT)

CPT is an incoterm that you can use for all modes of transport.

· Delivered at Terminal (DAT)

DAT suggests besides a transport terminal in your country, the place where your goods are delivered maybe your premises or a location nearby.

· Delivered Duty Paid (DDP)

In DDP, the seller assumes all of the following duties:

• The costs and risks of an operation.
• All the import procedures
• Delivery of the goods at the agreed place in your country.

· Delivered at Place (DAP)

DAP is similar to DDP only that as the buyer, you will pay for all the above responsibilities.

How will Freight Forwarder help you Import Clothes 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 clothes’ 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 such as customs clearance
• Freight forwarders will ensure that your clothes 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.
• Depending on the freight forwarder you will be using, they can provide free warehousing and shipping container

Which Documents do you need to Import Clothes from China?

Before importing from China, there are requirements that you should follow.

Be ready with all the necessary documentation required to import clothes from China.

The documents are to be presented to the appropriate authorities when and as required.

The following are some of the essential documents used in importing clothes from China:

· Commercial Invoice

This is a note to show that the exporter has paid for the goods in transit.

It is usually required at border checks to stop flow of illegal goods.

The exporter prepares this invoice.

The commercial invoice also assists the boarder patrol in establishing the amount of tax to charge.

· Bill of Lading (B/L, BOL)

The bill of landing is used in detailing the type and particulars of the cargo in transit.

It states the goods’ title and requires the shipment company to take a payload to a particular location or destination.

The Bill of landing is given to you by the cargo company, and you can use it as proof of shipment for insurance companies and customs.

This document mailed to you as the buyer to pay off the Contract.

· Packing List

A packing list is issued by the cargo company that will show you all clothes shipped and the packing information.

It informs all the parties involved in the importation process about the contents of the baggage.

· Pro Forma Invoice

The Proforma invoice gives you critical information about the shipment: the number of clothes shipped, the clothes’ features, and designs.

This invoice also contains the clothes’ final pricing, which helps you make the final purchasing decision.

A Proforma invoice is not a valid invoice but is viewed as an agreement between the exporter and importer.

The exporter of the clothes prepares it.

· 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 clothes were produced.
• Preferential certificate of origin: this will state that the goods were manufactured in a country that trades with your country of origin.

For example, when you are trading within the Commonwealth of Nations.

· 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 that should be met by the importer.

You may find the samples online for your perusal.

How do you Pay Clothes Suppliers in China?

There are many ways you can pay for clothes suppliers in China.

Chinese suppliers accept a wide range of payment methods.

Also, note that many manufacturers or suppliers 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 or suppliers.

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.

Why do you need a Sourcing Agent to Import Clothes from China?

The importance of sourcing agents when importing clothes from China include:

• Sourcing agents come in handy when the buyer needs a go-between and has no time to visit China to meet with the clothes’ suppliers.
• Sourcing agents will assist you if you encounter communication issues or inconsistent quality.
• Sourcing agents who are well specialized in your trading area may help you plan to expand or launch new products.
• Sourcing agents will reach various manufacturers and suppliers on your behalf and find the clothes you need.
• In China, a sourcing agent is a legal entity, and this is assurance enough that it is legally valid to incorporate them into your importation process.
• After finding the clothes you need, the sourcing agent will make a commission on the sale.

Is Importing Clothes from China Good for Small Businesses?

Yes, importing clothes from China for small businesses is good due to the following reasons:

• The wages in China are relatively cheaper, which means you will get the final products reasonably.
• In China, materials for making clothes are more accessible.
• You will get perfect clothes as the Chines are experts at designing their products.
• You can get a consistent supply of clothes for sale as the Chinese are excellent, refined, and organized at producing a large scale.

Do Clothes Manufacturers have Product Return Policy?

Most of the clothes manufacturers in China do not have product return policies.

It is prudent that you check your clothes before shipment and ask for samples before production.

You can also offer to pay for a product guarantee or additional packages that allow for return policies.

All in all, your type of financial arrangement will influence if you have a return policy.

Can you Import Designer Clothes from China?

Yes, you can import designer clothes from China.

Some of the suppliers of designer clothes that you may find in China include:

• Yiwu Gangchen Import and Export company.
• Ningbo Langke Import and Export company.
• Yiwu Sanzhi Import and Export company.
• Guangzhou Luqingyi Import and Export company.
• Quannzohou Aipusheng Import and Export company.
• Zhuji Hanjie Import and Export company.
• Monsoon Import and Export company.
• Yiwu Saichen Import and Export company.
• Yiwu G.S. Import and Export company.
• Xiamen Fancy textiles company limited.
• Yiwu Kai Te Import and Export company.
• Fujian Gentle Import and Export company.
• Yiwu Wingtu Import and Export company.
• Jinjiang Supastarer Import and Export company.
• Foshan Mia Import and Export company.
• Guangdong Wanglusha Import and Export company.

How do you Import Clothes on Alibaba?

When you want to import clothes from China using Alibaba, you will have to know how to use it well to avoid getting ripped off.

Before you begin searching for Chinese suppliers using Alibaba, you should first:

• Identify the exact clothes that you would like to import from China because Alibaba is not the right place to brainstorm for potential niches.
• Always understand what exact clothes you are expecting when sourcing from China.

You should understand that Alibaba is among the largest and frequently used database by Chinese vendors online.

However, due to being so large, Alibaba is filled with many ungenuine suppliers; that is why you should be aware of the right way to use this site.

The process of importing clothes from Alibaba entails:

a) Once you know which clothes you would like to import from China, you should start by carrying out a search using the search bar on Alibaba.

b) Alibaba will then, by default, display every single supplier available in its database for the clothes you need.

c) You should then filter out only verified suppliers (Gold suppliers) to avoid intermediaries or individuals trying to achieve a quick sell.

d) You should also filter out vendors that support trade assurance to ensure that you only have access to the real companies.

e) Once you have filtered the suppliers, you should pay a keen interest in the price of the clothes you want and the minimum order quantities.

However, the numbers can be adjusted after negotiations with the supplier for more favourable terms.

f)

In the business world, VAT is usually a sensitive issue that must always be handled with appropriate knowledge and understanding.

It plays a fundamental role in the overall efficiency of carrying out business, both domestic and international.

In this guide, we will discuss several aspects of regarding VAT number.

You will thus find everything you need to know about VAT, structure, significance, and other related elements.

Meaning of VAT Number

This refers to a unique number used for identifying a taxable person, business, or non-taxable entity registered for VAT.

You can also describe it as a registered tax identification number in tax systems, which uses Value Added Tax (VAT).

Ideally, when you obtain VAT registration in a particular country, you receive a VAT number for their respective tax system.

However, it is essential to understand that VAT number is much different from local tax number or tax ID.

VAT number is used exclusively for the Value Added Tax scheme.

The VAT numbers often vary from one country to another.

Of course, this is occasioned by the different tax systems used in various countries.

The application for VAT number or registration is also different in various countries.

In many instances, you need to inquire from the relevant bodies in charge of issuing VAT numbers in a particular country.

This makes it easy for you to facilitate the process since it enables you to know the specific requirements for every country.

Is VAT Number Mandatory?

Yes.

In many countries, VAT registration is mandatory.

And this is specifically if your business turnover exceeds or is likely to exceed the government threshold in a financial year.

Many governments require that you obtain a VAT number voluntarily at any point until your business turnover exceeds the threshold.

VATable turnover includes goods and services your business has transacted and is liable to VAT.

This can be a standard, reduced, and zero rates.

However, this hardly includes anything exempted or is outside the general scope of VAT.

In a nutshell, VAT number is a mandatory requirement in any country for businesses that meet stipulated VATable threshold.

Structure of VAT Number

The structure of VAT number varies from one country to another.

Every county has different VAT systems, which are integral in determining the structure of VAT numbers in general.

Nevertheless, irrespective of the country, the VAT number must consist of a prefix and a suffix.

In many cases, the prefix usually represents the code of the particular country.

On the other hand, the suffix can either be letters or numbers used for identification.

Generally, the VAT number consists of 4-15 digits.

In essence, it begins with a country code then followed by a block of digits or characters depending on a country’s preference.

For instance, VAT Number for Germany would be something like DE123456789.

The most crucial element to note, however, is that the VAT number for every business is unique in every country.

In other words, your business can never share a VAT number with a different company in the same country.

Who needs a VAT Number?

VAT number is an essential requirement for businesses and any other person carrying out a specific economic activity.

It is also a requirement for any registered profit-making organization.

In principle, though, the business or company is obliged to acquire VAT number on the following grounds;

• If it carries out supply of products or services taxed with VAT
• If it receives services for which it is liable to pay VAT under the stipulated directives
• If it supplies products or services for which the customer is liable to pay VAT
• If it makes the inter-country acquisition of products.

Role of VAT Number

VAT number is a vital component in both national and international business.

It plays an integral role in enhancing the efficiency of carrying out business in a country.

In principle, it connects your business with the government, particularly for taxation purposes.

Some of the roles of this unique number include the following;

· Tracking Business’ Input and Output VAT

One of the roles of VAT numbers is to help in easy tracking of your business’ input and output VAT.

You will always receive a VAT number for your business once you register it for the VAT tax system in a particular country.

This number comes in handy in tracking the value of tax your business pays and collects through expenses and revenue.

In principle, you, therefore, need to put your business’ VAT number on all your tax invoices and receipts.

· Filling VAT Returns

In many countries worldwide, it is a prerogative of the businesses to ensure that they file tax returns.

This usually happens after a financial year when you need to use the VAT number and VAT invoice records.

These two enable you to determine the amount of money in form of tax your business owes the company or vice versa.

· For Selling B2B

Whenever you sell to a VAT registered business, they also issue you with a VAT number for their business.

This makes it easy for you to always use the reverse-charge mechanism for the transaction.

More importantly, is to ensure you verify the validity of VAT number the specific country’s tax system.

When You need a VAT Number

When registering a business, in most cases, the VAT number is usually assigned directly at the tax office in most countries.

Numerous considerations take into account the moment you decide whether or not to register for a VAT number.

You need to envisage the possibility of your company having a turnover above the threshold set by the government.

Otherwise, it would be advisable to avoid registering the business yet to simplify your accounting responsibilities.

In any case, you must be careful when making this decision.

In principle, any period you exceed the threshold and fail to register for VAT, you may face financial consequences.

However, early VAT registration is advisable.

It prevents your business from the burden of administrative work related to changing the accounting system.

It also allows you to avert incidences of re-pricing products and services later as the business operations continue.

If you have invested massive capital in your business, it would also be ideal for getting VAT number as early as possible.

In this case, it means you can reclaim VAT paid on onset expenses.

If you sell items from a different country and exceed the distance selling threshold, you need a VAT number.

If you are a foreign entrepreneur, you may also need to get a VAT number in the respective country you are trading in.

Some of the typical incidences whereas a foreign investor you must obtain a local VAT number include the following;

• When a foreign business buys and sells merchandise in another country
• Storage of products in warehouses or based on consignment in other countries for customers
• Sale of commodities to buyers via various forms of online platforms or through catalogs
• When business imports goods from different countries.
• Having a live conference, training session, or exhibition with paid admission
• Supply and installation of equipment or machinery in a restricted number of circumstances.

Generally, non-resident companies are often required to register for VAT immediately.

As you can see, there are several situations, which require VAT registration to get a VAT number.

Therefore, it is always essential to do due diligence on the circumstances of getting this particular number for a specific country.

Where to Apply for VAR Number

Nowadays, many countries have integrated their tax systems with various online platforms.

In essence, it means you can simply apply the VAR numbers from the online platform of the respective tax office.

An online application usually requires filling all the required fields with relevant information.

You will also need to attach a few documents for the tax officials to review before issuing a VAT number.

Most tax offices across the world use different software systems

In some countries, however, you can apply for the VAT number through email.

In essence, you need to send an email to the respective tax office requesting VAT registration.

Response or feedback usually varies depending on the policies of different tax offices.

Information Required in VAT Number Application

Essentially, when registering for a VAT number, you must provide different types of documents and information.

And these usually vary from one country to another even though a few documents often remain the same.

Some of the important documents necessary for VAT number application include the following;

• Evidence of VAT or tax registration in the country of origin
• Copy of certificate of incorporation for the business
• An extract from the national register of companies demonstrating evidence of the existence
• Evidence of the planned trade such as invoices and contracts among others

Difference between Tax Number, Tax ID Number, and VAT Number

In different countries across the world, there are various kinds of tax numbers with varying functions and references.

In most instances, they come as tax number, tax ID number, and VAT number.

Tax number refers to a personal number, and it’s based on the taxpayer’s country of residence.

The abbreviations for tax numbers vary from one country to another.

However, once you move to a new location, you will receive a unique tax number for the respective location.

Tax identification number, on the other hand, is also more or less similar to a personal number.

The main difference here is that Tax ID number hardly changes even when you shift from location to another.

It remains the same for the rest of your life.

Entrepreneurs or business persons are the only parties that need a VAT identification number.

Employees usually never require a VAT number.

Persons or companies supplying goods and services in a country or regional economic bloc also requires a VAT number.

In essence, almost all products and services are usually subject to VAT.

Technically, Tax number and tax ID number are usually needed by employers for their respective employees.

However, the government must require a VAT number for all businesses and companies offering VATable products and services.

The Importance of VAT Number

VAT number is an integral component in business and companies.

Most governments depend on taxes as a source of funds for various operations within the country.

Therefore, having a VAT number facilitates an easier way of collecting and reimbursing money in businesses.

Nevertheless, VAT number is important in various ways, which include the following;

· Establishing Relations with other Businesses

When your company is VAT registered, it is easy for you to form business relations with other companies.

Most of the companies involved in relatively large transactions always prefer to deal with other VAT registered companies.

Technically, it creates an impression of the size and commitment of your company to its specific area of business.

· Helps in Identifying the Place of Taxation

VAT number makes it easy to determine the exact place of taxation.

Several companies carry out businesses from different perspectives.

Therefore, in some instances, it can be difficult to identify the place of taxation without a trail.

VAT number hence makes it possible to identify the place of taxation and consequently to enhance transparency in taxation process.

· Helps in Identifying Tax Status of the Business

It is easy to determine whether the business is up to date regarding taxation when you have a VAT number.

The VAT systems are always integrated, thus making it possible to identify your business’ status as far as tax is concerned.

The essence of this is it prevents you from accruing or overpaying tax.

You can always use it to monitor the tax status any time you in need.

· Helps in the Auditing Process

Sustainability and growth of a business are determined largely by the transparency and monitoring of the revenue and expenses.

This way, you can easily figure out the specific areas, which require fiscal attention at the right time.

VAT number thus plays a vital role in the overall auditing process.

You’ll easily determine the amount of money the company spent on tax.

Moreover, you can also identify the amount of money the government owes the business and how to obtain it.

As you can see from this guide, VAT number is a critical element in the business, both local and international.

Hopefully, you have understood a wide range of elements concerning this number.

Ultimately, you’ll make the right steps in making sure you attain and use it the right way for your business.

If you have any inquiries regarding different aspects surrounding VAT number, feel free to reach to us.

We will always assist you in matters to do with VAT number irrespective of the country you seek one.

In the past, the goods were often sorted at the time of onboarding while loading smaller shipments.

However, the introduction of containerized shipping ensured goods can only be organized and classified before onboarding.

In this guide, you’ll understand the role, significance, and impact of CFS in international shipping and supply chain.

Container shipping

Meaning of Container Freight Station

Container Freight Station is commonly known as CFS.

It refers to a warehouse where cargo belonging to different importers and exporters is consolidated and deconsolidated before exporting or importing.

In simple terms, CFS is a space for storing consignments before loading and after loading the cargo.

For LCL shipments, the CFS is often owned by a terminal or shipping line with a warehouse near the port.

The entity owning the CFS, in this case, is responsible for customs assessments and clearance protocols.

In LCL, shipments belong to different clients.

Thus the cargo is loaded in a single container and brought to CFS for consolidation before dispatching to an ultimate destination.

Several import-export transactions occur in this station both at the point of origin and destination.

In principle, CFS is thus categorized as origin CFS and destination CFS.

All the dealings are often processed through customs authentications in a customs notified area.

The main link between CFS and other entities involved in the transaction is a Customs Agent.

Benefits of Container Freight Station

In general, container freight station is an essential part of import-export logistics in various ways such as the following;

• Ideally, CFS plays a vital role in in facilitating intermodal transport. This helps in cost savings and better control of inventory

It is also essential in optimizing the process of sending smaller consignments to their respective destinations.

Consolidation of LCL shipments into larger containers.

This makes it easy for freight of the same or different clients being transported towards same destination.

• CFS creates a centralized location for both exporters and importers to send and receive their products, respectively.

It serves as a staging area for imports-exports.

• Goods at the CFS are often consolidated into containers. While at it, each vessel receives a unique ID number.

This number is vital in assisting you in tracking the containers as well as the product.

• In CFS, an appropriate list is generated and maintained. This includes the importer/exporter name, Customs agent name/house, and the product.

The data also captures port of loading/unloading the cargo, truck number, size, quantity, and shipping line, among others.

This is essential since it helps in preventing loss of cargo and confusion in the entire process.

• Since goods shipped are containerized, it becomes difficult for them to get damaged.

It offers greater cargo security, efficient and timely loading, unloading, stuffing, and de-stuffing.

In essence, it helps in facilitating a smooth transaction process between the exporter and the importer.

• Technically, CFS serves as a central point for consolidating smaller shipments. This is vital in reducing empty container movement hence making LCL shipments relatively cost-effective.
• CFS is also essential since it enhances automation for loading and unloading of containers at the docking point.
• In many instances, custom clearance protocols are hardly required in CFS. The importance of this is it enhances convenience by freeing you from the would-be daunting customs process.
• It also helps in decongesting the ports and terminals. And this is critical because it averts delays and inconveniences that would arise due to congestion in ports and terminals.
• CFS stations have both Foreign Trade Zone (FTZ) and Non-Foreign Trade Zone (Non-FTZ) components.

Essentially, many shippers often take advantage of keeping their commodities in-bond on a customs form.

It allows the shipper to defer taxes and duties payment until it is consumed in a manufacturing process or sold to customers.

• CFS is ideal for time-sensitive air-freight shipments.

In this aspect, it facilitates the fast and direct movement of such consignments from airport and delivery to various destinations.

And this happens within a short time-frame.

• This facility provides an extra layer of security hence reducing the risk of damage or theft of shipments.

Goods are shipped directly from port to the CFS warehouse.

• It enhances supply chain efficiency. This is particular for business, which involves frequent exportation and importation of goods that need short term storage.

Types of Container Freight Stations

CFS is categorized into two types, and they include the following;

a) Origin CFS

This refers to a container freight station situated in the country where the shipment is originating from.

Origin CFS is where consolidation of freight takes place before the items are shipped to the respective destination station.

b) Destination CFS

This is the type of CFS in destination country where deconsolidation of freight takes place.

This happens before every individual shipment is dispatched to the respective rightful customer.

How Container Freight Station Works

CFS is crucial in both the embarking and disembarking process of the goods from the point of origin to destination.

Therefore, it works from a different perspective, depending on the point of export or destination.

Here are the general procedures followed by CFS in these two existing contexts;

Role of Container Freight Station in Import

Ostensibly, CFS serves as an extended part of the port.

As you import products, they can be delivered directly to the CFS rather than sending them to the port or container terminal.

In essence, this helps in reducing congestion at the port considerably.

Here is a practical example;

Company X from US is expecting a shipment from Chinese-based Company Y.

The exporter or seller prepares all the relevant shipping and customs documents accordingly and notifies the relevant entities.

Once the shipments dock at the port, they are transferred to CFS, and ensuing processes followed.

• The consignment received at the US port is verified by the customs department and subsequently stacked at the station.
• The agents/ importers must file the relevant documents accordingly before taking the consignment to CFS.
• The CFS disembark the items from the containers.
• The customs agent or importer must file a Bill of Entry with customs. After that the items are evaluated, and payment for duty or tax is made.
• At post customs clearance, the department issues an “out of Charge” order. Goods are thus released from CFS with a gate pass issued to you.

Role of Container Freight Station in Export Business

As mentioned, CFS is in charge of cargo consolidation and stuffing it in containers before shipping.

Of course, the entire process is vital in reducing congestion at the port of origin and ensuring efficient cargo shipping.

In export, CFS works a bit differently, and here is the process from a practical example perspective;

Company X from US has cargo shipped to Company Y in China.

• The exporter/supplier loads the goods inside a truck and delivers it at the nominated CFS together with the shipping bill.
• The shipment then undergoes the loading and carting process.
• The items will then be scanned and substantiated in the warehouse before stuffed inside containers.
• The container is sealed as a security measure by the customs representative and sent out of CFS to the port.
• Once the goods get to the port, they are shipped to the destination’s port through the preferred shipping line.

The Main Receiving Services of CFS

CFS has a set of receiving services provided between receiving cargo from exporters and stuffing them into containers.

CFS plays a fundamental role in various shipping and supply chain processes.

Some of the receiving services and responsibilities of this particular facility include the following;

• Receiving and dispatching the cargo
• Receiving and consolidating LCL shipment for export
• Moving empty containers from a specified container yard to the respective CFS
• Issuing shipping orders and dock receipts
• Physical movement inside and outside the CFS facility
• Stuffing, sealing as well as marking the containers for easy and accurate labeling and identification.
• Typical sorting and stacking of goods in containers in pre or post-shipment.
• Drayage of containers from the container yards (CY) to a CFS
• Preparing a feasible plan for container’s internal load.
• Storage of containers
• Providing shipping order or dock receipts
• Consolidation and deconsolidation of cargo, especially in LCL shipments

What is CFS Port Area?

Generally, the CFS is expected to handle break-bulk cargo originating/terminating in the immediate hinterland.

In other instances, this facility may also deal with rail borne traffic to and from inland zones.

Therefore, the minimum area requirement for a CFS should be at least one hectare.

Container Freight Station Requirements

Typically, different countries have various policies surrounding requirements for container freight stations within their jurisdiction.

The responsible body in most countries always look into the following requirements for CFS;

1) Feasibility Report

There is a feasibility study or survey that must precede establishing of a CFS.

A copy of the same report is attached to the application for setting up this particular facility.

Technically, the facility must demonstrate its economic viability to the government and efficiency to users and the intermodal transport system.

It should also meet a specified level of traffic volume depending on the underlying factors.

2) Land Requirements

In most countries, CFS within major cities should cover at least one acre of land.

Those projected outside limits of major cities should be at least three acres.

The applicant, however, must have legal rights over the land proposed for CFS development.

In case the land is leased, a lease agreement should be provided, and it should entail the lease period.

3) Design and Layout

The design and layout of the CFS should conform to modern designs with most of the art-of-the-art equipment.

The mechanical/electrical facilities should also meet the required international standards.

The lay-out needs a seamless flow of vehicles, containers, and cargo through the container freight station.

The design for a CFS should largely incorporate several features. Some of these features include;

• Container yard
• Pavements
• Roads
• Siding
• Gatehouse
• Boundary wall
• Public amenities
• Gatehouse

4) Equipping CFS

The CFS should project to have the most modern handling equipment for loading and unloading of containers.

For instance, some of the handling equipment include;

• Forklift
• Lift truck loaders
• Rail-mounted yard gantry crane
• Reach stacker
• Rubber-tired yard gantry crane

5) Tariff

You must also work out the costing and tariff structure as part of the feasibility studies.

6) General

Establishing the ideal inventory and tracking system in locating cargo and container is paramount.

Every functional unit of CFS needs to be up to date.

Moreover, setting up online information regarding all functional units would be more effective.

Procedures for Setting Up CFS

Setting up CFS is quite demanding in most countries.

There are several interventions, which must be put in place regarding the procedures for establishing this facility.

In general, though, a company interested in establishing a CFS needs to present its proposal to the respective agency in a particular country.

Some of the general procedures include the following;

Applying – You need to draft an application and fill in all the details accordingly.

In many instances, applications are often done online nowadays.

Once the application/proposal is received, it is evaluated by the relevant officials to determine whether it meets the required conditions.

Technically, the proposal for establishing a CFS is considered based on the stipulated guidelines and cleared on merits of responsible body.

Once the proposal is approved, you’ll receive a letter of intent from the responsible body.

You’ll then be required to set up the facility within the specified time-frame from the approval date.

However, an extension can be offered upon request and approval from the concerned body.

Once a letter of intent is issued, the facility is notified as a container freight station.

After the facility is set up, a notification declaring it as a customs area is issued.

But it has to meet and satisfy all the stipulated conditions related to development of infrastructure & facilities.

How doe CFS Compare with ICD

Customs Freight Station and Internal Cargo Depot are both facilities for handling and storing containers.

Ideally, CFS and ICD are the same, only that the latter appears to be an Indian concept.

Unlike CFS, which is located close to the ports, ICD is located relatively further away from the ports and terminals.

The idea of ICD is to enable importers and exporters to handle their cargo comparatively close to their warehouses and factories.

And this is common, especially when factories and warehouses are much far from the ports and terminals.

It is for this reason that the ICD, in some instances, is also referred to as dry port.

Also, ICD is an independent customs point like those available at ports and airports.

This facility has its automated system, enabling it to examine shipments, assess, and process paperwork.

By contrast, customs facility at the CFS is an extension of the main customs station at the port.

In essence, CFS examines goods, but processing and assessment of paperwork occur at the specific customs station the CFS is attached to.

How Container Freight Station and Container Yard Compare

Container Yard is a zone within container terminal or port or dry port where FCL containers are stored.

Such FCL containers are stored in CY after offloading from the vessel in case of imports.

They can also be stored in CY before loaded on a ship in case of exports.

CY facility is a dedicated area for FCL containers, whereas CFS deals with LCL and FCL containers.

CFS, on the other hand, is a warehouse where goods for different importers and exporters are consolidated and deconsolidated.

This happens before exporting or after importation, respectively.

The location of a container yard is within the port.

On the contrary, the location of a CFS is close to the port or a terminal.

Ideally, CFS picks containers and shipments from a CY to facilitate FCL and LCL shipping.

The role of a CY is to align containers for loading on ships and storing off-loaded shipments.

The storage duration lasts until they are transferred to a CFS, rail yard, or handed over to the customer.

Tentatively, both CFS and CY have cut-off dates.

It thus means there is a need for a container to be delivered to make scheduled sailing.

Comparison between CFS and Bonded Warehouse

Bonded warehouse refers to a space authorized by the customs department to provide storage services for imports and exports with deferred duty payment.

The conception of this idea was a measure of insulating trader’s experiences cash-flow issues.

Technically, the bonded warehouse’s essence is to provide traders more time to raise enough money needed for duty.

Alternatively, it allows them to get sufficient time to find buyers for specific items.

The importer can push the duty payable to the customer by transferring the title of goods.

In case you fail to find a buyer, you can export the items without paying duty on it.

Some of the elements where CFS and bonded warehouse differs include the following;

· Type of Storage Goods

In a bonded warehouse, the types of goods stored include the following;

• Imported items await completion of customs procedures and preparation to get into the market.
• Transited shipments awaiting exportation to the third country
• Goods awaiting export but with completed customs clearance.

On the other hand, the types of goods that can be stored in a customs freight station include the following;

• Imported goods without complete customs clearance
• Exported goods with completed customs procedures. The goods can as well be registered with customs declaration waiting for physical inspection in CFS.

Leasing Period for Warehouse

In bonded warehouse, the lease term hardly exceeds 12 months from date of delivery.

The leasing contract can only be extended once for not more than 12 months only if there are plausible reasons.

In CFS, however, the warehouse lease term not more than 90 days from the date of delivery.

In case of any plausible reasons, they may extend the duration up to a maximum of 90 days after approval from the relevant body.

Customs Procedures

Customs procedures for bonded warehouse are categorized into different cases, which include the following;

• For items from foreign nations to be bonded
• For items brought from FTZ or inland from bonded warehouses
• For shipments dispatched from bonded warehouses for export in foreign countries
• For shipments delivered from bonded warehouses for import into non-tariff or inland zones
• For products to be transported to a different bonded warehouse

However, when it comes to CFS, there are two primary customs procedures, which include the following;

• For imported goods
• For exported goods

CY/CY and CFS/CFS Terms of Bill of Lading

Bill of Lading is a critical document in ocean shipping often issued to the shipper by freight agent or carrier.

It contains several details, including various terms of CY/CY and CFS/CFS.

The terms on Bill of Lading include the following;

· CY/CY

It refers to an FCL shipment collected at origin port’s container and delivered to a consignee at the destination’s port container yard.

In this case, it is the carrier’s responsibility to ship the consignment from CY at the port of origin to CY at destination port.

These shipments typically have one shipper and consignee. In some instances, they are also known as FCL/FCL shipments.

· CFS/CFS

This refers to a consignment where items heading to a specific destination are consolidated at a container freight station.

It typically involves LCL shipments at the port of origin where they’re deconsolidated at CFS at destination port.

Thus often have multiple consignees and shippers. It may also be referred to as LCL/LCL shipments.

· CFS/CY (Pier to House)

It is a consolidation of LCL shipments at the port of origin, consolidating goods of different buyers.

The LCL shipment is delivered to a single consignee at port of destination container yard despite having multiple shippers.

· CY/CFS (House to Pier)

This refers to when the shipment is collected from the port of origin’s container yard.

It is then delivered to container freight station at destination port where its deconsolidation takes place.

CY/CFS often have multiple consignees and one shipper. They are also known as LCL/ FCL shipments.

Functions and Responsibilities of CFS

Container freight stations have become a sought-after facility in import-export.

This is mainly, as a result, increasing demand for LCL shipments.

Thus CFS plays several functions hence significant to the overall import-export process.

Knowing the functions and significance of CFS is one of the ideal ways of understanding CFS in-depth.

Some of these functions and responsibilities include the following;

• Evaluation and verification of import-export shipments by customs department for efficient customs clearance.
• Facilitating intermodal transportation of containers to port of origin and from port of destination.
• Organizing customs clearance procedures, which include classification, examination, and evaluation of products.
• Dealing with break bulking cargo originating or terminating in the close port or terminal hinterland. This is in addition to rail-borne traffic to and from inland areas.
• Tracking system for monitoring status and location of cargo and containers
• Temporary cargo storage services and laden or empty containers.
• Maintenance and repair of damaged containers
• Storing products safely until they are ready for shipping or picking
• Moving empty containers from container yards and laden containers to port of terminal.

Container Freight Station Fees

Ideally, the charges for CFS usually vary depending on different provides.

The charges also vary depending on the dimensions of the specific container.

Therefore, it is always advisable to inquire about the pricing from different providers.

This allows you to find the specific one, which suits your needs fits within your budget.

In many cases, freight forwarder consolidators usually have different contracts with warehouses.

Thus the specific container freight stations may charge different rates depending on the freight forwarder used.

Nevertheless, there are other additional CFS charges dependent on whether it is export or import activity.

Some of the export activities, which attract charges in CFS include cargo storage and container stuffing.

Also, charges for per-day ground rent for laden and empty containers may apply for export activities.

For import CFS, some of the activities that may attract charges include;

• De-stuffing and delivery
• Cargo storage
• Container scanning
• Cargo handling

The general and extra CFS charges include;

• Cargo shifting within CFS
• Container repairs
• Amendments in documents
• Container cleaning
• Transportation to and from CFS/Port
• Reefer handling
• Weight verification

As you can see from this guide, a container freight station is a fundamental shipping industry facility.

Over the last years, CFS has transformed the manner of storing and shipping consignments to and from different countries.

Most importantly, it has enhanced the efficiency in carrying out a wide range of import-export business.

Hopefully, you’ve learned meaningful information from this guide.

In case you have any questions or inquiries,feel free to contact us.

We’ll assist you in all matters of CFS and any related issues.

If you’re looking for any information about duty drawback, you will find it right here.

This guide explains everything about duty drawback, from basic to advanced concepts.

Keep reading if you want to learn more about duty drawback

What is Duty Drawback?

Duty drawback is a refund of import duties, taxes, and fees paid on imports that are subsequently exported.

The term also refers to recovered duties on imported articles manufactured and re-exported from the country.

A refund of duties and taxes paid on imported goods exported unused is also known as duty drawback.

Unused, in this case, refers to imports that were not used for their intended purpose.

Please note that customs authorities only issue drawbacks on imports that are re-exported or destroyed.

You also have to make an official claim within the stipulated timeframe to get drawbacks.

What is a Duty Drawback Program?

A duty drawback program is a scheme drawn to evaluate and implement a duty drawback opportunity.

Most countries allow duty drawback programs as a means to encourage local manufacturing and promote trade among nations.

These programs are aimed at reducing the financial burden and regrets experienced by international traders.

The program particularly focuses on preventing double taxation of goods brought in and out of the country.

You can easily reduce exportation costs by claiming refunds of duties paid on goods that you’d previously imported-recurrently.

You should find a reputable duty drawback agent to help you develop and manage a drawback program that will benefit your business.

How can a Duty Drawback help your Business?

Your business can benefit from duty drawbacks in the following ways;

• It can help you grow your sales with more competitive pricing.
• A duty drawback can be a great source of cash for your business. You can plow back the money into your business as stock capital or use it to cater for operational costs and other things.
• It increases your business revenue and general cash flow.
• Drawbacks can help enhance your business competitiveness by leveling the playing field. With almost 99% refund of customs duties when you export, you can easily manufacture or run your business duty-free.
• Lowers cost of goods thereby maximizing your profits.

How do Duty Drawbacks Work?

Duty drawbacks work in a fairly similar way as a sales tax refund.

You can claim a duty refund when you export goods that had previously been imported.

Similarly, you can also get a sales tax refund when you return goods to a store.

What is a Duty Drawback Evaluation?

A duty drawback evaluation is a process through which your eligibility for drawback is determined.

It identifies if you have a drawback opportunity as well as the number of duties you can recover.

The evaluation process determines the necessary steps to implement your drawback program if any.

Through this process, you get to know your eligibility for drawback and how much time and effort you will put in to get the refund.

You can contact us today to see if you qualify for a duty drawback program.

What is a Duty Drawback Assessment?

A duty drawback assessment determines if claiming a drawback is a viable option for your business.

For this process, you need to fill out a duty drawback assessment form.

This helps your agent work out a way forward in getting you the maximum drawback on duties in the shortest time possible.

Understand that getting started with a duty drawback assessment is quite tedious.

The process is meticulous and requires lots of information.

You will have to present the value and number of imports and exports over a specified period.

Specific export and import documents are also needed at this stage.

Note that the first steps of a duty drawback assessment will help you move through the process quickly despite all the work.

So make sure you provide every necessary information and paperwork to avoid delaying the process.

Who can Claim Duty Drawback?

Anybody can claim a duty drawback as long as they are in the business of importing and exporting goods in their country.

It can be an importer, manufacturer, or exporter.

All you need to do is provide the necessary authorization and paperwork to your respective country’s customs office.

How do you Claim Duty Drawback?

To get a duty refund, you must prove that, indeed, customs owes you some money.

The first step to proving this is to understand the circumstances that can make you eligible for a duty drawback.

That is, your imports must have been re-exported, used to manufacture other export goods, or destroyed.

After evaluating your eligibility for drawback, it is now upon you to get the necessary details and paperwork before applying for drawback.

Once your agent drafts a viable duty drawback program for you, go ahead and file your application.

Please note that in recent years, the procedure for claiming duty drawback has become much simple.

Just make sure that you have all the data about your import and export transactions for the past five years.

Once you have this, proceed to fill out a claim form.

It is important to give accurate data and account transactions for you to be guaranteed a 99% drawback.

After you fill the claim form and present it, the time frame to receive the refund via your bank account will vary.

Generally, you should allow 3-6 weeks to get the duty refund.

As you can tell, the entire process of claiming duty drawback requires patience and understanding.

If your claim application is unsuccessful, try to follow up and get the reasons for rejection.

If you feel that it was unjust, consult with your broker on ways to appeal the decision.

What is the Percentage of Duty Drawback?

You can claim up to 99% of duties, taxes, or fees paid to customs.

This is if your import goods are unused, exported, or used to manufacture another export product.

When is Duty Drawback not allowed?

In most countries, drawback recovery is prohibited for goods exported to the country’s held territories and military installations.

You may also fail to get a duty refund when you export to countries that do not allow duty drawback.

Check with your respective customs office to be sure of the exact circumstances you can claim drawback.

Your duty drawback broker can also advise you on this.

What Types of Duties are Eligible for Duty Drawback?

You can claim a refund on the following types of duties:

• AD Valorem where assessment is done according to the value of the shipment. The percentage of refund will be based on the entered value after assessment.
• The voluntary tender linking to a specific entry.
• Duty paid on goods with an incorrect country of origin label.
• Merchandise processing fees. This is charged based on the declared value of shipments.
• Specific duty, per unit of goods
• Harbor maintenance fees. This is imposed on goods that you ship by sea. A specific percentage of HMF fees (set by respective customs) are charged on the shipment’s value.

Are there any Exceptions to allowable Duty Drawbacks?

Yes, there are exceptions to duty drawbacks.

Apart from the circumstance we’ve mentioned in Q1, there are other specific instances in which you’re allowed to claim drawback.

These are the most instances in which you pay fees for operations that are not part of the manufacturing process.

They include fees paid for the inspection, repair, cleaning, repackaging, and blending, among other things.

Do you need Government Permission to Claim Duty Drawback?

Yes, you do. But first things first, you need to know the exact type of duty drawback you qualify for.

Then the types of applications and rulings you require before you qualify for the drawback.

Acquisition of the applications and rulings are subject to approval by the government.

The government needs to approve documents of transactions incurred before applying for duty drawback.

Can you Claim Drawbacks if you Buy Imported Goods from a Local Vendor?

Yes.

You can receive duty drawbacks in most cases, even if you are dealing with local vendors; you are purchasing from local vendors and exporting.

You need to agree with the vendor on personal terms and the manner of handling confidential cost data.

Additionally, you can approach the third party to keep your secret information and that of the vendor.

After agreeing and claiming the duty drawback, everyone wins without loss of any confidential information.

What is the Timeframe for Filing a Duty Drawback Claim?

The provided duty drawback regulations allow for three years from export to file for a duty drawback claim.

Lucky for you, if you’ve been exporting imported goods, you can file duty drawback claims for goods that you exported up to five years ago.

Besides, brokers are allowed five years to claim duty drawbacks on your behalf.

All you need to do is liaise with a broker of your choice.

Complete the broker’s drawback assessment and allow them to claim duty drawback on your behalf.

Should you Submit one Drawback Claim for each Export?

This depends entirely on you.

However, the process of duty drawback claim is hectic if done on a single export.

Assume you export more than ten products.

Attaching documents for each product will be tiresome and time-consuming.

To reduce strain and minimize time wastage, you can apply duty drawbacks on your exports together.

You start by grouping them periodically, that is, monthly, quarterly, or annually.

Then you claim drawbacks based on the quantities exported during these periods.

Grouping helps you claim lump-sum duty drawbacks at once.

What are the Elements necessary to Claim a Duty Drawback?

The whole process of duty drawback claim relies on data.

The data provided should be accurate and can be easily proven.

If you are claiming a drawback, you should provide documents whenever needed to back up the claim.

Accurate data is key as it saves on time wastage when you are asked for other information.

More importantly, your claim must meet all the elements necessary for a drawback.

These are:

• You must have previously imported the goods for which you’re claiming drawback
• You must have paid duty for these goods during importation and have proof to back up the claim.
• The goods should be entered for export within the government-stipulated time from the date you paid for their import duty-no matter provisional or final duty.

Customs can always extend the period for entry as long as you provide sufficient reasons for the extension.

• Customs must be able to identify the goods as what you’d previously imported.
• Re-exportation of the goods must be outside their import country.
• The claim amount must not exceed the market price of the goods for which you’re claiming drawback.

These elements are not cast in stone as each country has its requirements that drawback claims must meet.

How many Types of Duty Drawbacks are there?

There are three major types of duty drawbacks provided by the Customs services.

· Manufacturing Drawback

This is applicable when you import a product and then transform it into a new product or improve its quality before exporting.

In such a case, you can claim a refund on duties paid.

If the manufactured goods are destroyed before exportation, you can also ask for manufacturing duty recovery.

· Unused Drawback

In cases where you import a product and export it essentially in the same form, you are eligible for a refund on duties charged.

· Rejected Merchandise Drawback

This drawback provides for duty refunds on goods imported and destroyed or not used under customs supervision.

You can apply for this drawback if your goods are;

• Defective and do not conform to specifications.
• Shipped without the consent of the consignee
• Has been confirmed to be substandard during the time of importation

How do you Calculate Drawbacks?

Duty drawbacks are calculated based on set parameters.

You can use the following parameters in calculating duty drawback.

• industry prescribed rates
• the brand rate
• Special brand rate

Duty drawback is applicable when expenses are incurred on the packaging and acquiring extra indigenous goods to supplement the Import good.

The prescribed rates of calculating drawbacks are based on the following; duty drawback amounts, minimum drawback amount, and the minimum percent of duty drawback.

To calculate the duty drawbacks, multiply the estimated annual drawback paid by the percentage of sales made annually.

Further, calculate 99% of the amount you get after multiplying.

This will give you a rough estimate of your duty drawbacks.

 What Paperwork do you need when Obtaining a Duty Drawback?

Depending on the type of drawback applied, paperwork usually varies.

It is important to select an agent who will help you navigate the whole process and file the applicable documents.

The needed paperwork is categorized into;

· Import Paperwork

Here, you should be able to provide data that shows the duty charged on the imported materials.

Information can be in summary, and invoices received on duty charged.

· Manufacturing Paperwork

You should have details that verify the manufacturing of the imported product up to a finished product.

There should be time frames and details on the imported materials used of the same kind and quality as the exported final good.

· Export Paperwork

You should also provide export invoices and loading documents that prove the products were exported.

How Long does it take to get a Duty Drawback Claim?

The time frame varies depending on;

• Number of parties involved
• Existence of electronic records
• The complexity of the import and export transactions

Normally, the whole process of receiving the first check ranges from four to eight months.

To hasten the process, investing in a customs broker is beneficial.

You can also request customs privileges that can help hasten the compensation process.

The accelerated payment privilege (APP) for claimants in the US is one such example.

An APP can guarantee your claim within 45 days from the date of application.

You may have to wait for the estimated time ranges or even longer, depending on your customs service, without such privileges.

What is a Waiver of Prior Notice?

If you are in the re-exporting business, then you qualify for the waiver of prior notice.

It is a notice of intent that you provide to customs, and once obtained, you can always export your goods at will.

The waiver of prior notice may be applicable for a period allowed by the custom.

You are required to obtain another one once the given period lapses.

How do you know if you Qualify for Duty Drawback?

As long as you import or export products, you are eligible for some duty drawback.

Suppose within your business, one or more products that you supply are exported.

In that case, you and your customer can qualify for duty drawback.

To know if you are eligible for duty drawback, simply choose a trusted broker; inform them of your transaction.

They will help you evaluate the nature of your transaction and the possibility of qualifying for a duty drawback.

What are the Possible Duty Drawback Compliance issues?

You must conform to set standards and provide the needed proof before being eligible to receive duty drawbacks.

Among the possible duty drawback compliance issues are;

• Being able to prove the manufacture of materials
• Ability to keep with the statutory time frames
• Failure to keep the accurate bill of materials
• Failure to keep privileges and rulings current

You should address the following issues to increase your chances of getting duty drawbacks.

Can you Claim a Drawback for Past Imports and Exports?

Absolutely!

You can claim duty drawback from imports and exports you made up to five years ago.

You only need to have the necessary documents, check if you qualify, and apply for a duty drawback.

The process can prove tiresome and cumbersome, but it is worth every second of your time.

The refund can help boost your business.

Nevertheless, the date of the qualifying export should be after the date the import was made.

What is Substitution?

Substitution is for example where you, as a trader, import toys from China and at the same time acquire toys locally that are similar to those imported, mix them, and export.

In such a case, substitution makes it difficult to differentiate those imported goods from the domestic acquired ones.

What are the Advantages of Substitution?

Substitution is profitable to the importer who mixes imports with similar domestic products and later export to customers.

It has the following advantages:

• The customer receiving the exported goods is not able to differentiate goods exported.

They cannot specify the source of import.

• Substitution increases the duty drawbacks to be claimed on exports and imports.

Assume there is free duty to be imposed after a specific period. Duty drawbacks can be claimed on goods that are imported and exported after the period.

This can generate extra revenue for the company or business.

• Substitution can increase your output to be exported. You simply match the imports with similar domestic products and export.

Can you Apply Drawbacks to Damaged Exports?

Yes, you can apply drawbacks on goods that are destroyed.

But this has to be on the condition that the goods got damaged under customs supervision.

You need to provide solid proof that indeed the goods got destroyed under customs supervision.

The government will also have to ascertain this fact before deciding whether to issue you a refund on duties paid.

What is a Drawback Shipping Bill?

The shipping bill is an important document issued by customs services upon request by the exporter.

Its purpose is to allow the exporter to load goods, claim duty drawbacks, and get cleared.

A drawback shipping bill contains the following crucial information;

• Exporter, buyer, and customs agent’s details
• General cargo details
• The loading port and transportation port details
• Exchange rates and container numbers
• Duty drawback details
• Insurance amount of the commodity
• The invoice value of the cargo

The bill facilitates easy movement of the product out of the country.

To receive duty drawbacks on goods imported, you must attach the drawback shipping bill during application.

What should you look for in a Reliable Duty Drawback Broker?

It is paramount for any business engaging in importing and exporting to have a good broker to aid them in claiming duty drawbacks.

A good broker deals with the whole process meticulously to guarantee you the result desired.

In choosing a good broker, the following factors have to be put into perspective.

· Service Cost

The broker should charge a reasonable and competitive fee.

It would be best if you chose a broker with the best services at an affordable cost.

Compare different brokerage companies and choose the most cost-efficient one.

· Experience and Area of Expertise

The longer the broker has been in the market, the higher their experience.

It is important to choose a broker with a good reputation implied by a long time in providing brokerage services.

You can always verify the broker’s reputation based on their portfolio and testimonials.

The broker should be perfect and professional to increase the success rate of getting you the most drawbacks on time.

· Instant File Claims

Time is crucial when it comes to claiming duty drawbacks.

A good broker cuts the deal and begins the due process.

Your chosen broker should deliver on the agreement at the earliest possible time.

The whole process needs to be swift and such that you receive your drawbacks in your account at the earliest time possible.

· Connection with the Government

A reliable broker should have connections in the government to hasten the whole process.

You need your money as fast as possible.

With connection comes trust and favors hence improving the duty recovery process.

Claiming duty drawbacks is a legal process backed up by tariffs and laws.

The process should be transparent and in your favor. Contact us today for the best and affordable brokerage services.

How much do Duty Drawback Services Cost?

Usually, the cost of duty drawback services varies depending on several factors.

These are the type of duty drawback, the information you’re presenting, and the amount of refund.

To get a clear estimate, you’ll need to complete an evaluation questionnaire.

Your agent will use the information therein to create a befitting service quote for you.

Depending on your specific needs, Tj chinafreight will help you in all your freight forwarding needs.

Contact now for all your shipping needs.

This guide answers all questions you have been asking about the ECCN number.

Whether you want to know about the requirements, charges, or minimum shipment value that qualifies for ECCN number, you will find everything in this guide.

Keep reading to learn more.

What is the ECCN Number?

ECCN refers to an abbreviated form of the Export Control Classification Number.

It consists of alphanumeric characters and is typically used in the classification and identification of different types of products.

Most of the items identified and classified using the ECCN number have applications for defense or military purposes.

The classification of ECCN is also based on product category, group, series, and the sequential numbering of the items.

ECCN number is derived from the nature and technical specifications of the products.

This entails the type of commodity and technology, among other aspects.

In many instances, it also requires a meticulous study to comprehend the item appropriately before attempting classification.

Technically, it is the record exporter’s responsibility to know whether their exported commodities have ECCN or not.

What is the comparison among ECCN, HS code, and HTS code?

All these numbers or codes are essential in facilitating the efficiency of international business.

However, they tend to vary slightly on specific grounds, especially when it comes to the purpose in international trade.

Here is how these codes vary in international shipping;

· ECCN Number

This refers to a five-digit alphanumeric designation used in CCL to identify specific products for export control purposes.

After you identify the ECCN number, you can figure out the reasons for controlling the item.

It also allows you to know the transactions, which may need an export license depending on the specific country of destination.

You may also determine the products with export license applications using the ECCN number.

· HS Code

This is a six-digit classification number used for identifying the tax rates for particular commodities.

It is used mostly by the customs authorities since it makes it easier for them to determine the duty and tax payable for an item.

In many cases, you use HS code when referencing the classification with your customers, vendors, and retailers, among others.

Most countries often add additional digits to the HS number to further differentiate products in particular categories.

Ostensibly, these extra digits usually vary in different countries.

· HTS Code

This is a 10-digit number used in import classification systems, specifically in the United States.

The HTS code is administered by the US International Trade Commission (ITC).

Moreover, commodity duty is often evaluated based on the HTS number classification.

HTS code and HS code take a similar format for the first six digits. However, the former has four different last digits.

If you are importing to the US, it is mandatory to use the HTS code.

How do you get ECCN Number?

There are several means, which can explore when in need of an ECCN number for your products.

Whenever you require this number, some of the options you always explore include the following;

· Talking to the Manufacturer

In many instances, manufacturers often have an ECCN number assigned to them.

It thus makes it easy for you to get if from them provide it to you whenever you want to export certain products.

· Commerce Control List

This refers to a list of categories and product groups used in enabling you to determine the necessity of an export license for U.S exports.

Therefore, you can simply go through this list carefully to determine the right ECCN number for your product.

Check through the specific categories and capture the right ECCN number, which closely fits your product.

· Electronic Request for Item Classification

Also known as ERIC, it is an online process allowing you to obtain the ECCN number for your respective commodity.

To start with this process, you’ll have to visit the BIS website. You’ll get a PIN code to use for applying online.

· Requesting from BIS

You can as well write from the BIS to request your ECCN.

This involves using of BIS multipurpose application form known as BIS-748P.

However, this often takes between 3-4 weeks. Therefore, if you choose to go in this direction, ensure you apply relatively early.

How is ECCN Number related to CCL?

Commerce Control List (CCL) is a list, which identifies the items regulated by the Bureau of Industry and Security (BIS).

This list makes it possible for you to determine whether the specific product group you are exporting requires licenses.

Ideally, a proper review of CCL makes it easy and necessary to determine the product’s ECCN.

The first ECCN digit represents the category of an item as outlined by the CCL.

Each of these categories is further subdivided into five product groups.

The sub-divided product group gives the second character of the ECCN.

The final digits in the ECCN number are provided by CCL and are dependent on the particular characteristics and functions of an item.

The product groups under CCL entail the following;

1) System, equipment, and related components

2) Test, inspection & production equipment

3) Material

4) Software

5) Technology

Are there Requirements for ECCN classification Requests?

Yes.

In many instances, every request is restricted to five items.

However, there can be exceptions on a case-by-case basis for numerous related commodities.

But this is pegged on substantiation and documentation of the relationship between products.

It is always recommended to attach brochures, descriptive literature, or technical specifications.

This allows the licensing officials to determine the right ECCN.

On form BIS-748P, you need to complete blocks 1-5, block 14 and block 22 (b, c, i, j).

If there is a need for more space for technical specification in block 22 (j), you can use Appendix Form 748 PA for additional space.

It is also necessary to attempt to identify the product.

After completing, you need to sign the form and submit to BIS at their respective address.

How can you find a Product on the Commerce Control List?

Ideally, CCL is divided into ten classifications.

The first numerical character in the ECCN is for the identification category within which the specific entry falls.

For instance, 4A001 is in category 4; computers.

The list of CCL product categories is as follows;

0. Nuclear elements, Facilities and Equipment, and Miscellaneous

1. Chemical materials, toxins, and Micro-organisms
2. Materials processing
3. Electronics
4. Computers
5. Telecommunication and Information security
6. Sensors
7. Navigation and Avionics
8. Marine
9. Propulsion systems, Space vehicles, and related equipment

In principle, each item is arranged by a group in each category.

The second character (alpha) indicates under which the respective groups the product is listed.

For instance, 3A001 would be in group A, equipment, assemblies as well as components.

Every category entails similar five groups, which are;

A. Equipment, Assemblies & Components

B. Test, Inspection & Production Equipment

C. Materials

D. Software

E. Technology

The rest of the digits are for identifying the purpose for control related to the item.

Ideally, you do not necessarily need to identify the specific reasons for controls associated with particular digits.

There is always a brief product description provided next to every ECCN.

You’ll also see the license requirements, license exceptions, and a list of items controlled sections.

Once you determine where your product fits within the CCL, you’ll need to use information in the License Requirement section.

This allows you to determine if there is a necessity for obtaining a license for the item.

You also need to check the Country Chart to ensure the license is not required for shipments exported to that specific country.

There is a possibility the specific product may not require a license.

However, due to the country of destination or the ultimate user, the shipment may still need an export license.

For items, which need a license, the CCL also outlines the specific reasons for control of the product.

Some of the reasons include Anti-terrorism (AT), National Security (NS); Regional Stability (RS); High-level computer (XP), and Missile Technology (MT).

Others include Crime Control (CC); Chemical and Biological Weapons (BC); Short Supply (SS); Significant Items (SI); and Encryption Item (EI) among others.

Are there Charges for Submitting a License Application to BIS?

Not at all.

You are never charged any fee when applying for a license application.

There are also no charges when applying a commodity request to BIS.

What is the Importance of ECCN Number?

ECCN number is an essential step in export compliance.

Ideally, it comes in handy in determining whether an export license is required to export a commodity.

This number is also essential for your shipment related to concerns regarding the parties to the transaction and the product’s ultimate use.

It allows you to refrain from unnecessary fines arising from incorrect classification of the product.

Technically, classification mistakes may lead to severe consequences in your business.

Moreover, obtaining the wrong classification may also subject your business to future exports.

Of course, this can be detrimental, mainly if your entity solely relies on international trade.

Thus getting ECCN number enables you to prevent all such incidents from arising.

The ECCN number also allows you to stay up to date with the ever-changing CCL classification.

Ultimately, it enables you always to get updated regarding changes, which might affect your products’ category.

What is the Code Format of ECCN Number?

In principle, ECCN is a five-character alphanumeric code.

For instance, 3A001.

So the format is structured as the following;

• The format begins with the category from CCL, which the specific product falls into. Ideally, there are ten categories to select from.

Therefore, an ECCN code, which starts with digit 3 would be electronics.

The ECCN for chemical exported would begin with digit 1.

• The next element in the code is a letter showing the specific product group.

Technically, there are five different product groups, including systems, material, technology, software, and test equipment.

• The last 3 digits outline the particular reasons for licensing control on the specific type of item or product.

What is the Difference Between Schedule B and ECCN Number?

These terms are common in international business and can be somewhat confusing, especially for a newbie in this industry.

Schedule B refers to a 10-digit number, typically a subset of HTS codes for the US importers.

In many instances, Schedule B is used by the US government for statistical purposes to monitor US exports.

In other words, Schedule B numbers are codes produced by the U.S Census Bureau.

The essence is to help in tracking trade statistics and measuring value and volume of exports.

Most entities, which export ordinarily prefer using Schedule B codes for their respective commodities instead of HTS codes.

Given the Schedule B codes are a subset of HTS codes, it’s often easier and faster for exporters to classify products under Schedule B than HTS.

On the other hand, ECCN number is 5-digit alphanumeric designations used for classifying products based on their nature.

ECCN is essential in giving the exporter heads-up to determine the right reasons for licensing and respective requirements.

Ideally, ECCN enables you to determine whether or not the product requires special controls before exporting.

What Happens if you Cannot Review a Product on ECCN Number?

In some instances, you may review the CCL and end up convinced your item hardly fits into the parameters of any ECCN classification.

However, this doesn’t in any way you are off the hook from fro export control.

Primarily, end-use and end-user are the reasons controls exist.

In instances where the item does not fit in any ECCN classification, it means it may be designated as EAR99.

Even so, it doesn’t imply that a different agency controls it.

And in such cases, you may export your commodity using the license exception NLR.

This license specifies there is no license required as long as all the following measures are met;

• Shipping to destinations that are not on the sanctioned destinations list
• Shipping to individuals or entities is hardly considered a sanctioned entity or denied person. Additionally, the end-user must also never be restricted from the use of that item.
• Shipping for a type of end-use that does not need higher controls.

If you are exporting a product, which meets all these conditions, it can be referred to as EAR99 (NLR). In this case, NLR refers to “No License Required.”

What is the Minimum Shipment Value that Qualifies for ECCN Number?

The value of the shipment does not influence the requirements for obtaining an export license.

Even so, the product’s value may affect the availability of license exceptions and requirements for filing an AES record.

Ostensibly, if an export license is required, it also means the AES filing is a requirement.

What does a Designation of EAR99 mean?

Ideally, most products exported from the U.S do not necessarily require an export license.

EAR99 designation refers to a classification for an item.

It indicates that a specific item is subject to Export Administration Regulation (EAR) but not essentially described in ECCN on CCL.

In other words, it means the item does not fit within the parameters of ECCN.

However, the item can still be subject to EAR but not necessarily under the control of another federal agency.

Such an item can therefore be designated as EAR99 and require no license on the following grounds;

• The item is not being transported to a prohibited destination
• The item is no transported to a denied party, sanctioned entity, or forbidden end-user

What is the difference between EAR99 and NLR?

Primarily, EAR99 is a classification designation for a product subject to the EAR.

However, such a product is not essentially described by an ECCN on the Commerce Control List.

NLR, on the other hand, is an acronym for No License Required, is a shipment designation.

You may use NLR for either EAR99 products or items on CCL, which do not require an export license for the destination, end-use, and end-user.

Items listed as EAR99 may be shipped under shipment designation NLR.

However, products shipped to a prohibited country, an end-user of concern or in support of prohibited end-use may require a license.

Does ECCN Number influence the need for an Export License?

Not really.

EAR99 items will always ship under the export designation “NLR,” which is a short form of “No License Required.”

However, if you’ll need to get an export license if your proposed export for an EAR99 item exhibits the following measures;

• Shipped to an embargoed country
• Shipped to an end-user of concern
• In support of a prohibited end-use

Do all Products have ECCN Numbers?

Not necessarily.

Most commercial products are not listed on CCL and do not have ECCN.

Thus such products are designated as EAR99.

In many instances, EAR99 products tend to consist of low-level consumer goods and technology among others.

Therefore, they do not essentially require an export license in most situations.

However, there is a specific threshold that your proposed export for the EAR99 item must meet to ship it without an export license.

Sending an EAR99 product to a forbidden country, to an end-user of concern, or in support of prohibited end-use requires this number.

Can you get the ECCN Number over the Phone?

Not at all.

What happens is ECCN number is based on the technical specifications of a specific product.

Essentially, the process for determining one needs meticulous analysis of the item.

Therefore, it is difficult for the commerce department to provide you the ECCN number over the phone.

Nevertheless, BIS has counselors who may come in handy to assist you in understanding ways of self-classifying a product using online resources.

The BIS counselors may also explain the process to submit an official request to BIS to classify on your behalf.

Can a Freight Agent Assist in Obtaining ECCN Number?

Yes.

Of course, the nature of obtaining the ECCN number is quite meticulous, demanding, and challenging.

In many instances, you could be dealing with multiple clients, business entities, product lines, and different time zones.

Therefore, it would be ideal to seek assistance of a freight forwarder where possible.

Most reputable and competent agents use various reliable online research tools to enhance classification determinations.

Using freight agents also makes it easy for you to obtain custom solutions.

This enables you to deliver quality determinations in a suitable and defendable format.

Moreover, seeking the assistance of this agent is also cost-effective and convenient.

You’ll save a considerable amount of time and resources in the long run.

Also, a freight agent has experience in this sector hence making it easy to enhance the efficiency of the entire process.

Is ECCN Number Permanent?

Not necessarily.

Ideally, the Commerce Control List and ECCNs often change from time to time.

There are instances when items are added to the CCL, specifications of the products are altered or removed.

Additionally, you may have an item, which may have technical specifications other than what was classified earlier.

Therefore, it is necessary to stay up-to-date with the changes to the Commerce Control List that may affect your product classification.

An ideal way of attaining this is by signing up for email notifications of changes to the EAR.

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If you’re starting an automotive shop or, you may want to import from China automotive market.

Or, you would like to explore and find reliable suppliers in the automotive market in China.

If that’s the case, then you’re in the right place.

Because this guide will help you find suppliers, understand the market and save time when importing from China automotive market.

Let’s dive right in.

How Big is China Automotive Market?

China automotive market tops the world.

It’s estimated to hit an output of 30 million and 35 million by the year 2020 and 2025 respectively.

2018 saw China selling over 27 million Chinese vehicles not only to Local markets but also internationally.

The steady growth can be attributed to the increasing living standards which have lead people into acquiring items that were previously out of reach.

The automotive sector stands to be one of the leading pillars of the economy in China through which several people have gained employment.

Which are the Best Chinese Car Brands?

China being the leading automotive market globally, expect to find several varieties of car brands.

Some of the best Chinese car brands are not limited to;

• BYD
• Chery
• Wuling
• JAC
• Changan
• Great Wall
• Baojun
• Roewe
• Lifan
• Zotye
• Ranz
• Hafei
• Geely
• Brilliance
• Qoros
• JMC
• Maxus
• Haima
• Gonow
• Englon

What are the Benefits of Buying from the China Automotive Market?

There are several reasons why most automotive importers choose to buy automotive from the China Automotive market.

Let’s have a look at some of the benefits below;

• Cost-effective – Cars in the China automotive market are sold at relatively affordable prices as compared to other countries.

This is because of the cheap labor forces and the presence of many factories.

In addition to that, the favorable import policies and availability of raw materials also contribute to the cost-effective prices.

• Availability of a wide range of spare parts – Most if not all spare parts of vehicles can be found in the China automotive market.

Not to mention that most countries have shops that specialize in selling Chinese spare parts.

Therefore, you won’t have to worry about lacking spare parts as seen with some car designs.

• Modern design –Chinese manufacturers ensure that they keep up with emerging trends and produce the best card designs.

To achieve this, they compile parts from well-known cars and come up with a unique result.

• Good basic equipment in the cars– Regardless of the cheap price of a car, it might have functional features such as air conditioning, airbag, heated seats, and power windows. This not only makes it convenient but also practical.
• Wide variety – China automotive market offers a wide variety of automotive selections including spare parts.

Therefore it’s a great one-stop market for everything you will need for your automotive business.

• The flexible import policies in China facilitate easy and smooth importation from China’s
• automotive market.

Which Automotive Parts can you Import from China?

If you’re planning to import all your automotive parts, China would be the ideal place.

Whether used or brand new you can easily find the best automotive parts from China automotive market.

Some of these parts are not limited to;

• Axle
• Car batteries
• Brakes
• AC compressor
• Pistons
• Fuel injector
• Spare Tire
• Clutch
• Radiator
• Engine fan
• Sensors
• Optics
• Engine and drivechain
• Filters
• Chassis
• Steering system
• Rubber mount
• Belt
• Gaskets and seals
• Shock absorbers and lifters
• Driveshaft and axle
• Muffler
• Starter and alternator
• Glow plug and spark plug

Can you Import Used Vehicles from China?

Yes.

Used vehicles are readily available in the China automotive market and you can import at reasonable prices.

Can you Import used Automotive Spare Parts from China?

Yes. Several auto dealers specialize in used automotive spare parts and therefore importing shouldn’t be much of a hassle.

However, you need to keenly assess the automotive spare parts before purchasing as some might either be faulty or counterfeit.

What are the Challenges when Importing from China Automotive Market?

Just like any other import-export business, importing automotive from China could be challenging at some point.

Let’s have a look at some of the challenges you should be prepared for below;

• Language barrier –English is not an official language in China and therefore communication might be a huge challenge.

To overcome this, you might choose to seek the services of a sourcing agent.

• Quality issues – Before finalizing your order, ensure that you have received a sample and confirmed that it meets the expected quality standards.

Failure to this might result in disappointments after production.

• Scammers –There exist several scammers in the market and therefore you need to very vigilant when carrying out your deals with different auto dealers.

Confirm that they are legally authorized before initiating any purchases.

• Middlemen – When working with middlemen, be prepared to be presented with higher prices. Therefore, if you want to get the actual price consider working directly with the company or hire a certified agent.
• Finding a suitable supplier –With the huge saturation of suppliers in China, it might be difficult to identify the ideal one for your products.

In this case, you could consider working with a sourcing agent.

• Delays in delivery- Apart from National holiday’s delays in delivery could also as a result of emergence of a more profitable order.

As such, the manufacturer is likely to concentrate more on that and delay your order.

To prevent such instances, always provide accurate time schedule for your production before it starts and ensure that you conduct regular follow ups.

How much Duty will you Pay to Import Automotive Products from China?

Duties and taxes are part of any form of importation and the cost might vary depending on the country of importation.

The value of imports and weight are some of the factors that will determine the amount of duty you will pay.

That said, you need to confirm with your country’s customs authorities on the applicable duty for your China imports.

Which are the Leading Automotive Markets in China?

Automotive markets in China are located in cities such as Yiwu, Guangzhou, and Shenzhen among others.

Some of the leading automotive markets in China are not limited to;

• Yiwu Automobile Accessories Wholesale Market
• Guangzhou wholesale market
• Bagualing car accessories market
• Yiru autoparts market
• Yiyou market
• Guangzhou automobile components market
• Sanyuanli Auto fitting Foreign Trade market
• Xinguangcong Automobile parts city
• Guangdong Express Automobile Accessories market
• Yi Yun International Automobile Accessories Plaza

How do you get the Best Prices when Importing from China Automotive Market?

Getting the best prices for your automotive requires you to know the tricks on how Chinese suppliers and manufacturers operate.

Let’s have a look at some tips below;

• Bargain –Bargaining is an important aspect of any successful purchase.

Chinese suppliers and manufacturers are aware of this and that’s why you should never settle on the actual prices.

Just by bargaining, you will be surprised at how much less you will buy the same product.

• Make bulk purchases –A simple trick that most big businesses use is buying in bulk.

The reason being most if not all suppliers are willing to offer large discounts on bulk purchases as compared to smaller purchases.

• Buy directly from the factory – If you want to increase your profit margin further, consider purchasing your products directly from the manufacturer.

Not only does this reduce the number of middlemen but also puts you in a better chance to establish lasting business bonds with the manufacturer.

Keep in mind that the more the middlemen involved the higher the price of commodities.

• Hire a sourcing agent – Sourcing agents will not only identify a suitable supplier for your products but also bargain on your behalf.

This way you reduce the probability of being scammed and eliminate the language barrier.

Not forgetting landing at unbeatable prices from the best suppliers.

Therefore if you are a newbie in the business it would be of great help working with a sourcing agent.

Which Quality Standards should Automotive Products in China conform to?

Every automotive product should conform to the set quality standards to ensure proper functioning and safety of the vehicle.

The automotive products should be designed in a manner that;

• They last longer without wearing out.
• They function effectively with other car components without difficulties.
• They withstand harsh environmental conditions

That said, here are some of the quality standards to look out for when importing automotive products from China;

• ISO 6518-2 – For auto-ignition parts and systems
• CPA 101-102 covers external parts that are made of plastic, panels, fenders, grilles, door shells, and bezels just to mention a few.
• ISO 8984 defines the standards required to assess the performance of fuel injectors.
• SAE J1684 for radiator hoses and their respective electrical conductivity.
• AS 1566 covers requirements for copper alloy materials that are used in the manufacturing of auto.
• ISO 27667 for braking components and systems
• ISO 45001 for health and safety
• ISO 9001

How do you Ship Product from China Automotive Market?

There are four main methods through which you can ship your products from China automotive market;

• Airfreight -Air freight is the costliest shipping method while at the same time the fastest. It’s suitable if you are shipping urgent and less bulky products.

Most importers prefer not using this method due to the high costs involved.

• Sea freight –Sea freight is the commonly preferred shipping method.

This is because it is cost-efficient and suitable for shipping bulky products.

Nevertheless, you will need to wait longer for your products to be delivered.

The brighter side is that you will save on costs which in turn increases your business profit margins.

• Rail freight – Rail freight would be another alternative option for sea freight more so if you’re shipping to countries connected to China by rail transport.

Not only is it faster than sea freight but also less costly as compared to air freight.

Not forgetting it’s also suitable for shipping bulky products.

• Door to door shipping – If you want to save on cost, effort, and time then the door to door shipping would be the ideal choice.

With this method, your products will be shipped directly to your doorstep and therefore it saves you from a lot of inconveniences.

Which Incoterms can you use when Importing from China Automotive Market?

There are several incoterms available and therefore your choice will be determined by your import needs.

FOB and EXW are some of the suitable incoterms to use when importing from China automotive market.

EXW is ideal if so you are looking forward to saving on your costs.

Other available incoterms are not limited to;

• CIP
• FCA
• DAP
• CFR
• CPT
• CIF
• DAT

Why should you Hire Freight Forwarder when Importing from China Automotive Market?

Hiring a freight forwarder is always quite advantageous in several ways.

Freight forwarders smoothen your importation process as outlined below;

• Custom clearance – Custom clearance is one of the difficult processes for any importer since it involves a lot of documentation.

A freight forwarder is accustomed and has experience in this job and will do it in a short period without much hassle.

• Identifying warehouse for your products –A Freight forwarder will identify and secure suitable storage for your products.
• Freight forwarders also help in loading and offloading your goods.
• Timely delivery of goods –freight forwarders work on a strict schedule to ensure that they deliver their clients’ goods at the expected time.
• Cost-effective – Due to their experience in the field, freight forwarders have established networks with several couriers.

For this reason, they easily get to negotiate on prices and offer you the best prices available for your shipment options.

• Efficiency – Freight forwarders are skilled in quickly adapting to sudden changes made during the shipping process.

Can you Import Automotive Products from Alibaba?

Yes, you can easily import automotive products from online platforms such as Alibaba.

Other online platforms that you could as well consider include; Global sources Made in China, and DH Gate.

 Which are the Leading Automotive Trade Shows in China?

To get the most out of your importation, attending trade shows would be of great significance.

It will broaden up your knowledge of the specific products you intend to purchase.

Not forgetting that you might easily bump into a suitable supplier for your future purchases.

Here are some of the leading automotive trade shows in China;

• China International Auto parts expo
• The Chengdu International Trade Fair for automotive parts and aftermarket services
• Bi-annual Canton Fair
• China international auto modification and accessories expo
• Guangzhou International automotive fair
• Auto Maintenance and Repair Expo
• Beijing International Automobile Exhibition

What are the Benefits of Working with China Automotive OEM Suppliers?

Several benefits come with partnering with China automotive OEM suppliers.

With OEM the products produced by one company will be used by another company to manufacture finished goods.

Let’s have a look at some of the benefits of OEM suppliers;

• Customization –Working with an OEM supplier allows you to customize your products to suit your specifications.
• Direct shipping options – You will have the option to directly ship to your customer when working with China automotive OEM supplier.
• You as the buyer will own the intellectual property of the products.
• Working with China automotive OEM suppliers guarantees you support when the need arises.
• Ensures the smooth flow of business – It’s easier and faster to replace parts as the supplier already has your product specifications.

Who are the Leading Automobile Manufacturers in China?

Some of the leading automobile manufacturers in China are not limited to;

• FAW
• SAIC Motor Corporation
• Chang’an automobile Co.
• Brilliance automotive
• Guangzhou Automobile Group
• Geely
• Beijing automotive group
• BYD Auto Co.Ltd
• Dongfeng Motor Corporation
• Baoding Great WallSutomobile Holding Co.
• Lifan group
• Green Field Motors

How do you Identify Fake Automotive Products from China?

China is a country saturated with both quality and fake products.

Meaning, having the skill to quickly rule out between the two is critical.

You hack this and your business is set for impressive growth. To identify fake products;

• Check the pricing -Too good to be true prices should be a red flag.
• Inspect the branding and confirm the labeling and packaging details.

Most fake products will have names that appear similar to real brands to fool customers.

Also, a fake product won’t fit well in the packaging provided.

Not forgetting spelling mistakes on the products.

• Take an old part and compare the two side by side.
• Be on the lookout for products that lack labels or any identification numbers as they might be counterfeit.

Why Import Directly from Automotive Factories in China?

If you ask several automotive importers where they purchase their products from most will mention buying directly from factories.

This is because of the following reasons;

• Importing directly from the factory allows you to build solid bonds with the manufacturer for future business.
• You get huge discounts when you purchase directly from the automotive factories.
• Most if not all manufacturers will be willing to offer you customization services.
• By importing directly from the automotive factories you curb the chances of being scammed.
• Most factory manufacturers in China are conversant with English and therefore language barrier wouldn’t be a challenge.

Are there Special Requirements when Importing Automotive Products from China?

Yes, there are special requirements when importing automotive products from China.

First, your automotive products need to meet the quality requirements. Some of these include;

• ISO 8984
• CPA 101-102
• ISO 6518-2
• AS 1566

In addition to that, you need to have a license when importing automotive products from China.

Ensure that you have all the required import documents to avoid inconveniences during your importation process.

How do you Package Automotive Parts in China Ready for Shipping?

Different automotive parts will require different types of packaging for proper protection.

Some of the packaging items you will require for your automotive parts include;

• Foam
• Taped plastic film
• Cushioning
• Padding
• Bubble wrap

You can package your products in plastic or metal wired boxes that can bear the capacity, tensile strength, and are durable.

Also, triple-walled corrugated boxes and honeycomb protective packaging would be good packaging options.

Keep in mind the thickness, size, and design of the packaging will be determined by the type of automotive part.

Can you Find a Warehouse when Importing China Automotive Market?

Yes, there are several warehouses in China owing to the presence of various businesses.

However, sometimes you might find it challenging to locate a suitable warehouse for your products.

In such instances, freight forwarders would be of great help.

They have experience in this field and can easily identify an ideal warehouse for your automotive products.

Is there MOQ when Importing from China Automotive Market?

Yes, different suppliers will have different MOQs for their products.

The Minimum Order Quantity will also be determined by a couple of factors such as;

• Sizes of the product – Smaller-sized products often have a higher MOQ as compared to huge products.
• Size of the factory –Big factories will have a higher MOQ owing to the overheads that need to be covered.
• Customization – The more the customization the higher the MOQ.
• Raw materials and parts – When selecting your raw materials, you should keep in mind that costly or rare materials will raise the MOQ of your products.

Which Documents do you need to Import from China Automotive Market?

There are several documents that you need to have before commencing your importation process.

Some of these documents will be determined by the custom requirements of your country or the type of product part that you are importing.

Let’s have look at some of the needed documents;

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

Is there Right Time to Import from China Automotive Market?

Yes, there is an appropriate time to import from China’s automotive market.

Before indulging in your importation take proper notice of the public holidays.

Most businesses remain closed during such occasions and therefore it would be the worst time to import from China.

Keep in mind that certain Chinese holidays such as the Chinese new year lasts for weeks.

Avoid making orders a few weeks to or a few days after the Chinese holidays.

The best part – Tj chinafreight will help you import all automotive products from China to your destination.

Whether you’re importing car parts from China, automotive engines, or vehicles, we will facilitate everything for you.

Contact Tj chinafreight today for all your freight forwarding needs.

Probably, you’re wondering how packing list looks like when importing from China.

Or, you just want to learn more about packing list.

This guide has all information about packing list you may be looking for – from definition, purposes, templates to content of packing list, among other vital aspects.

Keep reading to learn more.

What is a Packing List in Shipping?

This is a shipping document that lists all the purchased goods to be shipped and the specific shipment recipient.

You can also describe it as a formal document showing an itemized list of goods within a shipping package.

In simple language, a packing list is a document containing all necessary information concerning the item.

Such information could be the quantity of cartons, packing sizes, quantity of each product among others

This document is widely used in international trade and contains relevant information regarding contents of the exported items.

Typically, a packing list shows the details relating to the consignment, including how they have been packed physically.

In some instances, it is also referred to as a packing slip, shipping list, or order slip.

What is the Purpose of Packing List?

Arguably, a shipping packing list is one of the essential documents for sending or receiving freight shipments.

Therefore, it plays a fundamental role in accomplishing the efficiency of the overall shipping process.

The shipping department uses this document to enable them to understand the delivery specifics of the consignment.

It allows the shipper to ensure they have included everything in the shipment.

Moreover, the recipient or consignee can reference this document to confirm every item is included in the shipment.

Additionally, a packing slip helps in order management.

It facilitates smooth transitioning, processing, and shipping of orders.

Order management primarily involves managing a product’s lifespan and keeping its track until it gets to the customer’s destination.

Therefore, entities can easily check and track the status of the product shipment and consequently simplifying the management process.

It is also important when the order arrives in several packages.

In this case, it plays the role of keeping track of what’s arrived and what has not.

You may also consider using this document as an additional branding opportunity as a seller.

Ideally, you can create a design similar to your brand and use a microcopy to express your voice.

Why is Packing List Important in Shipping?

Ostensibly, a packing list contains a list and information of the specific products shipped from the seller to the buyer.

Hence it plays an integral role in the entire shipping process.

Here are some of the reasons why this document is imperative in shipping;

· Physical Proof of Shipped Items

A packing list is typically a hard copy of all the packed goods.

It thus acts as evidence that all products mentioned are indeed shipped.

Therefore, it serves as physical proof of all the shipped commodities.

And should there be any mismatch, the shipment team should always be ready to provide the verification document.

Importantly, the document also helps the buyer and seller to track the goods of the shipment.

· Checking and Cross-checking

Timely delivery and correct order are fundamental in order fulfillment, especially in the ecommerce business.

A shipping list thus ensures the seller has included all the orders you mentioned in the shipment package.

Through this document, it becomes easy for both parties to count, check, and counter-check each product against mentioned quantities.

· Identification of Lost or Damaged Goods

This document helps determine any lost or damaged products.

In general, goods-in-transit are usually covered by insurance costs.

Hence with the aid of a packing list, it becomes easy to initiate and actualize the compensation process.

In refund cases, the packing list acts as evidence of the product being in-transit during such instances.

· Enhances Business Relations

The objective of most business entities is always to enjoy a straightforward and organized working culture.

Use of a shipping list helps in all the parties involved in order fulfilling the process.

It improves organization of the process hence making the business relations to become clearer and relatively strong.

· Allows Customs to Estimate Shipment Value

If you are shipping the products across borders, the customs department often uses this document to estimate the shipment value.

Moreover, it is also one of the requirements needed for facilitating the customs clearance process.

· Shipment Freight Booking

In many instances, a packing list is used for creating booking with international carriers.

Consequently, it makes it easy to issue the International Bill of Lading, which is equally a binding document in shipping.

What should the Packing List Contain?

In principle, a packing list should be precise and as thorough as possible.

The exact details included in this document may vary depending on the business and the items.

Even so, there are specific, consistent elements you will always find on almost any packing slip.

The details include the following;

1) Shipping Address, Order Date, and Contact Info

Similar to an invoice, a packing list also contains these basic information useful for filing purposes.

These details are essential, especially if any issues arise in-transit since the document comes in handy as a backup option.

2) Product Quantity

A quantity column on the packing slip helps to shorten the list to prevent it from coming out in several pages for the same item.

3) Itemized List of Shipped Items

Most buyers often check the products they receive against the list of ordered items.

The essence is to ensure you obtain the same commodities you had ordered and paid for.

Other common contents of the packing list include;

4) Itemized List of Stock-outs

With the invoice, most packing slip also includes the goods that were ordered but were out of stock.

This makes it easy for the customer to reorder if need be.

• Packing list number
• Company information – Name and logo
• Shipper or carrier method
• Product description
• Weight of items
• Order date and time
• Name and address of the consignee
• Name and address of the shipper
• Any special instructions or note

Who Prepares Packing List?

https://youtu.be/eeHacMwsaVg

The seller, supplier, or manufacturer creates the packing list.

It is usually compiled during picking and packaging the goods and sent to the good’s location for an accurate tally of items.

After the items are tallied and packed, the list is forwarded to their respective destination.

What is the Difference between Packing List and a Commercial Invoice?

A packing list and commercial invoice are more or less similar in nature.

However, they serve different purposes for purchase orders.

Some of the grounds on which these two documents vary include the following;

· Purpose

The purpose of a packing list is to mention and documenting every product purchased.

It also helps in tracking different shipments in case there is a huge number of orders.

On the other hand, the commercial invoice’s purpose is to mention and document financials or payments of the products.

It makes it easy for entities to be aware of their due payments where applicable for companies operating monthly payment clearance.

Primarily, an invoice consists of products sold within a specific timeframe with the respective payable amount for each item.

· Target Party

Packing list is primarily used by the shipment and warehouse teams. This is to ensure all the enlisted goods are received.

The shipping and warehouse teams also use this document to ascertain goods received or shipped are accurate.

However, a commercial invoice is mainly designed for company owners or the accounting department.

They go through the finance department, where they are subsequently cleared after confirmation.

· Mode of Sending

A packing slip is often sent during shipment of the items or goods-in-transit.

This allows the shipping team to know the specific items they are transporting.

On the other hand, a commercial invoice is sent directly to the customer or purchasing entity.

The shipping company does not necessarily get hold of this document, thus dispatched directly to the buyer.

Another fundamental difference is the commercial invoice is typically triggered by the payment platform.

A packing list, on the other hand, is prompted by the fulfillment or shipping technology.

Moreover, it is important to note that all businesses use invoices.

However, not all businesses use a packing slip.

In other words, a commercial invoice is a binding document in any business transaction.

A packing list, however, is essential but not necessarily mandatory in all business transactions.

Is it Legally Compulsory to have Packing List in International Shipping?

Different countries have various policies surrounding the need for the order slip for imports.

In some countries, a packing list is a mandatory requirement for any type of imported product.

Essentially, the customs department in such countries always requires this document to clear the shipment.

On the other hand, there are countries, which only require a packing list for certain imports.

In simple terms, there are some specific products, which must be only be cleared at customs upon submitting the packing slip.

In a nutshell, this document’s legality is based on whether it is compulsory depends on specific countries.

How do you Determine whether your Shipment needs Packing List?

You can use several ways to determine whether your consignment requires a packing list.

Some of these means include the following;

· Inquiring from the Consignee

After packing the goods accordingly, you may need to confirm with the recipient whether they need the order list.

In essence, some would not necessarily need it, whereas others would insist that it is forwarded to them.

Therefore, find out from the buyer to know whether or not you’ll need to send it over.

· Search Online

You may also need to find out from various online tools regarding the specific destination you’re shipping to.

For instance, you can check on the European Commission’s website to determine if this document is required in the region or country.

· Inquiring from the Freight Agent/Carrier

Most carriers and freight forwarders often deal with shipments for different customers.

Thus, they know the specific destinations where the packing list is a mandatory or necessary requirement.

You can, therefore, inquire from either party to determine if there is a need for the specific shipment to have a packing slip along.

· Inquire from the Local Chamber of Commerce

If need be, you can also find out from your local chamber of commerce.

They understand the requirements of different shipments in varying destinations.

Therefore, it becomes easy for you to get the correct position of including a packing list for the respective shipment.

Can you use Packing List as a Shipping Label?

Yes.

A packing list ordinarily contains all the vital information surrounding the shipment, which you may need.

Therefore, you can as well choose to use it as a shipping label.

All you need it processing the product through your preferred shipping carrier and generate a shipping label.

However, you’ll need to stick the shipping label on its respective cartons.

This makes it possible for the shipping label to identify the content of every box.

However, this approach would do you a disservice, particularly if you’re seeking the best shipping rates.

How to Create a Packing List?

Various business entities use different types of pre-built computer programs to generate a packing list.

However, a template is often assigned to default as your packing slip for both local and international shipments.

In other words, you need to get pre-programmed computer software and integrate it with your systems.

Depending on the software you are using, you’ll create and generate the packing list accordingly.

Most of these software usually come with a manual, making it easy for you to create and print the list.

Moreover, you can choose to customize the order list depending on what suits your needs.

What is the Difference Between Packing List and Purchase Order Slip?

The purchase order slip is the first document the seller generates to document the projected transaction with the customer.

Manufacturers and suppliers commonly use it.

It typically lists all the ordered products, quantity, unit cost as well as the terms of payment.

Ideally, the purchase order slip is rarely used by direct-to-consumer sellers.

However, those involved in business-to-business are often familiar with it.

The purchase order slip only becomes a legally binding document for both parties once the customer agrees to purchase the order.

On the other hand, a packing list entails all the relevant information pertaining to the respective order shipped.

How do Packing List and Delivery Note Compare?

Delivery note refers to a document the consignee signs upon delivery or receipt of the shipment.

The carrier provides the delivery note to the consignee, who signs it as evidence of delivery.

Primarily, the delivery note lists the specific items and respective quantities delivered.

Even so, the delivery note is comparatively less detailed than a packing list.

The latter does not include price of the commodity and billing address.

Delivery note mainly focuses on listing the goods to allow carriers and buyers to cross-check actual shipment with a delivery note.

Are there Charges for Issuance of Packing List?

Not at all.

It is the responsibility of the seller to issue a packing list upon the buyer’s request.

The customer should never pay any amount of money to obtain a packing list.

How does Packing Fist fit in Warehouse’s Shipping Process?

Warehouse’s shipping process ensures the commodities get to the respective customers on time and accurately.

You must have a unique value proposition with a streamlined shipping process, and best practices hardwired into it.

You, therefore, need to address all the issues throughout the shipping process.

The critical elements to look into in this case include;

• The packing process
• Kitting and bundling
• Picking list
• Packaging

What is the Best way of Improving Packing List Template?

You can use a packing list as a marketing element for your business.

Therefore, you need to find better ways of enhancing the template and improving the customer experience.

Some of the ways you can use to improve the template of this document include the following;

• Incorporating your branding – You can liven up your packing list by adding anything, such as your logo, to the entire paper.

Alternatively, you can also choose to add a watermark or change the copy depending on the season, such as Christmas.

• Upsell and cross-sell – Include a coupon or promotional code in the available whitespace of your packing slip or checklist.
• Express gratitude – You may decide to use the packing slip to thank the customers for doing business with your company.

You can be confident they’ll get the message since they have to use the document to confirm the shipment.

• Enhance social interaction – In the modern digital age, social media has become a fundamental channel for interacting and communicating.

You can share your social media platforms on the packing list to connect further with customers.

What are the Considerations of a Packing List?

Of course, packing list should not necessarily be complicated.

However, there are a few elements you need to consider when fulfilling orders, such as the following;

· Environmental Impact

It is debatable from several quarters as to whether the packing list serves a purpose.

Some consider it as a point of reference for customers, whereas others see it as a wasted piece of paper.

Nevertheless, relying on an electronic version is ideally a more eco-friendly approach.

Therefore, where necessary, you may consider using an electronic version of order slip.

· An Integrated Process

This document serves as one of the multiple check marks in pick, pack, and ship process.

You need to integrate the process to prevent risk of more errors, particularly when generating the document manually.

Thus you need to utilize an automated tool, which makes the operations convenient and efficient.

You need to integrate the system you use to scan and confirm all goods throughout the fulfillment process.

· A Distinctive Customer Experience

You can always utilize the unboxing opportunity to create a lasting impression among your customers.

Packing slips are some of the elements you can use to market your brand.

Nonetheless, you need to find a better approach to using this document to make an impact without overwhelming the recipient.

While at it, the details you include should never distract the recipient from the important information.

Can you Amend a Packing List?

Yes.

It is always possible to edit a packing list even after you have created one.

Most software programs used for generating this document have the provision, which allows you to amend it accordingly.

All you need is to determine the specific changes you want to make and alter them from the system for that reason.

However, it is recommended that you should always be meticulous when generating a shipping slip.

It becomes difficult to amend it once it gets to the customers.

And whether the mistake was accidental or deliberate, such incidents tend to compromise the integrity of your business.

Is Packing List Template same for all Businesses?

No.

Packing list templates are different among businesses.

Different entities use various software and data systems to generate this document.

However, most of the content tends to be the same, perhaps with a different template design.

It, therefore, shows that the template will be different depending on the system and the needs of the specific business.

How does Export Packing List Work with the Type of Shipment?

In many instances, packing lists often vary depending on the specific type of shipment.

This can be in the form of Full Container Load (FCL), Less Container Load (LCL), or air freight shipment.

Mostly, FCL requires more containers; thus, you must provide details on shipped products based in a container along with total containers.

Typically, an FCL may not be fully loaded, but it counts as one as long as one shipper books it.

By contrast, if you export LCL, the packing slip often consists of product-wise details, given there is a single container.

The order list on air freight shipment at times may omit various items of an ordinary packing list.

Most air freight carriers use dimensions as a reference point for assessing the weight and volume of the shipment.

This makes it easy for the carriers to determine the airfare payable.

At Tj chinafreight, we help you in all custom clearance and shipping documentation needs.

Contact us now for freight forwarding services from China.

Often, shipping containers can be complex, particularly where different container sizes are used.

In most instances, such containers require towing vehicles and trailers owing to their dimensions regarding length and width.

In this article, we’ll discuss all fundamental elements regarding container chassis.

This will enable you to understand its significance and essence in the shipping industry.

Meaning of Chassis in Shipping?

A chassis refers to a special trailer or undercarriage used for transporting different types of ocean container over the road.

You can also describe it as a wheeled structure designed to carry various types of marine containers.

The essence here is to truck movement between terminals, warehouses and shipping facilities.

A chassis is majorly composed of a simple electromechanical device that features a steel frame, tires, lighting system, suspension and brakes.

Modern chassis come with additional features such as ABS, weight sensors, GPS tracking systems and LED lights among others.

In most countries, such as the U.S container chassis are designed to fit specific container sizes.

Standard designs transport standard ISO containers, which are 20ft and 40ft.

This electromechanical device also has two axles, but this may vary from one country to another.

In general, chassis logistics tend to be a uniquely prominent issue at various ports in different countries.

Nevertheless, it is also necessary to note that government laws on transportation sector regulate the use of container chassis.

Different Types of Container Chassis

Container chassis come in various types.

The varieties of this device are based on a wide range of variables, which include the following;

a) Fixed or Adjustable Chassis Length

Some of the common types of chassis in respect to length include the following;

• 20ft container chassis
• 40ft-45ft container chassis
• 48ft-53ft container chassis

b) Number of Axles

Here are the types of container chassis based on the number of axles

• 2-axles container chassis
• 3-axle container chassis
• 4- axles container chassis
• 5- axle container chassis

c) Ability to Accommodate Multiple Container Configurations

In terms of design and configuration here are some of the common types you are likely to come across;

• Heavy-duty chassis
• Light-weight chassis
• Gooseneck chassis
• Combo chassis
• Straight frame chassis
• Flatbed container chassis
• Extendable chassis
• Straight frame chassis
• Canadian chassis

Generally, the marine container chassis are often built to have fixed sizes and support specific container sizes.

U.S container chassis is relatively lightweight compared to other countries.

It is as a result of standard national gross vehicle weight of 80,000 lbs on inter-state highways as ratified by the U.S government.

Basic Specifications of Container Chassis

Container chassis are available in a variety of shapes and sizes.

However, there are fundamental systems and components you’ll always find in each of these devices.

Such elements are vital when it comes to determining the specific trailer to buy or lease.

This is, nonetheless, dependent on your needs and regulations set by the responsible authorities.

Some of the basic defining specifications and characteristics of a container chassis include the following;

· Size

Container chassis come in a variety of sizes. Standard sizes accommodate 20ft and 40ft containers.

You can also find those designed to carry 45ft containers.

These could be the ideal fit if you need to take up more cargo, especially if the law in your country allows it.

· Axles

Axle configuration on container chassis come in different forms.

However, the most common ones are two and three axles.

The maximum weight of a standard 40f container is 25 tons, but a Two-axle can hold up to 30 tons.

Another possibility is customizing a three-axle container chassis to suit different demands.

All these and many more options are always available depending on your specific needs.

· Load Capacity

The load capacity for most container chassis often ranges between 20-40 tons.

If you have relatively heavy cargo, you may need to consider the 40-ton option.

Even so, the 20-ton chassis would still be sufficient for most containers you would want to transport.

Always consider this as an important aspect when choosing the most appropriate container chassis for your needs.

· Design

Generally, container chassis design construction features high strength material given its applications and usage.

The design construction is robust and built to enable you to obtain the services you require many challenges.

Moreover, the fabrication is done through approved quality welding methods to ensure the trailer meets the required quality standards.

Tires

You need to confirm the laws and regulations concerning the chassis tire-configuration permissible in your country.

Some countries allow the single tire option only.

In that aspect, it implies it requires reasonable distribution of tires for the trailer if at all, it is the only available option.

Models of Container Chassis

In principle, the designs for container chassis are based on various elements, including application.

Each design of this device is drawn from the desired transportation as where it shall specifically be used.

It thus guides you on the ideal container chassis you need to consider when buying or leasing.

Here are the common container chassis models you are likely to find in the industry today;

1) Common Trailer

It is a relatively simple fixed structure with less sophistication use for carrying and transporting containers.

The framework is designed from steel material.

It is the surface where the containers are loaded and unloaded using overhead cranes.

You can use to transport containers of varied sizes including 20ft, 40ft and 45ft.

Common chassis comes with well-marked positions indicating where you can place the container.

This also makes it easy to secure the container and consequently, getting it to its respective destination safely.

This model of container chassis is easy to use and relatively affordable.

Even so, you’ll require auxiliary equipment like overhead cranes to load and unload the containers from the chassis.

2) Tilt Container Chassis

An outstanding feature of tilt container chassis is its mechanism facilitating easy unloading of containers.

In essence, it comes with a different framework from the common and other types of container chassis.

Tilt container chassis features additional modifications to the conventional chassis trailer models.

Principally, this chassis model comprises of upper and lower frames attached by a mechanism of pivot device.

This arrangement hardly requires any external equipment for offloading cargo from the container.

Primarily, this chassis is fitted with a hydraulic system on the upper platform, which facilitates the offloading process.

The system essentially, makes the trailer to tilt upwards hence offloading the cargo.

Of course, these convenience features come at additional cost. But the expediency it offers is worth it.

Moreover, the tilt container chassis comes with a hydraulic lifting cylinder contracting longitudinally hence facilitating easy loading.

On the other hand, they extend in an outward technique to enhance the offloading process.

3) Extendable Container Chassis

This is a versatile container chassis hence can adapt to various container sizes.

Its function is similar to the load positioning chassis.

However, you can easily extend it at the back to take up a relatively big container compared to its contracted position.

In simple words, container chassis can either be short or long depending on prevailing operation demands.

It is an ideal choice to pick when your operations involve varying container lengths.

You can always adjust this chassis with already available mechanisms to facilitate platform creation of varied sizes for different containers.

Always have a greater chassis length than container or size load as you make adjustments to the container chassis.

The structure of this chassis is ideal for transporting sealed containers across different countries.

The reason is that it is easier to make adjustments, which meets the respective local standards set for it.

This type of chassis also provides adequate room for transporting containers safely.

When loading the frame must be positioned at the bed center. This helps in keeping the entire chassis in a balanced and stable position.

It is always easier to load containers covering almost the whole length of the bed than one which does not.

Thus it is necessary to have this factor in mind when making necessary adjustments to the chassis.

Differences Between Ocean Container Chassis and Domestic 53’ Intermodal Container Chassis

Domestic intermodal container is also known as a domestic container.

It is a type of container filled with freight moving between different terminals via railroad and not waterborne service.

Technically, domestic containers are comparatively longer than ocean containers. The standard length of the former is 53ft.

Moreover, the domestic container is designed to a lighter tare weight standard hence can accommodate more products.

In the U.S for instance, construction of domestic and ocean container chassis is ideally the same.

The notable difference in these two types of chassis is usually the length and weight.

Intermodal container chassis weighs between 500-700lbs more than the ocean container chassis, which weight about 6500 lbs.

The weight difference is ostensibly occasioned by the increased length of 53ft in the domestic container chassis.

Moreover, almost all 53ft domestic chassis have a “slider mechanism, which allows the axle bogie to shift forward and backwards.

This makes it possible to alter the overall weight distribution as well as turning radius when travelling on local roads.

Ocean and domestic container chassis are never interchangeable.

The standard 40ft ocean container chassis is shorter hence cannot support the 53ft domestic container.

Another notable difference between these two types of container chassis is the expected operating life.

If well maintained an ocean container chassis may last up to more than 20 years excluding any major refurbishment.

On the other hand, the 53ft domestic chassis has a life span of slight above 15 years.

Technically, domestic container chassis is designed to the lightest hence relatively less durable compared to ocean container chassis.

Ideally, this trade-off was deliberately created to enable domestic container chassis to compete directly with 53ft trucks for domestic commerce.

Importance of Container Chassis in Shipping

Container shipping has demonstrated outstanding significance in the overall shipping process.

Here are some of the reasons why this device is integral in shipping;

· Durability

Of course, the components of a chassis are designed from relatively lightweight but hardy materials.

The artistry, as well as the overall design construction and fabrication, are also top-notch.

All these factors guarantee unmatched durability.

The importance is it enables you to save on replacement and repair costs.

· Enhances Customer Satisfaction

Shipping of containers is a safe and swift process.

In essence, this helps in increasing reliability as well as enhancing the overall customer experience and satisfaction.

· Flexibility

Container chassis is available in different varieties depending on the specific needs.

This makes it easy for you to select from the various options based on your specific demands and preferences.

· Cost-effective

The solid construction of container chassis makes it possible to load several containers at a go.

This makes the process relatively quick and cost-effective since you’ll be consolidating the shipments.

Ultimately, this allows you to cut cost and preventing unnecessary extra charges.

· Smooth and Secure Shipping

Containers are often securely attached to the respective chassis.

This helps in preventing unnecessary container movements while in-transit.

This ensures safer and convenient transportation.

How to Select the Right Container Chassis

There are several elements to factor in when looking for a chassis, whether to buy or rent.

However, this depends on your business requirements.

Some of the critical factors to consider include the following;

· Number of Axles/Weight Threshold

The weight of your cargo plays a critical role in determining the number of axles in the chassis.

Technically, the more the axles, the heavier the load the chassis can hold effectively.

· Usage and Requirements

You must also factor in the industry-specific needs for the chassis you are buying or renting.

If your needs revolve around transporting containers only you should go chassis structured specifically for containers.

However, if your operations revolve around other types of shipment, you should consider going for a flatbed container trailer.

If most of your operations include frequent loading and unloading the best choice would be a tilt chassis.

· Cost Incurred

Typically, specialized chassis tend to be relatively expensive compared to regular ones.

Therefore, you need to factor in the specifications of your container and requirements before picking either specialized or regular chassis.

Buying or renting is also a cost factor you must have in mind. It also adds to the final shipping costs.

· Chassis Equipment Issues

It is always important for the driver to inspect the chassis’ condition once the container is mounted on it.

Nonetheless, some of the common elements to always look into in container chassis include the following;

Landing gear – Ensure the chassis landing gear is intact, straight and can easily crank up and down. There is a possibility of a landing gear bending or jamming.

Twist locks–All the four twist-locks, which secure the container corners of the chassis, must be operable. These are relatively robust assemblies but at times are usually damaged or jammed.

Brakes – Typically, chassis air brakes and must apply and release accordingly once hooked to the tractor. However, it is also advisable for the driver to carry simple tools for adjusting brake shoe on the spot.

Tires – Ordinarily, a 40ft chassis has eight tires all that must have enough inflation and thread depth.  A normal approach is to thump the tires using a heavy metal bar for a rough check.

Lights – Ensure the container chassis lights and lenses are all intact and operate correctly. In most cases, lenses are often set into the rear bumper for protection, but they are still exposed to damage.

The trailer connectors must also be in great condition.

Structure – The overall container chassis structure should be in perfect conditions without any damage, twisting or horizontal misalignment.

It is also possible for chassis structure to get damaged when stored or stacked in the terminals.

Mudflaps – Mud flaps must be present and in a perfect condition such that the driver won’t be cited on the road.

License, registration and inspection tags – for road services chassis needs to have a current license and registration stickers.

It is necessary to ensure all other relevant stickers are also up to date.

Chassis usage Charge

The container usage fee is one of the additional charges incurred while transporting cargo.

Before 2022, carriers owned and provided chassis alongside the containers.

However, the moment MAERSK exited the container chassis business; other players also followed suit.

The result forced many trucking companies to buy or lease their chassis and consequent additional charge.

The chassis usage fee varies depending on a wide range of prevailing factors.

Some of these factors include; consolidation fees, terminal handling fees and congestion surcharge, among others.

Nevertheless, the main charge of chassis is dependent on the demurrage and detention fees.

In many ports, it is quite difficult to get chassis since due to congestion.

It thus results in longer waiting time and subsequent higher demurrage and detention fees.

This also leads to increased overhead costs.

Renting this device often range between $15-30 per day, although it is not exclusive.

Ways of Mitigating Container Chassis Challenges

There are numerous approaches to reducing or preventing container chassis challenges. Some of these measures include the following;

a) Adoption of technology – In many instances, establishing suitable systems makes it easy to reduce the common problems notable with container chassis.

Adopting a practical use of technology is essential in streamlining the activities and other different aspects of container chassis.

For instance, digitizing thus element by developing a platform for tracking, reserving, allocating, and forecast chassis usage.

This enhances efficiency and accuracy when billing.

b) Trucker ownership of chassis–Another ideal measure is purchasing your container chassis. Owning chassis with high-quality elements such as LED lights and radial tires helps in ting many issues.

Technically, it makes it easy to ensure frequent maintenance schedule hence keeping the chassis in great condition always.

Moreover, ownership of this device also helps in cutting cost.

c) Greater investment in IEPs – Most of the Intermodal Equipment Providers (IEPs) are offering better and quality equipment.

Most of these IEPs provide premium programs in different degrees with either new or re-fabricated chassis.

An Ideal Place to get Container Chassis Services

In most cases, the freight forwarders offering containers also provide container chassis and related services.

Moreover, they provide such services at relatively affordable rates, which makes it easier to rent or buy depending on your needs.

And as always Tj chinafreight has got your back.

All you need is to type in your location. You’ll then need to choose a suitable container then get work done faster.

Tj chinafreight always offers these services at affordable rates, thus making it possible for you to save quite a significant amount.

How Ports are Enhancing availability of Chassis

In many ports, the demand for container chassis continues to grow.

This makes it difficult to find the types of chassis that suits your needs, whether for hire or purchasing.

However, most ports are putting measures in place to ensure there is a steady availability of container chassis.

One of the measures is encouraging private chassis business.

This makes it possible for any able entrepreneur to purchase and avail their container chassis to the ports.

To a great extent, this approach is quite efficient and has contributed significantly to increasing chassis availability at the ports.

The other measure is filing plans with relevant authorities seeking to create own chassis pools.

This approach makes it possible to ensure the ports hardly run out of container chassis.

As you can see from this guide container chassis is an integral element in accomplishing the shipping process.

And if you are involved in imports and exports it is quite apparent you’ll need to use a container chassis trailer.

You can always choose the ideal container chassis based on weight and cargo you are transporting.

The large variety of these devices in terms of design and size makes it easy for you to choose the perfect one for your goods.

In case you have any inquiries regarding container chassis, feel free to contact us.

We will assist you with the relevant information accordingly.

In this guide, you will find all information you’re looking for about shipping container size.

It will help you choose a suitable container size for your shipping needs.

Let’s dive right in.

20-foot General Purpose Shipping Container

It is the most popular container due to its lower weight and eases to maneuver.

You can make cabins out of it.

The 20- foot shipping container is cheaper when compared to other shipping containers.

For its external dimensions, it is 19 feet and 10 inches long.

It is 8- feet wide and 8- foot and 6 inches long.

For the internal measurements, it is 5.90 m long, 2.39 m high and 2.35 m wide.

It can carry a weight of 28,230 kilos grams maximum load.

The door opening measurements of this container is 2.99 m high and 2.34 m wide.

20-foot High Cube Shipping Container

This shipping container is similar to the 20 –foot general purpose but has an added room of an additional 12 inches of height.

You can use this shipping container to make a cabin home.

This will make it easy for you to include interior insulations as well as light fixtures while maintaining the normal ceiling height.

The higher ceilings will make your entire interior look and feel larger overall.

The external measurements of the 20-foot high cube shipping container are 6.05 meters long, its height is 2.89 meters and its width is 2.44 meters.

It can carry a maximum load of 28,180-kilograms and its tare is 2300 kilograms.

The internal measurements of this container are 2.35 meters wide, 2.70 meters high, and 5.90 meters long.

The measurements of the door opening are 2.34 meters wide and 2.59 meters high.

20-foot Refrigerated Container

Also referred to as a reefer container.

It is a regular 20-foot container with the added benefit of insulation.

This is the best option if you were planning to insulate your container.

Insulation is necessary if you are intending to use the container as a home and keep its temperature comfortable.

This container is the best deal if you work around tradeoffs as it saves money by eliminating insulation costs.

It is 6.05 meters long, 2.44 meters wide and 2.59 meters high externally.

Internal measurements for this container are 5.44 meters long, 2.66 meters high, and 2.28 meters wide.

The container has a tare of 2,905-kilograms and can carry a maximum load of 27, 575-kilo grams.

Its door opening measurements are 2.28 meters wide and 2.26 meters high.

20 ft. ISO Tank Shipping Container Dimensions

These tanks are the most effective intermodal for bulk transportation methods.

They are designed to transport liquids or gases.

Besides, the tanks can hold bulk cargo ranging from perishable goods to hazardous substances.

The exterior dimensions are 2.43 meters wide, 2.59 meters in height, and a length of 6.09 meters.

40-foot General Purpose Shipping Container

These are the most common containers you will find in the market.

These containers are big enough and you can split them up into multiple rooms.

Their low ceiling height is an issue if you want interior insulation and still have a reasonable ceiling height.

It is 2.44 meters wide, 2.59 meters high, and 12.19 meters long externally.

It also has a tare of 3,780-kilograms and can take a maximum load of 27,600-kilograms.

The internal measurements of 40- foot general-purpose shopping container are 2.39 meters high, length is 12.04 meters and width is 2.35 meters.

The door opening measurements are 2.29 meters high and 2.34 meters wide.

40-foot High Cube Shipping Container

This high cube shipping container offers an additional one foot of overhead room.

The additional overhead room will give you room for insulation, wiring, and fixtures and still give you an 8- foot interior ceiling height.

The added one foot makes the room look bigger and better hence capable of holding more of your belongings.

It has a tare of 3968-kilo grams and a maximum weight load of 26512-kilo grams.

Its door opening measurements are 2.59 meters high and width of 2.34 meters.

The internal measurements of 40 –foot are 12.04 meters long, a width of 2.35 meters, and a height of 2.70 meters.

It has an external measurement of 12.19 meters long, wideness of 2.44 meters, and height of 2.89 meters.

40-foot Refrigerated Container

This container comes within built insulation.

You will also get the benefits of a 40-foot shipping container when you use this one.

In most cases, it comes with an industrial refrigeration unit that you might want to get rid of.

Its tare weight is 4900-kilo grams while its maximum load weight is 25,645-kilograms.

The internal measurements of this container are, 2.28 meters wide, 2.26 meters high, and length of 11.58 meters.

The exterior measurements are 12.19 meters long, a width of 2.44 meters, and a height of 2.59 meters.

It has a door opening of size 2.28 meters’ width and 2.26 meters height.

40-foot Pallet Wide High Cube Container

These containers are a bit wide with around 2 inches when compared to regular containers.

But they are not as wide as the 48-foot and 53-foot containers.

If you are not planning to use the container to store pellets, then it gives you more space for insulation.

They have a tare weight of 3,917-kilograms and when with a maximum load weigh 28,583-kilograms.

The opening door size is 2.44 meters wide and 2.59 meters high.

The internal measurements of this container are; 2.70 meters high, 2.44 meters wide, and 12.04 meters high.

The container is 12.19 meters long, 2.89 meters high, and 2.49 meters wide externally.

45-Foot-High Cube Shipping Container

This container is quite different from the ones discussed above.

The container has normal corner castings of 40-foot apart but with two equal extensions of 2.5 feet on each ends.

The extensions also have corner castings on the actual corner extends of the container.

Due to multiple sets of corner castings, you can stack the 45-foot container with 40-foot containers.

With the additional 5 feet, the container allows you to have slightly bigger rooms.

The exterior measurements are 13.72 meters long, 2.44 meters wide, and 2.89 meters high.

The interior measurements are as follows; 13.56 meters in length, a width of 2.35 meters, and a height of 2.70 meters.

The container has a tare weight of 4800-kilo grams and when loaded maximally it will weigh 30,480-kilograms.

It has door measurements of 2.34 meters wide and 2.59 meters high.

48-Foot-High Cube Shipping Container

It has an additional 6 inches in width making it around 7% wider than the 40-foot and 45-foot containers.

These extra inches might not sound big but they give the container more room for insulation.

Also, it ensures that the room does not feel too narrow.

Most of these containers are high cubes, meaning they have an extra height of 12 inches.

Adding to the above information, these containers have multiple sets of corner castings.

One set is at the actual corners and another set 40-foot apart.

The tare weight of this container is 4953-kilo grams and the weight at maximum load is 25,527 kilograms.

Its external size is 2.59 meters wide, 2.89 meters high, and 14.63 meters long.

Its internal size is 14.48 meters in length, 2.49 meters wide, and 2.70 meters long.

The door opening measurements are 2.49 meters wide and 2.59 meters high.

53-Foot-High Cube Shipping Container –

This is the largest mass-produced container you will ever come across.

It has corner castings at 40-foot then followed by equal extensions that will bring the length to 53-foot.

All 53-foot containers are high cubes giving you extra foot for your interior clearance.

When let’s say you are building a house using this container, it will give you the larger possible space.

These containers were not built strong enough for ocean travel initially but this is not the case presently.

The container is 16.15 meters long, 2.9 meters high, and 2.60 meters wide externally.

It has a tare weight of 5020-kilo grams and when a loaded maximum of 25,460 kilograms.

Its door opening measurements are 2.59 meters high and 2.49 meters wide.

Its internal measurements are 16 meters long, 2.70 meters high and 2.49 meters wide.

Quad con Shipping Container

This is a mini container.

It is designed in that when four of such containers are joined they create one standard 20 feet container.

They are designed specifically for use in military forces.

Tricon Shipping Container

This is a shipping container a third the size of a 20- foot container.

The container dimensions are 8 feet long, 8 feet tall and 6 feet and 5.5 inches wide.

These containers are used widely in the transportation of military equipment.

You can transport these containers by sea, air, or ground.

Tricon shipping containers are extremely durable.

Bicon Shipping Container

This is a shipping container that is half the size of the normal 20-foot standard container.

It is used by the military forces to transport military equipment.

Its external size is 10-foot length by 8.6 feet tall by 8 feet in width.

Bonus: Why ISO Shipping Container Size Is Important

The ISO shipping container size is very important because they ensure the use of container space efficiently.

This is regardless of the method of transporting the containers.

Additional Resources:

Intermodal Container

ISO General Purpose Containers

Shipping Container Manufacturer

How To Custom Shipping Container

Shipping Container Sizes And Dimensions

Shipping Container Prices

If you have any questions or inquiries about shipping container sizes, feel free to contact Tj chinafreight now.

If you have any question about import duty from China to the USA, you’ll find the answer right.

This guide covers both basic and advanced concepts about the import duty.

Keep reading to learn more.

What is Import Duty?

When you import goods from China to the USA, you must pay some tax for the goods.

Import duty is the sum charged on imported goods.

The Central Border Program (CBP) customs collects the taxes and duties depending on the set regulations.

Most countries implement import duties as a way to raise revenue and safeguard young growing industries.

It is also used to penalize other exporting countries by charging high import duties.

What is the Difference Between US Import Duty and Customs Duty?

Customs duty is a general term that includes all the taxes collected on goods either brought into the country or those moving out of the country.

Import duty, on the other hand, is specific on goods moving into the country.

It is the revenue generated by the government on imports.

The similarity here is that while import duty is specific on incoming goods, customs duty refers to import duty and export duty.

What Products can you Import from China to the USA?

China is an increasing economic hub that offers world consumers an array of product choices.

The following are some profitable products you can import from china.

· Clothing

Clothing is one of the basic human needs required in day-to-day life.

China produces quality, original and cheap clothes.

With the high population in the US, importing clothes would be profitable due to the high demand.

· Motor Vehicles

Vehicles’ global demand increases with each rising day.

With many assembling companies located in china, importing quality vehicles will be cheap and convenient.

Consequently, humans have different choices and tastes when it comes to the type of car they use.

China offers sleek tastes that can supplement vehicles produced in the US.

· Electronics

The demand for electronics in the US is high.

You can make good profits by importing both cheap and expensive electronic products from china.

· Pharmaceutical Products

We all get sick at some point.

Importing drugs and associated products is profitable due to the high demand.

China excels in producing quality and affordable pharmaceutical products; importing these products will surely earn you a fortune.

Other products that are profitable and which you can import from china to the US include;

• Foods and foodstuff
• Agrochemicals
• Machinery
• Industrial parts
• Toys
• Cosmetics and nutraceuticals

How do you know if you have to Pay Import Duty from China to the US?

If you are importing goods from China, you are eligible to pay import duty.

However, some exempted goods do not qualify for import duty.

Goods that are donations from china to the US do not pay import duty.

You also don’t need to pay duty for goods whose value less than $2500.

Needless to say, you can always inquire from the Central Border Patrol if the goods you want to import are dutiable.

What are the Types of US Import Duties from China?

The following types of import duties apply when you import goods from China to the USA;

· Basic Duty

This is the basic duty rate which is applicable for all imports from China to the US.

The rates vary depending on the type and value of the product that you’re importing.

· Antidumping Duty

Antidumping duty is an extra charge that countries place on imported goods that are similar to those produced locally.

The US charges antidumping duty on products from china to avoid unfair competition for local producers.

Note that this duty charge is applicable only when the price of the goods is below the local market price.

· Countervailing Duty

When your imports from China are similar to those made locally, customs will charge you countervailing duty.

This is different from antidumping duty.

The latter is applicable only when the goods you import are similar and lower priced.

Apart from the above duties, you may also need to pay a federal exercise for specific products such as tobacco and alcohol.

Other charges such as the merchandise processing fee and harbor maintenance fees may also apply.

How much is Import Duty from China to the USA?

The total duty that you’ll pay for imports from China to the USA depends on the value of the products you’re importing.

Generally, goods below $800 are exempt from duty by the customs border protection.

Meaning, you won’t be paying any money to CBP if you import any commodities whose value is $800 and below.

These are considered duty free.

For goods above $800, you will pay the applicable duty rate.

In this case, the rates will depend on the product category according to the Harmonized system tariff (HS) code.

CBP uses the HS code to determine how much importers pay for imports from China.

You can check the applicable duty rates for your product on the official website for the CBP.

Please note that import duties in the US will also depend on the number of products you’re importing.

This is in the case of formal and informal entry goods.

Generally, the basic US import duty rate was at 10% before 2019.

The rate currently used after 2019 is 25% on the value of the imported goods.

These rates are, however, subject to change depending on the CBP.

It would be perfect to check the rates in play before importing any particular product.

What is HS Code?

HS is an abbreviation that stands for Harmonized System.

It is a six-digit international identification code that is used to identify and group goods.

The code is such that the first 2-digits aid identifies the chapter where goods are classified.

The next two digits (HS-4) are used to determine the groups within the chapter.

The last two digits (HS-6) are even more specific.

The six HS code system is used internationally by most countries except few countries that still use older HS code systems.

How do you Check the HS Code for Import Duty from China to the US?

The process is pretty simple.

Simply head over to the official Harmonized Tariff Website.

In the dialogue box indicated ‘enter your search query,’ type a keyword that you want to search.

The keyword can be the name of the product or random numbers that you wish to search.

After that, click on search.

If your inquiry is correct and there are products for the search, you will see a list of probable products and their rates.

If the search is not valid, the website will indicate no rates found for the search.

Alternatively, you can search for the commodity using a random number.

Each number will indicate possible products and applicable rates.

How do you Calculate Import duty for the US from China?

Different products from China pay different amounts of import duty in the US.

The process is direct and involves minimal computation.

First, locate the HS code associated with your product.

Ensure the code is specific to the product you are importing.

Secondly, choose the appropriate category and subcategory of the product.

Locate the duty applicable to the product, and finally, multiply the rate by the value of the item.

If you import products of different categories, you will have to calculate each product’s import duty separately.

It is worth noting that goods confined in the same container can attract different import duty amounts depending on their HS code.

What is the US Import Duty Calculator?

The US duty calculator is a useful tool for importers.

Also, the tool provides rough estimates to be paid on particular units imported.

The interface provides details on the importing country, the exporting country, and the product you’re importing.

You simply need to select the importing country and choose the product and the value to be imported.

This will give you a clear estimate of the duty to pay for your imports.

How do you Estimate the US Import Duty from China using an Online Calculator?

Lucky for you, the process is pretty simple. Just find a reliable online duty rate calculator and follow the below procedure.

• From the drop-down list, select your country of import.
• The next part is where you are importing to. This is simple as the calculator currently only allows imports to the US. You just use the default selection.
• The next step is the commodity you are importing field. Here, type initials of the commodity you are importing, a list of related codes will appear. Simply choose the product you are importing.
• Alternatively, from the system, click on the browse code link and choose your category.

After doing everything right, the system will either calculate the applicable duty rate per unit or prompt “estimated to be exempt from duty.”

If your goods qualify for import duty, a dialogue box will appear where you input the shipment value.

On inputting the value, the import duty calculator will provide an estimated value to pay.

However, you should know that these are only estimates.

The US customs office provides the actual duty that importers should pay.

What is the Difference Between Formal and Informal Entry Shipments from China to the US?

Before importing your products, you must first determine the type of entry filled by Customs and Border Protection.

Formal entry applies when the total cost of goods you import to the US is above $2500.

However, if your business is old enough in operation, you can adopt an annual import duty subscription.

This is economical as they receive their goods before paying duties and bonds.

You accumulate the bonds and pay later as a lump sum.

On the other hand, informal entry is applicable for imports less than $2500.

It is cheaper and economical for your business.

However, the bottom line is, you should always remain on the good books with the law.

You can avoid wasting valuable time explaining your mistakes to the authorities.

Finally, you should note that customs can enforce custom duties whenever necessary.

Are there Custom Duty Charges when Buying from Aliexpress and Alibaba in the USA?

Yes, there are.

Buying from Aliexpress and Alibaba is convenient as it provides an array of product choices.

However, just like importing from other suppliers in China, importing products from Alibaba and Aliexpress attracts specific customs duty.

The chargeable custom duty is dependent on the classification of the product.

Each product should have an applicable rate of duty chargeable.

Note that the applicable duty is dependent on the products you’re country and quantity.

If you’re importing a small quantity, these online suppliers will opt for express shipping.

In this case, customs won’t charge you.

For large quantity orders, get a reliable customs broker to help you calculate all import costs, including duties from china to your destination in the US.

Remember, no matter where you’re importing from, the product will always affect the custom duty rates.

Different products attract different duties in the US.

How Long Does Customs Clearance take for Shipments from China to the USA?

This depends on several factors.

Nonetheless, customs can hold your goods as long as they deem fit.

There is no specific duration that customs can take before clearing your shipment.

The whole process depends on the aspects that surround the package.

For example, when customs are awaiting confirmation from the importer, the shipment can wait until customs receives the right confirmation.

Another instance would be where there are issues surrounding payments and paperwork to the customs.

Finally, if the goods have quality issues, customs can take longer verifying the goods before clearing them.

To speed up the clearing process, it is your sole obligation to ensure you comply with all customs regulations.

This way, you will save on time and costs.

What is the US Customs Clearance Process from China?

Once the cargo has arrived in the US from China, the goods are unloaded by the carrier.

After that, necessary procedures are followed to take the goods out of the customs import area.

The customs clearance process is inevitable, tiresome, and overwhelming.

The following procedure is applicable for shipment clearance.

• Unloading packing lists and commercial invoice
• The customs brokerage partner will confirm if the details match the consignment.
• Customs will receive HTS classification of goods.
• Customs brokerage partner will file entry summary.
• Forward duties owed

Other than the process, you should present the right documents to customs.

After that, the shipment will undergo a series of examinations to prove their credibility and conformity to CBP standards.

The examinations include;

• X-ray exams to check the contents of the container.
• Tail gate exams that involve opening the tail end of the container to inspect the content physically.
• Partial Exams involves the CBP selecting random cartons for inspection.
• Intensive exam- this is the most comprehensive exam and takes at least 7 days. It involves CBP moving the container to a select warehouse and physically examining every product in the container.
• United States department of agriculture exam- applicable for food staff and agricultural products. The CBP will take a sample and take to the lab. In this exam, they will place a hold on the product to check for pests or even diseases.
• The food and drug administration exam is the final exam that ensures all foods transported to the US are safe for consumption.

Which Documents do you need to Clear US Import Duty and Taxes from China?

For a seamless customs clearance process when importing from china to the USA, ensure you provide all the necessary import documents.

The documents include;

· Packaging List

This is a list showing the weights of the package or container and the contents inside.

· Arrival Notice

An arrival notice provided details about the arrival and is issued by the carrier’s agent to the consignee.

It hastens the process of clearance.

· Commercial Invoice

A commercial invoice contains details about the shipment.

These include the country of import, the buying price, clearance number, and the product description.

· Bill of Lading

The bill of lading shows the goods in the form of a list with their description.

You may also need an insurance certificate, hazardous goods certificate, import license as well as an inspection certificate.

Will you Pay Import Duty for Door to Door Shipping from China to the USA?

Well, it depends on the incoterms agreement.

Door to door delivery is usually covered by two incoterms.

These are delivery at place (DAP) and delivery duty paid (DDP).

For Delivery at the place, you will not pay for the door to door shipping.

Instead, the seller would take charge of transportation costs until the goods reach your preferred delivery place.

On the other hand, you will pay for the door to door shipping on a delivery duty paid terms.

Here, your seller is not liable for the transportation cost.

It is crucial to agree on the incoterms with your seller to be sure of what is required of you before deciding to import.

This way, you will avoid delays and huge penalties.

How do you Clear Customs after Importing from China to the US via the Internet?

The biggest challenge for importers is the paperwork process needed during clearance.

With the widespread use of the internet, it is common to place orders online and deliver without necessarily signing any agreement.

Unfortunately, when dealing with customs, you can only clear your imported goods by manually filling forms.

This, therefore, implies that you cannot clear with customs online.

In cases where you cannot be physically present to clear with CBP, you need not worry.

You can hire a reliable customs broker to take care of the paperwork.

The broker, however, will charge you a fee for the service offered.

Can you Avoid Import Duty when Importing to the USA?

Most certainly!

However, this will depend on the specific type of commodity you are importing.

In the US, some specific products are exempted from import duty.

Depending on the customs policies, products such as donations and other foodstuffs can be exempted from paying import duty.

Also, importing products less than $800 can exempt you from paying duty.

Before importing, it is vital to verify with customs before importing such goods.

How do you Pay US Import Duty from China?

First things first, you can pay import duty in two ways.

You can either pay before Delivery or on Delivery.

If you’ve decided to pay your duty on Delivery, US customs will inform you or your courier.

They will contact you and let you know how much you need to pay and when it’s due.

This way, there won’t be any need to calculate unless you feel a mistake has been made.

Conversely, you can pay for your goods before they arrive in the US.

In this case, you can ask for your invoice from the supplier and inform CBP of the same.

Several payment options are available for this.

Mostly, you can pay your duties via PayPal, cash, or bank transfer.

What is a US Customs Bond?

A bond is a form of a binding agreement between two or more parties.

It serves as a security for a specific agreement.

Us customs bond is always between the importer, Central Border Protection, and the surety company.

The purpose of the customs bond is to ensure that CBP is paid the agreed amount and that the importer follows the stipulated importation rules and regulations.

In cases where you, as an importer, fail to pay CBP, the surety company will pay the deficit amounts.

To get a customs bond, simply find a trusted broker and agree on terms.

How does an Annual Bond Compare to a Single Entry Bond?

If your business has been in operation long enough, you will benefit significantly from an annual bond.

An annual bond is charged once and allows you to import into the US using multiple importation ports.

The yearly bond is renewable and can only seize to be in use if the importer cancels it.

The annual bond covers up to $50,000.00 and is charged at the cost of $450.00.

Moreover, companies can purchase larger bonds and apply for an extension.

Single bond, on the other hand, is applicable where you import once or twice.

You can use it to import firearms and other regulated commodities or import one-time end value products.

Not all businesses need bonds to import.

Personal businesses can import without necessarily using custom bonds.

What are the Things to Keep in Mind when Importing from China to the US?

The phrase ‘all goods are made in china’ is accurate.

China is a production superpower and manufactures the majority of world consumables.

If you are a newbie in the importation market, you are probably worried about what to do and know.

Lucky for you, here is a list of things you should keep in mind when you import from china;

· Identify the Goods you want to Import

The process of importation all starts with identifying the correct type of good.

You are in the business to make profits.

Therefore, you should choose a fast-moving product that will save time and yield maximum profits.

The rule of thumb is, always invest in a product that you can buy.

Besides, you should be passionate and knowledgeable about the product to import.

As if that’s all, your product should allow the importation of large quantities to reduce importation duty through economies of scale.

· Identify your Import Rights

When you buy in small quantities, you can use employee couriers to import on your behalf.

However, if you are importing commercially, you should keep in mind the following rights;

• If you are from the US, your company’s internal revenue service number or social security number will be enough.

– Ensure that the Goods you Want to Import are allowed in the US

Check on regulations on allowable products for importation.

You should avoid venturing into the importation of products such as milk, fruits, and seeds.

Also, ensure that your imports are of the right quality standards and meet health code requirements.

Such goods can be detained, destroyed, or even attract hefty penalties that may cost your business.

What Happens when you Fail to Pick your US Shipment from China On Time?

Usually, after finishing up with the customs clearance, you are eligible to pick your shipment.

But for one reason or another, you may fail to pick your package after arrival in the US.

In this case, this is what will happen:

First, containers transported by sea take 1-3 days to be offloaded from the vessels.

In cases where your container is a Full Container load, you can pick it as soon as it’s offloaded.

You will need to track your shipment to the container freight station for less than the container load that takes another 1-2 days.

The consignment is demonetarized for another 2-3 days.

If the allowed time passes and you don’t pick your shipment, you attract demurrage charges.

These charges vary depending on the port.

The applicable free storage period is always 5 days, after which you start paying for demurrage charges.

What are the US Customs Fines?

The US does not tolerate illicit, illegal, or unsafe trade.

US custom fines are a remedy to minimize instances of illicit trade.

Custom fines are a monetary penalty fined on illegal business transactions by the Central Border Patrol.

It is applicable in all the 326 ports of entry.

When you travel from a foreign country to the US, you must register any foreign possession you have with customs.

Failure to do so can lead to legal actions such as fines or even alienation of the property.

It is paramount to have the necessary information regarding customs rates.

You should also be aware of trading rules within the US. Some goods are not allowed.

Do you need a China to US Import Duty Agent?

Yes, you need an import duty agent when importing from China to the US.

The process of dealing with customs and tracking your goods from China is tiresome, expensive, and complicated.

Learning regulations involved in trading can be stressful and tedious.

With the right import duty agent, you can concentrate on the core business activities and let the agent handle your shipment.

China to US imports duty agents has proven influential, given their vast reputation.

They can serve as translators and communicate with customs and governments to ensure a streamlined shipping process.

How can you Reduce the US Import Duty from China?

The sole purpose of your business should be to maximize profits.

When you import, you can incur excess import duties that you could have avoided if you made shipping easy.

It all starts with controlling the various factors that affect importation.

The whole process relies on hefty paperwork; keeping an accurate record of every transaction can reduce importation delays.

You can employ the following ways to reduce the import duty charged on goods you import from china.

– Checking the Value of Goods you Import

Undervaluing is a tactic adopted by numerous businesses importing products.

Here, you use lower values than your imported products’ actual values to claim a lower-income duty.

If you succeed and customs don’t realize, you will profit from paying low custom duties.

However, the government has raised the alarm over this issue.

If you are caught undervaluing your product, hefty charges can apply, and you risk experiencing custom delays in processing your imports.

– Using Tariff Codes

The tariff codes show details of the commodity you are importing and the applicable tariff.

The last digits in the tariff code are assigned to a specific country.

The first digit is international.

You should be careful to ensure you have the right tariff code.

Having a wrong code can lead to extra charges.

– Verifying Information

Obviously, there is a lot of paperwork involved in importation.

New rates and tariffs are formulated with time.

It is essential to ensure that you are aware of the trends in importation.

Changes in currency and drops in prices of a particular commodity can force the government to deploy new rates.

Rates that were accepted last year may not necessarily apply to current years.

To avoid freight delays and customs delays in clearance, ensure the rates you use are updated as per the government rates.

– Responsibility of the Supply Chain

Most often, you can assign a broker to take care of your importation and transportation.

These brokers can assure you that they can classify the products and calculate the applicable duty rates.

However, this might not be the case.

These brokers are not obliged to be accurate in everything.

They can make mistakes.

If this happens, be sure to take full responsibility for the full cost.

In a nutshell, reducing the cost of importation from china entirely depends on the information you store.

Accuracy is paramount, it might require a lot, but sure it does pay.

What are the Factors that Influence US Import Duty from China?

To begin with, many products that dock in the US borders originate from China.

Most of these products are taxed based on prescribed tariffs.

The first aspect that influences US import duty from china is the type of commodity.

Those in the alcohol and tobacco importation pay a higher rate than those in the foodstuff industry.

Secondly, the quantity imported also affects the duty paid.

In terms of economies of scale, if you import more, you will pay less per unit.

Quantity also influences the duty payable because few goods worth less than $800 are imported free.

At the same time, those above the amount have to pay import duty.

The last aspect is the method of importation.

Those goods that are imported by sea must pay harbor to maintain ace costs unlike those imported by air transport or railways.

Why should you Consider Tj chinafreight to help you Import from China to the US?

At Tj chinafreight, we have an impeccable reputation in the importation of goods from China to the US.

We make our shipments by air, sea or railway.

With an excellent competitive rate comes a reduction in importation cost.

The process is simple; you just have to ask for a quote, and our ever dedicated team will be in touch to negotiate the terms.

Additionally, we offer free 20-30 days of warehousing for your products.

We do all customs clearance and product classification for you.

In a nutshell, we provide the following competitive services to you;

• Competitive rates
• 12 years’ professional freight forwarding experience
• Ability to handle all types of containers
• 24/7 customer support and free quotes
• Warehousing
• Professional clearance

Don’t worry about the custom clearance process for your imports from China to the USA; contact us with your request, sit back, and let us handle all the complications for you.