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

Toilet papers being an indispensable commodity can be imported from China.

China offers quite a variety of Toilet papers, with the right size and quality at reasonable prices.

For you to import Toilet papers from China you have to contact the manufacturer for a good deal.

Why Import Toilet Paper from China

Toilet papers can be imported from China based on a number of factors and reasons as shown below:

i. Price; the prices of Toilet papers from China are competitively affordable and this makes it possible for importing fromChina.

ii. Right size; the Toilet paper from China comes in the right size and design, attracting more imports.

iii. Quality; in every commodity, quality takes the order of the day.

Toilet papers from China are of the right quality that makes people want to import from China.

iv. Moisturized; Toilet manufacturing companies from China go an extra mile by moisturizing the toilet papers giving it a perfect touch for import.

v. Softness; the materials made up of Toilet papers from China are of the right quality giving the user of the commodity softness with no roughness at all.

vi. Color; Toilet papers from China comes in different colors that personalize the user with the color that they most love.

vii. Decoration; toilet papers from China are decorated in such a way that they are appealing to the client and the architectural drawings are on point.

Types of Toilet Paper made in China

China Manufactures Different types of Toilet papers for Different Functions such as:

i. Restaurant Toilet paper; China manufactures Restaurant Toilet papers that are used for different functions within the restaurant.

They manufacture toilet papers designed for restaurant purposes and are placed on the walls or floors of the restaurant.

ii. Kitchen Toilet papers; Toilet papers from China have been designed to address Kitchen matters.

This is through cleaning the surface of the kitchen table, dusting, and also clearing up spills.

It is designed in the form of sheets and can only be used once.

iii. Serviettes Toilet papers are the kind of toilet paper that are designed to ensure the utmost hygiene.

This is through cleaning of the waters spills on hands and also for touching and lifting foot items.

iv. Bathroom Toilet papers, this is the type of toilet paper that are used to address feces areas or perhaps cleaning the area of a urinal and other bodily fluid releases.

v. Hotel Rooms Toilet papers, this a folded toilet papers used by the hotel as a sign of good hygiene of the hotel

vi. Hotel Napkins, this are the type of toilet papers that are usually placed at the table to help in wiping of the mouth and fingers during a meal.

vii. Facial Toilet papers, Facial Toilet papers are designed to wipe the face either to remove dust or water or perhaps sweat.

viii. Hand Towel Toilet paper, this are hand toilet papers designed at the washroom areas to wipe water from the hands.

ix. Medical Toilet papers, this are sterilized toilet papers use by the hospital to clean up the wound or surfaces.

Where to Find Toilet Paper to Import China

There are quite a number of places you can find toilet papers to import from;

i. Online, Alibaba is the best online shop where you can import your Toilet papers from.

ii. You only need to log in and place your order by choosing, the type of toilet papers with your specification.

iii. Wholesale markets, there are several wholesale markets that offer to import toilet papers from China to your doorstep such as Made in China.

iv. Jumbo rolls which provides a range of toilet papers for shipment.

v. Direct factories, some clients prefer to import directly from the manufacturing company such as Double a Paper Manufacturers, China Paper roll.

vi. You can contact this companies for a good offer and discount on toilet papers.

How to Vet Toilet Paper Suppliers from China?

There is no specific way to vet Toilet paper suppliers from China.

However, the following guideline may be useful when trying to Vet for reliable toilet papers suppliers from China.

i. Referrals, good toilet papers suppliers have referrals from customers across.

Those suppliers with no referrals at all, gives you a big reason to think about doing business with them.

ii. Proven Track record; most supplier may have proven track record on their website or perhaps through ratings on their websites.

If the rating is poor, then it will mean they are not the reliable suppliers and if their rating is good then they are reliable suppliers of toilet papers.

iii. Communication, the level of supplier communication determines if you are going to import toilet papers from them.

iv. Financial stability; determining the financial strength of the supplier is very vital.

A supplier with delayed orders is proof that they have financial constraints, unlike a supplier who delivers toilet papers on time and as agreed upon.

v. Location; the location of the supplier of Toilet paper will determine the risk involved with the supplier.

Since some locations are prone to risk associated with importation as compared to others.

vi. Supplier structure; the supplier can be part of a large group of companies.

It is good to do due diligence on the sister company to ensure they are not at jeopardy with the reputation of the supplier or company.

vii. Compliance; the supplier who has all the prerequisite requirements by law is deemed the best to import from.

This is as compared to the one who has no legal requirements to supplier toilet papers.

viii. Cost; while negotiating for the cost of the toilet papers will determine the kind of supplier you are dealing with.

Most Chinese toilet paper suppliers will offer competitive prices for wholesale purchases.

Using a Sourcing Agent to Find Toilet Paper for Importing from China

China provides an option for the customer to choose a sourcing agent of their choice while importing toilet papers to get a reasonable price.

Benefits of Using China Sourcing Agents

The benefits associated with a sourcing agent comes in handy as they have the following benefits;

i. Negotiation; the sourcing agents ensures that there is good negotiation in case of language barriers and ensure that both parties benefits from the deal.

ii. On site Verification; the sourcing agent can visit the factories to inspect and verify the quality of toilet papers before being imported.

iii. Relationship; the sourcing agent helps build the long term relationship with the client in that the client will be using them for importing toilet papers from time to time.

iv. Assesses supplier; the sourcing agent using his or her experience may be valuable in evaluating your supplier.

If the supplier is not trustworthy they will advise accordingly.

v. Price; the sourcing agent will help in getting you the best price of Toilet papers in the market.

vi. Saves time; they help in directing you to the right company of toilet papers since they are located within China and they know the companies very well.

How to Find Reliable China Sourcing Agents

There is no specific way of finding a reliable sourcing agent from China, However, the following features will help you determine one:

i. Professional work experience; the years the sourcing agent has been in business will help you a great deal in vetting them out.

Those who have huge experience are literally the best as compared to those who just joined the industry.

ii. Financial stability; the sourcing agent who request a big percentage of more than 70% being down payment

This means they have financial problems as compared to those whorequest for a 30% down payment.

iii. Market; the sourcing agent who is well vast with the market of Toilet papers and give you the information at tips of the finger.

This source agent is better than the one who will go do research and get back to you.

This is helpful in making timely decisions.

iv. Legal framework; a good sourcing agent is familiar with the legal requirements of importing toilet papers.

Unlike one who is not aware of any of the legal requirements is a big reason to worry.

v. Referrals; best sourcing agents have quite a number of referrals, bad sourcing agents may experience no referrals.

Quality; best sourcing agent they do not compromise on

How China Sourcing Agents Work

Sourcing agents from China work differently depending on the scope of work.

However, the major part of their work involves:

i. Sourcing for products, they source out for the products being requested by the client and give the expected prices.

ii. They signify the interests of the buyer of the toilet papers

iii. They deal with issues of the customs duty during the importation of toilet papers.

Cost of China Sourcing Agents

There is no standard cost of a sourcing agent from China.

The cost varies depending on the service to be delivered

However, they charge a small fee for the services being rendered

There are those who charge a monthly fixed fee less than $50 for the product

There are those who charge nothing at all but they rely on the price fluctuation for them to get the difference

While majority of them charge a percentage of between 5-10% on the toilet papers being imported.

Requirements for Importing Toilet Paper from China

The following are the requirement documents needed while importing toilet papers from China.

i. Clearing Agent; you are required to choose a clearing agent for the importation of Toilet papers.

ii. Legal requirements; you need to be approved by the government to do importation.

If the government does not approve the company, then it will not be involved in importation.

iii. Certificate of Origin; this is a document that shows the country of origin of the Toilet paper.

iv. Commercial invoice; this provides enough information for the custom and border protection officer to determine if the commodities being imported are admissible.

v. Packing list; this list is provided by the freight forwarder and it contains information from the invoice and is checked to verify cargo.

vi. Bill of landing; is a commercial document issued by a carrier to the shipper of good, signed by the owner of the vessel.

vii. Freight invoice for sea cargo

viii. A Certificate of Conformity

ix. Purchase Orders/Contracts

x. Permit/License for restricted goods

xi. Arrival notice, is a communication that is prepared by a carrier to let the recipient know that the shipment has arrived.

Quality and Safety Requirements

Quality and safety of the toilet is determined by:

i. Softness; Toilet papers should be soft, If the toilet papers are rough then it means they are not of the right quality.

ii. Size; the size of the toilet papers determines its quality as per the usage of the toilet papers.

iii. Chlorine-free; a good quality toilet paper is free from chlorine which makes them white.

iv. Recycled; a good quality toilet paper is decomposable and environmental friendly.

v. Threads; good quality toilets have no threads that irritate on the skin.

vi. Easy of tearing; the quality of the toilet papers is determined by the easiness of tearing it apart, those that are hard to tear part are deemed of poor quality.

Packaging and Labeling Requirements

The toilet papers from China are labeled and packaged based on:

i. Government regulation; the government regulates how the toilet papers are to be packaged and labeled.

ii. Company design; the company may devise ways to package and label its toilet papers depending on the company marketing strategy to attract more customers. Such as Velvet, kitten soft

iii. The preference of the customer; the customer may instruct the company to customize the label.

Should also instructionthe package the toilet papers with their name of choice especially during birthdays.

iv. Some are perfumed; this is a way of marketing their products

v. Different colors; they label and package toilet papers in different colors to appeal to more customer.

Minimum Order Quantity (MOQ) Requirements for Toilet Paper from China

The minimum order quantity varies from one China toilet paper supplier to another.

The best part, China toilet paper suppliers offer flexible MOQs

Cost of Importing Toilet Paper from China

The cost of importing Toilet papers from China varies greatly on the quality and number of items being imported and the final destination.

However, the price of toilet papers from China ranges from the US $ 0.1-0.22 per 500 rolls.

While the cost of shipping toilet papers also varies with respect to the number and type of the toilet papers being shipped.

The cost of shipment ranges from US $ 0.09 – 0.15 though much depends on the destination of the toilet papers.

Additionally, the import duty and taxes of toilet papers from China vary with the destination country.

The best import and taxes range from 5-13%.

The port charges are paid to the port for using the port and they vary to a certain percentage.

Factors Affecting the Cost of Importing Toilet Paper from China

The following Factors Influence the Cost of Importing Toilet Papers from China

i. Custom duty, the custom duty of a county may influence the cost of importing toilet papers, higher custom duty means high cost of importing.

ii. Destination of the final country, the final destination of the country will determine the cost of importing, the longer the distance the higher the importation cost.

iii. Mode of transport, importing through air may cost much more as compared through sea.

iv. Quality of the toilet papers, good quality toilets papers attracts high importation cost.

Negotiating Toilet Paper Prices with Chinese Suppliers

Sure, you can negotiate the prices of toilet papers with Chines suppliers.

This can be done through online or sourcing agents. However, low price will mean low quality.

Price is a determining factor on the quality of the toilet papers therefore it should be looked at critically before negotiating for the same.

How to ControlToilet Paper Quality from China

Toilet paper quality from China is of the essence.

The following are ways on how you can Control the Toilet Paper Quality.

i. Material, the material that are used to make toilet papers must be of the right quality in order to produce quality Toilet papers.

ii. Size, the size of the toilet papers as per the design must be of the right size.

iii. Technology, Manufacturing companies has invested in technology that helps them manage control of the quality of the toilet papers during production.

iv. Scanner beam, scanner beams are employed to check for the right measurements and report if a diversion from the measurement is encountered.

Shipping Toilet Paper from China

Toilet Papers can be Shipped from China Through a Range of Options such as:

i. Regular post from China, Regular Post enables you ship for toilet papers from China. You only pay for the charges and indicate the destination country and address.

ii. Courier Services, you can employ the service of the courier company to do the shipment of toilet papers for you.

iii. Air freight, you can ship it by air freight, this is done through air travel and will be picked at the county of destination airport.

And this can be done through air cargo.

This can be used especially when the toilet papers are needed urgently.

iv. Rail freight, this can be through railway that passes though close to towns that the luggage is destined to and this involves bulk shipments at affordable price.

v. Sea freight, this is through sea and it may take a sometimes to reach the destination country.

Loading Ports When Importing Toilet Paper from China

There are several seaports and airports in China that importers can use to ship Toilet papers from China.

China has established more than 34 main sea ports with above 2000 minor ports that are surrounded by the major and minor rivers of China.

This ports have enabled free movement of goods in and outside China.

The following are among the main seaports and airports inChina that importer can use to Ship Toilet papers from China.

i. Dalian

ii. Yingkou

iii. Jinzhou

iv. Quinhuangdao

v. Tianjin

vi. Yantai

vii. Weihai

viii. Qingdao

ix. Rizhao

x. Lianyungang

xi. Nantong

xii. Zhenjiang

xiii. Jiangyin

xiv. Nanjing

xv. Shanghai

xvi. Ningbo

However, the cost of port fee varies depending on the number of Toilet papers being imported and the destination country.

The following are the main airports in China that importer can use to Ship Toilet papers from China.

i. Beijing Capital International Airport

ii. Guangzhou Baiyun International Airport

iii. Shanghai Pudong International Airport

iv. Shenzhen Bao’an International Airport

v. Hangzhou International Airport

vi. Beijing Daxing International Airport

vii. Chengdu Shuangliu International Airport

viii. Hong Kong International Airport

ix. Shanghai Hongqiao International Airport

x. Zhengzhou Xinzheng International Airport

xi. Nanjing Lukou International Airport

xii. Wenzhou Longwan International Airport

xiii. Haikou Meilan International Airport

xiv. Xiamen Gaoqi International Airport

xv. Liuzhou Bailian Airport (LZH)

Briefly talk about the train route from China to serving destinations.

China has developed an alternative route to sea and air, being train transport to transport bulk imports to the destination countries.

High speed electric trains have been established to help in the navigation of imports in the long distance countries.

All the railway operations are handled by China State Railway Group Company, Limited.

There are various categories of railway transport in China ranging from National railway, local and designated railways.

These railway routes are as follows:

i. Beijing–Harbin Railway

ii. East Coast Corridor

iii. Beijing–Shanghai Railway

iv. Beijing–Kowloon Railway

v. Beijing–Guangzhou Railway

vi. Datong–Zhanjiang Corridor

vii. Baotou–Liuzhou Corridor

viii. Lanzhou–Kunming Corridor

ix. Beijing–Tibet Northern Coal Transport Corridor

x. Southern Coal Transport Corridor

xi. Trans-Eurasia Corridor

xii. Nanjing–Xi’an Railway

xiii. Yangtze River Corridor

xiv. Shanghai–Kunming Railway

xv. Southwest Coastal Access Corridor

Procedure for Importing Toilet Paper from China

Importing Toilet papers from China undergoes a process due restriction by different countries.

The following are guideline that may help you in importing Toilet papers fromChina.

1. Check out the legal requirements for importing Toilet papers from china, start by looking at the legality around importing Toilet papers to your country.
2. Check out for License legal brokers, this brokers can help you import toilet papers from China, you only need to contact them, however their services are not free.
3. Sourcing agents, you can seek the services of the sourcing agent who will do all the process on your behalf.
4. Choose on which method you want to use to import toilet papers.
5. Give the exporter details of the toilet papers you want to import from china.
6. The exporter will identify the toilet papers you want that meets your expectation and do necessary formalities and package your toilet papers.
7. Exporter will package of toilet papers and send your toilet papers to your destination.
8. You can use toilet papers shipping service online;

There are several toilet papers shipping services online that you can hire to make the importation of toilet papers from china easy.

9. Decide mode of shipment, if it is by air or ground, since shipping of bicycle can be done if only you are also flying from china and you want to fly with your toilet papers.

However, shipping by ground is more common, much easier and less expensive.

10. Get a shipping box for your toilet papers, this requires you to package the toilet papers before it can be shipped to your destination.
11. Pay the importation cost, and tax for the shipment, since you cannot bring the toilet papers to your country without incurring the cost of importation.
12. You can pick your box of toilet papers from your picking point as you indicated.

How to Reduce the cost of Importing Toilet Paper from China

Saving on the cost of importing toilet papers from China is the ultimate goal of every importer.

The following are ways in which you can maneuver around and reduce the cost of importation.

i. Understand the tariffs, understand the tariffs of the country you want to import from and make a budget for the same.

A good budget ensures that you are within the limits of tariffs and this will help you from going extra mile to incur extra cost.

ii. Reduce Intermediaries, many intermediaries along the way increases the cost since each intermediary charges a fee;

It is a good to deal with the company direct to save on such importation cost.

iii. Understand the Toilet papers, this helps you in avoiding the penalties involved when you had not paid for a certain certification.

iv. Tax free, sometimes the government may issue a tax free on importing toilet papers, that is the best way to import and save on the cost.

v. Refunds of duty, some counties have provision for refund of duties paid, you can request for such to get your money back.

Best Time to Import Toilet Paper from China

There is no best time to import Toilet papers from China, though the following may be key on getting the best deal.

i. Free custom duty, during free custom duties, it is the best time you import since toilet papers will be free from tax.

ii. Discount, during discount offered by the manufacturing company, at such times you may save some money while importing Toilet papers.

iii. Free negotiation, owing to free negotiation by the brokerage, such time you may save on brokerage fee.

iv. Import early, importing toilet papers early enough makes you know the price before it shoots up.

v. Use coupons, importing from well-known companies, at times they give out coupons on any products you import from them.

such coupons when offered may determine as the best time to import.

How to Clear Toilet Paper from China?

Toilet papers can be cleared from China through contacting a clearing agent to help in the process of clearing.

The agent makes custom declaration entry in accordance with the applicable tax framework.

Some companies have in-house clearance services that you can contact them for assistance.

Original file of the importation of toilet papers is presented at the custom authority for verification.

At times toilet papers may be cleared at the point of entry by signing on the relevant clearance form for having been within the legal framework.

Upon verification the toilet papers are cleared for release.

Documents you Need to Import from China

The following are the major documents needed to import Toilet papers from China

i. Certificate of Origin, this is a document that shows the country of origin of the Toilet paper.

ii. Commercial invoice, this provides enough information for the custom and border protection officer to determine if the commodities being imported are admissible.

iii. Packing list, this list is provided by the freight forwarder and it contains information from the invoice and is checked to verify cargo.

iv. Bill of landing, is a commercial document issued by a carrier to the shipper of goods, signed by the owner of the vessel.

v. Arrival notice, is a communication that is prepared by a carrier to let the recipient know that the shipment has arrived.

 Procedure for Customs Clearance

The following are procedures for custom clearance

i. Lodgment& Processing, the shipper contacts the licensed clearing agent to lodge declaration form for the imports.

Upon assessment sends it to supplier for pre-shipment inspections.

ii. Entry Declaration, Payment of Taxes and Processing, upon verification of the pre-inspection.

The agent makes declaration for customs and clears with the relevant authority by paying the applicable taxes and in return issue a bank slip.

iii. Verification, the clearance file is presented at the customs authority for verification.

iv. Clearance and Release, the toilet papers will be released upon verification and be cleared.

Working with a Customs Broker to Import and Clear Toilet Paper from China

Custom brokers are helpful when it comes to clearing of the imported toilet papers.

There are several custom brokers around that you can choose from.

They help in submitting all the necessary documentation needed for importation.

Importing Toilet Paper from China using a China Freight Forwarder

Tj chinafreight is one of the leading freight forward companies that helps in importation of toilet papers.

They have operationalized their operation 24/7 to tackle customer’s issues by offering affordable prices.

They possess vast experience in the freight industry making them the most reliable company to do your shipment.

They are well known globally, to deliver goods to your door step.

You should contact us now to choose your preferred toilet papers

Sit back and let the company do the rest of the documentation and clearance for you.

They are able to ship through air, sea, train, on whatever method you will choose they will deliver.

They are able to handle any of the shipment, however, special it might be.

Time it Takes to Import Toilet Paper from China

There is no specific time it takes to import toilet papers from China.

However, the mode of shipment will determine the time it will take to ship toilet papers.

Air shipment ensures that the toilet papers arrives on time, however, the charges is pegged on the weight of the shipment and may take up to 10days.

While sea shipment will also deliver as per the stipulated time frame of between 30-45days.

In case you want to import toilet papers from China faster, Tj chinafreight is here to make the entire process simple and straight forward.

Contact our offices for fast freight forwarding solution.

China is among the few countries that harbor reliable motorcycle manufacturers.

If you need a quality motorcycle, then shipping it from China ought to be your first choice.

If you need guidance on how to send your bike from China, then continue reading this piece.

Types Of Motorcycle You Can Ship From China

Here is a list of motorcycles you can ship from China.

Note that the list is not limited to:

Standard motorcycles– This type of motorcycles is quite common on the road.

One element that makes them preferred by most users is their easy-going ergonomics.

It gets better as you can ship this type of motorcycle from China.

Cafe racer and scrambler motorcycles– Keep in mind that cafe racer motorcycles tend to be more aggressive.

The bike has a forward-leaning sitting position.

At the same time, a scrambler motorcycle resembles a dirt bike.

However, both cafe racers and scrambler motorcycles are specialized standard bikes.

Sportbike- Most people often go for sportbikes as they have great speed and agility while on the road.

If you need such a bike, it is best to check from Guangzhou, Changzhou, and Chongqing.

Touring Motorcycles– Touring motorcycles are quite large.

This kind of motorcycle is ideal for long-distance trips. This is because a touring bike is quite comfortable to ride.

The motorcycle has features like; front fairings, which help break up the wind, forward set footpegs, and combined rear set handlebars.

China has reliable manufacturers that can efficiently deliver a quality touring motorcycle.

Sport Touring Motorcycle– A sports touring motorcycle is a type of bike with features of a sports bike and a touring bike.

Therefore the bike has a more aggressive engine, and it also has better tolerance over long-distance trips.

Cruiser Motorcycle- Cruiser motorcycle offers a laid-back riding position and a more relaxed feel while riding it.

The cruiser motorcycle has low seats, which requires the rider to lean back slightly while riding.

You can find a variety of cruiser motorcycles from China that you can ship.

Adventure Bikes– These types of bikes are best for roads that are rutted or rough.

In most cases, if you wish to have better control when riding, most riders stand up in the saddle.

This kind of motorcycle is ideal for this kind of feature.

This is because it has a high seat height and a high handlebar position.

You can ship adventure bikes from Chinese motorcycle manufacturers.

Enduro motorcycle– This is a type of motorcycle is best for cross country competitions. This is because the bike is deemed as an off-road racing bike.

Popular Motorcycle Shipping Destination From China

Note that most of these popular shipping destinations are where some of the motorcycle manufacturers are situated.

The destinations include:

1. Guangzhou
2. Hangzhou
3. Shantou
4. Wuhan
5. Jinan
6. Shanghai
7. Xi’an
8. Zhengzhou
9. Qingdao
10. Chengdu
11. Dongguan
12. Shenyang
13. Hong Kong
14. Chongqing
15. Shenzhen
16. Hangzhou

Procedure For Moving Your Motorcycle From China

First and foremost, before moving your motorcycle from China, it is imperative for you to get acquainted with the laws.

Note that you need to be eligible to import your bike from China. Diplomats, legal residents, and people with ‘Z’ visas are allowed to ship from China.

Understanding the laws will help ensure that you do not encounter any hassle while moving the motorcycle from China.

It is imperative to ensure that the bike is secure.

You can choose to make use of a transport service to reduce the hassle of moving your motorcycle.

The good thing about using a transport service is that they will help lessen the risk involved while moving your motorcycle from China.

In most cases, wood crates are used while moving a motorcycle from China.

These wood crates help to strap down the motorcycle.

If you intend to move a couple of motorcycles from China, it is best to stack them in one container.

This approach is quite affordable.

If you need your motorcycle shipped by air, ensure that you make use of crates.

Sea Freight Motorcycle Shipping From China

Sea freight is a type of transporting method used when hauling large cargo using carrier ships.

How it works is that the shipping service picks up the motorcycle from the manufacturer.

The bike is then moved to the port. During this process, the motorcycle passes through customs.

The motorcycle is later loaded into a container.

The container could be an FCL where the client has their container or an LCL where they share the container with other users.

Once it is packaged, the container is later on put onto the cargo ship for shipment.

Advantages Of Sea Freight Shipping

1. It is economical- Shipping rates are relatively inexpensive. Hands down, sea freight shipping, is less affordable compared to air.
2. It is environmentally friendly- Shipping goods by sea is better for the environment than air. In most cases, cargo airliners tend to let out a lot of carbon dioxide into the atmosphere. Too much of this type of pollution can cause global warming.

It is best to consider using sea freight shipping as it is eco-friendly.

Note that most states offer a tax write-off for businesses that deliver eco-friendly services.

3. It is convenient- In some cases, a client may need to ship one motorcycle from China. As a result, you may not need a lot of space to transport your bike.

If you use sea freight shipping, you have the option of sharing your container with another client.

4. Sea freight shipping is an ideal method if you need to ship heavy products- Let’s say that you need to ship a couple of motorcycle from China, using sea freight shipping is the best method to use.
5. It is safer- If you are transporting hazardous materials, it is best to make use of sea freight shipping. This is because maritime employees are trained on how to handle hazardous products.

Sea Freight Motorcycle Shipping Options

Some of the main options you should consider include:

Roll on/Roll Off

This kind of shipping is used to ship wheeled vehicles such as a motorcycle.

Most individuals prefer this method as it is relatively cost-effective.

This shipping option makes use of rollers; there is also the use of forklift trucks.

The machinery comes in handy when loading and unloading the motorcycle.

The downside of using this method is that you cannot stack the motorcycle over each other.

This makes it less convenient since the vessel cannot accommodate many products.

Also, this method is not secure.

While using this method, it is imperative to understand that you cannot include your personal belongings while shipping.

Container Shipping

The beauty of using this method is because you can use it anywhere you want.

One disadvantage of using roll-on/roll-off is that it is limited to global routes.

Container shipping is secure.

If you have any spare tires or any other personal belonging, you can quickly ship them along with your motorcycle while using container shipping.

The downside of using this method is that it is relatively expensive compared to using RORO shipping.

But, the charge depends on the type of container you choose.

Disadvantages Of Sea Freight Motorcycle Shipping From China

1. One significant disadvantage of using sea freight is that it takes a lot of time to ship your motorcycle from China. In most cases, sea freight tends to take long because it ships items in bulk.
2. There are various risks involved while using sea freight motorcycle. You may encounter delays while using sea freight shipping. Also, there may be weather obstructions, which may result in losing your shipment.
3. Shipments are more prone to get damaged while in transit.
4. Keep in mind that there are few states that do not have ports; therefore, they cannot receive ships carrying large containers.

Motorcycle Loading Ports From China

• Port of Guangzhou – This is one of the busiest ports in China. It trades with over eighty nations and 300 ports.
• Port of Shanghai- The port is the largest port in China and the world. One factor that has contributed to its popularity is its closeness to different manufacturers in China.
• Port of Shenzhen
• Port of Ningbo-Zhoushan
• Port of Hong Kong
• Port of Yingkou

Airfreight Shipping From China

Airfreight shipping involves the transport of shipment via air.

Advantages Of Airfreight Shipping

1. Air freight is a fast mode of transport- There is no doubt that air freight is the quickest shipping method. If you wish to receive your motorcycle in a short time, using air freight shipping is the way to go.
2. Air freight is a reliable mode to use- Air freight shipment is considered a reliable form of shipping. This is because airlines tend to have strict schedules that need to be met.
3. You can ship your motorcycle almost anywhere you want- In most cases, sea, rail, and road may be inaccessible in remote towns. This, however, does not apply to using air freight shipping. This is because most airlines have several networks of destinations all over the world.
4. Air freight shipment are secure- In most cases, using sea freight is quite insecure. It will be of benefit to make use of air freight as it is safe to use.
5. Less need for a warehouse and fewer products in stock- Air freight is relatively quick. Hence there is less need to look for a local warehouse. This, as a result, will not require you to have more products in stock.

Also, while using air freight, the customs clearance is quicker since most of the cargo is cleared quickly.

6. It is easy to track your cargo- The benefit of using air freight is that few companies allow you to track your shipment while in transit.
7. Lesser packaging- Air freight does not require a lot of packing. You will end up saving money and time that you may have used in packaging.

Disadvantages Of Air Freight Shipping

1. It is costly- Air freight shipping is an expensive mode of shipping.
2. Air freight shipping is dependent on weather – There are few situations where the flights wind up getting canceled due to weather. This could have adverse effects, mainly if you needed the cargo at a specified time.
3. There is the size and weight limitation while using air freight shipping- Planes are as not big as ships. So there is a restriction to how much weight a plane can carry.

Airports For Motorcycle Shipping From China

1. Beijing International Airport- Beijing is well connected with major cities. The airport is relatively modern. Using this airport is an ideal choice when shipping your motorcycle from China.
2. Guangzhou International Airport – Guangzhou being the largest city in China, makes it an ideal choice of air freight shipping from China.
3. Shanghai Pudong International Airport- Shanghai Pudong International Airport is the primary airport in China. The benefit is that you can go away here from Shanghai.
4. ShenzenBaonan International Airport- The airport is the 5th largest airport in China.
5. Shanghai Hongqiao International Airport- It is among the oldest airports in China.
6. Xi’an Xianyang International Airport

Documents You Need To Ship Your Motorcycle From China

Some of the documents you will need include the following:

Bill of lading– It is imperative that you have this document as it has information about the goods being shipped.

The paper also contains a contract between the exporter, carrier, and carriage.

Therefore it ought to have the name of the ship, the destination and origin, the title of the consignee, and the name of the consignor.

Import License– An import license showcases the government’s authorization order to allow a particular product in its territory.

Packaging List– This is a document detailing out what is in the shipment.

Certificate of origin– This is a document that outlines which country the motorcycle was manufactured.

The certificate contains information about the product, the stipulated destination, and the country of export.

Commercial Invoice– This document details the agreement between the seller and the buyer.

The document details the price value and quantity of the goods.

Packing Your Motorcycle For Shipping From China

While packing the motorcycle for shipping from China.

In most cases, a purpose-built wooden shipping case is used to ship the bike.

The good thing about using this strategy is that it does not leave room for wear and tear.

Hence you are confident that your motorcycle will get to you in perfect condition.

The other benefit of using a purpose-built wooden shipping case is because it offers extra space.

You can use the extra space to store personal items such as helmets or leathers.

Crating Motorcycles From China

Note that all crates used to ship the motorcycle are carefully crafted to fit the motorbike perfectly.

While crating, you need to start with positioning the bike on a heavy-duty base.

This step ought to be done prior to when you secure the stand and the wheels with chocks.

While strap banding, it is essential to ensure that the straps protect the area in contact with the foam padding.

With this always strap band through the wheels as it will also help protect the paintwork when tension is introduced.

When the crate’s sides are in perfect position and the crate base is well secured, the shipping company uses timber lengths to hold the bike to the crate.

This also helps ensure that the paintwork of the motorcycle remains protected.

Before the crate is externally strapped, the top crate is safely secured and then uniquely numbered for shipping.

Motorcycle Shipping Cost From China

The average cost of shipping your motorcycle from China is $1000 to $2000.

Please note that the total amount is influenced by various factors such as destination or transport mode.

Shipping Motorcycle From China Taxes, Duties And Laws

You need to have a good understanding of taxes and duties while shipping your motorcycle from China.

Note that each state tends to have different rates when it comes to taxes and duties.

What happens is that the customs official assesses the value of the motorbike in order to determine the duties and taxes.

While importing your motorcycle from China, the state will subject you to pay import duty tax.

Import duty tax is a tax collected on imports by the state’s customs authority.

Ensure that you have a customs bond while shipping your motorcycle from China.

A customs bond is a contract that acts as a surety of payments of import duties and taxes.

Like all other countries, China has laws that need to be followed while shipping your motorcycle from China.

One crucial law that you ought not to overlook is to ensure that you have paid all taxes and duties for your cargo to be cleared.

Also, you need to have all the required documents for your cargo to be released.

Factors Influencing The Cost Of Shipping Motorcycle From China

1. Location of origin and destination of the cargo– If the distance between the origin and the destination of the cargo is far.

The charges might be higher in comparison to when the point of origin and the destination is close.

What makes the charges accelerate is due to factors like the loading and unloading of the cargo, fueling of the ship, and the length of the voyage operation time.

2. The season– There are particular holidays, such as the Christmas holidays, where the prices are usually high.

In China, celebrations, such as the new year Eve and the China Spring Festival, tend to have higher shipping rates.

During these seasons, shipping companies tend to increase the rates in order to stand in for the losses incurred during the off-seasons.

3. The size and type of vessel used– Note that most ships tend to have different suitability and airworthiness in them.

These factors influence the rate of using the vessel. Also, ships tend to have dissimilar security and technical conditions.

Hence the type of vessel you use to ship your motorcycle from China will also influence your shipping cost.

4. Exchange Rates– In most cases, most shipping companies tend to put into consideration the exchange rate or currency for them not to incur any economic losses while setting the rates.

Today, the common currency used worldwide is the US dollar.

Hence the shipping cost may be levied according to the dominant currency.

5. Government intervention and protection– Nowadays, while shipping internationally, you will automatically notice that most states have strict intervention and protection.

Case in example, while shipping your motorcycle from China to North America.

You will realize that the government has intervened and protections.

This kind of intervention and protection tends to increase the shipping rates.

6. Trade policies between different countries– Note that other countries tend to have dissimilar trade policies.

A trade policy is defined as a policy that affects the flow of goods between different countries.

There are particular countries with high trade policies while trading with China, whereas there are those with favorable policies.

This kind of trade policy ultimately affects the total cost of shipping.

7. Oil prices– Oil prices tend to fluctuate continually.

Therefore, the oil prices greatly influence the total amount you will pay while shipping your motorcycle from China.

Motorcycle Freight Insurance When Shipping From China

It is imperative to have motorcycle freight insurance while shipping it from China.

The insurance policy will come in handy in case the motorcycle gets damaged or lost.

Note that your typical motorcycle insurance policy will not be liable while your bike is being moved.

Hence it will be of help to purchase a comprehensive policy that will cater for any damages while the bike is being moved.

To help ensure that your motorcycle has full coverage, it will be of help to make use of your shipper’s liability.

Keep in mind that the shipper’s liability will not cover damages caused by unforeseen elements like a flash flood.

Also, the liability policy will not cover any damages that your actions might have caused.

How Long It Takes To Ship Your Motorcycle From China

The time it takes to ship a motorcycle from China is influenced by various factors.

One main aspect that influences the period it will take for you to ship the motorcycle is the distance.

If you end up shipping your motorcycle from state to state it will take approximately fourteen days.

However, if you intend to ship your motorcycle internationally, it may take four weeks.

Also, the other factor that influences how long it takes to ship your bike from China is the mode of transport.

If you choose to ship your motorcycle via air, it might take a shorter time compared to using the sea.

Motorcycle Shipping With China Freight Forwarder

A freight forwarder is a group that helps with the arrangement of your import and export.

One famous freight forwarder company that most people use while shipping from China is Tj chinafreight.

What Tj chinafreight does for its clients is to act as an intermediary between carriers and shippers.

Therefore while using Tj chinafreight, you are confident that you will not experience any frustrations while shipping your motorcycle from China.

Here is how Tj chinafreight will benefit you:

1. Manageability- In most cases, you may end up not experiencing the right amount of transparency while using a third-party logistics company.

Most logistic companies may not offer you that personal touch, particularly if you are shipping your motorcycle internationally.

If your motorcycle gets lost, it might take an eternity for you to get your answers.

Therefore, to avoid having any back-and-forth with anyone, it is best to use Tj chinafreight.

Tj chinafreight will help manage your cargo. They will also help you easily trace your motorcycle in case it gets lost.

2. Versatility- If you have a tight deadline that needs to be met while shipping your motorcycle it is best to make use of Tj chinafreight.

There are periods when unforeseen circumstances might crop up when shipping your motorcycle from China.

To avoid going through the hassle of dealing with the circumstances, it is best that you use Tj chinafreight.

Some of the unforeseen circumstances that Tj chinafreight can help you with are like re-routing of your vessel.

It might be hard for an individual to react well when they are informed their vessel has diverted due to poor weather.

However, while using a freight forwarder, they will ensure that they handle the issue adequately to ensure that your shipment is safe.

3. Saves on cost- By using Tj chinafreight, you are sure that you will save up on cost. This is because Tj chinafreight can easily come up with a deal with the carriers.
4. Freedom from contracts- By using Tj chinafreight as your freight forwarder, you are certain that you can count on them not to be tied to any contracts. Simply you have the freedom to change firms.
5. Simplicity- There are so many processes involved while shipping goods. Tj chinafreight can offer some simplicity to these processes.

The good thing about using a freight forwarder is that the firm allows you to have control still.

The benefit is that you will not go through tiresome processes of vetting carriers or assessing prices.

By using Tj chinafreight you allow yourself to have some peace of mind while waiting for your shipment.

How To Save Money When Shipping A Motorcycle From China

You can do a few things to help you save money when shipping your motorcycle from China.

Here are some of them:

1. Make use of a reliable freight forwarder- By using a freight forwarder, you are certain that your shipping cost is lower. Making use of a reliable freight forwarder could help you get a couple of shipping discounts.
2. Pick an ideal shipping mode- Air and sea are among the most popular mode of shipping.

Both air and sea have their own advantage and disadvantages.

Hence it is imperative to understand them both, as choosing the right mode will help you save money.

3. Use courier and air freight only when necessary- If your motorcycle is urgently needed, then using air freight seems as the logical option to use. However, if your goods are not time-sensitive, it is best to make use of sea freight.

Moreover, using a courier service helps ensure that your goods are delivered faster.

However, by using a courier service, you will end up incurring an extra cost.

If you necessarily do not need your motorcycle delivered quickly, it is best to use the normal logistics.

4. Measure and weigh your motorcycle- having accurate information about your packaging will make it easier to find the right shipping company.

By having actual measurements of your shipment, you can easily take advantage of online calculators.

The online calculators may help you have an estimate of what you will incur from shipping your motorcycle from China.

5. Compare shipping cost- As obvious as it may sound, it will be of help to compare different shipping companies.

This is because more shipping companies tend to have dissimilar shipping costs.

6. Buying larger quantities to help lower shipping cost- If you wish to save on cost, ideally, you buy goods in large quantities.

At a glance, it may appear challenging shipping a motorcycle from China.

But in reality, it is relatively easy to ship a bike.

It would be best if you were wary with the suppliers you use to ensure that you obtain a quality motorcycle from a Chinese Manufacturer.

So what are you waiting for?

Why not ship your bike from China and enjoy the many benefits of shipping from China.

Contact us now for any assistance when shipping motorcycles from China.

If you want to compare starboard vs portside, then this guide has all information you’re looking for.

From basic definition, uses, to origin of the terms – you’re going to learn everything about starboard vs portside here.

Keep reading to learn.

What is Starboard?

This refers to a nautical term for navigation that unambiguously references the right side of a vessel.

This is normally achieved by an observer aboard a vessel.
The observer uses this navigational term while facing the front of the bow.

What does Portside mean?

This is a nautical term that unambiguously references the left side of a vessel.

This is done while observing the bow.
Similarly given when facing the front of a vessels’ bow.

What is the difference between Starboard and Portside?

Starboard is the right side of a vessel.

Portside is the left side of a vessel.

Starboard is denoted mostly by the color green.

Portside is denoted by the color red.

What is the Origin of the Term ‘Starboard’?

The etymology of starboard comes from steorbord.

Steorbord means the direction which the ship is steered.

Steor means steer.

Bord refers to side of a boat.

What is the Origin of ‘Portside’?

Initially it was called backboard.

It later transitioned to ladder board meaning to load.

Do Cargo Ships always Dock at Portside?

The position to dock can be on either portside or starboard.

The captain of the ship has the discretion to choose where to dock.

Some other factors that may determine which side you dock on are:

• The government regulations for a particular country or region.
• Layout of the port area.
• The direction that the boat is sailing in.

When should you Use Portside?

A port is a term in navigation that you will use in seafaring.

When one is facing the bow or front side of the ship, the port side is the on the left side.

You should use the term portside while navigating the sea and indicating to turn to the left direction.

During the past, ships would approach the port when the left side is facing the dock.

The reason for this was because the rudder was always on the right side of the ship.

When should you use Starboard?

Starboard, just like portside, is also a terminology that you will use in seafaring.

You should use the term starboard to indicate the right hand side.

It is the opposite of the portside.

It is a navigational term which reduces ambiguity while in the sea.

During the past, the navigation of small ships was done by a hand-operated rudder mechanism.

The handle was on the right side of the ship as a majority of the sailors were right-handed.

Why do Ships use ‘Starboard’ and ‘Portside’ and not ‘Left’ and ‘Right’?

This is because starboard and portside are unambiguous regardless of a mariners’ position.

You will thereby minimize the chances of confusion when communicating on which turn to take.

Ships in the past were having rudders on the center line and a steering oar controlled it.

Just like in the modern society, most sailors were right handed.

Therefore, since most sailors were using their right hand, steering oars were on the stern’s right side.

This lead to a majority of sailors were referring to the right side by the term steering side.

The name later changed to starboard.

Also, starboard combines two words: stéor and bord.

Stéor means steer while bord refers to the side of a ship or boat.

The left side of the ship got the name port.

This is since ships with starboards usually dock on ports on the opposing side of the star.

Port side and star board came about so that no interference came about during operations.

The other reason is that starboard and portside sound different.

Challenging conditions of the sea would make it hard for sailors to hear one another.

This is especially true since the left side was originally larboard.

Old English terminology for port side was sounding like backboard.

Sailors had their backs facing the left side of the ship while steering big ships.

Later on, backboard changed to ladder board.

Ladderbord is the loading side of these ships.

After that, ladder board was changed to larboard which happens to be quite confusing.

These terminologies makes sailors eliminate doubt when you compare it to right or left.

Is Portside the Default Loading Side for Cargo?

Yes, it is.

This is because the portside faced the port.

Hence making it easier for loading and offloading of cargo.

How do you Identify the Starboard and Portside of a Shipping Vessel?

You will notice the difference between starboard and portside as marked by the colors.

The portside is denoted by the color red.

The starboard side is marked by the color green.

Why is the Front of a Ship called Bow?

The origin of the word bow is similar to that of the bough of a tree.

Bough originates from a low German word that means shoulder.

The origin can be attributed to two theories.

First, the extreme front of the ship is known as head.

It is also the widest part of the ship behind the head meaning it would be followed by the shoulders or bough.

Secondly, wooden frames were used to construct wooden ships.

Also, the wooden frames had a prominent curve near the bow.

The ship builders were selecting timber pieces that would fit on the frames.

These pieces of timber came not from the tree trunk, but from the bough of the tree.

What Color are Port and Starboard Lights?

The colors for port side is marked by the color red.

You will find starboard lights are indicated with the color green.

What is the Back of a Ship Called?

The back of a ship or boat is called the stern.

However, when the ship is in backward motion it is referred to as moving astern.

If a person is moving towards the back of a ship, the person is going aft.

What Color are a Ship’s Stern and Bow Lights?

You will find a ship’s stern is color white and placed at an angle of 135 degrees.

You will note that the bow lights are bi-colored.

The portside lights are red.

The starboard lights shine green.

What is the Importance of Navigation Lights on Cargo Ships?

Other than being a requirement as stipulated in the COLREGs, there are other benefits to this.

The major purpose is to act as a guide to the direction of the ship.

Navigational lights also give the position of the ship.

Navigational lights act as indicators when overtaking, crossing or head on scenarios.

Also, the ships had white lights that were on the masthead and stern.

When you combine the red, green, and white light, it was easy to identify a ship during the night.

An example is when two sea vessels were approaching each other bow to bow.

The sailors would navigate the vessels to the starboard direction.

This means they would pass one another on the port side.

What is COLREGS?

COLREGs stand for International regulations for Preventing Collisions at Sea.

It came into effect on 15^th July 1977 after adoption on 20t October 1972.

You will find them listed in the International Maritime Organization.

It is also referenced as “rules of the road”.

COLREGs are derived from the Convention on the international Regulations for Preventing Collision at Sea.

COLREGs govern the navigation of vessels at sea for ships and vessels to prevent collisions.

COLREGs is made of Six (6) sections.
It has 41 rules.

These six sections are as follows:

• Section 1 – General;

1. Rule 1: Applicable to all vessels on seas and all water bodies that connects to high seas.

Special rules made by maritime authority will be adhered to and take precedence.

2. Rule 2: It ensures the masters, owners and the crew follow the rules.

Should the owners and or masters fail to follow protocol they will be held accountable.

3. Rule 3: This part incorporates definitions.

• Section 2 – Steering and Sailing;

1. Rule 4: It applies to all conditions regarding visibility.
2. Rule 5: Necessitates all vessels to be vigilant in terms of sight, sound, or other means applicable.

No vessel and or captain should make decision based on scanty information.

3. Rule 6: It highlights safe speed of the vessels.

States that all vessels should take reasonable measures to avoid collision.

All vessels should check on the prevalent circumstances to avoid collisions.

4. Rule 7: It will cover the risk of collision and no assumptions are valid when information is scanty.
5. Rule 8: involves steps to take to avoid collisions.
6. Rule 9: Vessels using narrow courses should be close to the outer side of the channel on the starboard side, etc.

Fishing vessels should not hinder the passage of other vessels in a narrow channel or fairway.

A vessel which of less than 20 meters in length should not hinder passage of another vessel.

7. Rule 10: ships crossing traffic lanes be at right angles to the direction of the flow of traffic.
8. Rule 11: This section will apply to vessels that are visible to one another.
9. Rule 12: Highlights actions that two vessels approaching one another should take.
10. Rule 13: It highlights overtaking requirements.

It stipulates that the overtaking vessel should keep way from the vessel being overtaken.

11. Rule 14: highlights situations when vessels are head on.

All power driven vessels while headed for a collision should switch to starboard course.

12. Rule 15: covers actions that the vessel which gives way should take.
13. Rule 16: Contains rules which the vessel that gives way should apply.
14. Rule 17: Highlights actions that stand-on vessels should take.
15. Rule 18: Highlights responsibilities between various vessels.
16. Rule 19: Ships should move at the right speed as per the current circumstances and visibility.

Each ship shall take into consideration the prevalent circumstances of restricted visibility.

• Section 3– Lights and Shapes;

1. Rule 20: mentions that rules pertaining to lights apply from sunrise to sunset.

This is applicable in all weather conditions.

2. Rule 22: Gives definitions.
3. Rule 23: Looks at lights that power-driven underway vessels should carry.
4. Rule 24: Looks at lights which vessels that tow and push uses.
5. Rule 25: Looks at the light necessities for sailing underway vessels and vessels using oars.
6. Rule 26: This covers the light that fishing vessels use.
7. Rule 27: This will cover vessels that have their movement restricted or with no command.
8. Rule 28: It looks at vessels that have are affected by draught.
9. Rule 29: This one covers light for pilot vessels.
10. Rule 30: This will look at vessels that have docked.
11. Rule 31: It looks at light for seaplanes.

• Section 4 – Sound and Light signals;

Use of high intensity revolving lights should be avoided.

1. Rule 32: Defines short and prolonged blasts, and whistles.
2. Rule 33: Ships ≥ 12 meters should have a whistle and bell while those ≥ 100 meters must have an extra gong.
3. Rule 34: It looks at maneuver and warning signals while using lights or whistles.
4. Rule 35: Looks at sound signals in restricted visibility areas.
5. Rule 36: Looks at signals that will attract attention.
6. Rule 37: It looks at distress signals.

• Section 5 – Exemptions; and

1. Rule 38: ships built before this regulation can be excluded from some sound and light signals.

• Section 6 – Verification of compliance with the provisions of the Convention

1. Rule 39: it highlights definitions.
2. Rule 40: contracting parties to apply code for implementation to execute their obligations in the current convention.

It also stipulates that every contractor shall be liable to audit.

3. Rule 41: Contracting parties to undergo regular audits.

COLREGs has four (4) annexes.

The annexures cover:

• International SOS codes.
• Specification of shapes and lighting used.
• Auditory signaling appliances
• Signage of fishing ships within close range.

What are the COLREG Rules for International Shipping?

The COLREG rules are divided into (6) sections:

• General

States that all vessels are in high seas are bound by the COLREG regulations.

Further states that the port side and starboard lights will only be on when underway.

Should a vessel be in motion it will have either one or two masthead lights dependent on its length.

A vessel should have day shapes and lights to indicate its nature and activity.

• Steering and sailing.

States that all ships should always move at a speed considered safe.

The determinant factors of safe speed are:
Visibility.

Traffic density.

Maneuverability

Wind speed and sea currents.

• Lights and shapes.
• Sound and light signals.
• Compliance verification.

What is the Relationship between Starboard vs. Portside and Stowage Planning?

Stowage planning refers to allocation of space on a ship for cargo containers.

The planning is done in regards to discharge in different ports.

It is very important to have the proper storage of containers to avoid maritime disasters.

Stowage planning is done in consideration of several factors among them being:

• Port of load.
• Transhipment ports.
• Port of discharge.
• Ship size.
• Number of containers.
• Weight, size and type of containers.
• Special care of items being shipped.

Calculation of storage is done by computerized software.

You will need to know the following when doing stowage planning:

• Scheduled ports to be visited and the order.
• Summarization of containers by weight, size and type.
• The number of hazardous containers to be loaded at each port.
• Number of containers already aboard.

What Kind of Goods is Best Loaded in Starboard?

Any goods can be loaded on starboard.

This is provided they adhere to load line restrictions.

The load lines put restrictions on the amount of load to be carried by a vessel.

However, it is advised that compatible load be loaded on the same side.

This is to avoid chemical reaction of items which are incompatible.

Caustic soda and acids should not be stored together because they will react.

The United States coast guard has released a cargo compatibility.

This checks if goods can be loaded together.

You should also check on the stability on each side of the vessel before loading.

This ensures the vessels does not break into two or sink while in the deep seas.

Various factor looked at when loading vessels are:

• Cleaning procedures.
• Vapor return.
• Toxicity
• Heating requirements.
• Boiling point.
• Freezing point.
• Pollution category.
• Inhibitor requirement.
• Maximum temperature.
• Multi-port voyage sequence.
• Limitation of load zone to port of destination.
• Stress conditions and sheer force at sea.
• Sequential distribution of multi-grade goods.
• Voyage draft restrictions
• Pre-wash requirements.
• Trim of discharge and draining.
• Valve segregation if applicable.
• Permissible expansion of goods aboard.
• Temperature of cargo load.
• Venting capacity.
• Electrostatic hazards.

Which side between Portside vs. Starboard is suitable for loading Hazardous Cargo?

Hazardous cargo can be loaded on either side.

This is provided they conform to the International Maritime Dangerous Goods code (IMDG).

The IMDG aims at preventing marine life and protection of the crew.

Hazardous cargo should conform to the density that is permissible.

The list of goods to be loaded need to meet an international Certificate of Fitness to transport hazardous goods.

It is also worthwhile noting that some items have temperature restrictions.

How do you Remember Port and Starboard?

Several ways to remember the port side and starboard are:

• Associate the terms with the alphabet.
• Buy a pair of socks indicated port side to be worn on the left foot and starboard on the right.
• Check the letters, starboard has two Rs alluding to the right and port is associated with left.
• Associate the number of letters with direction, port has four letters similar to left.
• Learn a joke on the two navigational terms (Portside and starboard).
• Know the etymology of the navigational terms.

How does Starboard vs. Portside help in safe navigation?

The terms reference the right and left sides without any confusion.

Any mariner will note the action to take when advised to turn to either side.

When two vessels are approaching a right of way is established using the navigational rules.

This takes into account if neither of the vessel is restricted in mobility.

When the starboard light is on, while approaching another vessel you can proceed moving forward.

If you observe portside light on approaching you need to give way.

What is Canting in relation to Starboard vs. Portside?

Canting refers to the effect of a vessel bow moving in a reverse direction.

This is the majorly caused when the ship is taken astern while approaching the jetty.

Does a Shipping Vessel’s Propeller Influence the Direction in which a Ship Navigates?

Yes, it does.

You will observe that for a propeller that is right handed, the stern swings to port.

The bow will move towards the starboard.

You will note that for a propeller that moves anti-clockwise, the stern moves to the starboard.

The bow moves to the port.
You will find propellers categorized into two (2):

• Fixed pitch.
• Controllable pitch.

Some of the notable propellers are:

• Controllable pitch propeller.
• Highly skewed propeller.
• Self-pitching propeller.

Propellers influence the following movements:

• Forward/Ahead movements.
• Slowing down.
• Stoppage

What is the Significance of Bow Thrusters in Ship Navigation?

Also commonly referred to us maneuvering thruster or stern thruster is a propulsion mechanism.

It is used to turn the vessel either starboard or portside without use of the ships propulsion mechanism.

You will note that it makes docking easier.

Bow thrusters are used to maneuver in the following scenarios:

• Maneuvering in coastal waters.
• Maneuvering in channels.
• Entry in ports when experiencing harsh weather conditions.
• Exiting ports in bad currents.

This is because docking can be achieved without moving the vessel forward.

Thrusters can either be mounted on either the stern or bow.

Bow thrusters have the following advantages:

• Saves on cost as it reduces the need to stay at the port and use tugboats.
• You will increase safety while berthing in adverse weather conditions.
• You will be able to better maneuver the vessel at low speeds.

At Tj chinafreight, we help you in all your freight forwarding service from China to any global destination.

Contact us today for all your freight forwarding needs.

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

From definition, customs process, to examples of bonded goods – you will find everything you’re looking for in this guide.

Keep reading to learn more.

What are Bonded Goods?

Bonded goods are imported shipments that have not yet been cleared of taxes, duties, and other penalties.

These goods are stored in a warehouse location controlled by customs authorities, otherwise known as a custom bonded warehouse.

The goods are issued out only after the full payment has been made to customs authorities.

If the cost has not been met after a specified period, the goods must be destroyed or disposed of.

What is the Difference Between Bonded Goods and Non-Bonded Goods?

Some of the differences between bonded goods and non bonded goods include:

• Bonded goods refer to imported cargo for which duties, taxes, and customs charges have not been paid.
• Non bonded goods, on the other hand, refer to a shipment that has been cleared of all taxes, duties, and customs or any other penalties.
• Bonded goods are stored in a warehouse controlled by customs authorities, known as a custom bonded warehouse.
• Non bonded goods, on the other hand, tend to be held in third party warehouses or the importer’s warehouse.
• Bonded goods are issued only after payment has been made wholly to the customs authorities.

This might be disposed of if no charge has been made after a specified period.

Non bonded goods are also released after meeting all custom clearance procedures.

What are Some Bonded Goods Examples?

Some of the examples of bonded goods include:

• Raw materials.
• Acids for trade and business.
• Chalk
• Ammunition for trade and business.
• Fireworks.
• Dried fish.
• Flammable or inflammable goods apart from petroleum products may be stored in places that are approved.
• Packaging materials.
• Spare parts.
• Agricultural components or finished agricultural products.
• Manufacturing components.
• Production components.
• Alcohol.
• Tabacco.
• Perishable goods.

What is a Bonded Warehouse?

A bonded warehouse is a place where goods are stored to undergo processing before they are delivered.

This warehouse can be owned either privately or by the government.

The distinguishing factor about bonded warehouses is that the goods are retained until they are cleared of customs duty.

These goods that are bonded are stored for a specified period, and taxes and responsibilities must be paid as required, failure to which they might be confiscated.

What are the Different Classes of Bonded Warehouses?

The different classes of bonded warehouses include:

• Private warehouses of importers: these may be used to store cargo for the proprietor or consigned to them.
• Owned or leased premises by the Government
• Public bonded warehouse: this is used for storing merchandise that has been imported.
• Bonded bins or elevators, or parts of buildings: these are used for keeping grain.
• Bonded yards or sheds: mainly used to keep bulky and heavy cargo.
• Bonded warehouses are put in place for manufacture in bond: they are mainly used for cargo requiring exportation.
• Bonded warehouses constructed for refining and smelting metal-bearing materials for either domestic consumption or to be exported.
• Bonded warehouses are referred to as “duty-free stores”: they are used to sell duty-free items and need to be used outside the customs’ territory.
• Bonded warehouses constructed for cleaning, repacking, sorting, or changing the condition of the cargo.
• Bonded warehouses constructed for storage of General Order cargo.
• Bonded warehouse for international travel cargo.

Who Manages a Bonded Warehouse?

A bonded warehouse may be managed by either the state or a private enterprise.

A bonded warehouse is a warehouse operated by a private company in a foreign country under the regulatory supervision of that country’s customs agency.

These warehouses can be government-owned or privately owned by large enterprises.

How Does Bonded Warehousing Work?

Bonded warehouse grants you the chance to defer paying for taxes and duties until the goods imported are distributed to be sold.

The bonded warehouse also allows a period whereby modifications such as sorting and packaging can be made to the goods while not paying tax or duty.

When the goods are dispatched from the bonded warehouse, duty and taxes need to be paid unless they are moved to another bonded warehouse.

What are the Benefits of Using a Bonded Warehouse?

Benefits of bonded warehouse include:

• Grants full payment control to importer: it requires no payment of duty when the item is dispatched for delivery to the buyer.
• Storage of restricted items: a bonded warehouse allows a prohibited item to be stored in it until they are ready for dispatch.
• Versatile: bonded warehouse facilities are exceptionally equipped to handle different storage needs.
• Protection: when you store your goods in a bonded warehouse, the warehouse’s authority gives you a bond.

This protects you from money loss when your shipment is released once you have paid the required taxes.

• Additional logistics solutions: a bonded warehouse may provide a one-stop service for all logistics solutions because they come to include freight forwarders.
• Proximity to ports: most of the bonded warehouses are situated near ports.

This will allow you to store the goods at the port of entry until ready for distribution.

• Safety and security: they have security measures such as CCTV, accurate record documentation, and regular auditing, certifying.

This are reputable organizations.

• Improved customer service: bonded warehouses offer a better customer experience as they can be ordered and stored in advance while anticipating demand.

Are there Alternatives to Bonded Warehousing?

Yes, there are alternatives to the bonded warehouse.

Some countries tend to have restrictions on the bonded warehouse, for example, lack of reliable postal solutions or express couriers.

In this case, a better solution would be using a warehouse situated in a free port.

Fulfillment centers might also be an alternative solution due to the following benefits:

• They will help you save on duties and taxes.
• Assist in easier shipping globally.
• Well established and very connected.

When Does Customs Release Bonded Goods?

Customs release goods from a bonded warehouse once all the duties and taxes due are cleared.

The importer will need to make a customs declaration to remove the goods.

What is a Non-Bonded Warehouse?

A non-bonded warehouse is a place where goods whose duty has already been cleared are stored.

They are supervised by the authorities of the port rather than custom clearance authority.

They can be selected over bonded warehouses if the importers need to use the goods domestically rather than exporting them.

Once the non-bonded warehouse goods have been inspected and approved by customs, they can be delivered to a preferred location.

When Should You Choose a Bonded Warehouse vs. a Non-Bonded Warehouse?

Different situations will need additional storage measures as elaborated below:

• Deferred duties: bonded warehouses tend to save money as the goods are stored in them while deferring responsibilities until released to their destination.

Compared to the non-bonded warehouse, the importer may cut up to thirty percent concerning taxes differed.

• Storing restricted goods: non-bonded warehouses tend to have a restricted time limit within which local interests should be held, and paperwork approved.

Bonded warehouses, on the other hand, do not limit the probation period for storing restricted goods.

• International shipping: for ease of shipping internationally, bonded warehouses are the best to import goods and store them without advance duty payment.
• Stress-free option: bonded warehouses are very friendly to the importer as they allow easier storage and transportation of goods.

The environment also has security measures in place, and importers can defer taxes until the goods are delivered.

What is the Difference Between FTZ and Bonded Warehouse?

Foreign Trade Zone (FTZ) refers to secure areas situated in or near the entry ports and is legally outside the assessment by customs for entry purposes.

Bonded warehouses, on the other hand, are controlled and supervised directly by the customs officials.

In FTZ, there is no collection of duties until when the goods are withdrawn to be consumed, and the items have duty free exportation.

On the other hand, Bonded warehouses required duties and taxes to be cleared before the goods can be delivered.

Bonded warehouses only have permission to store foreign goods, and manufacturing is not permitted.

FTZ, on the other hand, has unlimited access and lacks control over the movement of items within the zone.

How Long Can Goods stay in a Bonded Warehouse?

Goods are only allowed to remain in a bonded warehouse for two to five years, depending on the county’s requirements.

Failure to be exported to another bonded warehouse or entered to be consumed before the time elapses.

What are the Advantages of Operating Bonded Cargo?

Some of the advantages of operating bonded cargo include:

• Storage is often long term: in some countries, storage of bonded cargo is unlimited when there is increased demand.
• Save haven for restricted goods: importing goods that are restricted can be quite a hustle. With the presence of bonded warehouses, importers can store prohibited goods until they obtain permission to enter the country.

What is Bonded Transport?

Bonded transport refers to vehicles that can carry shipments that have not yet been paid for through customs and have an authorizing license.

It makes it possible to transport your unbonded cargo to an official bonded warehouse for cargo awaiting payment of duties and taxes.

How Do You Transport Bonded Goods?

Transporting goods that are bonded is strictly controlled by customs, with considerations being made to:

• Export the goods across borders.
• Move the goods to a different bonded warehouse.

Depending on the situation, you will need to register at customs for any of the following to ensure transporting of your bonded goods:

Remover of Goods in Bond

If you would like to transport goods kept in a bonded warehouse and you would prefer using your means of transport, you may register with the remover of goods in bond.

This license for the remover of goods in bond may be obtained at customs by opening a bond.

Possessing a bond grants you the ability to move bonded goods even across borders, and it is an advantageous way of transport.

Transporter/Remover of Goods/Road Hauler

This refers to a third party hired to move bonded goods from one point to another on the client’s behalf.

It is a requirement for the goods to possess a bond.

The transporter must be issued with a document to certify the transporter has permission to use the bond for goods transportation.

This way of transporting bonded goods is advantageous when you have a bond and lack the means to personally.

Foreign Remover of Goods

Transportation of bonded goods can also be met by foreign road cargo transporters that wish to transport shipments that are bonded.

This foreign entity does not have the permission to register its bond, but the country’s agent should undertake this on their behalf.

This type of bond is referred to as a consignor bond.

Carrier

In case you would like to cross national borders, you may need to register as a carrier or transport bonded goods using a carrier.

Carrier registration must submit the necessary documents needed to cross custom borders.

What is Bonded Shipment?

Bonded shipment refers to a load that is being shipped through the United States but not to the United States.

This type of shipment will not require clearance with the customs or payment of duties and taxes during the import process as it is only passing through the country.

What is the Difference Between Bonded Goods and Bonded Shipment?

Bonded goods are imported shipments that have not yet been cleared of taxes, duties, and other penalties.

On the other hand, bonded cargo refers to a load that does not require clearance for customs or payment of duties and taxes as it is only passing through the United States.

Bonded goods are stored in a warehouse location, which is controlled by customs authorities, otherwise known as a custom bonded warehouse.

On the other hand, the bonded shipment does not require being stored in a warehouse as they are only passing through the country to another location.

The bonded goods are only issued out only after the full payment has been made to customs authorities.

If the payment has not been met after a specified period, the goods must be destroyed or disposed of.

What is in the Bonded Shipping?

An in bonded shipment is an extraordinary document that allows you to move and store cargo without being commercialized in a specific country.

In bonded shipment permits the bonded carrier to move cargo and store it without paying duties and taxes.

It is important to note that bonded shipment is only eligible for transportation by bonded carriers, and storage should be in warehouses that are authorized.

Do you Need Shipping for Bonded Shipments?

You will require your bonded shipments to be transported by a bonded carrier and, where necessary, kept in a bonded warehouse.

How do you Choose a Shipping Partner for Bonded Shipments?

When choosing a shipping partner for bonded shipments, it is essential to find a well-experienced company licensed in custom regulations.

These companies will be able to guide you in every step required in passing international shipping requirements.

Due to transportation, it is essential to find a shipping partner who has a facility for bonded cargo and can offer bonded transport.

Obtaining all the above options in a single stop will prove to be very convenient for your company.

Shipping partners who contain accredited warehouses can also assist in repackaging your bonded cargo and any other shipment needs.

Having in place shipping partners who are licensed also puts your business in a better place as they may accept payments on the Government’s behalf.

This will put them in a better position of serving as intermediaries between customs and your business.

Can you Modify Goods Stored in a Bonded Warehouse?

Yes, goods stored in a bonded warehouse can be modified. Some of the modifications which can be done on these goods include:

• Marking.
• Testing.
• Labelling.
• Packaging.
• Grading.
• Dilution
• Inspection.
• Service maintenance.

How do you Inspect Bonded Goods?

Once goods arrive at any bonded warehouse, the officer in charge must:

• Checkmarks and numbers: the officer should inspect and verify the marks and numbers compared to the numbers indicated on the packages.
• Ascertain quantity: the package quantities should be confirmed to verify that they tall with the number indicated in the accompanying documentation.
• Examine damaged packages: an examination of any packets suspected to be tampered with should be conducted if possible in the presence of the transport agent.
• Once all this is done, and the goods are verified to be okay, they should then be appropriately stacked in the bonded warehouse and stock record.

How do you Determine Shipping Duty tax for Bonded Goods?

Duty tax refers to the tax imposed by countries on foreign goods.

This must be paid to the Government before the importer receives their goods.

For bonded goods, the goods enter the country as part of its transportation, and thus, the importer is required to post a bond to customs.

This bond is used as collateral for the duty tax imposed on the goods.

In case the importer of the bonded goods moves them to another country, it is possible to redeem the bond paid to customs and be refunded the customs deposit.

When do you Pay Import Duty and taxes for Bonded Goods?

Import duty and taxes for bonded goods are paid when goods are dispatched from the bonded warehouse and issued to the market.

Who is a Bonded Carrier?

Bonded carriers are individuals or organizations who can bring cargo past the entry port into an authorized location without customs release.

What is the In-Bond Process?

The inbound process follows a series of steps, which include:

• First, the bonded carrier reports the shipment as an inbound shipment to the customs authorities.

The airline should report the load as in on the manifest, and the driver should write it on arrival at the border.

• Once this is done, a customs officer will then grant authorization for the shipment to be moved.
• After this, the carrier will deliver the cargo to a specified warehouse or another customs officer to wait for release by customs.
• Before the goods are taken out of the warehouse, the carrier needs to wait for an official entry filing issued by the importer or customs broker.

What are the Benefits of using a Bonded Carrier?

Bonded carriers can:

• Move goods to an inland office that is not located at the border to release the shipment.
• Advance goods “in transit” from one destination to another.
• Streamline the process of import or export, and this will save you both time and finances.
• Give you peace of mind as they will ensure that all your shipments meet all customs protocol.

What is the Difference Between a Bonded Carrier and a Non-Bonded Carrier?

Non bonded carrier must give way the shipment at the point of receipt, which can be a frontier.

On the other hand, a bonded carrier can move freight away from the boundary for carrying out customs and for the goods to be released.

On the other hand, bonded carriers help to speed up the importation or exportation process of cargo to cut down on costs.

Can a Non-Bonded Carrier Carry Bonded Goods?

Yes, a non-bonded carrier may carry bonded goods because they should purchase a bond for a single trip.

It is important to note that only bonded carriers are permitted to use the in-bond process.

Non-bonded carriers have a carrier code beginning with one or seven, and they must post a single trip bond before moving goods inbound.

The single trip bond can be obtained either through paying the customs authority by cash or certified cheque or receiving it through a customs broker.

Can you Remove Goods in Bond through Any Port of your Choice?

No, you cannot remove goods in bond through a port of your choice.

This is because customs grant permission to interests in a bind to pass via land custom-designated at the border ports of exit and entry.

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I know you’re probably wondering what a bonded warehouse is.

Or, you’d like to learn more about bonded warehouse.

Whichever the case, this guide has all information you’re looking for about bonded warehouse.

Let’s dive right in.

What is a Bonded Warehouse?

A bonded warehouse is a building set aside for storage purposes for goods in particular imports and exports.

The goods enjoy a free import duty and taxes as they await to be transported to designated location.

In other words, your goods are considered to have not yet arrived.

However, there are costs that are accountable to both the importer and warehouse owner settled in bond terms.

How do Bonded Warehouses Operate?

Goods are stored in a warehouse where a payment schedule enacts upon removal of the goods.

Thus all import duty and tax fees on your goods are applicable when the goods are out of the warehouse.

 Moreover, just like any other warehouse, there are a number of activities that incorporate the operations of a warehouse.

They include:

Receiving

This activity involves getting hold of your shipment from the port.

Afterwards the goods go through a system confirmation just for assurance purposes.

Put-away

After the goods are put into the warehouse system, the staff is ready to make transportation to the warehouse.

Through the system, your get is fit into their space.

Nonetheless, manual assignment of storage pace can as well be arranged.

Picking

There are two main types of picking, the primary and secondary picking.

Primary picking ends up to a final process of picking.

Thus there is no other picking needs to be done.

Secondary picking involves a second time of picking.

It is more convenient to companies with voluminous sales.

The goods are released on the basis of real time and waves.

For the real time, goods are received once downloaded.

For waves, goods accumulate for specific times then later transported.

As a result, the picking may be discrete, in clusters or in batches.

Moreover, companies can put in place the following apparatus to help deal with goods of large volumes:

• put walls
• put-to-light systems,
• goods-to-person systems
• cross-belt sortation systems

Packing

Here goods undergo a preparation procedure ready for dispatch.

Dispatch

Being the last activity to be carried out, the Warehouse management ensure the goods are loaded in time.

Transportation means is organized to deliver the goods in the specific location.

What is the Purpose of a Bonded Warehouse?

Just like any other warehouse, a bonded warehouse carries out the following functions;

Storage Functions

Basically that is what most warehouses are meant to do.

Provide spaces to store goods for imports and exports.

Grading and Parking

In the event you are ready to remove your goods, the management will be ready to offer packing services.

The bond warehouses are flexible enough to cater for your packing and grading preferences.

Provide Transportation Means

You do not have to worry about the transportation of your merchandise.

From small to bulky goods, the warehouse serves to cater for this need.

For Price Stabilization Purposes

A bonded warehouse offers the chance to exploit the time utility for your goods.

Hence once you get your goods for use in the market, the prices are manageable and maybe in your favor.

Promote Risk Aversive Conditions

The warehouse bears a structure that can reduce the risks of theft, fire, damage, exploration as well as deterioration.

How can I Purchase a Bonded Warehouse?

You can opt to purchase one from an owner who is auctioning one.

In this case you will just need to be in agreement with the owner on the price.

Thereafter as the buyer, you should seek to ensure you have all the legal requirements as per by the authority.

Moreover, it is also important to double check with the authorities about the warehouse you are purchasing.

Ensure that the location is well laid out. The necessary transfer documents from your seller to you should also be carefully executed.

How Many Types of Bonded Warehouses are Available in the Market Today?

Bonded warehouse offer a number of packages to their clients to choose from.

Hence this results to the establishment of the different types of bonded warehouses.

There are two main types bonded warehouses, that is;

Private Bonded Warehouse

From the name, these warehouses are privately owned by either a firm or an individual.

Public Bonded Warehouse

These type of bond warehouses are state owned.

They are under the control of the government in which the warehouse resides in.

They are further subdivided into the following sub types;

Temporary Storage Areas

Fit space areas for your goods as they await documentation and further approvals for them to move to next destination.

Public Bonded Warehouses

In the event you wish to have customs control for your goods, these bonded warehouses are available.

They are usually under the control of the local port authority or the government.

Private Bonded Warehouses Type 1

These type of bonded warehouse is under the control of the owner.

The goods in the warehouse mostly belong to the owner.

However, the owner is free to extend the services to other clients.

Private Bonded Warehouses Type 2

This type differs from the first type in that, it strictly houses goods that belong to the owner of the warehouse only.

Free Warehouses

Anybody can access storage services from this type of warehouses.

The premises are under lock and key and are under the authority of customs officials.

Bonded logistics Parks

These are more of a location than a building set aside for warehousing.

They have expanded to incorporate logistics on top of their warehousing services.

They are also known as special economic zones.

What is the Difference Between Custom Bond and Non-Bond Warehouses?

A custom bond warehouse requires custom officials to help oversee the imports and exports.

Duty fee and tax fees are not payable in this case.

Anon-bonded warehouse offers storage services for import and export goods.

However, the concerned parties are liable to pay duty and tax fees.

What are the Rules and Regulations Governing Custom Bond Warehouses?

Below is a list of rules and regulations to adhere to when working with or in a custom bonded warehouse;

• A bonded warehouse should refrain from housing goods restricted by the customs authority. Clearance should be sought before then.
• The establishment should fully fulfill the requirements from the customs authority. Necessary approvals should be adhered to.
• All documents required from an importer for the bonded warehouses services should be filled appropriately.
• A well-defined management structure should follow suit. A custom official should be incorporated for regular checkups purposes.
• A custom bonded warehouse is liable to penalty rates in the event of averting from the custom authority requirements.

How Much do I Need to Purchase a Bonded Warehouse?

It all depends with the auction price and the condition of the warehouse.

However, purchasing bonded warehouses can be costly.

However, if you are looking for an investment, bonded warehousing proves to be quite profitable.

Renting the storage spaces can prove to be profitable hence easily get back your capital.

Provided you adhere to all requirements and all the fees required by the authorities and custom officials are paid.

Is it Safe to Store Goods with Bonded Warehouses?

If you are in the shipping business, bonded warehouses are a safe haven for your goods.

Setting up a bonded warehouse requires one to have passed all the security protocol requirements by authority in charge.

Security is keenly taken into consideration.

Furthermore, most of this bonded warehouses have insurances.

Your goods are more than safe when it comes to a bonded warehouse.

How Can Someone Benefit from Bond Warehouses Services?

Below are some of the benefits you can enjoy from bond warehouse services;

• You can hold your goods for a long time, thus save you the stock holding cost.
• You will also be able to optimize your cash flow since you will evade the import duty and tax fees.
• In case you have illegal merchandise, the warehouse gives you enough time for the government to legalize.
• Bonded warehouse guarantee no theft for your goods. Safety is paramount for a bonded warehouse.
• Your goods are in the best care as the warehouse is customized to maintain the quality of your goods.
• You can sort for a ready market for your goods without incurring a lot of storage costs.
• You can sell your goods while still in the warehouse. Hence transferring the costs to the buyer.
• The warehouse offers you ample time to sought for payment ways in the event you want to remove the goods. No costs attached.

What are the Disadvantages of Bonded Warehouses?

Below are a number of demerits you are like to encounter when working with a bonded warehouse;

• This usually extends to the warehouse owner, under customs authority, thus a private bonded warehouse.

No other goods can be allowed in the warehouse even in the presence of space.

• Some goods usually end up staying for long. The warehousing and insurance charges accrue to an extend of the owner abandoning the goods.

By this time the warehouse auctions the goods at a price not equal to the debt. Hence incur losses.

• As much as you can evade the duty charges, once the goods are out of the warehouse, as the importer all duty and tax fees will be payable.
• As an importer, your goods will not receive storage facilities in a bonded warehouse if your goods are not taxable.

Hence your goods must be liable to taxes. Making it harder for a business person to easily move the cargo due to costs.

• Also as an importer, due to time lapse, you are required need to remove your goods from the warehouse.

This might work against you in the event that the value of your goods has extensively diminished, hence offering you no profits.

• The processes involved in bonded warehouses both during entry and exit is somewhat long for some clients.

As a result, clients get discouraged to seek bonded warehouse services.

• Running a bonded warehouse is tedious especially with custom officials involved. Custom officials expect all requirements are followed to the latter.

What is an FTZ?

The initials in full are Free Trading Zones.

This is a type of warehouse usually near the ports.

A customs authority is not mandated to control the activities in a free trade zone.

An FTZ provides a flexible timeline for easier operation of these goods without paying duty fees Hence no defined maximum timeline.

How is FTZ Different from Bonded Warehouses?

An FTZ differs from a common bonded warehouse in the following ways;

An FTZ completely barres their clients from being liable to tax and duty fees.

Even in the event that their goods reach a point of leaving the warehouse.

As the owner of the goods, you can decide to resell the goods internationally, thus export without incurring these expenses.

However, a bonded warehouse expects the client to be accountable for duty and import fee once the goods leave the premises.

An FTZ offers a 24-hour watch and control of your goods.

A bonded warehouse can go as far as offering you the primary safety precaution for your goods.

A bonded warehouse come with restrictions.

Goods can only be moved in and out within the stipulated working hours.

In the case of FTZs, anytime is efficient.

Goods can easily move in and out of FTZs of course under a supervision.

FTZs allow for all non-prohibited goods, while this is different for a bonded warehouse.

For goods to be acceptable in a bonded warehouse they must be dutiable.

 How Can You Choose Between FTZ and Bonded Warehouse?

It all comes down to the client’s preference.

As much as others enjoy the privileges of a bonded warehouse, others would go for an FTZ.

Simply because an FTZ efficiently supports their business endeavors compared to a bonded ware house.

If you wish to have more control on your cargo and enjoy flexibility during transfers, an FTZ would best suit you.

An FTZ also gives you geographical flexibility advantages.

This is majorly because they are free from the countries custom regulations.

What are the Benefits of Sorting for FTZ Services?

Free trade zones come with a number of benefits to exporters and importers.

Some of them include;

FTZs allow their clients to defer from complying to import duty fee completely.

With FTZs, clients can easily eliminate such fees.

FTZs are quite advantageous to business persons who engage in international trading.

They can easily sell their goods with being held back by duty fees.

FTZs also allow you to manipulate your goods however you wish.

After all, it is part of the services a warehouse should comfortably extend to its clients.

However, a customs official should be present.

What are the Documents Required when Applying for a Bonded Warehouse?

The following documents are mandatory for every client seeking warehouse services to be in possession with.

An application form

It is designed to give more information about the client.

It is mostly designed by the warehouse management to highlight the requirements needed from you.

The client’s identity and the type of goods to be stored are as well specified.

Additionally, the client should provide information on the person in charge.

As a client, you should also provide information on business registration of your enterprise.

Clients in possession of prohibited goods are expected to present consent forms from the rightful authorities.

Any other additional documents will be outlined by the bonded warehouse management.

What are the Requirements for Operating a Private Bonded Warehouse?

• First of all, the interested party must make an application to own a private bonded warehouse to liable authorities.
• Afterwards, the location should meet satisfactory conditions by the customs authorities. Once your application is approved, as the new owner, you should ensure:
• Your house provides ultimate security to the goods to be entrusted in the warehouse.
• The locks to your warehouse guarantee a level of security as well.
• Ensure that you keep records and receipts of the goods to be kept in your warehouse.
• Ensure that the goods or cargo you admit to your warehouse are securely packaged to avoid damage.
• Ensure you do not admit illegal goods to your warehouse.
• Ensure you have an insurance.
• Adhere to the rules and regulations outlined by the customs in charge.

What are the Type of Goods that Can Be Stored in a Bonded Warehouse?

The following goods can be stored in a bonded warehouse;
1. General goods.
2. Materials and cabin goods used in transport vehicles for international trade.
3. Fuels for transport vehicles in international trade.
4. Materials and equipment for repairing ships or airplanes.
5. Mineral oils.
6. Hazardous goods under an approval.
7. Goods for inspection, test, sorting, classification, segmentation, assembly, or reloading.
8. Materials for repairing containers or pallets.
9. Exhibition goods.
10. Goods for sale in duty-free shops or offshore Islands Duty-free shops.
11. Other goods approved for storage by the Customs.

How Does a Bonded Warehouse Owner Earn Profit?

Mostly as a warehouse owner, the most probable way of earning profits is through renting out the spaces.

The more you rent, the higher your return on investment.

You also need to ensure that your client satisfactory is at a high level to attract more investors to invest in your businesses.

What Other Businesses can a Bond Warehouse Serve?

Here is a list of businesses you can set up for your warehouse space other than storage services;

• A furniture store
• Electronic store
• Pet store
• Subscription box business
• Food truck business
• Clothing manufacturing business
• Beverage company
• Personalized gift store
• A gym
• A recording studio
• Construction equipment rentals company
• A rental party venue
• Dry cleaner business

A warehouse can offer you enough space to help you even venture into other profitable businesses.

This is most preferable especially if you are not able to meet up with a warehouse logistics.

What are the Rates for Storage in a Bonded Warehouse?

As a bonded warehouse client, you ought to prepare yourself to incur the following costs;

• The storage area for your goods. It all depends on the amount of space your goods will occupy.
• Also custom duty of handling your cargo.
• Also the type of accommodation you choose also accounts for the costs. The accommodation might be open or covered.

All these factors contribute to the way bonded warehouses rent out their spaces.

Different bonded warehouses have different costs.

It is important to ensure that you consult with the warehouse management for their prices.

What are the Entry Procedures for a Bonded Warehouse?

Entry procedures are important because they help for easier picking of your cargo to the warehouse from the port.

As a result, as the importer;

1. Ensure you prepare an invoice for your cargo. Also, any other relevant documents from the warehouse.
2. The Customs Inventory Audit Unit then confirms the legibility of the documents. Upon acceptance, a signature and a stamp are put on the documents.
3. The warehouse then accompanies the documents to the port for the shipment to be released to the staff.
4. A customs office accompanies the owner of the warehouse to where the goods are to be stored. An account is taken, examination and tallying procedures as well.
5. Later, the packages are assigned their identification rotation numbers, ready for storage

In addition, the importer should specify the purpose for which the goods are in the warehouse.

This might be in either of the following;

• Delivering for local consumption.
• Delivering for Export.
• Transfer from one Warehouse to another.

Are there Special Procedures in Service Providence for Bonded Warehouses?

Yes, there are special procedures that bonded warehouses offer on how a client wishes to manipulate their goods.

These are;

Inward Processing (IPR)

The warehouse offers the client enough space and time for manipulation of the cargo.

The client enjoys a free import duty, taxes that could be levied on the imports, and commercial policy measures.

With Inward processing, you are allowed to alter your goods to standard forms of preserving your goods.

You can also change your goods to allow them to be ready for marketing.

Afterwards, you can choose to re-export or distribute your goods to the market.

Once your goods are out of the warehouse, then and only then will you be liable to pay taxes and import duties.

Outward Processing

It’s the opposite of inward processing.

Your goods can be processed from outside.

Hence they can just go through storage procedures as they await to be released to the market for consumption.

How Long can you Store your Goods in a Custom Bonded Warehouse and a Bonded Warehouse?

The two types of bonded warehouses on average can store your cargo for up to five years.

In other instances, some custom bonded warehouses do not have a definite timeline.

The only difference comes in with the costs.

The non-bonded warehouse will require you to oblige to the tax and import duty fees.

A custom bonded warehouse gives you the privilege to defer these payments.

Your goods will still be given space.

What are the Advantages of a Custom Bonded Warehouse Over Non-Bond Warehouse?

There are certain privileges you will be able to enjoy when you choose a custom bonded warehouse.

They include;

Long-Term Storage Services.

A custom bonded warehouse allows you to store your goods for up to five years.

In fact, other custom bonded warehouses have indefinite timelines.

Hence you can keep your goods for as long as you want.

Saves you Money

Working with a customs bonded warehouse is the most financially efficient way of storing your goods.

Here your goods will not be able to pay for import and tax fees.

They payments are applicable only when the goods leave the warehouse.

Non-bonded warehouses will require you to account for all import duties.

They can Store Restricted Goods

Unlike non-bonded warehouses, a custom bonded warehouse gives room for your restricted goods.

As much as countries have put restrictions on the type of goods not to import, there is always a certain in some of the goods.

But they are acceptable upon meeting certain clearance procedures.

A custom bonded warehouse will be able to grant space as you seek for necessary clearance for your goods.

Nonetheless, sometimes there is revision on restricted goods.

You can as well keep your goods here until they are legal.

Facilitates International Shipping

A custom bonded warehouse allows one to conduct international shipping easily.

As a business owner, you don’t have to incur costs of paying duty fee for each stop over you make.

With custom bonded warehouses available, you evade such costs ship your cargo across different countries duty free.

The importer can decide on one of the two routes:

For your imports, you can store them until there is an increase on demand of the goods.

After which, you will pay import duty fee once your goods are ready to be delivered to preferred destination.

As for your exports, you can wait until your goods consolidate to assets.

You are not liable to pay duty fee since your goods are under surveillance of customs.

Hence evading double taxation.

Something that is unavoidable in the case of non-bonded warehouses.

Less Stressful Event

Arranging for a space that will ensure that your goods are in perfect shape before serving their purpose is easy now.

With custom bonded warehouses being accommodative, you are in no rush to do your paperwork.

You have space, you don’t incur duty and tax fees and most of all your cargo is safe and sound awaiting your next move.

What are Some of the Goods Restricted in a Bonded Warehouse?

A bonded warehouse is not allowed to store the following goods;

• Narcotics and all forms of controlled drugs.
  Firearms, weapon &armaments, ammunition and explosives
• Parts and components of used vehicles, scrap iron, scrap metal, hazardous industrial wastes, medical wastes and other wastes.
• Animals, plants or their products that fail to pass the quarantine inspection.
• All other goods under the imports control of a country.

Additionally, here is a list of goods that can be allowed with the correct legal documentation. Ensure you have permits and certifications from the customs authority for these goods:
(1) Controlled chemicals, such as  hydro chlorofluorocarbon (HCFCs ).
(2) Radioactive substances.
(3) Strategic high-tech commodities destinating to export control areas.
(4) Goods that are likely to produce a public hazard or environmental pollution during the period of storage.
(5) Protected wildlife or their products.
(6) Rough diamonds.
(7) Other goods requiring prior approval, as announced by relevant competent authorities.
Also goods announced by the Ministry of Finance as unsuitable for being stored in bonded warehouses.

What is a Bonded Carrier?

A bonded carrier helps to transport bonded goods through ports without being charged import duties or any taxes.

They have been given the mandate to do so on behalf of bonded warehouses.

How Effective Are Bonded Carriers?

Bonded carriers are the only ones allowed to move freight goods in and out of a bonded warehouse without charge.

They come in handy for most bonded warehouses clients to help evade such duties in the event transportation is needed.

What is the Difference Between a Bonded Carrier and a Non-Bonded Carrier?

A non-bonded carrier must have the cargo released at the first point of arrival.

A bonded carrier transports the goods to a customs office in order for the goods to be officially released.

You can easily apply to be a non-bonded carrier provided you poses the necessary documents.

To be a bonded courier, it might take a longer process due to the nature of service providence.

Afterwards, barcodes are given to each courier to enable each carrier to obtain the goods from the port.

Can Couriers Be Bonded?

Yes, couriers can be bonded. They are referred to as bonded couriers.

However, the concerned party must apply for the bond.

It helps to insure the goods in the courier in case of any unavoidable damaging circumstances.

The bond covers the cost of the item in the courier.

It also covers late delivery fees.

Bonded couriers are very efficient when it comes to time.

Compared to other shipping agencies, bonded couriers are convenient if you are looking forward to beat a deadline.

Moreover, and individualized pick up can be quickly arranged.

Now, in case you have any additional questions or inquiry, Tj chinafreight team is here to help – contact us now.

Before shipping bulk cargo, read this guide.

It has all the useful information you need to know about bulk cargo.

Let’s dive right in.

What is Bulk Cargo?

Bulk cargo is effective when your shipment is large and cannot fit in a container or package.

In such a case, the shipment is loaded onto the holding vessel the way it is.

Bulk cargo, therefore, refers to shipments that are loaded directly to the vessel without being packaged.

They are shipped loosely without packing, and the carrier charges them based on volume and mass.

What is the Difference Between General Cargo and Bulk Cargo?

Whether you are shipping a bulk cargo or general cargo, the process is pretty the same.

The difference arises when handling and charging for the shipments.

While general cargo is shipped in defined loads, Bulk cargo is loose and shipped in any quantity as it is.

General cargo is grouped into three categories depending on the packing units used.

Containerized- this is a standard shipping method where the cargo being shipped is loaded on designated shipping container units.

Break-bulk- the term is used to refer to general cargo shipped while in bags, pallets, and boxes.

Neo bulk This category of general cargo might confuse you with Bulk cargo.

However, there is a difference because the units are pre-packaged.

Examples include vehicles and paper rolls.

How does Bulk Shipping Work?

Bulk shipping involves three core steps: loading, unloading, and storage.

When you are importing, you will require a customs broker to handle the documentation process both at the origin and destination ports.

After booking a slot with your carrier, the next step involves delivering your shipment to the loading yard.

Specialists do the loading of Bulk shipment, and your shipping incoterm will define who is responsible for paying the charges.

Storage can be either at the exporting country before the scheduled departure or at the importing country after offloading.

Storage is essential as it helps you plan your business activities.

Offloading involves getting the shipment out of the vessel.

It should be done by specialists to prevent damages to the shipment.

Hiring different specialists’ services to handle loading, offloading, and storage of Bulk cargo is essential.

It helps you save time and achieve efficiency in your business.

How is Bulk Cargo Loaded onto Ships?

The compartment of the ship is first cleaned to ensure no traces of previous cargo.

Loading is done by either the dockside cranes or the ship’s gear.

For loading, cargo is first brought to the quay.

Next, the larger-sized solid cargoes are lifted individually on to the ship.

Small-sized Bulk cargo can be loaded onto trays before being loaded on board.

Each loaded Bulk cargo is stowed separately to prevent toppling over when the ship is in transit.

What does Break Bulk Cargo mean?

The term break Bulk cargo goes back to the 1960s before the emergence of containers.

It refers to large and oddly shaped goods that can’t fit into a standard shipping container or cargo bin.

Due to their abnormal shape and size, breakbulk cargo is shipped separately as they are without packing.

These goods are sent using general cargo ships and are loaded in boxes, bags, or barrels.

What are the Major Bulk Cargoes?

Major bulk cargoes include:

• Grain
• Oil
• Coal
• Gravel
• Hydrocarbon products such as LPG and LNG
• Freshwater
• Wine
• molasses

Is Unpacked Cargo the same as Bulk Cargo?

Yes.

Unpacked cargo and Bulk cargo both refer to shipments that are transported as they are, without containers.

However, Bulk cargo has higher volumes and mass than unpacked cargo that can include pre-packaged products that do not require containers for shipping.

What are the Two Types of Bulk Cargo?

Bulk cargoes are shipped in large quantities and grouped into two categories depending on the content matter.

There is dry Bulk cargo and liquid Bulk cargo.

• Dry Bulk cargo – they are solid and are shipped using a Bulk carrier. Examples of Dry Bulk cargo include iron ore, coal, grain, gravel, timber, etc.
• Liquid Bulk cargo – they are in liquid or gaseous form. These are loaded and unloaded using pumps and pipelines and are shipped in tankers or deposits.

Examples of liquid Bulk cargo include, petroleum, gasoline, natural gas, wine, liquid chemicals, juice, etc.

What is a Bulk Ship?

A Bulk ship is a sea vessel with the capacity to transport bulk cargoes.

The ship is modified to have waterproof cargo compartments.

These ships are designed to transport different types of Bulk cargo.

They have a wide mouth for loading and unloading and are designed to withhold high pressure exerted by the heavy-loaded cargoes.

What Kind of Bulk Carriers are there?

Bulk carriers constitute more than 20% of the global merchant fleet.

They are classified in terms of their sizes and the regions they operate.

They include:

• Panamax-The name originates from their location area, Panama. The Panamax are limited by the Panama Canal lock chambers and cannot exceed a beam of 32.31 m, a length of 294.13m, and a draft of 12.04m
• CapeSize – CapeSize are larger ships than the Panamax and operate between the pacific and the Atlantic Ocean. They specialize in shipping coal and iron ore.
• Handles – these ships are available in two types, namely, HandySize and HandyMax.

The ships are the most commonly used to ship Bulk cargo as they serve general purpose shipping.

Also, they have the highest rate of growth representing over 71% of bulk carriers.

Their sizes range from 150-200m in length and have five cargo holds with four cranes

What is the Difference Between a Bulk Carrier and a Tanker?

Both bulk carriers and tankers are used to ship bulk cargoes.

However, Bulk carriers mostly focus on solid shipments and tankers on liquid cargoes.

Bulk Carriers

Bulk carriers, as the name suggests, carry majorly dry products in large quantities.

The commodities range from raw materials to finished ones.

They are made with a single or double hull and can either have cargo gear or lack.

Their cargo hold is strong and wide open to allow cargo grabs and bulldozers to collect cargo in the holds.

Bulk carriers have pontoons covering the cargo hold and vary in shapes, size and purpose depending on the manufacturer.

Anybody can enter the cargo hold of a bulk carrier without permission.

Also, cleaning the cargo hold is easy because of the enormous space and easy accessibility.

Tankers

Tankers specialize in carrying liquid bulk cargoes.

These ships can be used to ship crude oil, flammable gases, and liquid chemicals.

They can also be used to import wine and juices.

The size and number of cargo tanks in each ship vary from manufacturer to manufacturer and the carrier’s preference.

Larger tankers are majorly used to carry crude oil, while the smaller tankers deliver products to the bigger vessels.

Tankers are fitted with bulkheads that reduce racking and prevent fire and flooding.

In terms of structural appearance, tankers have a small opening to their cargo hold and are fitted with one or two ship cranes.

You must seek permission to gain entry into the tank’s cargo hold due to the risks involved.

Also, cleaning the cargo hold is practically difficult compared to bulk carriers.

How much does Bulk Shipping Cost?

Knowing the Bulk shipping cost will help you, especially when you are planning your budgets and choosing to import.

The freight cost for bulk cargoes is calculated in dollars per tonne of the shipment.

However, the rates are not fixed but controlled by several factors like the shipping season and the carrier.

The Bulk shipping costs averagely ranges between $2,000 and $3,000 for an FCL shipment.

If you opt for LCL shipment, the cost may be lower.

What are the Factors that Affect Bulk Shipping Prices?

As mentioned above, the cost of shipping Bulk cargo varies with several factors.

For example, carrier choice dramatically affects the prices, with some carriers charging higher than standard industry rates.

The main factors that affect the bulk shipping prices include:

Shipping Distance

Usually, the transportation prices are always proportional to the distance covered in many modes of transport.

But when it comes to Bulk shipping, the rates per mile covered usually do not increase.

Instead, different considerations are always put in place to determine the price per mile.

Depending on the transportation mode, prices are often determined by charges relating to line-haul and terminal costs.

Freight Class

Carriers usually charge their shipping prices depending on the type of Bulk goods you ship.

If your cargoes require precision during shipping, are valuable or precious, the costs will be high.

Size and Weight

Like standard cargoes, the shipment’s size and gross weight have a higher impact on the shipping prices.

As such, you must provide accurate details about your shipment’s weight and size.

Dimensional Weight

The space your cargo occupies in the shipping vessel plays a vital role in determining the prices you pay.

Bulk cargoes that are light but still occupy a lot of space because of their dimensional weight will always attract higher shipping fees.

What Documents are required for Bulk Cargo Shipping?

Documentation is an essential aspect of shipping that every shipper and importer must have in mind.

Shippers must have the right freight forwarding documents to ensure smooth and fast shipping.

Note that Bulk cargo, just like other cargoes; require nearly the same kinds of documents that include:

Commercial Invoice

The commercial invoice is a detailed document that provides information about the export/import transaction.

Certificate of Origin

Depending on your shipment destination, you should provide a certificate of origin that indicates where cargo is exported from.

Bill of Lading

The three bills of lading are vital in ensuring the smooth shipping of your Bulk cargo.

The Bill of lading provides information about your Bulk cargo, where it is shipped from, and the destination.

Hazardous/Dangerous Goods Documentation

If your Bulk cargo is considered HAZMAT, such as gasoline, you must provide dangerous goods documentation.

This shows how the cargo is to be handled to ensure safety during shipping.

It is important to seek clarification from your shipper or freight forwarder on other documents that may be required to enable smooth shipping.

Can you Ship Bulk Cargo by Air?

The answer is yes, though with certain limitations.

Although air transport can be expensive in terms of costs, it is beneficial when you need your goods delivered in time.

The maximum weight a cargo plane can lift varies from one plane to another, with the highest ever recorded being 187.6 tonnes.

This means that the weight of your cargo matters in air freight.

Additionally, the dimension of your cargo should meet the scheduled plane limit.

Therefore, you can ship Bulk freight by air but up to a specific limit.

If your cargo doesn’t meet your carrier requirement, you can opt for break Bulk shipping.

Do you need Insurance for Bulk Cargo?

Shipping of goods from one country to the other involves a lot of eventualities.

To reduce losses when such eventualities occur, you need goods insurance.

When losses occur, even if your shipper is liable, they usually pay a maximum of $500 per customary shipping unit.

This compensation is less as compared to the value of significant bulk cargos.

Though marine cargo insurance is not a mandatory requirement for Bulk shipping, it can be advantageous.

It ensures you get compensated in the event of damage or loss of Bulk cargo during shipping.

Are there Special Clearance Procedures for Bulk Cargo?

Bulk cargo requires proper handling, and to make the whole process as swift as possible, you should provide all necessary documents.

The Bulk Cargo clearance procedure is the same when the Bulk cargo does not require inspection before being released.

For goods that contain hazardous chemicals and explosives, the clearance procedure differs.

In this case, goods must undergo inspection to prove their safety before being allowed to ship.

How Long does it Take for Bulk Cargo to Clear through Customs?

Clearing through customs can be hectic depending on many factors.

There is no guaranteed fixed time that every shipment takes to clear through customs.

The following factors determine how long it will take your Bulk cargo to clear through customs:

• The importation country
• nature and type of the Bulk goods
• Presence of a customs bond
• The port of importation
• Mode of transport used (air or sea)

However, if all your shipping and import paperwork is in order, customs clearance should only take a few hours to complete.

What Duty do you have to Pay for Bulk Cargo?

Duty refers to the government-imposed taxes that are charged on imported goods.

Depending on your importing country, Bulk cargo, like all other cargo, attract:

• Basic duty
• Additional Customs duty
• Anti-dumping duties
• True countervailing duty

However, when you are shipping from a Free Trade Area, your Bulk cargo can be duty-free.

How is the Tariff for Bulk Cargo Calculated?

When in the international business, when you import goods, you must pay tariffs before being allowed to pick your goods.

Therefore, it is essential to understand how import/export tariffs are calculated on your Bulk cargo for easy budgeting.

The following procedure is commonly used:

Currency Conversion

Start by converting all the currencies into your local currency (The currencies, in this case, include the value of the goods and freight charges). Add all the costs together.

Add any other costs associated with delivering the product to your warehouse.

Calculate Tariffs

After converting foreign currencies to the importation country’s currency, the next step is understanding the rates applicable in that particular country.

The next step is knowing your shipping terms.

If you are shipping through Free Onboard (FOB), your tariffs will be a ratio of the value of goods imported.

For Cost, Insurance, and Freight (CIF), the tariffs are charged on the cost of products, transportation costs, and insurance costs if available.

Certain countries have a compulsory charge value that is added to the computed rate.

It would be best if you liaised with your freight forwarder to be on the safer side.

Is Intermodal Shipping Possible for Bulk Cargo?

Intermodal transportation involves using more than one transportation method before receiving your goods.

It can involve the use of trucks, ships, aircraft, and then trucks.

Due to the many handling and changing of your goods, intermodal shipping is practical when you use a container.

Your goods should be less than 25 tons.

Though convenient and cheap, intermodal shipping is impractical for Bulk cargo.

Your Bulk cargo has a wider volume and weight, and using containers and trucks is impossible.

What are the Risk Factors for Transporting Bulk Cargo?

Solid bulk cargoes involve many risks, which must be managed carefully to safeguard the ship and the crew.

The risks range from fire to explosions due to flammable substances onboard.

Other risks that may be experienced include shipping vessel instability due to cargo weight and volume.

Capsizing is also possible for the same reason.

Ships can also get damaged when shipping Bulk cargo.

IMO (international maritime organization) provides numerous guidelines for safe shipping for Bulk cargo.

You can visit their website under the following publications and resources for more information about this.

For liquid Bulk cargo:

• Tank cleaning guides
• International Code for the construction and equipment of ships carrying dangerous chemicals in Bulk
• MARPOL

For dry Bulk cargo:

• FEDIOL Code of Practice
• FOSFA documentation and CODEX standards
• The code of practice for the Storage and Transport of Edible Fats and Oils in Bulk
• MARPOL

How do you Determine the Weight and Volume of Bulk Cargo?

Cargo weight and volume are essential when costing your cargo’s shipping price and knowing how it is done.

Carriers use the highest between the volume and weight of your cargo in determining the shipping cost.

The weight of Bulk cargo is the actual weight of the goods.

This is determined by weighing the shipment.

Volume, on the other hand, is the total space your shipment will occupy in the vessel.

And usually, large items with a lighter weight are charged based on the shipping space they occupy, which is volume.

The formula for calculating Bulk cargo CBM is as follows:

(Length X Width X Height) cm / 5000 = Volumetric Weight in kilograms.

• First, you multiply the shipment’s length by width and height in centimeters.
• Then, divide the result by 5000 to get the volume weight in kilograms.

When determining the shipping, carriers compare the actual weight of cargo vs. the volumetric weight.

Whichever is higher is used to charge the freight cost.

You can also try using online CBM calculators to determine the weight and volume of your Bulk cargo.

These calculators are resources when trying to average your freight costs.

They are also fast, efficient, and easy to use.

Do you need a Freight Forwarder when Shipping Bulk Cargo?

Yes, it would help if you had a freight forwarder for your bulky goods to help you get a carrier and hasten the shipping process.

The process of importation is overwhelming, and sometimes so many risks are involved.

To make things easier, start by finding a capable freight forwarding agent who can meet your shipping requirements.

You have to arrange for delivery to the port where you find a suitable carrier with low transportation charges and faster delivery.

It doesn’t stop there; you must handle processing documents at the delivery port and arrange transportation of the goods to your desired warehouse.

All this is a headache, and before you know it, you receive a call that informs you of customs putting a hold on your goods, or you have made a mistake and you are fined.

Having someone who can save your business and help swiftly deliver your goods is life-saving.

That person is a reliable ad trustworthy freight forwarder.

How do you Choose a Reliable Freight Forwarder for Bulk Cargo?

A freight forwarder forms a closer linkage between sellers, carriers, and even you.

The following checklists should provide you with a perfect freight forwarder who suits your needs:

• Uses of latest technology-With the right freight forwarder, you should be able to track your bulk shipment from the supplier until they reach you.
• Presence in many countries– Your shipment can dock in many ports before reaching you. A good freight forwarder should have outlets in as many countries as possible.
• A perfect mastery of shipping logistics– the right freight forwarder should portray professionalism in what they do. They should understand all the laws of the countries along the path of your shipment.
• Should have customer service as a number one priority– you are the boss, and your needs require addressing whenever they arise. The freight forwarder must work to fulfill your shipment at the appropriate time and cost.

Getting a perfect freight forwarder to handle your Bulk cargo is close to impossible.

Lucky for you, you are in the right place.

At Tj chinafreight, we put our customers’ satisfaction first and ensure you receive your goods as early as possible.

We have a good reputation with many shipping companies and airline companies guaranteeing your Bulk cargo a carrier at any time of the season.

Our team of professionals is online 24/7 to help steer your business to the next level.

Reach out today for your Bulk Cargo shipment!

If you’re looking for any information about customs and border protection (CBP), you will find it right here.

In fact, if you’re importing from China to USA or exporting to the United States from any country, this is a-must-read guide for you.

Keep reading to learn more.

What CBP in International Shipping?

U.S. Customs and Border Protection is an agency of the American Department of Justice tasked with regulating international travel and trade into America.

CBP was formed in 2003.

What Does Customs and Border Protection Do?

• CBP gathers all export and import data for the main purpose of collecting international trade statistics
• CBP processes mail, cargo, luggage and people
• It seizes contraband together with narcotics and illegal drugs.
• They then arrest any person involved in any fraudulent or smuggling behavior with the drive to get around custom laws.
• It also does customs exams.
• CBP looks into the different paperwork like packing lists and commercial invoices.
• They ensure that every import and export is legal and complies with the American regulations and rules.
• CBP collects import duties associated with the enforcement of the above laws.
• The laws that are enforced by CBP to prevent illegal trade practices mainly protect American intellectual property and businesses.
• Some of the laws that CBP enforce deal with quality life such as health and pollution.
• CBP protects the general security and welfare of America by enforcing export and import restrictions and prohibition. They protect from money laundering as well as export of data key to the production of mass weapons of warfare.

What is the Difference Between CBP and Border Patrol?

Border patrol is basically uniformed presence between the ports of entry while CBP has a uniformed presence at ports of entry.

As CBP does inspections at the border, Border Patrol detects and prevents illegal entry into the nation.

Who are CBP Agents?

Customs Border Protection agents are the individuals working for the CBP agency at the points of entry.

What do CBP Agents Do?

CBP agents are responsible for the valuation, admissibility requirements, classification, entry procedures, and the applicable taxes, fees, and rates of duty for imported products.

They also process paperwork and inspect luggage at ports of entry such as airports.

They interact with other agencies, carriers, and other foreign agencies to provide guidance on admissibility and compliance as well as exchange information.

They take part in intelligence analysis, law enforcement and examination regarding the arrival as well as departure at entry ports of vehicles, people and products.

They enforce immigration, customs and agricultural regulations and laws at American ports of entry as well as preclearance locations globally.

What are CBP Agent’s Priority Trade Issues?

Typically, CBP agents are more concerned with Priority Trade Issues.

PTIs are high-risk places that can cause massive revenue loss to the American businesses.

This threatens the safety and health of the American people as well as harm the American economy.

The present PTIs are:

• Trade Agreements
• Agriculture and Quota
• Import safety
• Revenue
• Antidumping and Countervailing Duty
• Intellectual Property Rights
• Wearing Apparel/Textiles

What Role do Customs Brokers Play when Dealing with CBP Agents?

If a customer decides to use custom brokers, they are the ones who work directly with the custom agents.

Custom brokers eliminate the stress involving dealing with custom officials.

They also learn shipping regulations hence customers focus their time on managing their businesses.

In general, custom brokers function as translators communicating with governments and agencies all through the shipping process.

As such, they ensure that all the right procedures are followed.

CBP agents educates import-export businesses on how to deal with streamlining enforcement processes, custom agents.

This improves collection of data and levering enforcement partnerships with organizations internationally.

They educate exporters and importers that there are same agents and agencies on the other side of the world.

Do CBP Officers Chose Where they are Stationed?

It depends on a number of factors.

CBP officers are often stationed in areas based on mission need.

However, after a period of time a CBP officer can ask for a change in station.

A CBP officer can apply for a position in a specific point of entry, but they are assigned a station by the CBP body.

Do CBP Agents Carry Guns?

CBP agents can carry guns at their stations to perform their duties and exercise authority.

They make seizures, conduct searches and make arrest, hence, they need guns to perform their roles.

What can you Not Bring Through US Customs?

There are restricted and prohibited products that you cannot bring through the US customs.

They majorly include counterfeit products, illegal products (considered illegal in America), and drug/medications (unless one has medical permission for its use).

Restricted products are:

i. Drug and Medications

FDA does not allow the importation of devices, narcotics or drugs that have not been approved for use in America.

Also, they cannot be imported unless they are approved for use by a doctor’s prescription.

Some of these non-traditional treatments are arthritis, AIDs, cancer treatments, and other medical diseases.

Even if you acquire these medications through a foreign doctors prescription, they are still confiscated.

ii. Plants or Plant Products

Each cutting, seed or plant has to be declared and presented for inspection no matter how pest-free or clean they are. While some require export/import permits, some are fully forbidden.

iii. Wildlife, Fish and Products Made from them

These products are subject to quarantine requirements, certificates, permits, export-import restrictions, prohibitions and state laws.

American Fish and Wildlife Service has to be made aware of products made out of endangered species and it has to issue permits to import them.

An ivory product made from a warthog can be imported as long as there is documentation/it is at least 100 years old.

Such items are dealt with specifically at some custom entry ports.

That said, you have to contact your CBP to give you a list of the products.

iv. Food Products

Some cheese and bakery products are allowed into America.

There are some American foods that are equally subject to requirements of the American FDA.

Note: American law also prohibits Americans from bringing in goods from nations on which travel restrictions have been enforced.

However, informational materials such as books, films, recordings or tapes are allowed even with travel restrictions.

What Must Be Declared at Customs?

At the customs, you have to declare every time you purchase and is carrying as you return to America.

These can be items you bought yourself or are gifts for other people.

They can be duty free items purchased abroad and all the merchandise you intend to use/sell in your business.

What are CBP Import Requirements?

CBP import requirements include:

Entry Documents

They have to be filed at specific places identified by the director of the port within 15 calendar days of the time a cargo gets to America.

Some of the documents include:

• Packing lists, if right
• Merchandise release forms needed by the director of the port such as application, special permit or entry manifest for Immediate Delivery.
• Commercial invoice or a pro-forma invoice when the latter cannot function
• Evidence showing shipment has a right to make entry
• All documents needed to determine the admissibility of merchandise

Note: if you want to release your goods from CBP during the time of entry, you need to file an entry summary for consumption.

Following the entry of your shipment at the port of entry within 10 working days, you can deposit the approximated duties.

Entry Summary Documentation

Customs examines the shipment after presenting the entry.

This activity can be waived or not. Your shipments are released if no regulatory or legal violations are violated.

You file the entry documentation summary, followed by a deposit of the estimated duties within a period of 10 working days after the entry of the merchandise in a particular location.

Entry documentation summary entails:

• Entry summary CBP Form 7501
• Giving back of the entry package to the authorized agents, broker, or importer, following the permission to release products
• Documents and invoices needed to collect statistics, examine duties, or determines that every import requirement has been fulfilled.

Surety

When entering the port of entry, you must show adequate evidence that you have paid a bond with CBP to cover possible taxes, charges and duties that can arise.

You can secure bonds through an American resident surety company.

First, you have to post it in the form of some American government obligations or United States currency.

When using a customs broker for making entry, the individual should allow bond use to avail the needed coverage.

Immediate Delivery

Using CBP Form 3461, you can apply for a special permit for the delivery before products’ arrival, if you want the immediate release of your merchandise upon shipment.

Carriers taking part in Automated Manifest System are capable of getting a conditional release authorization.

This is followed by the exit of a foreign nation and around 5 days before getting to America.

Upon the arrival of the merchandise together with the approval of application, the shipment is released very quickly.

As such, you have to file an entry summary in a good form electronically or on paper.

Also, you must deposit the approximate duties within 10 working days following release of shipment.

Only specific types of merchandise can use the immediate-delivery release by utilizing the Form 3451.

Exporting

Times, when you have to file for the Electronic Export Information, are:

• A validated export license is needed to export a product
• The merchandise value under every schedule B number is more than $2500

While the carrier files the EEI at the American CBP via the AES direct and AES, an exporter prepares the EEI.

Before exporting, an exporter acquires the individual schedule B number for the export product.

In the AES there has to be a schedule B number to identify the products being exported.

You can alternatively collect the schedule B number from the Census Bureau at a specified number.

For instance, if an exporter is shipping containers and a luggage with household and individual goods valued more than $2500 abroad;

They then have to file the EEI or present an ITN to the carrier.

How Much is Customs Duty in the USA?

The customs duty in America is the amount you pay on goods moving from other countries via the American border.

If your goods are from API, an estimated $1600 in merchandise will be duty free under the personal exemption.

If your goods are from an Andean country or CBI, then around $800 in goods will be duty free.

If there is additional amount of $1000 in goods, it will be dutiable at a flat rate of 3%.

What Happens When You Don’t Declare at Customs?

If you don’t declare at customs, you are more likely to face serious consequences.

You may lose the products as CBP can seize them.

As a result, you either lose the products permanently or you are forced to pay a penalty to have them back.

How Much does CBP Make in a Year?

The average salary for a CBP officer in a year is around $85, 991.

How Long has the CBP Been Around?

CBP was created in 2003 and has been in operation for close to two decades.

However, the initial body the US Customs Service was created centuries ago.

What Does the CBP Investigate?

CBP investigates the following crimes/issues:

• Commercial fraud
• Exodus cases such as export of weapons system and technology as well as arms
• Money laundering
• Child pornography
• Drug smuggling

What Does Duty Free Mean for CBP?

Duty free means exemption from paying custom duties.

When importing goods, businesses do not have to pay custom bodies.

What is CBP’s Criterion for Duty Exemption?

You are eligible for duty exemption if you meet the following criteria:

• Merchandise is physically with your
• You have never used your exemption or even a part of it in the last 30 days
• Merchandise is for home or personal use
• You are eligible for $200 duty exemption if you have been out of America for 2 days
• You have declared every merchandise that you did not have when you left America even if you wore it

What Happens if You Violate CBP Laws?

If you violate CBP laws, the CBP agents will stop and detain then frisk you as well as your luggage.

You can get breaks if you fail to declare a product unknowingly.

What is Export Customs Clearance?

Export customs clearance entails formalities and procedures that a business may comply with when exporting a specific merchandise from the nation exporting the said product.

It involves getting any export license or another formal authorization and handling the protocol required for goods export.

How Do You Complete CBP’s Export Customs Clearance?

Export customs clearance differ from product to product and nation to nation.

A basic export clearance process work flow should be as shown below:

• Finishing product production, followed by their package in readiness for export.
• Organization of shipping and this includes container booking
• Use domestic carriage to transport the container to the factory.
• From the factory the goods are loaded and then delivered to the port of loading or carrier’s warehouse.
• They prepare the needed documents to align with the laws of the exporting nation
• There is custom’s declaration of the shipment through accepted channel
• You inspect both the goods and documents as it is key for the exporting nation’s customs office to carry out this activity
• The time when an importer’s products leave the territory of the exporting nation
• The export customs declaration closure

Which Other Agencies Does CBP Partner with to Regulate Imports/Exports?

CBP partners with several other agencies to regulate exports/imports.

Some of the agencies include:

• National Highway Traffic Safety Administration
• National Marine Fisheries Service
• Fish and Wildlife Service
• Animal and Plant Health Inspection Service
• Food and Drug Administration

What is CBP Form 7501?

CBP Form 7501 is also referred to as entry summary.

It is a document that one has to file with entry of their goods into America.

CBP often uses Form 7501 to find important information on the imported good.

Who Fills out CBP Form 7501?

CBP Form 7501 is often filled by a customs broker although a business owner has to be familiar with the form.

What is the CBP Clearance Fee for Customs?

The CBP custom clearance fee is fees charged by the package carrier or the customs service for filling in the needed paperwork and the processing of the imported goods.

The CBP clearance fee for customs can range between 10 – 20 Euros per package.

It includes the storage costs, administrative fees, clearance fees and others.

Note: every shipping company uses different rates.

What Documents Do You Need for Customs Clearance?

Authorities are likely to ask for the below documents for customs clearance:

• Commercial invoice
• Packing list
• Certificate of Origin
• Letter of Credit
• Airway Bill/Bill of Lading
• Inspection certificates
• Import and export licenses
• Permits
• Dangerous goods declarations

How Long Does it Take to Clear Customs with CBP?

Due to diversity in protocols and systems globally, it is impossible to predict the exact length of time to clear customs with CBP.

Even so, customs clearance can take place in less than 24 hours.

Import custom clearance begins when the shipment is on transit and before arrival in the destination country.

All these happen as long the necessary documents are in place.

In the event that there are concerns, authorities can take more days before clearing the products.

What is a CBP Entry Number?

CBP entry number is a seven-digit number typically assigned by a filer.

This number can be assigned in any way convenient as long as this one number is not assigned to over one CBP entry summary.

Does CBP Allow Tracking of Customs Clearance?

Of course, yes.

CBP allows the tracking of customs clearance through a customs broker.

The customs broker keeps you informed of the status of your clearance whether there are delays or holdups.

There is real-time tracking of shipment on an online platform hence a client is aware of the shipment’s progress.

What is a CBP Form 5106?

CBP Form 5106 is a document utilized by importers to change or establish their address or number, surety bonds when filing a bond or custom brokers for clients.

CBP Form 5106 is equally used to establish the importer of record to CBP.

How do You File a CBP Form 5106?

You can file a CBP Form 5106 by including all the needed information regarding the merchandise and importer.

You then submit it to the physical office or to an Entry Team situated at the port of entry.

Or

Self-filers and brokers can present Form 5106 electronically via the ACE Portal or Automated Broker Interface.

Does CBP Charge Duty for Pallets?

Of course, yes.

CBP charges duty for any pallets used by importers.

How Long can CBP Hold Your International Shipments?

CBP can hold your international shipments for days, weeks or even months.

Some of the issues which can make CBP hold your international shipments are:

• Wrongly declared goods
• The shipment is more than value required
• Improper paperwork
• Custom fees outstanding
• Prohibited items
• Problems reaching the recipient

How long CBP holds your international shipments, therefore, depends on the issue.

For instance, if the shipment is more than the value allowed or there are custom fees outstanding then you will be contacted to clear the balance.

How Does CBP Calculate Import Duty?

The import duty varies according to the goods you are importing, the country they are from and where they were made.

CBP calculates duties owing based on the products/goods value in American funds.

Customs Duty Rate X Total Customs Value of Goods = Import Duty

CBP gives an import duty calculator to calculate this amount.

On the calculator, indicate exporting and importing country of your merchandise.

Identify your duty rate by keying in the products HS Cde.

Include the HTS Code of the merchandise then determine the duty applicable.

Multiply the applicable duty rate by the commercial value of the merchandise.

What is a CBP Filer Code?

A CBP filer code is a special identification number of allowed companies/persons used to file customs entries.

How do You get a CBP Filer Code?

First, you have to request for a filer code from CBP.

Secondly, you present a letter to CBP asking for participation in ABI.

The letter includes information such as importer number/federal tax ID, address and name of the company.

It also includes the information of the contact person, and the role of the entity looking for a filer code.

After CBP approves, they assign a filer code.

The entity whether an importer/exporter/carrier can then use this filer code whether exporting/importing/transporting goods from one port to the other.

What is Formal vs Informal Entry According to CBP?

Here are some of the aspects you need to know:

Definition

Formal entry is mainly for goods that have to be covered by a surety bond/entry bond as its summative total is more than $2000.

The bond ensures the compliance of the custom requirements and payment of duties.

Informal entry, on the other hand, are goods at the border entry that do not require entry bond since their value is below $2000.

These goods are often imported for personal consumption.

Custom Broker

There has to be a customs broker to clear this formal entry shipment.

If a consignee arrives at the port of entry to collect a shipment/if an exporter accompanies the shipment, then a broker is not required in informal entry.

Documentation

Documentation for informal entry is very strict.

You have to fill certificate of origin, commercial invoice, importer ID, Bill of Lading, Entry Delivery, Entry Manifest, Harmonized System Tariff Classification and other license/permits.

In informal entry, you only need a commercial invoice and probably a Certificate of Origin.

Documentation is not strict in this case.

What is CBP Duty Deferral?

CBP duty deferral is when the agency allows an importer/business to import products without paying custom duties/taxes/fees.

It takes place only as long as the businesses plan to export the goods after importing them.

CBP has a 90-day duty deferral for importers.

What are the Components of CBPs Duty Deferral Program?

CBP duty deferral program has the following components:

• Temporary importations under bond
• Foreign trade zones
• Bonded warehouses
• Inward processing programs
• Maquiladoras
• Drawback program
• Duty relief program

What are CBP Custom Penalties and Seizures?

CBP custom seizures is the acquisition of imported goods by CBP for individual or institution violation of custom laws or any other laws enforced by CBP.

False valuation of your shipment can lead to the seizure of the whole shipment.

Penalties, on the other hand, are the legal action and fines applied to importers by US CBP when goods imported into America violates the laws.

CBP levies penalties for negligence or fraud.

Note: you will not be penalized for omissions or clerical errors.

If you notice such errors, it is imperative to notify the CBP so they do not hold the shipment.

What are CBP Acceptable Payment Methods?

• Credit card
• Debit cards
• Paypal
• ACH Credit

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In fact, we can also connect you with our partners who will make the entire customs clearance process easy and simple.

In case you have any questions or inquiry about customs and border protection, Tj chinafreight can help – talk to us now.

In this guide, you’re going to learn everything about customs assigned importer number (CAIN).

From basic definition, why you need it, uses to validity period, among other vital aspects about CAIN.

So, before you acquire customs assigned importer number, read this guide.

What is a Customs Assigned Importer Number?

Custom Assigned Importer Number (CAIN) is a type of identification used by foreign importers in the United States.

It is an essential requirement for foreign importers importing into the United States without an Employer Identification Number (E.I.N.).

Do you Need CAIN to Import?

Yes, you need a Custom Assigned Importer Number (CAIN) to import to be established as a foreign importer possessing a record.

To achieve this, you will need a Custom Assigned Importer Number and a Customs bond.

What is the Customs Assigned Importer Number format?

Custom Assigned Importer Number format has fifteen digits: nine numbers are used to identify the business; two letters and four numbers define the program and each account.

CAIN system includes various types of Revenue agencies and border services agency programs which many businesses maybe register for the following:

• S.T.
• Corporate income tax.
• Import or export as identified by R.M.

An example of Customs Importer Number may be:

123456789RM0001

This number is mostly found in tax documents, and it is in the form of letters and numbers.

Why is a CAIN (Customs Assigned Importer Number) Important?

Custom Assigned Importer Number is essential due to the following reasons:

• CAIN protects your business from costly violations, which results from the negative consequences of not complying.
• It protects national security due to countries’ need to protect information about critical products and technology from the wrong hands.
• It helps foreigners in safeguarding competitive advantage in a very competitive marketplace.
• Ensures that the records of goods are well maintained for all import transactions.

Who Should Apply for CAIN?

Foreign-based businesses should apply a custom Assigned Import Number (CAIN).

This documentation is designed explicitly for importers that lack the United States Social Security Number (SSN) or Employer Identification Number (E.I.N.).

Which Entities Require a Customs Assigned Importer Number?

Entities that require a Custom Assigned Importer Number should have the following features:

i. Foreign importers who would like to import to the United States.

ii. Entities that lack I.R.S. business tax Numbers.

iii. Those that do not have a social security number.

iv. Corporations that do not have an Employer Identification Number.

What is the Difference Between CAIN and E.I.N.?

Employer Identification Number (E.I.N.) is a type of documentation given by the United States Internal Revenue Service to assist in tax administration.

On the other hand, Custom Assigned Importer Number (CAIN) is a document that is issued to foreign importers who do not have an Employer Identification Number.

It is a requirement for any United States-based Corporation or partnership to have an Employer Identification Number.

On the other hand, the Custom Assigned Identification Number is assigned to foreign importers in the United States when the Customs bond is put in place.

How do You get CAIN?

The Custom Assigned Importer Number, which is requested by Customs and Border Protection’s paperwork of entry, is got in the form of a tax number for the business.

This number is issued to businesses.

In case you do not have this tax number, you may be required to use the number of your social security in the paperwork that requires CAIN.

If you lack either a business tax number or a security number, you will be required to get your Custom Assigned Importer Number by filling a form.

This form is known as Customs Border and Protection form 5106, and it must be available at the port of entry where you are required to fill customs entries.

It is essential to know that there are regulations to govern and control issuing of Custom Assigned Importer Number.

What is the Cost of Acquiring CAIN?

The cost of acquiring a Custom Assigned Importer Number varies among various licensed brokers available in the market.

However, this price is mostly controlled by the department of homeland security.

How Long Does it take to Get CAIN?

Custom Assigned Identification Number submissions can be processed and approved in about two business days.

CAIN remains on file for one year from the date of the last usage on its equivalent, the Customs Form 7501, a request for services.

If it is not used for one year, CAIN will not be associated with any outstanding transactions.

At this point, the Custom Assigned Identification Number is removed from the files of Customs.

Can Foreign Importers with CAIN Import Freely to the U.S.?

No, foreigners cannot import freely in the U.S. as the final recipient of a shipment must have a U.S. address and tax identification number.

The U.S.-based business will need to act as your consignee if you have an E.I.N. and your business is registered in another country that is not the U.S.

The final consignee will be the individual or entity which is receiving the cargo at the destination.

If you are a foreign importer who lacks a presence in the United States entity, you will need to have a Custom Assigned Identification Number.

In this case, you must name a business that is U.S. based to act as your shipment’s consignee, and they will receive the goods at the destination.

What is the Importer of Record in Shipping?

An importer of record refers to a non-resident corporation that acts as an importer for merchandise or shipments from a given company to the United States.

All importers of records have the same duties and responsibilities regardless of the type of company or individual.

The primary purpose of the importer of record is to make sure that their shipments meet the government’s custom requirements and any required regulations.

They should also finance all the necessary import fees and duties.

Few entities can fill the role of importer of record, and these include:

• A company that is based in the U.S. and has a Tax Identification Number.
• United States Citizen with Social Security Number.
• Licensed Custom Broker of United States.
• A foreign company that possesses a Customs Assigned Importer Number.
• Freight forwarder.

Can a Foreign Company be an Importer of Record?

Yes, a foreign company can be an importer of record.

Requirements that grant permission to a non-resident company to serve as an importer of record are straightforward and like residential companies in the U.S.

Most importers use services provided by custom brokers licensed in preparation and filing forms of entry.

Similarly, non-resident companies may also hire a licensed customs broker to help in filling the entry forms.

The non-resident company is also required to obtain an import bond, as all importers do.

This bond’s primary function is to repay the Government of the U.S. in case the importer fails to pay due to increased duties or obligations specified under the bond’s terms.

Apart from the entry bond, a foreign company must have an agent that resides in the state where the port is situated or where the entry is filed in case of remote filing.

This agent will not take care of any liability but will just overseas and accept service of process on the foreign company’s behalf.

This function is met effectively by engaging a licensed customs broker to conduct all the required procedures on behalf of the foreign company.

To become a foreign importer of record, you should provide the following:

• Copy of Certificate of Incorporation.
• Identification of the company’s two authorized officers.
• Completion and submission of C.B.P. form 5106.

For Custom brokers, they will need to submit the following to complete the process:

• Filled and completed Customs Power of Attorney (P.O.A.)
• A document certifying the authority of representatives authorized by your company.

Importer of Record submissions can be processed and approved in about two business days.

It is essential to know that there are given incoterms of shipments that establish the party as an importer of record.

Some of the advantages of becoming a foreign importer of record include:

• Improved relationships between supplier and buyer.
• Negotiation tool: when you are an importer of record, you are better positioned to give buyers valuable options.
• Reduced custom issues: taking full charge of importing goods will prevent the scenario of processes halting or slowing down.

What is the Difference Between SSN and CAIN?

Social Security Number (SSN) refers to a number used for customs and tax for sole proprietors and Unites States individuals.

On the other hand, Custom Assigned Import Number refers to a number issued to Foreign importers who do not have SSN or E.I.N.

Social Security Number is only used in imports made to the United States and does not serve exports from the United States.

On the other hand, the Custom Assigned Identification Number is issued only to foreign importers who would like to import to the United States.

Can a Customs Broker Apply for CAIN on Your Behalf?

Yes, your Customs broker is the one who should help in obtaining Custom Assigned Number.

Before obtaining a Custom Assigned Importer Number, you will need to provide:

• Customs Power of Attorney should be signed by two officers belonging to the company.
• This document will be given to you by your broker.
• Copy of Articles of Incorporation.
• If the document that empowers officers with authority to sign a power of attorney is not provided in the Articles of Incorporation, it must be provided.
• Pictures or scans of the identification of two officials.

Once all this information is provided and any other additional details, then the Customs broker will be able to apply for CAIN on your behalf.

Under the Customs Identification Number, you will also get a Customs bond alongside the required documents required for importing your goods.

Does CAIN Expire?

Yes, Custom Assigned Importer Number expires after a specific time as it is not issued for a lifetime. Each country has a given period of expiration established for CAIN.

For example, in the United States, the customs authorities can keep the Custom Assigned Importer. Number valid for 12 months after the last time the number was used for importation.

It is essential to clarify with the relevant authorities if your Custom Assigned Importer Number is present in Customs books before proceeding with any procedure.

Can you Have More than one CAIN?

No, you cannot have more than one CAIN as the number issued can be used in all future custom transactions.

The duplicate copy of the Custom Assigned Identification Number is returned to the party that filed it.

When can You File for a New Importer Number?

Businesses or individuals may file for new importer numbers in the following cases:

• When the previous importer number has been declared void.
• There is a need for an additional importer number.

When Does a Custom Deactivate CAIN?

Customs can deactivate your CAIN for the following reasons:

• If you do not use the CAIN for importation within twelve months.
• If you have not updated your current address or general information for a given amount of time.
• If you are using the CAIN for fraudulent transactions.
• If your CAIN number does not match with your bond number.

Can you Reactivate a Voided Customs Assigned Importer Number?

Yes, you can reactivate a voided custom assigned importer number, and though it is advisable to follow all the procedures in getting the CAIN to avoided it being voided.

A voided CAIN number may lead to extra charges for your shipment. Some of the costs that you might get due to avoided CAIN include:

• Demurrage costs.
• Per diem charges.
• Detention charges.
• Damage charges.

How can a Voided CAIN Affect your Shipments?

A voided CAIN can affect your shipments in the following ways:

• Long waiting times for customs to cancel your bond.
• Refund of your unused bond due to a voided CAIN also takes time.
• You will have to buy a new body after correcting or replacing the voided CAIN.
• You will have to lose the previous bong bought together with the voided CAIN.
• The importer number is deactivated, and you will have to reapply all over again; this will subsequently cause delays with your shipment.
• Your shipment will be held until the voided CAIN is replaced; holding shipments will result in higher costs, especially from warehouse storage.

Other problems that you might encounter that a voided CAIN directly or indirectly causes may include:

• Random custom exams and inspections to verify your knowledge and compliance with the customer specifications.

• One of the common problems you may encounter is custom clearance, and this occurs mainly when you are not familiar with the various customs requirements.
• Another major problem is delay costs associated with late freight release.
• Some of the delay charges that you might encounter include per diem, demurrage, and detention charges.
• Taxes and duties missing in your documentation are among the most common shipping problems encountered by first-time importers.
• It is prudent to pick shipping agents with experience in handling shipments.
• This is to avoid problems that arise from missing details on your CAIN.
• Sometimes you might be tempted to exceed the allowed weight capacity/limit.
•  It might result in your cargo not meeting road weigh limits or I.M.O.’S Verified Gross Mass Regulation.
• Penalties such as Importer Security Filing (ISF) are common occurrences for shippers.
• Unexpected closures of ports due to unavoidable circumstances are also some of the problems you might encounter in shipping.
• It is not uncommon to hear of lost containers while on transit.

How do You avoid Shipment Delays to CAIN Problems?

To avoid shipment delays resulting from CAIN problems; you can do the following:

• Ensure that you complete a bond application and power of attorney, especially if you are using a broker in importing.
• If you are a foreigner or a foreign-based company importing into the U.S.A.;
• Ensure that you get a Custom Assigned Importer Number (CAIN). It is a required document for any shipments into the U.S.A.
• Ensure that you provide your customs Tax ID to your broker. It is used in associating your customs bond with your CAIN.
• Ensure that you do not get a CAIN without a Tax ID on it; this is to avoid a situation where your bond number and CAIN do not match.
• Ensure that you use the right channels to get your CAIN number; using shortcuts will lead to inconsistencies in your document and may cause delays.
• Before ordering for imports, ensure that you communicate the same to your customs broker.
• It will help them in advising you on the procedures to follow.
• Always check with your broker that your CAIN is up to date, active, and in customs’ importer records.
• In case of long periods without using your CAIN, ensure that you liaise with a broker to update your customs importer records to keep it active.
• Always be proactive and provide documentation for your CAIN to your broker to file entry of your shipment on time.

With CAIN, do you still Need a License to Import into the U.S.?

Yes, with CAIN, you will still need to show a tax I.D. and other licenses necessary to import your shipment.

The CAIN is just a permit for you to import, but you must comply with other regulations.

How can You Update your CAIN Information?

CAIN is also the I.R.S. business registration number.

So, to update it, you will have to update your I.R.S. business registration.

The three significant requests allowed in requesting for CAIN information update include:

• Notification of identification number
• Change of name
• Change of address.

Some of the information that you can change in your CAIN include:

• Legal and mailing address information.
• Update responsible party.
• Update owners and members mainly for limited liability companies.
• Update contact information.
• Update cease tax accounts.

You can update your CAIN number through the Department of Homeland Security, U.S. Customs, and Border Protection.

You will have to fill the importer Identity Form.

The data required in the importer identity form may include:

• Importer/Business/Private Party Name.
• Internal Revenue Service (I.R.S.) Employer Identification Number (E.I.N.)
• Social Security Number (SSN)
• CBP-Assigned Number
• Mailing address
• Physical location address
• Phone number
• Email address
• Company information
• Bank routing number
• Certificate or Articles of Incorporation – (Locater I.D.)
• Certificate or Articles of Incorporation– (Reference Number)
• Business Structure/Beneficial Owner/Company Officers
• Provide certification.

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No matter your location, you can easily import anything that you need through different means from China.

It is important to look at mode of shipping from China and period it takes for the cargo to reach your destination.

In this guide, you will learn more about the period of shipping cargo from China.

Which Products can you Ship from China?

China is the leading manufacturer of different products that you may need for different purposes.

Implying that, you can get different products that you will use for different purposes from China.

Here are some of the products that you can comfortably import from China.

• Home Furniture and Decorations
• Children Toys
• Pet Supplies
• Clothing and Other Fashion Accessories
• Electronic Devices such as Televisions, Phones, and Radios among others.
• Office Equipment such as Computers, Pens, Papers, Files and other accessories
• Cars and Automobile Parts
• Lighting Accessories
• Kitchen Ware
• Manufacturing Machines
• Travel and Outdoor Products
• Shoes and Other Sporting Equipment

In other words, the list is endless as there are numerous products that you can get from China.

You should, however, know if the products you are importing from China will be accepted in your country.

Which Incoterms do you use to Ship from China?

The importation process of cargo from China to anywhere in the world requires proper sharing of responsibilities.

In other words, you have to know the party that is responsible for taking care of different responsibilities.

In that case, you will have to look at the incoterms that will spell different responsibilities to different parties.

Here are the main incoterms that you can consider when shipping cargo from China.

EXW (EX Works) Incoterms

In this case, most of the work will be on the head of the buyer who will have to take care of transporting the cargo.

Your supplier will cease responsibility after availing the cargo at the floor of the factory for you to pick.

FCA- Free Carrier

Here, your supplier can supply the cargo to a particular place that you will name free of charge.

After that, you will assume the responsibility of transporting the cargo from China to your final destination.

CPT – Carriage Paid To

Here, your supplier will deliver the cargo to another carrier to whom you will decide at his or her expense.

After that, you will pay for the rest of the shipping requirements all the way to your country.

CIP – Carriage and Insurance Paid To

Your supplier will include the cost of insuring the goods and transporting them all the way to your shipping carrier.

You will take responsibility after your carrier receives the goods and pay for all the other expenses.

DAP – Delivered at Place

As a seller, you will deliver the goods at the point of destination and transfer responsibility to buyer before unloading.

As the buyer will proceed with paying for the unloading of the cargo and proceeding with other key cargo processes.

DPU – Delivered at Place Unloaded

In this case, the seller will bear the responsibility of delivering the cargo at agreed terming and then unload it.

As soon as the cargo is unloaded, you will proceed with the rest of the shipping and pay for every other expense.

DDP – Delivered Duty Paid

The unique aspect in this incoterm is that your seller will have to pay for the import and export duty of delivering the cargo.

You will proceed to the agreed destination and assume responsibility of the cargo from that point onwards.

FAS – Free Alongside Ship

Your seller will make sure that he or she pays for the cargo shipping up to the port where a particular vessel awaits.

You will assume responsibility for the cargo as soon as it arrives alongside the shipping vessel all the way home.

FOB – Free on Board

The seller pays for cost of shipping up to the point where your cargo is safely loaded on the shipping vessel.

After that, you will assume responsibility for the cargo by paying all the other shipping expenses to the final destination.

CFR – Cost and Freight

Your buyer will pay for every expense of transporting cargo to final port of destination and necessary obtaining documents.

In this case, you will use the documents to obtain your cargo from the shipping carrier and proceed with other responsibilities.

CIF – Cost Insurance and Freight

Your supplier will pay for every cost including insurance to the final arrival place in the country of destination.

You will assume minimal responsibility of receiving the cargo once it arrives at the final destination in your country.

Which Modes of Transport can you use to Ship from China?

You will use different means of transport depending on your location to transport cargo from China.

The choice of transporting your cargo from China will depend on the destination and time you expect the cargo.

In other words, the faster you want your cargo to arrive, the faster the mode of transport.

Here are the main modes of transport that you will use in shipping your cargo from China.

Road Transport

You can opt to ship your cargo via road transport on trucks and trailers depending on the size of the cargo.

This is the best means of transport for moving cargo from China to closer or neighbouring countries.

It also the cheapest means of transport for moving cargo to the neighbouring countries in China.

You will, however, take longer on the road if the destination of the cargo is stretched.

Railway Transport

You can also opt for railway transport if the destination has a railway connection with China.

It involves loading the containers on a train which will transport them all the way to the nearest train station.

It is a very economical mode of transporting your cargo from China since it does not cost much.

You will also wait for some time before you receive the cargo because the shipping time is quite slow.

Sea Transport

You will use sea transport when shipping cargo via sea vessels to countries connected via the sea or oceans.

In this case, you can either book space within a container or use the whole container depending on the size of cargo.

Apart from that, it is the best mode of transport that you can use to safely transport cargo that is very huge and bulky.

In terms of time, it is slow as you will have to wait for days or weeks depending on the distance.

It is also a cheaper means of transporting cargo in comparison to air lifting the cargo to final destination.

Air Transport

You can also decide to transport your cargo via aeroplanes which will fly the goods to the nearest airport.

It is the fastest means of transport that you can opt for as you can receive the cargo within hours.

Apart from that, air transport is quite costly and you will pay a lot more in comparison to other means.

Which Factors Determine the Shipping Time from China?

There are quite a number of factors that you should consider looking at when looking at the shipping period from China.

Here are the main factors that you should have a look at when shipping your cargo from China.

Distance

First, you have to know the final destination of the cargo and the source of the cargo.

You should know that China is a vast country and you may get the goods you need from different parts.

The further the location of the source of goods, the longer the time you will wait for your goods.

Apart from that, the further your final destination for the goods, the longer the waiting period.

Mode of Transport

You should also pay close attention to the means of transporting your cargo from China to final destination.

In conjunction with the distance, you will transport your cargo faster via aeroplanes than through the sea.

In other words, the faster the means of transport, the lesser the shipping period of goods from China.

Custom Clearance

You must also look at the custom clearance period and how long the department takes to clear your cargo.

It is important to have all your documents at hand to facilitate faster custom clearance of cargo.

You can also call upfront and inform the customs department about the arrival of certain goods with relevant documentation.

The faster you clear your goods with the relevant customs departments, the shorter the shipping period.

Which is a Faster Way to Ship from China?

The fastest way that you can use to ship cargo from China is by approaching all the details with experienced personnel.

In other words, you can hire freight forwarders who have more experience in clearing your cargo for export.

As soon as the clearance process is complete, you will proceed to loading the cargo on aeroplanes.

You can either charter a plane which will deliver the goods on an express route from China to your destination.

Apart from that, you can book space on the cargo plane and get the cargo within hours or a few days.

Which is the Slowest Mode of Shipping from China?

Well, in case you have no experience in customs clearance you might have to wait longer.

You may not have the knowledge that the freight forwarders have thus limiting your speed through custom clearance.

Apart from that, you will also wait longer if you use sea mode of transporting your cargo from China.

Here, you will have to wait for the loading of all the cargo on the ship.

In addition to that, the cargo ship might make stops along the way to offload cargo at various destinations.

Depending on how far the final destination is, you will have to wait for weeks since it is quite slow.

What is the Shipping Time from China to Various Destinations?

Well, shipping time to various destinations around the world will vary due to the distance and mode of transport.

Apart from that, the origin of the cargo in China may vary thus having a great impact on the shipping time.

Here are the approximate periods you will have to endure depending on origin and final destination.

· Time for Air Freight Shipping from China

Here is a table showing approximate time for shipping cargo from China to Europe

Shipping from various places in China to the United States of America

Shipping from various sources in China all the way to different destinations in Asia.

· Time for Sea Freight Shipping from China

Shipping from China to various destinations in Europe

Shipping from various sources in China to United States of America

Shipping from China to Oceania and Asia

· Time for Rail Freight Shipping from China

· Time for Road Shipping from China

Well, you can also op to ship from China to the neighboring countries and Europe through the road netwo

The international chamber of commerce has put in place Incoterms 2020, which took effect from 1^st January 2020.

Groups participating in the trade must know well the changes and how they influence global supply chains.

The purpose of this outline is to grant an understanding of Incoterms 2020, how they work, their benefits, and their relation to Incoterms 2010.

What are Incoterms 2020?

Incoterms 2020 are an extension of the export contract as it does not mention price to be paid or methods of settling bill of payment.

2020 Incoterms lack focus on issues concerning ownership transfer, product liability, or breach of contract.

All these issues are established in the contract of sale.

Also, they cannot override any mandatory laws.

The latest revision changes made on incoterms 2020 include the following:

• Incoterms 2020 recognizes the use of personal means of transportation by sellers.

The clause highlights explicitly that sellers can arrange necessary transportation or makes a contract for carriage.

• The rules investigate export and import security determinants to ascertain who is responsible for meeting security requirements between the parties.
• Important alternative in the term Free Carrier (FCA) whereby the shipper can tell the carrier to give a bill of lading inclusive of a notation of onboard to the shipper.

It is to satisfy the Letter of credit regulations.

• Revision of the term CIP where the responsibilities of purchasing higher insurance cover levels lies with the seller.

For CIF, the insurance claim has not changed.

• Renaming Delivered at Terminal (DAT) to Delivered at Place Unloaded (DPU).

Origin and History of Incoterms

Trade deals and legal agreements between sellers and buyers of different nationalities raised the importance of a standard regulations.

The regulations were supposed for easy understanding by all the trade parties to mitigate conflicts, litigation, and misunderstanding.

Incoterms were first bought in 1922 by the ICC and the opening incoterms regulations were set up in 1936. The word incoterms were first coined in 1936.

Overtime, incoterms have mutated or morphed into contractual standards that are quantified all over the world.

They are updated periodically as improvements, and inter-country trade events assuming very close attention.

Additional amendments on incoterms were made in 1953, 1967, 1976, 1980, 2000, 2010 and 2020.

Who can use Incoterms 2020?

Incoterms 2020 are used by:

• Producers
• Buyers
• Traders
• Governments
• Banks
• Sellers

Importance of incoterms 2020

• Each incoterm grants importers and exporters essential rules which help them understand their responsibilities.
• Incoterms 2020 help in clarifying any issues that may be in the contract.
• When used correctly, incoterms 2020 can help in saving you from a lot of hustles.
• They limit the legal risks complications by granting sellers and buyers a one reference point as the basis of the conduction of trade.
• When used correctly, you will partner swiftly, transport and transport your goods efficiently, and get rewarded faster.
• The rules are universal and thus provide predictability and clarity to business.
• Responsibilities, risks incurrence, and costs of the parties involved are stated clearly and precisely in incoterms 2020.
• Guide buyers and sellers how to begin and complete transactions, including packaging and labeling for international transport.

Obligations of the parties under Incoterms 2020

Seller’s obligations include:

• Delivery.
• Export/ import clearance.
• Carriage.
• General obligations.
• Checking/ packaging/ marking.
• General Obligation.
• Allocation of costs.
• Delivery or transport document.
• Transfer of risks.

Buyer’s obligations include:

• General obligations.
• Allocation of costs.
• Insurance.
• Transfer of risks.
• Export or import clearance.
• Proof of delivery.
• Carriage.
• Taking delivery.
• Checking/ packaging/ marking.
• Notices.

Obligations governed by incoterms 2020 include:

• The seller shall make the goods available to the buyer or their carrier to be transported and delivered at an agreed destination.
• The breakdown of the ownership of risk between buyer and seller in the transportation process from the point of origin to the destination.
• Custom clearance obligations in import and export.
• Buyer’s obligation to take over the goods.

Aspects not governed by incoterms include:

• Transfer of sales rights or property.
• Breach of contract and consideration of the involved party in the violation.
• Financial conditions and liability concerning carrying out the principal legal transactions.

Main Differences Between Incoterms 2010 and Incoterms 2020.

Differences between incoterms 2010 and 2020 include the following:

• New incoterms DPU replaces DAT: Delivered at Terminal (DAT) incoterms now referred to as Delivered at Place unloaded (DPU).

The main aim of this change was to eliminate confusion encountered in the past.

• Bill of lading in the FCA incoterms rule provision in incoterms 2020 highlights that buyers must give carriers instructions.

This is to provide a transportation document establishing that the cargo possesses a bill of lading.

Previously on incoterms 2010, most parties were using FOB instead of using FCA.

• Different levels of insurance cover in CIP and CIF: these two rules are the only ones which need insurance in the buyer’s name.
• Incoterms 2010, both rules were required under institute Cargo Clause C, while in incoterms 2020, CIP needs insurance cover to comply with Institute Cargo Clause A.
• Clause A tends to take care of a more enhanced insurance level appropriate for manufactured goods, while Clause C applies mainly to commodities.
• In incoterms, 2020 CIP does not change as it was in Clause C regarding the insurance cover, subject itemized exclusions, and the number of risks listed.
• Updated costs and listings: in incoterms 2010, costs were a challenge for some parties, and price changes by carriers resulted in sellers incurring terminal handling costs.

Incoterms 2020 now gives enhanced details on each party’s specific costs under the rule’s A9/B9 sections.

• Buyers and seller’s transport: previous incoterms assumed that a third-party vehicle provider would carry out all transportation activities.

Incoterms 2020 give provisions for the sellers’ and buyers’ transportation means.

The FCA rule grants the buyers’ permission for their means of transport while DAP, DPU, and DDP for sellers; own transportation means.

• Increased security requirements and costs: incoterms 2020 rules have enhanced security allocations and expenses.

Each incoterm rule has its security allocations added on A4/A7 and associated costs added on A9/B9.

Divisions of Incoterms 2020

Incoterms 2020 are divided i9 n four groups: C, D, E, F.

The rules are divided according to risk, fees, issues related to export and import, and formalities responsibility.

Group C Incoterms

In this group (Main Carriage Paid), the seller completes a transport contract and bears responsibility for the costs.

It is the responsibility of the seller to carry out export clearance.

Besides, the risk of the goods is moved to the buyer at the time the goods have been posted.

The buyer is responsible for handling all matters that arise after loading, transportation costs, and any other events.

Group D Incoterms

Group D incoterms (Arrival) state that the seller can deliver the goods to a specific destination place or port.

Group E Incoterms

Under group E (Departure), the goods are made available to the buyer by the seller at the delivery point indicated by the seller.

The seller does not have the responsibility of export or custom clearance and does not take care of loading or risk costs.

The incoterm rule under group E is Ex Works (EXW).

Group F Incoterms

Group F incoterms (Main Carriage Unpaid) states that the seller should perform export clearance.

The seller will not cater for insurance and transport costs.

Overview of Incoterms 2020

Here is critical information you need to know:

Incoterms for any Mode of Transport

These include:

Ex Works (EXW)

This rule is when goods are placed at the buyer’s disposal by the seller at either the seller’s premises or at another named place like a warehouse, factory, works, etc.

It is not the seller’s responsibility to load the goods on the collecting vehicle or even clear them for export when required.

Free Carrier (FCA)

The seller can deliver the goods to the carrier or a person chosen by the buyer at the seller’s premises or another given place.

The buyer will bear the risk of damage or loss of goods when the goods are alongside the ship.

Carriage Paid TO (CPT)

In CPT, the seller’s responsibility is to deliver the goods to the carrier or another person the buyer has nominated at a place agreed by the parties.

The seller will cater the costs of transporting the cargo up to the named point of destination.

Carriage and Insurance Paid To (CIP)

In this rule, the seller’s responsibilities are like CPT, but the parties’ contract for insurance cover against loss or damage to the buyer’s cargo.

The buyer should be aware that the seller must only cater to insurance on the minimum cover under CIP.

If there is a need for more insurance protection, there will be a need to negotiate and develop a strategy of additional insurance incurrence.

Delivered at Place (DAP)

In the DAP rule, the seller has the responsibility to bring the goods at the buyer’s disposal on the arriving means of transport at the named port of destination and ready to be unloaded.

The seller covers all the risks incurred up to the named port of destination.

Delivered at Place Unloaded (DPU) (Replaces Incoterm 2010 DAT)

The goods are placed at the buyer’s disposal by the seller at the named point of destination once unloaded from the means used in transportation.

The seller covers all the risks in bringing the goods to the destination point and unloading them.

Delivered Duty Paid (DDP)

In the DDP rule, the goods are delivered to the buyer by the seller once they have arrived at their disposal, have been cleared for import, and are ready to be unloaded.

The risks in bringing the goods up to the destination point, conducting custom procedures, and payment of duty are taken care of by the seller.

Incoterms for Sea and Inland Waterway Transport

These include:

Free on Board (FOB)

In FOB, the seller can deliver the goods onto a vessel selected by the buyer at a named port.

The risk of loss or damage of the cargo takes place when the goods are on board.

Cost and Freight (CFR)

In CFR, the seller is responsible for delivering the goods on board the vessel or purchases the goods that have been given.

The risk of damage or loss transfers to the buyer when the goods are on the ship.

The seller should cater for all costs incurred in bringing the cargo to the named port of destination.

Cost Insurance and Freight (CIF)

CIF rule states that the seller should deliver the goods on board the vessel, and the risk of loss or damage will transfer after the goods are on board.

Costs incurred to bring the goods to the port of destination are incurred by the seller.

Insurance cover to protect the cargo against loss or damage during carriage is also paid by the seller.

As a buyer, it is essential to note that the seller must cater to insurance only on the minimum cover under CIF.

If you need more insurance protection, there will be a need to negotiate and develop a strategy of additional insurance incurrence.

Free Alongside Ship (FAS)

The goods are considered delivered when the seller places them alongside the vessel chosen by the buyer at the named port of shipment.

The buyer bears the costs and risk of loss or damage once the goods are alongside the ship.

Transfer of Risk in Incoterms 2020

Foreseeing risk transfer is an essential element when preparing a contract.

Through using incoterms 2020, the risk of loss and damage is transferred in different ways between the seller and the buyer.

It is essential that the seller and buyer not misunderstand the actual application of incoterms 2020, which relate to the sale contract and transport contract.

The parties should keep in mind that incoterms 2020 will not be treated as “laws” because this lies in the business’s parties’ agreement.

The parties must choose what is appropriate for their contract and, where necessary, modify incoterms to suit it.

CPT rule establishes that the seller will cater for the freight up to the destination port, but the risk will transfer to the buyer once the shipment is at the port.

CPT rule under incoterms 2020 states that cargo is delivered for risk transfer and the end agreed as the destination of goods is essential.

In case the parties do not find a firm agreement, then the risk is transferred once the goods are handed over to the first carrier.

When products are damaged at the seller’s risk, the seller may be preventing to deliver against the terms of the contract.

In this case, the buyer may resolve legal remedies or not cater to the purchased price.

Incase destruction occurs when products are at the buyer’s risk, and they will have to bear the loss.

The buyer will just have to pay the seller the agreed cost.

It is up to the buyer to follow up on insurance companies or transport operators to claim damages.

In summary, incoterms 2020:

• They are not laws but optional rules.
• They relate to the sale contract and thus do not affect the transportation contract.
• Do not concern property transfer or any other sales right.
• The obligations undertaken by either party are not governed by incoterms 2020 because they are strictly confined to delivering goods.
• Incoterms 2020 does not concern the breach of the contract with relevant consequences of the party in violation.

How to Apply Incoterms 2020 in Sales Transactions?

The new incoterms 2020 came into effect on 1^st January 2020.

It is required that all parties elaborate clearly in their contracts the version of incoterms they refer to avoid confusion.

In trading agreements, different trading partners will implement incoterms at varying times.

Therefore, it is important to check existing contacts to ascertain that the incoterms’ year is included.

Effects of Incoterm 2020 on International shipping

Incoterms 2020 play a vital role in international trade.

According to International Commercial Terms (ICC), incoterms 2020 dictates globally accepted definitions and terms used in trading contracts.

When preparing price quotations and language, incoterms are the most important international shipping tool.

This is because they establish the agreement between the seller and the buyer on their roles, conditions, terms, and sale definition.

Incoterms 2020 state the boundary between a buyer and seller as they establish where a risk commences, the geographical point, and who owns what.

Limitations of Incoterms 2020

Incoterms 2020 do not:

• State liability for failure to make goods that conform to the contract available, measures to solve disputes, or delays in delivery.
• Notify the transfer of ownership of cargo from the buyer to the seller.
• Establish all the conditions required to carry out a sale.
• Give clarification of the documents to be made available by the seller to the buyer to help in customs at the country of the buyer.
• Establish the cargo that is being sold or the price.
• Refer to the method or time of payment agreed upon by the buyer and seller.

When to Adopt Incoterms 2020 vs Incoterms 2010

You may adopt incoterms 2010 when you would like all transportation to be undertaken by a third-party provider.

On the other hand, if you would like you or the buyer to use your means of transport, you may adopt incoterms 2020.

 How to Implement Incoterms 2020 in Your Business?

Incoterms 2010 can be adopted if the sellers still want to use Free on Board (FOB) when they want the contract

In case you want the insurance cover for CIF ana CIP to be under Institute Cargo Clause C, you may adopt incoterms 2010.

However, if you would a more comprehensive insurance cover, you may assume incoterms 2020 as CIP has an upgraded Institute Cargo Clause A.

It is essential to take time and assess how changes and upgrades in incoterms might impact your business.

Always engage professional legal advice before making any adjustments to your business.

To implement incoterms 2020 in your business, there are a few things that you may consider:

• Establish the incoterms that your business typically uses.
• Put in place tighter security for exports and imports.
• Audit any contacts which have extended into 2020 or need renew in 2020.
• Make changes and adjustments to any documents and contracts where necessary.
• In case you are buying or selling on credit, consider using FCA rather than FOB.
• Ensure that both parties are using the incoterms edition you are stating in the sales contract.
• Increase insurance cover level to meet CIP requirements.
• Analyze updated costs further and if they impact your landed cost calculations.
• Understand who is responsible for covering loading and unloading charges.
• Seek professional legal advice from legal analysts and experienced supply chain officers to audit the current procedures.
• Ascertain where the risk of loss is transferred.

Legal Effect of Incoterms 2020

Incoterms 2020 are not legally binding unless reference to a specific incoterm is incorporated into the contract.

Parties should note the following when adopting the formulation above:

• The correct “named port, point or place” must be correctly inserted by the parties, which may refer to the place of destination or delivery depending on the contract.
• Parties must consult article A2 (“Delivery”) to establish the appropriate incoterm section.
• It is essential to state the incoterm version used and not necessary to use the trademark symbol.

This will help avoid disputes which may arise due to misinterpretation of versions.

• Use of incoterm 2020 in trading will not govern any other contract or bind any third party.

Do Incoterms 2020 Work With Letters of Credit (L/Cs)

To obtain financial security, it is essential to choose the right combination of incoterm 2020 and Letter of credit conditions.

Individual consideration of incoterms 20202 and Letter of Credit conditions may lead to the incurrence of high costs and be contra-productive.

Therefore, it is essential to learn how to combine and choose the incoterms and contract terms, Letter of credit conditions, insurance, and transport from international professionals.

Banks need to understand underlying transactions to determine the risk of potential losses or eliminate breach of the law of financial crime possibilities.

This must be established even though banks will only deal with goods, contracts, and services.

When banks understand the parties’ incoterms and contractual agreements, they will establish the appropriate financial solution.

Corporates need to know arising opportunities and risks from the beginning of negotiations to the latter.

Basing on this, they should be able to select an appropriate incoterm 2020 while looking at:

• Payment securities
• Transport conditions
• Cost-conscious contracts
• Insurance

How Incoterms 2020 Can Affect Your Business

The main goal of incoterms 2020 is to make regulations easily accessible to users, prepare a digital version, and lower prices.

Changes in incoterms 2020 can be summarized as follows:

• Introduction of the incoterms is more detailed.
• Each rule has been updated with explanatory notes.
• The seller and the buyer have ten rules which have been reordered within each delivery term.
• There is a clear cost contribution between the seller and the buyer.
• Better capturing of the use of own means of transport.
• Delivery term DAP replaced by DPU (Delivered at Place Unloaded)
• CIP shipments are now covered by “All risk Cover.”
• FCA for on/board B/L (RULES A6 and B6)

In case your business involves transportation of purchased or sold goods, you should analyze the delivery terms used.

Establish factors that may influence the selection of delivery terms such as:

• Special needs.
• Critical situations for your business to be in control during transportation.
• Service level.
• Type of goods.
• Means of transport.
• Buyer and seller relationship.

After such analysis, most businesses will choose to change the delivery terms they have used over time.

This might be due to unknown risks or costs, or optimal term of delivery.

Some businesses may experience challenges when changing the delivery term as they may incur additional costs because of the wrong delivery term choice.

This may affect the business, and therefore, it is recommended to conduct comprehensive research and clearly understand incoterms 2020 to gain on delivery terms.

When will the Incoterms 2020 be Revised?

Incoterms 2020 was revised by an incoterm 2020 drafting group led by co-chairs David Lowe, Christoph Martina, and Radtke.

Experts form this group of personnel from several nations to recognize their contribution to ICC and International Commercial Law over the years.

The procedure followed to revise incoterm rules entails:

• Once the drafting group has carried out its revisions, the revised drafts are circulated internationally using the ICC’s national committees.
• The comments and suggestions resulting from the circulated draft are then directed back to the drafting group.
• Once the ICC Commission approves the final draft on Commercial Law and Practice, it is then submitted to the ICC Executive Board.
• The main aim of this broad consultation internationally is to make sure official ICC products have authority.

It also shows that the ICC products represent a right consensus point of view of the world business community.

How to get Incoterms 2020

Incoterms 2020 is got on ICC’s new eCommerce platform known as ICC Knowledge 2Go in digital and print formats.

It is essential to be aware that the incoterms 2020 edition is available in about 29 languages.

The ICC Committee has also organized more than 250 training seminars and launch events worldwide.

An online course and certificate program are also available in ICC’s educational arm known as the ICC Academy.

When shipping from China, Tj chinafreight will help you choose the right Incoterm.

Contact us now for all your freight forwarding needs from China.