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

If you’re in import-export business, probably you have come across the term forty-foot Equivalent Unit (FEU).

Today’s guide will explore everything you need to know about forty-foot Equivalent Unit.

So, keep reading to learn more.

What Does FEU (Forty-foot Equivalent Unit) Mean In Shipping Terms?

FEU is an acronym for Forty-foot-Equivalent Unit, and it describes the measurements of a shipping container that is 40-foot long.

For instance, a single container measuring 40 ft would be equivalent to 1 FEU.

Same as having two containers measuring 20’ each, they would be equivalent to 1 FEU.

What Is The History Of FEU?

FEU was developed naturally due to the emergence of containerization, which Malcolm McLean first discovered.

Therefore, once you comprehend the history behind FEU, you will have understood how container shipping surfaced into existence.

Taking you back to how FEU began, Malcolm McLean was an entrepreneur mainly dealing with trucks.

It wasn’t long before he realized how tiresome and problematic loading and unloading cargo was. Without a doubt, it was.

Goods were being transported in whichever packaging, or they were at, be it barrels, crates, and sacks, to mention a few.

One day, Malcolm was at the docks. He thought about coming up with a better and much simpler way of transporting goods.

In that line of reasoning, the idea of making containers crossed his mind. He thought of transporting goods in containers that would use on ships and trucks.

As much as the containers were to be standard-sized, They would help minimize the loading and unloading of cargo frequently when transportation modes changed.

Thus, he embarked on his mission, decided to sell his trucking company, and then fully concentrated on building containers.

It didn’t take him long to make some containers, and afterward, all he needed was a shipping vessel.

Malcolm decided to buy a ship that went by the name Ideal X and customized it to accommodate all his 58 containers.

The first-ever ocean freight took place in April 1956 where the ship sailed to Houston from New Jersey.

However, Malcolm McLean’s containers measured 35 feet, which proved to be inefficient to ship in. Thus arose the need for more standardization.

In 1968, double ISO standardizations defined the dimensions, classification, and identification of containers.

When 40-foot and 20-foot containers emerged, the former came to be referred to as Forty-Foot Equivalent Unit (FEU).

What Are FEU Dimensions?

40ft containers are one of the most common types of containers used by most shippers. Normally, they have both interiors as well as exterior dimensions, which are not limited to;

• Interior Dimensions (In feet); 39’6” long x 7’9” wide X 7’10” high
• Usable Capacity 67.7 m³
• Exterior Dimensions (In feet) 40’ long X 8’ wide X 8’6” high
• Exterior Dimensions (in meters) 12.19m long X 2.44m wide X2.59m high
• Internal Dimensions (in meters): 12.025m long X 2.352m wide X 2.393m high

Is There Difference Between FEU For General Purposes And High Cube Containers?

Yes, there is a considerable difference between FEU for General Purpose and High Cube Containers.

The major difference between these two lines is height.

General-purpose containers have a height of 2.6m (8’6″), while High Cube Containers have a height of 2.9m (8’6″).

While this might not seem like a huge difference, it does play an important role in shipping, specifically stacking.

Normally, you will find more High Cube Containers in the 40ft container market as General Purpose dominates in the 20ft container market.

The choice will depend on the importer’s or the exporter’s preferences.

What Are The Benefits Of Using 40ft Containers For Shipping?

Among the standard-sized containers, 40ft containers are considered to be the largest. Despite it not being as popular as the 20ft containers, it is very beneficial when transporting and storing goods.

Let’s have a look at some of the benefits of using 40ft containers for shipping;

• Ample storage space – Being the largest standard-sized container, you have enough storage space for your goods.
• Cost-effective – Shipping several goods using a 40ft container eliminates the need for shipping using several 20ft containers. In addition, it can accommodate a large volume of goods. So be sure to save on costs that would otherwise be used when using several containers.
• Ability to transport more goods – A 40ft container cuts costs and the number of containers you will need to transport goods; they can accommodate more goods and therefore eliminate the need to pay for two smaller containers for shipping.
• Protection of goods against theft – Owing to the tough build, 40ft containers are difficult to break into; thus, rest assured of your goods’ safety.
• Protects goods against damage -These containers are designed to prevent air and water from accessing the contents of the container. IT is beneficial as some products easily go bad when exposed to such elements.
• Ability to transport large goods -40ft containers make it easier transporting large cargo that could otherwise not fit into smaller containers.
• Versatility – Apart from shipping, 40ft containers can serve several purposes, such as storage facilities.
• Customizable – You can modify a 40ft container to meet your preferred size requirements.

How Is FEU Calculated?

To calculate the FEU of a container, you need first to understand how TEU is calculated.

A single forty-foot container is equivalent to two 20-foot containers (2TEU). To calculate the TEU, take the actual length in feet and divide it by twenty.

For instance, one TEU will be (20ft x 8ft x 8ft) while 2TEU will be (40ft x 8ft x 8ft), the same as 1 FEU.

How Many Pallets Can Fit Into A 40ft Container?

To start with, three different types of pallets can fit into a 40ft container;

• Standard pallets (1000mm width x1200mm length) – These pallets are Mainly used by companies in Canada or the US, which explains why they are also referred to as North American Pallets.
• EU pallets (800mm width x 1200mm length) and EUR2 pallets (1200 x1000)
  This kind of pallet is mostly used in the UK, Europe, and New Zealand. They are the most common types of pallets used by shippers.
  Each of these pallets has different maximum fittings into a 40ft container as listed below;
  Standard pallets -20 pallets
  EUR2 pallets -20 or 21 pallets
  EU pallets – 20 pallets

What Is The Maximum Load Per FEU?

The maximum load per FEU may be roughly from  30,480kgs to 67,200 lbs.

The maximum load varies depending on the type of container. Smaller containers will have a smaller load and vice versa

What Is The Difference Between TEU And FEU?

TEU and FEU differ in different aspects when it comes to shipping cargo. Some of these differences are not limited to;

• TEU refers to a twenty-foot Equivalent Unit, while FEU is Forty-foot Equivalent Unit.
• The maximum capacity of TEU is 28 cubic Meter while FEU has a maximum capacity of 58 Cubic meters.
• The inner dimensions of FEU are 39’ 6.5” x 7’8” x 7’ 9.5” while TEU has 19’ 5” x 7’ 8” x 7’ 9.5”.
• TEU can take up to 9 to 11 pallets, while FEU can hold 20-24 pallets.
• TEU can hold smaller loads of goods as compared to FEU, which can hold twice as much.
• The outer dimensions of TEU are 20’ x 8’ x 8’ while FEU has 40’ x 8’ x 8’.

How Many TEUs (Twenty-Foot Equivalent Unit) Is An FEU?

Twenty-Foot Equivalent Unit measures the volume of 20-foot containers, thus the name “TEU.”

On the other hand, FEU is a measure for 40-foot containers making it twice as big as TEU. That said, 2 TEUs are equivalent to 1 FEU.

What Is FEU Reefer, And How Does It Work?

FEU Reefer is a refrigerated 40ft container that is used to ship controlled goods.

The goods used to be shipped; fruits and vegetables, meat, seafood, flowers, dairy, and pharmaceuticals.

Reefer containers are designed in a manner that they can preserve—items at the required temperatures, which might range between -30°C and +30°C.

Gensets (generator sets) dependent on fuel and electricity are used on reefers to bring about the cooling effect.

While goods are being transported, the temperatures are being indicated and logged by Data Loggers. Data loggers are equipment found inside a reefer unit.

The data collected can be downloaded and accessed via a personal computer.

TEUs are known to be the commonly used size for reefers globally.

What Are The Requirements For Loading An FEU Reefer?

Some of the requirements when loading FEU reefers are not limited to;

• There should be adequate spacing (preferably 12cm) between the cargo and the roof of the FEU reefer.
• You should leave enough space during the loading process to facilitate cool air circulation in the container.
• Ensure that power is switched off while loading to prevent the ambient exchange of air.
• The goods to be loaded in the FEU reefer need to be pre-cooled before being loaded into the reefer.
• Reduce your reefers and goods’ exposure to open-air to keep them fresh.

What Is A CSC Plate In Container Shipping?

Like a vehicle’s number plate, the CSC plate describes the container and includes details as inspection date and the container’s gross weight.

Altogether with its payload, and design to mention a few.

This plate is fixed on all containers after inspection, and it confirms that the container is safe for transporting cargo.

If you may ask, an inspection of containers should happen once every 30 months, as stated by CSC 1972. An authorized inspector should do the inspection exercise.

How Much Does It Cost To Ship A 40ft Container?

As much as a 40 ft container is twice the size of a 20ft container, the charges are not doubled.

You are bound to spend only 20-25% more when shipping via a 40ft container than a 20foot container.

20-21 pallets can fit into a 40ft container, and the total capacity stands at 2,389 cu ft.

What Is The Role Of ISO Standard In Container Shipping?

In 1961 ISO standards were enacted to ensure that containers adhere to the required size and durability requirements. It was in a bid also to ensure safe and uniform stacking.

Shipping containers are inspected once every 30 months to confirm the conformity of the container to the required standards.

For instance, the ISO standard 668:2013 is for classification, dimensions, and the gross mass of containers under series 1.

On the other hand, ISO Standard 1496-1:2013 is for specifications and tests.

The ISO 1161:2016 is for corner and intermediary fittings, specifications for containers under series 1.

There are several types of ISO Containers which are not limited to;

• Open top containers
• Reefer containers
• Dry freight or cube containers
• Tank containers
• Insulated or thermal containers
• Flat racks and platforms

What Are FEU Shipping Container Marking Codes?

The main purpose of having marking codes on containers is to easily display the type, length, and height of the container.

It is composed of four characters: letters or digits displayed under the container identification sequence.

Each of the characters represents details of the container, for example;

• First character represents the container’s length.
• Second one represents the height.
• Last two characters give details on the type of container as well as its characteristics.

What Is ACEP For FEU Shipping Containers?

Approved Continuous Examination Program refers to an inspection that is carried out on containers.

It is to ensure that they met the required safety standards for international shipping.

If the container is under ACEP, it should inspect after five years after the manufacturing date.

They should also check containers during repairs, renovations, or when the container is about to ship items.

The inspections are frequent, and this ensures that the container is always safe.

After every 30 months, the container is required to undergo inspection.

Luckily, frequent updates are done in the ACEP online database to remind the container owner about an upcoming inspection.

Renewal of the ACEP is done after every ten years.

What Is ISO Tank FEU Container And Dimensions?

ISO tanks FEU containers refer to 40ft containers that are designed based on the ISO Standards. Such tanks are used in the transportation of liquids and gases such as;

• Water
• Molasses
• Liquid resins
• Chemical/solvents
• Alcoholic and non-alcoholic beverages
• Dairy products
• Hydrogen peroxide
• Oils
• Sulphuric acid
• Liquefied sugars

In as much as ISO tanks facilitate hazardous shipping products, additional requirements might be needed for you to execute the shipping process.

It’s worth knowing that once an ISO shipping container is designed to be used to transport dangerous materials. It cannot use in shipping food substances and vice versa.

Normally, there is an exterior structure that supports ISO containers and can be adjusted to match the container’s dimensions.

In addition to that, these types of tanks have an insulating material that protects them from the transported goods.

The dimensions of ISO tank FEU are as follows; 8ft (2.43m) wide, 8.5ft (2.59m) high, and 40ft (12.2m) length.

What Are The Considerations When Choosing FEU Vs. TEU Container Shipping?

Before choosing whether or not two use FEU or TEU, there are certain factors that you need to consider. Such factors include;

• The purpose for the shipping container – You can use Shipping containers for storage and shipping purposes. Aside from these, you can as well use a shipping container to construct a house or office. Knowing the purpose your shipping container will play will help you decide which size suits you. The size you want the size of your container will determine your house or office.
• Dimensions of your goods can ship anything via a shipping container regardless of the size or weight. However, if you want your cargo to fit appropriately, you need to consider the shipped’s size. FEU would be suitable when shipping or storing large-sized goods owing to the extra storage space available.
• Packaging of the goods – If you are shipping your goods in pallets, the number of pallets to fit in FEU will differ from TEU. While FEU can accommodate 20-24 pallets, TEU can only hold 9-11 pallets. Therefore, if you are planning to ship several pallets, FEU would be the ideal choice.
• Amount of goods to be shipped – In as much as FEU and TEU differ in terms of size, the cost associated with shipping using these two might not be far from similar. For instance, you might realize that just by adding 20-25% of TEU’s cost, you can ship your goods via 40ft container. Thus, shipping several goods will be economical when using a single 40ft container instead of two 20ft containers.
• Your budget – Finally, your budget will play an important role in determining whether to use TEU or FEU. It comes without saying that you are bound to spend more when using FEU owing to the larger capacity that it can accommodate.

It’s also important to analyze how you will stack your goods into the container. It will help you know whether they will neatly fit into your container.

What Are The Delivery Options For FEU Cargo?

There are three main delivery options for FEU cargo which include truck, ship, and rail.

The choice will depend on the shipper’s preferences as well as the destination.

Delivering FEU cargo will be applicable with sea freight Globally.

In contrast, rail and truck options are ideal for delivery around the country or neighboring countries.

What Are The Rules And Regulations For FEU Cargo Ground And Rail Transportation?

Containers adhere to the ISO standards and other rules and regulations concerning the transportation of FEU cargo.

As we know by now, FEU cargo can only be transported on land via truck or rail or by sea via ship. That said, below are some of the rules and regulations that should be followed when transporting FEU cargo.

• The weight of the container should not exceed 67,200 lb. It’s important to check with your local authorities regarding your container’s required weight, whether on the ground or sea.
• The container should have passed through inspection and adhered to the ISO standards before being used to transport cargo internationally.
• It should safely secure Hazardous cargo being transported via road or rail as per the ISO standards. In addition, the container should have a visible warning sign marked on it to create awareness about the contents being transported.
• The container should have certifications such as ACEP and CSC to confirm its safety. The CSC certificate confirms that the container has been inspected and passed the safety tests conducted.

Keep in mind that the rules and regulations vary from one country to the other. Therefore, it will be essential to confirm with your local authorities about any other rules and regulations that should follow.

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Contact us today for all your freight forwarding needs from China.

If you have any question about emergency bunker surcharge, you will find the answer right here.

So keep reading to learn more.

What Is Emergency Bunker Surcharge?

We can define Emergency Bunker Surcharge as the sudden increase in prices resulting from increased fuel costs.

This rapid fluctuation of fuel prices allows the carriers to provide mitigations to allow ships to continue operating.

To determine the constant fluctuations of fuel prices, the EBS works with the Bunker Adjustment Factor. Therefore, it implies a sudden increase in bunker prices will increase BAF and vice versa.

What Is Bunkering?

It is a process that involves supplying fuel oil to the ship bunkers during the shipping process. Modern bunkering involves using fuels such as petroleum products, unlike when coal steam up the ship.

Bunkering sometimes can be dangerous, and there, you should be extra careful while conducting this process.

Here are procedures to follow before bickering:

1. The engineer checks out which bunker tanks require filling after confirming the available quantity of fuel from the shore office.
2. In most cases, emptying of tanks or shifting of oil from one bunker to another is important. It prevents the mixing of these fuel oils, which might result in the incompatibility of the oils.
3. Offer relevant information to individuals undertaking the bunkering process.

When Do Carriers Charge An Emergency Bunker Surcharge?

Carriers always try to look for ways to mitigate the constant fluctuation of fuel prices.

However, the constant changes in prices might increase the price where the carrier is unaware and incurs losses.

Carriers Charge EBS when the fuel price increases and there is a shorter timeline regarding FMC regulations.

The Emergency Bunker Surcharge does not immediately reflect on the increase and decrease of fuel prices hence more benefits.

Carriers also charge Emergency Bunker Surcharge when there is conflict from the shipper. Normally, the shippers claim the carriers should be responsible for the increase in fuel prices.

Therefore, the introduction of EBS protects the carriers from these mishaps.

Is Fuel Surcharge The Same As Emergency Bunker Surcharge?

No.

The Fuel Surcharge is not the same as EBS.

The additional charges that the carriers pay apart from the shipping charges, we term these additional charges as Fuel Surcharge.

With a Fuel Surcharge, you can involve a third party who signs an agreement with the shipper. Both parties determine how much standard rates you will pay and what fuel prices affect the surcharge.

Emergency Bunker Surcharge covers the carrier’s costs due to the sudden increase in fuel cost against the original anticipation.

Why Are Carriers Increasingly Charging Emergency Bunker Surcharge?

Carriers are increasingly charging Emergency Bunker Surcharges for several reasons. The main reasons are:

High Fuel Prices: Constant increases in fuel prices affect different sectors all over the world.

As a result, it causes an increase in the cost of every other commodity due to production costs.

This factor leads to constant conflicts such as strikes and demonstrations in various sectors experiencing these hikes.

Emergency Bunker Surcharge Now Low Sulfur Emissions Standards: The IMO regulatory body regulates sulfur in fuel. The sulfur content should be 0.5% from the previous 3.5%.

Low sulfur content in fuels have the following benefits:

First, Reduce Air Pollution: hence more clean air is available. Protect human health.

It’s, as a result, prevents exposing people to health hazards such as cancer, lung disease, and respiratory problems.

It also prevents environmental hazards.

However, emitting sulfur-based fuel to the environment has great side effects such as low production of produce on farms.

Sulfur cap regulations require the shippers to use fuels with low sulfur content, especially in areas with high populations.

The Decline In Spot Rates And Financial Losses: is a result of the following factors;

• Increase in fuel and vessel charter costs
• Weak freights rates
• Pressure for the delivery of new containership

All these factors will lead to variations in the carrier margins.

What Is The Difference Between Emergency Bunker Surcharge (EBS) And Bunker Adjustment Factor (BAF)?

Emergency bunker surcharge occurs as a result of a constant increase in fuel prices.

Normally, the carriers are not aware of the increase in price and the sudden introduction of EBS.

Emergency bunker surcharges mostly vary with the following factors

• Type of container you are moving
• Fuel prices
• Finally, the trade lane that the shipment is moving in.

The emergency bunker surcharge occurs mostly during the last minutes, which might result in inconvenience.

On the other hand, normally bunker adjustment factor caters to any extra charges as a result of constant fluctuations of bunker prices.

The base freight charges are separate from the BAF, and you can adjust quarterly.

With BAF increase in fuel prices corresponds to an increase in Bunker Adjustment Factor and vice versa.

Additionally, it allows each carrier to set their cost rates with BAF, unlike doing it collectively.

Constant updates on the Bunker Adjustment Factor Surcharge allow the shippers to always ahead.

What Is The Relationship Between Vessel Fuel And Crude Oil In Shipping?

Ideally, vessel fuel corresponds to the oil price that is set by Brent crude oil price.

This Brent crude oil is constantly increasing with a reduction in oil supply by the organization of petroleum exporting countries.

Sanctioning of fuels by some countries also contributes to an increase in fuel prices.

Why Are Vessel Fuel Prices Increasing?

Normally, you can tie fuel price to oil price. Brent crude oil usually sets the price and is constantly increasing due to a decrease in supply by OPEC.

It’s as a result, leads to low anticipation by the carriers. Hence, the carriers adopt the Emergency Bunker Surcharge to protect them.

Note, implementing the EBS allows the carrier to recover all the fuel costs they incur.

Is Emergency Bunker Surcharge An Emergency As Put?

No.

An Emergency Bunker Surcharge is not an emergency since we experience constant fuel fluctuations.

But, unfortunately, it has been happening even in the past.

Therefore, a one-time increase or decrease in fuel prices does not warrant it to be an emergency.

Also, presenting weak evidence to prove the sudden rise or decrease of fuel prices discredits the EBS as an emergency.

How Long Will An EBS Be Effect?

Normally, the carrier decides on the duration which the Emergency Bunker Surcharge will be in effect in a specific trade lane.

The possibility of continuous increase in oil prices will lead to oil cuts and the sanctioning against Iran by the u.s government.

This variation depends on the trade lane and the carrier.

Why Do Freight Costs Vary Per Trade Line?

Freight costs vary per tradeline due to the following reasons:

First, Supply And Demand: Low rates result in high traffic trade lanes where the carriers need to be competitive to attract a large market share.

In the case where freight rates are high, the demand lowers. It implies only a few carriers can provide these services.

General Rate Increase: This occurs when the freight rates are low due to competition between carriers. Thus, the need to implement the GRI to increase the freight rates.

Market Conditions: When trade lanes are in high demand, the carriers apply the pick season surcharge.

Other factors such as weather, strikes will also affect the market condition.

Which Factors Determine The Price Of Emergency Bunker Surcharge?

The following factors determine the variation in the price of EBS:

• Size and type of container
• Fuel prices
• Tradeline
• Carrier

How Much Do Emergency Bunker Surcharges Cost?

The cost of Emergency Bunker Surcharge varies with the following factors

• The cargo you want to ship
• The type of containers you want
• Whether you are shipping a dry cargo or a reefer, the reefer is not long-lasting and requires special containers.
• Additionally, the cost varies with the carrier.

With these factors, the following are the estimates of Emergency Bunker Surcharge costs;

$50-$60 for dry containers

$90-$180 for reefer containers

How Do Carriers Bill For An Emergency Bunker Surcharge?

The carriers include the EBS to the charges of the shipment to allow balancing of the changing costs. The carrier bills the EBS as a percentage of the miles you cover.

Carriers also bill the Emergency Bunker Surcharge by comparing fuel prices from the previous week. It allows them to determine the gap between fuel prices and how to mitigate it.

Additionally, the carrier determines the retail prices from the stations then determines the average cost. It allows the carrier to determine how much Emergency Bunkering Surcharge to impose.

Is Emergency Bunker Surcharge Applicable To Both FCL And LCL Shipments?

Yes.

You can apply both the full container load and less container load to EBS. The carrier initiates this process, which applies in all trades around the ocean.

With the FCL coming into effect, the EBS will affect shipments not relating to the US and shipments on distant destinations.

For LCL, it allows implementation of Emergency Bunker Surcharge. It is, as a result, allows the carrier to recover the fuel margins.

Do Carriers Charge The Same EBS For All Kinds Of Container Shipping?

No.

Charges vary with the type of container you are shipping. These containers can be dry or reefer containers.

The cost will also vary with the length of these containers. For instance;

For reefer containers, the price ranges from $85-$250 for a 20-inch container and $180-$250 for a 40-inch container.

The price ranges from$50-60 for a 20-inch container and $90-180 for a 40-inch container in dry containers.

Who Should Pay Emergency Bunker Surcharge?

The seller pays for the Emergency Bunker Surcharge. This payment usually occurs at the port after the arrival of the cargo.

Payment of EBS varies with different trade lines. For instance

The MCM estimates the variation of the fleet and the supply of fuel to be above 2 million dollars as they approach2020.

Maersk line expects an increase in fuel supply costs to above 2 billion dollars due to the visible difference between the current fuel and the compliance.

Other trade lines such as MSC, OOCL, APL, and CGM also accept these compliances and subject these costs to customers.

How Do Carriers Communicate Emergency Bunker Surcharges?

The introduction of EBS allows continuous and sustainable services to the customers. Carriers may communicate through the following ways:

They reach out to local MCC transport representatives to inquire about customer needs’ concerns, questions, or clarifications.

They allow you to log into the pages they provide to view information about the EBS. In addition, if you do not have an account, they allow you to register for the same.

You can contact the carrier via calling the toll number they give (440-336-8862)

Also, you can visit and connect with the carrier via the website.

What Is The Difference Between Low Sulphur Surcharge And Emergency Bunker Surcharge?

A low sulfur surcharge is normally the charge the seller pays while using low sulfur fuels. These costs will cover these costs as the sulfur cap regulation standards.

While EBS covers the sudden increase or decrease of fuel prices, this fluctuation leads to losses; hence implementing the EBS allows compensation to the carrier.

What Are The Implications Of EBS In The Freight Forwarding Industry?

Emergency bunker surcharge implications on the freight forwarding industry include:

• Weak freight rates
• Fluctuating fuel prices
• The conflict between the shippers and the ocean carriers,
• Last minutes pop-up of fluctuating fuel prices information.

What Is The Future Of Bunker Fuel Surcharges?

Recently increase of questions of who will take the burden of the fuel costs is increasing. Should the shippers or the carriers take the burden?

With these rising issues, there is a need to develop new strategies to provide long-term solutions for Emergency Bunker Surcharges. The shippers want the carriers to be responsible for these charges.

They claim the carrier uses an Emergency Bunker Surcharge to compensate for the losses and not the bunker.

Note, the carriers do not have control over the fluctuating fuel prices. Therefore, they use the EBS to cover the losses.

At Tj chinafreight, we help in all shipping from China.

Contact us today for all freight forwarding services from China.

Today’s guide explores everything you need to know about FDA.

So, if you have any question about FDA, you will find the answer right here.

Keep reading to learn more.

What Is FDA?

We can define food and drug administration as an agent that oversees the process of production of different products that we use and consume in our day-to-day lives.

The food and drug administration monitors products such as cosmetic products, medical equipment, biological products, and food.

They also regulate products that present to be a hazard. That is an emission of radiation which is harmful to the consumer of the products.

What Is The Main Purpose Of The FDA?

Food and drug administration’s perform a wide role in regulating what products the end-user purchases and consumes.

The following are some of the benefits of food and drug administration:

• Facilitate advancing of public health by ensuring a speed up process during product innovation.
• FDA offers protection of the public consumer from products that emit radiation for instance-rays
• They also offer regulations on the amount of content on tobacco products
• They inspect all the cosmetic products and food to ensure proper labeling to prevent consumers from using the wrong product.
  This will cause effects on the body.
• They also ensure that all medical devices, vaccines, and biological products that humans use are effective and safe for them.

What Products Are Subject To FDA?

The food and drug administration regulates consumer products to protect public health.

There are certain products that FDA highly regulates.

These products include:

1. Medical products: such products include, first aid kits, surgical instruments among others. The food and drug administration inspects the standards of these products to prevent preventing under quality equipment.
   This will pose a threat to public health.
2. Human food: FDA regulates what consumers take in terms of food, for instance, excess intake of food additives will cause health issues to the consumer.
3. Another case is the dietary supplements that cause an increase in weight when the consumer takes them.
4. This will lead to accumulations of fats in the body which is dangerous to your health.
5. Human drugs: regulates and inspects all drugs coming in from other countries.
   This prevents an increase of counterfeit drugs which will cause a serious problem to the consumer
6. Cosmetic products: inspects these products to evaluate if the ingredients used meets the threshold.
   As a result, preventing any side effects on the consumer’s body and face.
   These products include face creams, shampoo, artificial eyelashes among others.
7. Radiation emitting electronic products such as microwaves, X-ray equipment, LEDs, Laser printers pose a health crisis to the public. users.
   The FDA ensures low emitting devices are available with guidelines of their usage.
8. Tobacco products: FDA ensures the percentage of tobacco in cigarettes, e-cigarettes, and smokeless tobacco meets the specifications given threshold.
9. High nicotine in these products causes health issues among the users such as lung cancer due to the high concentration of the substance.
10. Biological products, vaccines, and blood: FDA ensures accurate examination of these products before the consumer receives them.
    For instance, you should examine the blood for the presence of additional elements, also the body organs should be a match and to the receiver to avoid health crises.

What Are FDA Entry Types?

Entry type refers to all types of goods that a country allows in via the help of regulatory bodies like the FDA and CPB.

FDA entry uses an Automated broker interface program to achieve the entries electronically.

Food and drug administration process different types of entries. These FDA entries include

Consumption Entry: allows importing goods into the US without issuing requests for the goods and the time.

You can either use these goods for commercial, personal, or business purposes.

With consumption entry, different individuals are responsible for this entry.

They include:

• The owner
• Custom brokers
• Purchaser

We can further classify consumption entry into:

• Mail
• Informal entry
• Formal entry

In cases of warehouse and import for export FDA entries, they help in removing goods that are entering us.

Other FDA entries include;

• Immediate transportation
• Transportation and exportation
• Temporary importation under bond
• Foreign trade zone

What Is The FDA Entry Process?

The food and Drug Administration entry process involves the steps that custom brokers follow while shipping the products into the country.

These processes include:

If these products are FDA regulated, the customs broker submits custom entry documents to the FDA.

In other cases, the customs broker will submit prior notice to the FDA in case they need more time.

Usually, the customs broker should submit this notice two hours before the arrival of the shipment.

This gives the FDA more time to pre-examine all entries and decide on whether the shipment will cross or needs more examination.

We recommend custom brokers to ensure that products enter the country during the day to allow reviewing at the arrival port.

In case the FDA issues reviews of the products, custom brokers will send a notification to the owner to hold goods longer.

This allows the customs broker to clear any pending issues with FDA to prevent additional charges or refusal of goods entry.

What Does It Mean For A Product To Be FDA Approved?

The main responsibility of food and drug administration is to carry out tests, examinations, reviews and provide approval of products for human consumption.

These products range from medical devices, food, cosmetics, tobacco products, and biological products.

Therefore, for FDA to approve these products they must meet a certain threshold which means they do not pose any danger to the consumers.

Hence, protecting the consumers’ health.

What Is The Importance Of FDA Approval In Shipping?

Food and Drug Administration is important in shipping in the following ways:

• Counterchecks all paper documents to ensure that the shipment does not pose a danger to public health.
• They implement final rules on FDA regulated products such as biological products, food, and medical devices.
• It reduces the holding of goods at the port when the owner provides relevant documents.
• FDA approval also fastens the process of shipping.

This means if the products qualify and adhere to the law FDA will release them immediately.

Do I Need To Register With The FDA?

Yes. To allow easy importation of these products it is important to register with food and drug administration.

Normally, when importing these products into us, you need to register because each product has specific registration variations.

Below are some examples of products and how to register them;

Cosmetic products you should check in with voluntary cosmetic registration program which works as FDA post market reporting system.

This body provides approvals of cosmetic products for manufacturers and distributors.

Tobacco products: if your business in the production, selling of this product you should register with food and drug administration.

You should include sources and types of materials you are using to manufacture these products.

What Products Do Not Need FDA Approval?

In some cases, the food and drug administration does not approve all the products the importers are shipping into the country.

Some of these products pose health risks to the consumer and therefore the FDA will take a longer time to review this product.

These products that do not require food and drug administration approval include;

Tobacco Products

We all know what danger tobacco products pose to human health.

Therefore, the FDA standards examining medical products can not apply to tobacco products.

The law requires you to obtain a written food and drug administration order to allow the production and selling of tobacco products.

The dangers of tobacco products will always bring setbacks to the manufacturer while approaching the market.

As a result, the manufacturer can use the following ways to penetrate the market:

• Premarket tobacco applications
• Substantial equivalence applications
• Exemptions from equivalence applications.
• Compounded drugs

They are a result of a combination of different elements by the pharmacies or doctors to produce medication that best suits patient needs.

FDA approved medicines contain elements that may cause an allergic reaction to different patients when they take these medicines.

Therefore, the Food and Drug Administration does not approve these compound drugs due to the health issue they pose to patients.

Cosmetic Products

As the manufacturer of these products, it’s your responsibility to accurately label and give a description of their usage to consumers.

The food and drug administration does not need to approve these products before reaching the market.

This is because manufacturers will always find ways of penetrating these products to the market.

Infant Formula

The marketing of infant formula allows consumers to sample these products. Thereafter the FDA will evaluate consumer feedback on the infant formula

If this product poses a threat to public health, the FDA declines to approve this product.

In cases of a new brand of infant formula, the manufacturer should provide samples and ingredients for examination to the FDA authorities.

Medical Foods

Normally, we use medical foods to care for the needs of the patients who require specific nutrients foods.

For instance, patients who are diabetic require insulin to low the sugars in the body

Additionally, the FDA does not require the manufacturer to label the products but rather provides accurate information.

How Does The FDA Classify Medical Products?

We can classify medical products into three classes.

It is important to acquire relevant information that helps you understand how these classes work. This normally occurs before submission to the food and drug administration.

This classes results from 16 medical specialists.

These classes include:

Class 1

This class contains general controls providing exemption and in some cases no exemptions

We do not associate this device with high risks of danger

Examples of class1 medical devices are, face masks, bandages,

Class 1 with exemption devices requires the 510k for marketing purposes

Class 2

This class contains the general controls and special controls providing exemption or no exemptions.

This class also requires 510k for a device with an exemption.

Examples; wheelchairs

Class 3

Contains general controls and pre-market approval

These devices cause high risks of danger to the patients.

For example; an oxygen support machine

What Is A Premarket Approval In Relation To FDA Regulations?

Premarket approval normally occurs when the manufacturer clears with the FDA.

This normally occurs when the manufacturer presents a new product.

The FDA will approve the product to penetrate the market and later will review the consumer feedback.

This allows them to determine if the product will pose danger to the consumers, before giving marketing approval.

When Is A Premarket Approval Required When Shipping FDA Regulated Products?

You will require a premarket approval while shipping products considered to pose a great danger when consumer user them.

For instance, if the owner is shipping medical devices that fall under class 3. They will require a premarket approval because they pose a great danger to patients.

What Is The Difference Between Premarket Approval And 510K Premarket Notification?

Both premarket approval and 510k premarket notification have distinguishing functions thus making them different.

Below are some of the main differences:

Premarket approval applies for totally new products in the market such as the class 3 medical devices.

Timeframe for premarket approval is strictly 6 months.

With premarket approval, the food and drug administration conduct thorough research to determining ease penetration of product to market.

This normally occurs the product poses great danger.

With remarket approval, the food and drug administration should approve or decline the product.

Premarket approval entails a lot of paper documentation that provides the plan for the establishment of these products.

On the other hand,

510k premarket notification applies when the manufacturer produces a similar product to that existing in the market.

The timeframe of submitting the 510k premarket notification is an average of 90 days which makes it faster and affordable.

Allows illustrations of the products to prove distinct features from the existing one

Also, 510k premarket notification does not require showcasing of all information.

There is an exemption if the manufacturer alters the products to perform the same functionalities.

Submitting 510k only guarantees the clearance process and therefore you cannot advertise it as food and drug administration approval.

How Long Does FDA Approval Take?

Food and Drug Administration requires a certain timeframe for the complete approval process. This timeframe depends on the following;

Submission of the 510k applications

Submission of premarket approval

If you register individually.

Considering these factors FDA approval will take between 5 working days to 120 (equivalent to 8 months).

What Is The Difference Between ‘’FDA Registered’’ And ‘’FDA Approved’’ And ‘’FDA Cleared’’?

There are unique features that make each of them different features apply while evaluating what regulations govern them.

These differences include;

FDA approved implies a complete examination and review of products to ensure they are safe and effective for human consumption.

This means the products should not pose any health risks to the consumers.

FDA cleared applies where the manufacturer presents to the FDA a product that is like that existing in the market.

The FDA request for demonstrations to prove the product achieves the FDA regulations i.e., safety and effectiveness.

After a successful demonstration, the FDA will clear this product for marketing. This process is what we term as FDA cleared.

FDA requires the manufacturers to register with them before releasing their products to the markets.

Registration of the products allows the FDA to be aware of all activities you undertake to produce the products.

The main importance of registration is to help deal with any arising issues from malfunctioning devices.

What Is An FDA Hold In Shipping?

We can refer to food and drug administration as a form of custom hold at the custom clearance offices.

FDA hold occurs mainly when the FDA finds the need to hold products for further detailed examination.

The FDA will request more documentation to prove the usage of the products.

This decision is a result of goods not meeting the FDA threshold.

Therefore, the FDA will hold these goods for as long as the details are unclear.

Why Would The FDA Hold A Shipment?

The key importance of the FDA is to evaluate and examine products for the safety of the consumers.

If this product does not meet these standards, FDA will hold these goods and send a holding notification to the relevant individuals.

The FDA holds this shipment if the owner refuses to provide proof that the product complies with the law.

Failure to provide a plan to bring the product into compliance

Failure to accept that the products violate the law.

How Long Can The FDA Hold A Package?

On normal occasions, FDA will hold this package for a period of 1 to 2 days, but under special circumstances, it can take even months.

The earlier the owner provides the information that the FDA request the faster they will release these packages.

Delays as a result owner withholding information will lead to a long period of holding.

What Happens When The FDA Holds A Shipment?

Normally, FDA holds products if they suspect that they need further inspection or provision of unclear information.

In case the FDA holds they will send a notification to the customs broker who has an obligation of notifying the owner.

The FDA will request additional information about the product

They might as well pick samples for lab testing

All these procedures help to determine if the products meet the US laws and regulations.

How Do I Perform An FDA Hold Status Check?

This status check is achievable by;

You can use the custom broker to follow up on the holding process

You can also contact the FDA via their platform.

This will require you to fill in your details in a form.

This form includes entry number, CPB, and FDA number.

THE FDA will communicate back to you.

What Can I Do If My Package Is Held By The FDA?

Normally if the food and drug administration hold the package, you should consider the following two options:

• Submit a request to allow you to make changes to the products to clear the violation issues.
• You can submit proof of the product’s information to the FDA to clear the violation. Submission of proof further allows the FDA to conduct a further examination.

What Is The FDA Product Code?

Food and Drug Administration product code provides a description of the products and what group they belong to.

FDA product code usually contains seven alphanumeric characters. It is made up of different elements such as;

• Product industry code
• Class code
• Subclass code
• Process indicator code
• Group code

What Is The Process For Importing FDA Regulated Products?

Importing products that under FDA regulations requires:

Involve custom brokers who act as third parties.

The ensure submission of relevant documents and make payments for all the entries.

The Customs broker will make an entry with Customs and Board Protection and later include an HTS.

The HTS consists of tags that assist food and drug administration which information is important and which is not.

The HTTUS code determines if the product meets the FDA standards. If it’s the case submission of all documents takes place.

Can A Customs Broker Help With FDA Custom Clearance?

Custom brokers act as agents between the buyer and the seller.

Thus, preventing direct involvement.

Customs brokers play a vital role in the customs clearance process.

Custom brokers help in the following ways;

They ensure that the goods you are importing adhere to FDA regulations

They determine a suitable harmonized tariff schedule which is a requirement by the customs and border protection.

Custom brokers provide you with FDA information and affirmation of compliance requirements.

During the entry of goods, they will always acquire a bond for you which help in the payment of the products.

They prepare and provide all the documentation to the food and drug administration.

They use Automated Broker Interface to transmit all information to FDA and back to the owner.

A customs broker can file a notice before.

They also provide answers to queries regarding FDA custom clearance.

What Is The Cost Of Importing FDA Regulated Products?

It is important to evaluate all possible cost options while importing FDA regulated products. Normally, these costs vary differently depending on the following factors:

The type of product you are importing into the country.

This means every product type you import will have costs differently normally due to sizes.

How much are the products worth?

This implies if the products constitute a high amount of money.

The cost charges will increase.

We can also determine the cost by the longevity period that the owner has been in business.

This means if the owner has been in business for long, they will pay less.

For start-up businesses, the costs are high which poses a challenge to the business owner.

Costs will vary from bond charges, shipping charges, and duties.

And it’s the responsibility of the business owner starting up to be aware and prepare for these costs.

In case you have problems with product quality inspection, Tj chinafreight is here to help.

Contact us now when importing from China.

If you’re importing from China to USA or any other country to USA, then you need to understand the role of Federal Maritime Commission.

This guide explores everything you need to know about Federal Maritime Commission.

So, keep reading to learn more.

What Is Federal Maritime Commission?

It refers to a US agency whose responsibility includes regulating ocean shipment into and via the US. These regulations govern both NVOCCs and VOCCs to maintain fair competition.

What Is The History Of The FMC?

FMC started its operations in 1961 as a successor of the United States federal maritime board. Before 1961, United States Federal maritime board functions before 1961 regulated the ocean freight business and promoted itself.

However, with the birth of FMC, a reorganization plan came into effect to separate regulations and promotional functions.

In this new plan, it is the responsibility of FMC to administer the regulation of the shipping laws.

Changes in the shipping act of 1984 and that of the ocean shipping reform act of 1998 affected the operations of FMC. There are three main provisions that FMC use to administer their functions.

These provisions are the public law 89-777, 1988 foreign shipping practices act, 1984 shipping act and merchant marine act 1920.

The shipping act of 1984 introduced a regulation that impacted liner shipping and the responsibility of FMC.

Such regulations include liner services pricing using negotiated contracts instead of public tariffs. The Ocean shipping reform act of 1998 offers a basis for US liner shipping, including flexibility in business operations.

The mission of FMC since its inception is to promote fair ocean shipping practices in the US to all parties involved.

What Is The Role Of The Federal Maritime Commission In Shipping?

The ultimate role of FMC is to create fair competition for all the stakeholders involved in shipping. These parties include importers, exporters, and the American public.

FMC achieves this by formulating rules and regulations and performing several activities. For instance, they formulate policies and regulate the activities of ocean shipping intermediaries.

Ocean intermediaries include non-vessel operating common carriers and ocean freight forwarders. They also issue specific licenses to stakeholders like the ocean shipment intermediaries.

These licenses facilitate the shipping activities of these intermediaries into or from the US. It is also the duty of the FMC to asses’ applicable fees and penalties.

The purpose of the assessment is to violate the fees that customers pay and freight forwarders’ compensation.

Who Makes The Decisions Of Federal Maritime Commission?

Five commissioners are responsible for the day-to-day operations of the commission. The president is responsible for approving their appointment after submitting by the legislature arm of govt.

The commissioners are responsible for coming up with decisions about the operation of the commission.

What Are FMC Regulations For Ocean Freight?

FMC regulations refer to regulations that govern ocean shipping intermediaries’ activities in the US. FMC controls two classes of ocean shipping intermediaries.

That is non-vessel operating common carriers and ocean freight forwarders. The regulations define these two classes to facilitates the identification and follow-up processes.

These regulations govern the license requirement and procedure and the applicable fees and compensation.

Who Are The Service Providers Outlined In The FMC Regulations?

There are three primary service providers that FMC regulations outline, that is:

Non-vessel Operating Common Carrier

It refers to an ocean carrier whose services include shipping goods using their bill of lading. These service providers do not necessarily have to operate their shipping vessels.

They can lease space from other ocean carriers for the shipping of their goods.

Unregistered Non-vessel Operating Common Carrier

Unregistered non-vessel operating common carriers are those that do not have an FMC license. It means they cannot ship to and from the US.

They, therefore, have to rely on non-vessel operating common carriers who are registered for them to ship their goods.

Unregistered NVOCC cannot use their ocean freight rates when shipping which denies them exclusive freight rates.

When searching for registered NVOCC, one ought to look for the experience and services before engaging them.

Freight Forwarding Services

These are services that freight forwarders offer on behalf of cargo owners.

They undertake to ship, package and deliver customs clearance of goods on behalf of importers.

Once they have goods to ship, engage the services of freight forwarders search for NVOCC, who have US registration.

What Is FMC License?

It refers to a license that allows you to ship to and from the US via the ocean.

Who Needs An FMC License?

Anyone who wants to ship to and from the US should have an FMC license. Such persons include VOCC, OTI, freight forwarders, and NVOCC.

VOCC are usually big shipping companies like MSC and Maersk that offer ocean freight to and from the US.

An OTI is an intermediary that has its base in the US. It has an FMC license and is free to engage either as a freight forwarder or an NVOCC.

Freight forwarder accepts responsibility for shipment of goods to and from the US on behalf of the owner.

An NVOCC issues their bill of lading which does not follow a standard procedure and has an FMC approval.

NVOCC may have their containers for shipping or not.

All these parties are involved in shipping to and from the US hence require an FMC license.

How Can I Get An FMC License?

You can get an FMC license in two ways, depending on where you are based. That is:

US-Based NVOCC And OFFS

If you have a presence in the US, the first step involves appointing qualified personnel. A three-year experience is critical when searching for a qualified individual.

The person should have gained the experience while working in the US.

The individual should also have a stake in the business, depending on the business structure.

The next step involves submitting a soft copy of form FMC-18. It facilitates the issuance of certificates allowing you like an ocean shipping intermediary.

After submitting the papers, you have to pay the necessary fees associated with the authority. You have to make the payments electronically through their online portal.

Non-US Based NVOCC

You have to register your unlicensed non-US-based NVOCC before seeking a license. It involves submitting form FMC-65 through their email.

The next step is to submit form FMC-1 which is for carrier tariff registration. A tariff publisher can help you in submitting this form.

You can email them for clarification concerning this form. Once you have registered, the next step is to seek a license.

It is opening and operating an unincorporated branch presence in the country. You also have to appoint a qualified person to operate the branch.

Such a person should have a minimum of three years handling OTI in the US.

The next step is to submit the form FMC-18 electronically. You have to prepare your paper worksheet in advance before the electronic application.

The lasts step is to submit your license application fee via a credit card. You can do this using their online payment platform.

What Are The Requirements For FMC Licensing?

The following requirements are essential before seeking an FMC license:

Experience

You need to have a minimum of three years working as an OTI in the US. You should also demonstrate that you have all the requirements to operate OTI activities.

What Is An OTI Or NVOCC Surety Bond In FMC Licensing?

An OTO or NVOCC surety bond refers to a given amount that OTI or NVOCC must deposit before carrying on with activities.

The purpose of this bond is to ensure these parties comply with the ocean shipping reform act and the FMC regulations.

The amount ranges between $50,000 and $150,000. There are different types of surety bonds that are applicable for FMC licensing.

What Are The Types Of Federal Maritime Commission Bonds?

The primary bonds are the OTI bond, NVOCC bond (the US-domiciled), and NVOCC bond (non-US domiciled).

Some of Federal Maritime Commission bonds available are:

OTI Bond (Ocean Freight Forwarders)

It is a type of surety bond that you get if you are operating an Ocean Freight Forwarder.

Its alternative name is the FMC-48 surety bond.  The amount that you are to pay for this type of bind is $75,000.

It is possible to cancel an OTI bond either by you as an OTI or the surety. In practice, this is effective after thirty days upon receiving a cancellation notice.

However, once cancellation takes effect, it means you don’t have the financial capability to operate OTI. The consequence of this is to cancel your FMC license.

NVOCC Bond (U.S Domiciled)

It is a type of bond that one gets if they are operating from the US.

This type of bond undertakes to pay for damages to your goods during the shipping process by an NVOCC operator.

The shipping process includes packaging, loading, and unloading to a shipping container and transporting.

The bond also covers fines that FMC levies on your cargo for violation of the regulations.

You have to pay an NVOCC bond which is equal to $75,000 for this bond.

NVOCC Bond (Non-U.S. Domiciled)

If your NVOCC is not present in the US, you have to pay for this type of bond.  It covers damage to the goods during the shipping process.

The essence of this is to protect both the shipper and customer from exploitation and ensure a fair charge.

What Are The FMC Surety Bond Requirements?

The FMC surety bond requirements depend on the type of bond you are applying.  You can summarize these requirements as follows:

Licensed US-based OFFs And NVOCCs

If you are a licensed US-based OFFs or NVOCCs should prove their financial responsibility. Such proof should be in the form of taking a surety bond.

It is worth $50000 if you are an ocean freight forwarder or $75000 if your license is for NVOCC. You should also submit for all your unincorporated branches operating OTI services in the US.

Licensed Non-us Based NVOCCs

If you are a licensed non-us-based NVOCCs, you have to submit a surety bond equaling $75000. It assures FMC of your financial responsibility and ability to handle your shipping.

Non-us-based NVOCCs Licensed

If you are not based in the US but have the license, you should submit proof of financial responsibility to FMC. Such evidence is in the form of a surety bond of around $150000.

You should also use a licensed OTI if you are carrying out OTI services in the US. The licensed OTI is responsible for your shipping process while in the US.

What Does The FMC Surety Bond Protect Against?

The primary purpose of the FMC surety bind is to offer protection to goods that you are shipping as an OTI.

Such protection covers damage to the goods on transit which reduces risk to the owners.

FMC surety bind is one of the requirements that you should prove before shipping. You, therefore, should present it to the relevant authorities.

This surety bond covers settlement or obligation arising from a valid claim relating to damage to the shipment.  There is also a pay for the penalty that goes to FMC.

What Are The Duties And Responsibilities Of Ocean Transportation Intermediaries According To The FMC?

The primary duties and responsibilities of Ocean Transport Intermediaries are to ensure smooth shipping to and from the US. Such shipping should comply with the regulations of FMC.

For instance, they can act as freight forwarders and consolidate goods for shipping from individuals who lack a valid FMC license. They can also act as NVOCC in reducing interests before loading them to a carrier for shipping.

It ensures shippers to and from the US do not violate the FMC regulations, which attract hefty penalties.

What Is FMC Rate?

FMC rate is the amount that FMC charges for shipping to and from the US. It also refers to the penalty that FMC imposes on those who violate the FMC regulations.

What Is The Difference Between An NVOCC And A Freight Forwarder?

You have to understand three vital points to understand the difference between a freight forwarder and an NVOCC.

These points are shipping documentation, specific roles, and the containers they handle.

Freight forwarders have their bill of lading whose standardization depends on the FIATA documentation.

The bill of lading for NVOCC does not rely on any standardization process.

The role of a freight forwarder is mainly acting as agents to shippers. NVOCC act as carriers to the shipper or as shippers to carriers.

NVOCC are middlemen between shippers and carriers, which helps in smooth shipping.

Freight forwarders do not own shipping containers or equipment that facilitates the shipping process.

NVOCC owns their shipping containers and equipment, thus making it easier to ship via them. The ownership of these containers and equipment reduces the overall price of shipping.

What Is The Advantage Of Working With An FMC Licensed Ocean Transport Intermediary (OTI)?

Working with an FMC licensed Ocean transport Intermediary offers numerous benefits for all parties involved in shipping. Such benefits include:

Acts As An NVOCC

An FMC licensed OTI handles the same functions as an NVOCC. For instance, they can engage carriers for shipping your goods to and from the US.

They also have the right to trade your sea from the US to NVOCCs or potential clients. It reduces the overall cost of shipping.

Flexibility Rates

An FMC licensed OTI is capable of engaging overseas agents and using their ocean rates. These rates are usually competitive, which can result in a faster filling process in the US.

Improves Standards

FMC licensed OTI indicates approval by FMC; hence you have the quality assurance aspect of your business. It increases your clientele base since most companies trust your process.

They also have a formal point to lodge complaints if they feel you are not treating them accordingly.

What Are The Restrictions Of Non-Licensed Agents?

The main restriction for non-licensed agents is how they perform their activities. They cannot sell ocean freight to and from the US using their ocean freight charges.

Non-licensed agents do not have authority to using ocean shipments across the US. In case it occurs, they only act as freight forwarders or booking agents.

As a non-licensed agent, you cannot book an ocean freight to and from us using your carrier contract rates.

What Are FMC Violations?

FMC violations refer to activities that contravene the rules and regulations of FMC. Any party involved in shipping to and from the US can violate these rules and regulations.

It includes OTI, NVOCC, and freight forwarders. The consequences of violating these regulations vary depending on the degree of violation and the party breaking them.

What Is The Punishment For Violating The Federal Maritime Commission Rules And Regulations?

There are different procedures for punishing violators of FMC regulations. It depends on the party that violates these regulations and the extent of the violation.

Common punishment that you can get for violating these regulations include:

• Charging a fee that does not exceed USD 1,000,000 for every voyage of a particular carrier.
• Suspension of part or entire contract of a carrier includes any preferential treatment agreement that such a carrier has with FMC.
• FMC has the right to suspend cancel the rights of an OTI to operate any agreement it has with the commission. It includes the use of a carrier’s tariffs and service contracts.
• FMC may also take other considerable actions which limit the activities of the violators for a specified time. It is to punish such violators with the intention of them rectifying their mistake.

For all your freight forwarding services from China, Tj chinafreight offers cost effective and reliable solution – contact us now.

In this guide, you will find all information you’re looking for about Forest Law Enforcement Governance And Trade (FLEGT).

So, if you want to learn more about FLEGT, read this guide.

What Is FLEGT?

FLEGT, otherwise known as Forest Law Governance and Trade, refers to an action plan whose main purpose is to curb illegal logging.

It is achieved by enforcing proper forest management and advocating for trade on timber that is legally produced.

Several countries globally are geared towards controlling unlawful logging to maintain forests. You can find additional information about this on the FLEGT website.

What Is The EU FLEGT Action Plan?

EU FLEGT published an action plan in 2003.

It contains measures meant to fight unauthorized logging in forests and only promote trade on timber that has been legally produced.

The measures apply to the EU and its member states together with partner countries.

What Is A FLEGT Certificate?

A FLEGT certificate refers to a document that confirms that timber or timber products being exported.

That is, having been produced as per the required laws and regulations of a particular country.

Keep in mind that this only applies to countries that have ratified a VPA (Voluntary Partnership Agreement) with the EU.

The FLEGT certificate is not mandatory, and therefore individual companies can choose whether or not to implement it.

In as much as certification facilitates exercising due diligence, it’s normally not linked as proof of legality. Instead, a valid FLEGT license is considered as proof of legality.

How Do I Get A FLEGT Certificate When Shipping Into The EU?

You can acquire a FLEGT certificate from your local licensing authorities if your country has ratified a FLEGT VPA with the EU.

In addition to that, the issuing country must have a FLEGT licensing scheme that is operational.

The Voluntary Partnership Agreement partner country should have a Timber Legality Assurance System to start providing licenses.

It’s worth noting that the European Union and the VPA partner country have to confirm before the commencement of FLEGT licensing.

Normally, the EU restricts any import that lacks the FLEGT license. It is a legal requirement when shipping timber and timber products into the EU.

What Is A FLEGT License?

A FLEGT license can be described as a document that certifies the production of timber and timber products.

It is as per the laws and regulations of a particular country of export.

Timber products that have this type of License are considered to have met the EU Timber Regulation.

A company or any operator dealing in timber and timber products in the EU market must adhere to the European Union Timber Regulation.

It is meant to prevent any illegal timber or timber products from accessing the EU market.

Issuing of the FLEGT license applies to countries that have a timber legality assurance system in place.

The partner country also needs to have ratified Partnership Agreement with the European Union.

What Is A Voluntary Partnership Agreement In Relation To FLEGT?

A voluntary Partnership Agreement refers to a strategy implemented by the EU to fight illegal logging.

A country outside the EU gets into an agreement with the European Union for the exportation of timber.

The main goal for VPA is to ensure that any exported timber entering the European Union has been legally produced.

In addition to that, the Voluntary Partnership Agreement works towards preventing unlawful logging by a partner country.

It is achieved through ensuring proper management and governance of the forests.

In as much as VPA is considered important, it is not mandatory for the timber-exporting countries.

Nevertheless, you need to understand that it is enforceable on both sides as soon as VPA has been implemented.

Under this partnership, the partnering countries must have a system that confirms the legality of the exported timber.

Which Countries Have A Voluntary Partnership Agreement?

Only six countries are confirmed to have a Voluntary Partnership Agreement with the EU. Some of these countries are not limited to;

• Ghana
• Cameroon
• Republic of Congo
• The Central African Republic
• Liberia
• Indonesia

November 2016 was the first time Indonesia provided FLEGT licenses making it the first country to issue the licenses among the ones mentioned.

With time, other countries have shown interest in joining the Voluntary Partnership Agreement with the EU. These countries include;

• Malaysia
• Democratic Republic of Congo
• Vietnam
• Guyana
• Honduras
• Cote d’Ivoire
• Gabon
• Laos
• Thailand

Does A FLEGT License Cover One Shipment Or One Container?

As stated in the Forest Law Enforcement Governance and trade regulation, a FLEGT license is meant to cover one shipment.

Every shipment is covered by one import declaration in the European Union. However, it might be inclusive of several shipping containers.

Do Shipments That Are Split Among Operators Require Multiple FLEGT Licenses?

The time when the shipments are split will determine whether or not they will require multiple FLGT licenses.

FLEGT implementing Regulation, one FLEGT license should be declared to one customs office or custom declaration.

As soon as the shipment splits before the exportation begins, each of the different shipments will require new FLEGT licenses.

Will cancel the split before the initial FLEGT License before the shipments.

If the shipment has already exited the country, and the split occurs.

The importer responsible for the FLEGT license will be required to declare the shipment and, after that, proceed to split it.

If the importer decides to split the shipment before declaring it, the information in the FLEGT license and the shipments will vary.

In such a circumstance, the EU FLEGT Competent Authorities will hold the shipment, thus preventing it from accessing the European Union.

Can A Single FLEGT License Cover Multiple Containers?

Yes, a single FLEGT license can cover more than one container since a single shipment might have several containers.

For instance, you are shipping 15 containers, and all these containers have a similar Bill of Lading covering them.

One FLEGT License will be enough to provide information about the contents being shipped in the 15 containers.

A single FLEGT is sufficient to cover several containers being shipped to the EU at different times and in different vessels.

As much as the containers will be delivered at different ports, they shall all be declared to the same EU customs office.

What Are The Benefits Of Importing Timber And Timber Products Covered By The FLEGT License?

Importing timber and timber products covered by the FLEGT license comes with several benefits. Some of these are not limited to;

• The FLEGT license confirms that the timber and timber products being imported have met the EU Timber Regulation requirements.
  Meaning they are legally extracted and produced.
• Saves on costs and time – This comes from operators not needing to exercise further due diligence on their FLEGT-licensed products.
• Proof of legality – When exporting timber products to the European Union, you must prove the legality of your products by having a FLEGT license.
  This License makes it easier for you to conduct your timber and timber product business across the European Union countries.
• It makes importation for timber and timber products easier across the EU.
• Promotion and strengthening of legal trade – FLEGT license promotes legal production of timber and timber products and thus promotes legal trade.

What Timber Products Does A FLEGT License Cover?

Any timber product that is exported to the EU should have a FLEGT license.

The timber products need to be included among items of a VPA between a partner country outside the EU and the EU.

Some of the timber products covered buy by FLEGT license in all Voluntary Partnership Agreements are not limited to;

• Plywood
• Logs
• Railroad sleepers
• Sawn timber
• Veneer

Other products that have been added by VPA countries in their VPA scope include;

• Packing cases
• Pulp and paper
• Builders’ joinery
• Furniture
• Fuelwood
• Carpentry of wood

Where Can I Find FLEGT Licensed Products?

You can find FLEGT licensed products in countries that are part of the European Union.

In addition to that, you can also find in countries that have implemented a Voluntary Partnership Agreement deal in FLEGT licensed products.

That’s said, countries such as Indonesia, Liberia, Ghana, Central Africa Republic, Cameroon, and the Republic of Congo deal in FLEGT licensed products.

The list keeps on increasing as more countries show interest in joining the Voluntary Partnership Agreement.

Does The EU Allow The Importation Of Timber Products Not Covered By A FLGET License?

All timber products exported to the EU are required to have a FLEGT license.

Failure to provide the License will have the state authorities prevent your products from accessing the market.

Suppose your timber products will be from a VPA partner country with a FLEGT system in place.

If they lack a FLEGT license, they will be denied entry into the market.

It doesn’t matter if they have been listed in the VPA product scope. You will need a license to operate your timber business in the EU.

On the other hand, your products will be allowed access to the EU market if;

The products in question are not included in the scope of the product, or you are exporting them from a country.

That is yet to implement FLEGT licensing or is not a member of the Voluntary Partnership Agreement.

However, you will be required to abide by the EU Timber Regulation (EUTR) requirements if EUTR covers your products.

The EUTR ensures that illegally extracted timber and timber products are prohibited from accessing the EU market.

Indonesia was the first country outside the EU to start issuing FLEGT licenses, after which other countries started joining.

What Is The Procedure For Handling FLEGT-Licensed Products?

An annexe explaining Procedure for handling FLEGT licensed products is included in the FLEGT Voluntary Partnership Agreement between the EU and the partner country.

The annexe describes the border control measures in the European Union and the procedures to be followed by the EU authorities.

Once a FLEGT licensed timber or timber products shipment arrives from a VPA partner country.

The EU authorities follow the procedures as per the EU FLEGT regulation of 2005 while at the same time implementing the 2008 regulation.

These regulations state that as soon as a VPA country commences implementing FLEGT licensing.

The EU authorities must confirm that timber product imported from the VPA partner country. Which fall under the VPA product scope is FLEGT licensed.

In any case, the products fail to have a FLEGT license. The authorities will prevent the entry of the products to the EU.

As described in the VPA annexe on EU procedures, the following are the two main types of checks performed by Competent authorities.

Physical checks – Physical checks are done per the usual procedures conducted by EU customs authorities to ensure that the shipment is in line with the accompanying licenses.

Documentary checks -Documentary checks are done to confirm the authenticity of the FLEGT licenses.

In addition to that, these checks ensure that FLEGT licenses are in the appropriate format, are valid, and the dates are correctly stated.

In any case, the Competent Authority doubts the FLEGT licenses of the shipment.

They are free to ask for further explanation from the VPA partner country.

It is important to note that if any doubt arises regarding the validity of the FLEGT license, the shipment can be detained or its release cancelled.

How Do Customers Identify FLEGT-Licensed Timber Products?

You should never expect from FLEGT licensed products a logo, label, or brand associated with it.

I know you might be thinking about how then do importers recognize FLEGT licensed products.

Here is a simplified explanation to it;

FLEGT licensed products cannot be identified using a logo or brand because FLEGT licenses are documents that are administered to every shipment.

We can’t compare them to customer certificates as you might think.

As soon as a country starts implementing FLEGT licensing, the EU will only accept imports with a FLEGT license from that specific country.

The type of product should fall within the product scope of that country’s FLEGT VPA with the EU.

With that in mind, a consumer certificate or logo is not much needed.

Nevertheless, you should know that some consumers might inquire about imported products from other countries that have implemented the FLEGT licensing system.

By so doing, consumers support the efforts made towards ensuring the protection of forests and illegal logging.

Does FLEGT-Licensed Timber Lose Its FLEGT License If Processed In Another Country?

Yes, it does. Allow me to explain this further.

For instance, you decide to export timber and timber products from a country that has implemented FLEGT licensing to one that lacks.

Once the timber arrived in the processing country and converted to furniture.

It will lose its FLEGT License if you decide to export it to the EU.

When processing your timber in a non-VPA country, it is important to conduct due diligence per the EU Timber Regulation.

However, if you decide to ship your FLEGT licensed timber to the EU via a third country such as China, there are possible chances of maintaining the License.

You will not lose the validity of the FLEGT license for your timber products if they don’t get mixed with other products while in China.

What Factors May Affect The Validity Of A FLEGT License?

The Competent Authority is responsible for ensuring that the FLEGT license is valid. The validity of the FLEGT license can be affected by the following factors;

• Authenticity -The FLEGT license should be issued by the Licensing authorities in the VPA partner country.
• Accuracy – The License should match the shipment and accompanying documents in regards to the information provided therein.
• Processing of timber in another country – When importing a FLEGT licensed timber or timber product to a country that lacks FLEGT licensing. You might lose the validity of your FLEGT license if the timber gets processed.
  With that in mind, you need to choose the best to export your timber for processing to other non-VPA countries.
  Exercising the due diligence as required by EUTR before exporting the product to the EU is very important.
• Availability of timber legality assurance system – Any country that wishes to start issuing FLEGT licenses is required to have a timber legality FLEGT assurance system.
  This is as stated in the Voluntary Partnership Agreement (VPA).

Who Issues FLEGT Licenses?

FLEGT licenses are issued by the FLEGT licensing Authorities in the timber producing VPA partner country.

The timber products need to be listed in the VPA annexe, and the destination of export should be the EU.

The EU will require timber and timber products to have FLEGT licenses to prove the legality of timber extraction.

How Do I Determine The Credible Of A FLEGT License?

Note that the Timber legality assurance system accepted by the EU and the VPA partner country promotes FLEGT licensing.

The EU and VPA partner countries have to seek consultation with government stakeholders, civil society, and the private sector.

Some of the inclusions of a VPA country’s timber legality assurance system is not limited to;

• Supply chain controls – Supply chain controls are meant to follow up on the wood extraction and ensure that legal products are not mixed with illegal ones.
• Definition of legality
• The Procedures used to verify compliance with the supply chain controls as well as the legality definition.

Additionally, the Timber legality assurance system conducts independent audits that follow ISO standards to detect any system failures.

The auditors provide the VPA joint implementation committee with the audit results.

Civil society goes the extra mile to visit the field in some VPA countries and observe the operations.

In case they notice any system loopholes and potential fraud, they inform the decision-makers.

For FLEGT licensing to be implemented in a country, the timber legality assurance system must be functioning as explained in the VPA.

To confirm this, the EU and the VPA conduct a joint assessment to see that all requirements are met.

What Are The Consequences Of Importing FLEGT-Licensed Products From Illegal Sources?

The likeliness of facing the consequences of importing FLEGT licensed products from illegal sources will vary.

It will have based on the operator’s knowledge about the legality of the product.

A good example; if an operator did not know about the product’s illegality or reason to doubt illegality. It could rule out that they acted in good faith.

Nevertheless, if it is evident that the operator was fully aware of the illegality, competent authorities will not hesitate to penalize the operator.

The main purpose of the FLEGT license is to ensure that products are legal. In any case, they find illegality. The FLEGT licensing authorities have the right to revoke the License.

Can The Import Country Differ From The Destination Country As Stipulated In The FLEGT License?

Yes, they can. The European Union is considered a single customs area, and the destination and the importing country can differ.

For example, shipment listing in a trading company that operates in Gioia Tauro, Italy, as a destination can be customs cleared in Germany.

Therefore, information about the destination country’s FLEGT license is indicative and can only be used by the exporting authorities.

Why Is It Important To Match The Information On My Import Declaration With The FLEGT License?

Information on your import declaration should complement the one in the FLEGT license. Failure to this might result in your shipment being held by the EU Competent Authorities until a solution is reached.

The difference between the weight and volume of your shipment and the weight and volume stated in the FLEGT license should not exceed 10%.

If this limit is exceeded, the EU Competent Authorities will hold the shipment as they inquire for additional VPA partner country information.

What Are The Effects Of FLEGT On International Shipping?

FLEGT has impacted international shipping positively.

It has controlled illegal logging and shipment of illegal timber products and enhanced international trade between different countries across different continents.

However, FLEGT has become a barrier for some to export timber and timber products to the EU due to the requirements.

Are Operators Required To Send FLEGT Licenses To Their Local Authorities?

Yes. The operators’ responsibility is to send the FLEGT license to their local authorities by sending the copy issued by their suppliers.

What Is The Function Of FLEGT Competent Authorities?

FLEGT Competent Authorities are located in the European union member states, and they carry out the verification of FLEGT licenses.

They ensure that the FLEGT license is as per the EU FLEGT regulation.

Most EU countries have one Competent Authority in charge of both FLEGT and the EUTR Regulation.

If you have any questions about laws, compliance requirements or regulations when importing from China, Tj chinafreight is here to help – contact us now.

Probably you’re wondering what Amazon return pallets are.

This guide explores everything you should know about Amazon return pallets.

Whether you want to know what they are, benefits, or tips for up scaling Amazon return pallets, you will find it right here.

Keep reading.

What Are Amazon Return Pallets?

Amazon return pallets refer to Amazon inventory that has been returned by buyers within three months after purchase.

The returned items can either be fully functioning or faulty and sometimes it is difficult to know what’s contained in the pallet.

Despite these, most sellers choose to dice the coin and hope that they land on the best pallet.

Liquidation companies provide interested buyers with the opportunity to buy Amazon returned pallets at good prices.

What Happens To Amazon Return Pallets?

Once returns are received, they are not put back on the virtual shelves owing to the procedures.

They need to undergo before they are ready for purchase again.

Not only will it cost to inspect the packages but also repacking and relisting them would be quite a hassle.

Once Amazon receives the returned pallets, it sells to liquidation companies.

Liquidation marketplaces in collaboration with Amazon resell the merchandise to interested buyers who are required to bid on the pallets.

This facilitates the accessibility of merchandise by small-medium-sized businesses from online marketplaces.

Alternatively, Amazon also sells the items themselves at the warehouse.

However, pallets sold in the Amazon warehouses are often opened and thus you have no proof if they are used or not.

The good news is that not all returns are damaged and you can easily get quality merchandise at good prices.

This is because some of the returned items are either as a result of the buyer no longer needing the item.

Sometimes, might be expecting the package to be different.

Meaning, the returned merchandise will still be new and in a sealed condition.

This doesn’t mean that you should always expect them in good condition.

We can describe this as a risk since it might be profitable or not.

If the items in the pallets are damaged, the buyer will incur losses and end up disposing them.

However, reselling of the returns is not always the case. Sometimes they might be thrown away or might remain in the warehouse.

According to a study that was conducted by a Canadian News outlet CBC marketplace, only four among 12 returned packages were successfully resold.

Several of the returned products end up laying in warehouses.

Why Does Amazon Liquidate Customer Returns?

Liquidation of customer returns is done since it is cheaper to dispose of merchandise.

Compared to repackaging, listing, placing them back in their virtual shelves, and shipping again which is expensive.

In addition to that, Amazon also liquidates customer returns to create room for new merchandise.

What Are The Pros And Cons Of Amazon Return Pallets?

Just like any other business, dealing with Amazon return pallets has its fair share of benefits and disadvantages.

Being aware of such will help you gauge between the threats and the good side of Amazon return pallets.

To begin with, you need to make thorough research and identify a suitable supplier.

Read through the available online reviews from previous clients as well as testimonials.

Ensure that you are satisfied with the supplier’s ratings and reviews.

One of the critical mistakes buyers make is having complete trust in the “better” suppliers on the quality and worth of products.

If you do so, there’s a chance you will receive exactly what you never wanted.

Consider both sides of the coin and get to understand what actions to take if by chance the contents are substandard.

Sometimes the items contained in the pallets happen to be damaged or defective.

In addition to that, the returned items cannot be sold again as new in as much as the items are in their original state.

Despite the cons, Amazon return pallets are quite advantageous.

Items in the pallets are often sold at lower costs as compared to retail or wholesale prices.

Owing to this, you are set to increase your profit margins and in turn, grow your business.

Not forgetting that the lower prices place you in a better position to effectively compete in the market.

Several buyers are attracted by good prices on quality items.

If you are already setting this standard, your business is set for impressive growth.

In addition to that, you are free to select your merchandise, and thus with proper knowledge and skills in selection.

You can be sure of better returns from your sales.

What Is The Difference Between Amazon Return Pallets And Overstock Pallets?

Amazon return pallets are returned packages from Amazon buyers.

Overstock pallets result from ordering excess merchandise that exceeds the demand.

To make sales off overstock merchandise, they are often sold 25%-50% lower than the wholesale price.

Can I Buy Amazon Return Pallets?

Yes, anyone can purchase Amazon return pallets either through liquidation companies or directly from the Amazon warehouse.

It’s worth noting that Amazon only sells to businesses and therefore if you are starting, purchasing from liquidation companies would be ideal.

What Are Some Things To Know Before Buying Amazon Return Pallets?

Buying Amazon return pallets always sounds like a profitable idea.

Nevertheless, for it to be profitable you need to be clever at decision making.

Some important factors that might otherwise influence your general profits to be considered.

Below are some important tips to know before purchasing Amazon Pallets;

Avoid Beginning Your Purchase With Electronic Products

Not only will you need more capital but also there are higher chances of the products not working.

Electronics unarguably bring huge profits to any business and this entices many to purchase electronic pallets.

You need to have a skillset for your electronic purchase to reap profitable returns.

Shipping Cost

Sometimes the freight cost can end up being costlier than your pallet.

Thus a liquidator that’s closer to your home is beneficial

Manage Expectations

Having higher expectations might sometimes turn into frustrations.

I don’t mean that you shouldn’t have expectations at all.

You should also consider the possibilities of the items being damaged or not packaged well.

With that in mind, you should strategize on how you will send the packages to the buyer and how to manage their expectations.

Start Small

It’s cautious to take one small step at a time as you try to understand your provider’s services and the quality of items.

To achieve this, you want to buy a small pallet and experiment with how efficient the delivery will be as well as the quality of the pallets.

Remember, the more the merchandise the higher the risk.

Avoid Using Amazon Returns And Use Your Spare Cash

Since purchasing pallets is a risk that you are planning to indulge in, it’s safer if you use spare cash.

This is because you might either have higher rewards or significant losses.

Where Can I Find Amazon Return Pallets?

You can find Amazon return pallets through liquidation companies.

This is the best way to purchase your pallet.

Look for a reputable seller by going through past reviews and enquiring from their past clients if possible.

This will help you get a clear picture of the company’s services and pallet quality before making your purchasing decision.

Which Is Better Between Buying Amazon Pallets Online Vs Physical Location?

You can either choose to buy your Amazon pallets online or physically and both ways are good depending on your preferences.

However, most large retailers are online-based and sell pallets via online auction sites.

This explains why many prefer purchasing Amazon pallets online since it’s more convenient too.

How Does Buying Amazon Return Pallets Work?

Just like you would shop for anything, the larger your purchase the less it will cost you. Unfortunately, buyers are never allowed to inspect the merchandise and therefore you have no idea what’s contained inside.

This might be exciting or not depending on different buyers who wish to roll the dice!

However, some boxes come marked making it easier to speculate the type of items contained in the box.

Take into account that the items can be in any condition whether functional, partly functional, or completely damaged.

Therefore, it’s your responsibility to single out the best from the rest.

If you bid on a pallet and win the auction, you can request for your merchandise to be shipped directly to the warehouse.

Nevertheless, this would be economically reasonable if the Amazon liquidation is located near your neighborhood.

How Do I Buy Return Pallets Directly From Amazon?

Buying your return pallets directly from Amazon is considered the best way.

It’s worth noting that the auction season is often conducted after holidays when most people are returning unwanted gifts.

You can place a bid on the return pallets on any online liquidation marketplace.

Once you win, the merchandise can be shipped to your warehouse.

You can purchase Amazon return pallets from the Amazon liquidation companies.

Here are some of the places to purchase Amazon return pallets;

• Amazon Liquidation Auctions
• com
• BULQ
• com
• com
• Wibargain
• GovDeals

Are Amazon Return Pallets Worth It?

Yes.

Once you buy from a reputable online liquidator you are set to get quality merchandise from leading retailers that can make you huge profits.

Additionally, the pallets sold online are often at reduced prices as compared to the cost of buying from traditional wholesalers.

Meaning, it’s also easier for you to provide a wide range of different budgets for your customers while at the same time making profits.

Not forgetting that this will help you compete effectively with your other competitors placing you on top of the game.

How Much Do Amazon Return Pallets Cost?

The cost of Amazon return pallets ranges from as low as $100 to as much as $800 or more. The cost depends on factors such as size, brands, and weight just to mention some.

Can I Make Money Selling Amazon Return Pallets?

Yes. Once items are returned to Amazon, they are sold to liquidators who end up selling to anyone interested.

The exciting part is that some of these pallets might be of high value and sold very affordably.

Therefore, you gain significant profits by selling the contents in the pallets.

How Can I Make Money Selling Amazon Return Pallets?

Many people are making money by selling returned Amazon packages and here is how. Once the pallets are returned, Amazon sells to Liquidators who in turn sell to interested buyers.

While some pallets might contain defective items, others have quality items and go for cost-effective prices.

If by chance you get one of such, you are set to make huge profits after selling items in your pallet.

Alternatively, you can repair the faulty items and still stand a chance to profit from their sale.

This might be an ideal way to start a business that sells products on Amazon as it doesn’t involve much expenditure if researched and done appropriately.

Is It Ethical To Resell Amazon Return Merchandise?

The answer to this will depend on how the liquidator claims about the state of the product versus the condition it’s sold at.

For instance, if the liquidator claims that the product is new but delivers a used one, this directly reflects a negative picture of the brand.

To make it worse, the product risks being suspended by Amazon.

Doing this is unethical as it goes against Amazon’s guidelines.

Are Amazon Return Pallets Good Quality?

In as much as 45% to 70% of Amazon returns are received in good quality and unused, the remaining percentage can be broken or damaged.

However, you can utilize your skills and knowledge if you are a handy person and fix the damaged parts which you can later sell and make profits.

In addition to that, you can use one faulty item as spare parts for other items of the same kind.

This way you will restore the product’s quality to a profitable one.

Most importantly, select a reputable liquidator and ensure that you conduct thorough research before deciding to purchase a pallet.

What Are Tips For Upscaling Amazon Return Pallets?

Amazon return pallets can either be ready for retails or need some repairs and thus you would want to upscale the items as much as possible.

To achieve this, here are some tips you can consider;

• Inspecting and grading – Inspect your products and ensure that you sell them as advertised.
  Some of the product categories defining the condition of the product include the following;

1. New factory-sealed -These are items are new and sealed in their original factory plastic wraps.
2. Refurbished -Refurbished products go through repairs, inspection, accessorizing, repackaged, and finally put on sale.
3. New open-box -In as much as this merchandise is new and in good condition, it has been opened.
4. Used – Used merchandise might not only have visible wear and tear but also scratched.
   Luckily, they are fully functional.

Never forget to exclude the manufacturer’s warranty as it might be invalid.

• Repair & refurbishing – Some items come in faulty conditions and therefore repairing them will bring back their value.
  If several components from similar models are faulty, the parts of one of the items can be used as spare parts to repair the others.
• Repackage – If the product’s packaging is damaged it’s important to find one that will fit the item.
  Packaging is an essential factor if so you want to improve the item’s value and make sales.
  That said, try to get a packaging that is original quality or settle for pristine plain packaging.
• Sort and bundle products that can sell together.
• Re-accessorize by buying any missing parts.

What Are Mystery Vs Manifest Amazon Return Pallets?

Mystery Amazon return pallets have scarce to no information regarding the contents inside the pallet.

At most, you can only know which category the items fall under and this can range from beauty, electronics, clothes among others.

Manifest pallets provide additional information such as the name of the item, suggested retail value, quantity, and product description.

Mystery pallets are often cheaper as compared to manifest pallets and it’s easy to tell why. With a manifest pallet, you are aware of what you are about to purchase and this raises its value.

Can I Sell Amazon Return Pallets On Amazon?

Yes. You are allowed to sell liquidation products as long as you follow Amazon guidelines.

One of the key guidelines restricts reselling liquidated items as “New”.

In as much as the product is fully functional with no damages all liquidated items are required to be sold as used items and not “New”.

How Do I Price Amazon Return Pallets For Resale?

The best way to price your items would be by assessing the market value and listing your products with competitive pricing.

This can either be the market value or a figure below the market value.

The most important factors to consider when pricing your Amazon return pallets are the shipping cost, selling fees, and taxes.

Apart from selling on Amazon, you can sell the items at a thrift store, through your brick-and-mortar business, or at a flea market.

If you sell on Amazon, it’s better to ship your products to an Amazon warehouse that offers shipping services.

At Tj chinafreight, we help you in all you freight forwarding business from China.

Even if you want to ship from China to Amazon FBA, Tj chinafreight is here to help you – contact us now.

If you have any question about forklift, you will find it right here.

This guide covers everything you need to know about forklift such as uses, classification, and safety, among other vital aspect.

So keep reading to learn more.

What Is A Forklift?

A forklift is a type of automotive vehicle that helps to hoist up objects or materials that are heavy for normal humans to carry over short distances.

They are operated by trained personnel who can control the car either while seated or standing.

These vehicles are mounted with finger-like forks that help lift heavy materials.

They are mostly used in warehouses and large storage facilities that offer storage services for huge and heavy cargo.

What Is Forklift Used For In Shipping?

Forklifts have a wide range of usage in different industrial scenarios. However, when it comes to shipping, fork lifts are majorly found in warehouses and dockyards.

Warehouses offer storage services to cargos. As a result, warehouses are bound to receive shipments of different sizes and weights.

This exposes warehouses to receiving heavy cargo unfit for human handling. These forklifts come in handy to help in handling of these types of cargo and facilitating movement of the cargo from one point to another within the warehouse.

Dockyards task forklifts with the function of facilitating movement of heavy duty during loading and unloading exercises.

Thus during loading, forklifts move the cargo to the means of transport and during unloading, forklifts help to move cargo to their dorkstorage destinations.

These cargos are usually bulky and more so heavy. Examples of such cargos include wood and steel shipments.

What Are The Different Forklift Types On The Market Today?

Forklifts come in different types all designed to suit various needs in the market today. These types include:

Warehouse Forklift

From the name, this type of forklift is mostly found in warehouses.

If you have a visual picture of how golf carts look like, then these forklifts should not be hard to recognize them.

They bare a resemblance to the golf carts, however, they come with two forklifts at the front to help in loading and unloading of inventory in warehouses.

Side Loaders

They are a branch of the warehouse forklifts. They are found in manufacturing industries where heavy loads are common.

Additionally, they are easy to operate as the controller stands at the designated side and the side loader helps move or pick the intended cargo.

They are narrow in size hence they can easily maneuver through narrow pathways.

Counterbalance Forklifts

They are another sub group of the warehouse fork lifts. These trucks are mounted with forks at the front.

They easily attend to loads as they are directly positioned to the load that requires the attention of the forklift.

Additionally, they come in 3 wheels, which allows the operator to move in circles if need be.

They also incorporate a stand up design. The stand-up allows the operator to make necessary stops within the warehouse.

Tele Handler Forklift

This type of forklift comes fitted with long extending arms that enable the forklift to operate as a crane. It helps in positioning pallets to higher grounds in warehouses.

Industrial Fork Lift

These type of fork lifts is designed to carry heavy loads in manufacturing industries. It combines the features of the warehouse forklifts and the tele handler.

However, it is narrower in size compared to the warehouse and tele handler fork lifts. Hence easily maneuvers through narrow pathways.

Pallet Jacks

They are small in size intended to help move smaller loads within the warehouse. These type of fork lifts are a perfect fit to use in moving pallets in small and tight storage areas within a warehouse.

Walkie Stackers

They are similar to the pallet jacks. However, they come in a larger size that allows them to move heavier pallets to much higher levels off the ground compared to pallet jacks.

They operate in similar way to pallet jacks. An operator stands behind the stacker and with use of available hands moves the stacker to the desired designation.

Order Picker

This lift resembles the walker stackers. They are able to lift operators to much higher heights to pick the required pallet for customers.

They are also suited to handle pallets of various sizes and types.

Reach Forklift

This type of forklift is designed to reach into compartments and storage racks in ways that normal lifts are un able to do so. It also bears an open compartment that allows the operator to see what the machine is doing.

How Are Forklifts Classified?

Forklifts are classified into various categories as described below;

Electric Motor Rider Trucks:

These forklifts form the first classification of forklifts. They come suited with either cushion tyres or pneumatic tires.

The difference between the two tyres is that as for cushion tyres, they cannot engage on rough road, thus they only operate indoors or on smooth surfaces.

As for the pneumatic tires, they can handle a rough road.

Electric Motor Narrow Aisle Trucks:

From the name, these classification is for forklifts that are narrow hence minimize used space. They are able to move through narrow shelve spaces hence present efficiency and speed in service delivery.

Electric Motor Hand Or Hand-rider Trucks:

These type of forklifts are controlled by hand as outlined in the name.

There is a steering tiller which the operator makes use of alongside other controls on the tiller which helps in the locomotion of the truck.

Rough Terrain Forklifts:

These trucks are well adapted to help carry out their tasks in rough and difficult surfaces. They are mostly used in construction sites.

What Are The Elements Of A Forklift?

There are three commonly known elements of forklifts as described below:

Stability: The trucks are suited with stability triangle located under the trucks. This serves the purpose of ensuring the truck does not trip over while carrying out its functions.

Lift capacity: This is a key element of the forklifts. It describes the maximum weight the forklift can handle in relation to the stability of the forklift.

Load center: This element describes the distance between the fork and the trucks` center of gravity. This is dependent on the weight of the load, the tilt and lift angle of the forklift.

However, this should not be a concern to the operator who observes the designated weight for the forklift.

What Types Of Cargo Can Be Moved With A Forklift?

Forklifts are able to handle pallets and materials such as steel and construction materials from the containers to the desired storage site.

What Types Of Pallets Are There For Shipping?

There are two types of pallets available in shipping. These are the stringer pallets and the block pallets.

Stringer pallets: They have three long pieces of wood that offer support to the cargo. Two of the pieces of wood are arranged on the sides and one at the middle of the pallet.

They offer forklifts two ways of picking up the pallets, hence also known as two-way pallets.

Block pallets: These pallets are supported by pieces of wood at the sides and middle and all edges of the pallet. Unlike stringer pallets, they are four-way pallets.

Forklifts easily move such pallets because no matter which way the forklift desires to move the cargo, the 4-way offers an orientation that supports it.

What Are The Advantages Of Forklifts In Warehouse Operations?

They help in the unloading and unloading of heavy and bulky pallets within a shorter time. Hence they create efficiency in the warehouse hence increasing the productivity of the warehouse.

How Much Is Forklift Price?

Forklifts are pricy. The price range for a standard forklift is between $20,000 and $50,000.

However, the price for other forklifts might be higher than the above range. The price depends on the type of forklift you are purchasing and the technology incorporated.

Should I Lease, Rent Or Buy Forklift?

Leasing or renting a forklift entirely depends on the nature of business you are exposed to. If you are in business that constantly requires you to use a forklift, leasing or renting a forklift is the most cost co-efficient thing to do.

This is because different cargos will require different types of forklifts to use. Hence purchasing numerous forklifts is costly compared to renting.

However, if you infrequently use a forklift, buying might be the best option to avoid incurring unnecessary costs. The aim of your business is to maximize on profits and minimize on costs.

Therefore ensure to choose the best cost efficient way of acquiring a forklift to your business.

How Does A Forklift Rental Work?

A forklift rental allows the user to acquire a forklift at a designated period and later return it to the owner at a fee.

Renting forklifts is somehow similar to leasing.

However, in renting, the forklifts are a little expensive.

This is because, when renting for the forklift, the fee covers all maintenance costs as well as the idle time the forklift is exposed to at the dealerships.

It is advantageous to business owners especially during peak seasons to help move cargo hastily and save time.

It also provides the owner of the warehouse with an opportunity to explore different models to gauge how the productivity of the firm is improved.

What Is The Importance Of Mounting And Dismounting a Forklift?

Mounting and dismounting procedures in a forklift help promote safety to the user while using the forklift. The following safety precautions must be adhered to;

• Always face the vehicle
• Avoid jumping off while alighting form the forklift truck.
• Practice the three-point stance which mandates you to have both hands and one foot or vice-versa in contact with the forklift.
• Wear certified safety shoes which are oil resistant and non-slippery.
• Wear suitable clothing. Avoid wearing loose clothing or dangling jewelry.
• Check the area around the forklift to make sure the floor is free of fluid or other fragments that could cause a slip.

Mounting and dismounting safely from a forklift reduces the risk of injury to the operator.

What Are The Advantages Of Forklift Leasing?

Forklifting attracts the following advantages;

New Technology Advancements:

It allows the leasing party to enjoy benefits of being up to date with current technology.

The intervals of leasing a forklift create an opportunity for the leasing party to explore new models of the fork lifts.

New technologies add unto productivity and safety protocols in using the forklifts hence presenting new worthwhile benefits to the user.

Budget Of Maintenance:

Leasing of forklifts also caters for maintenance costs.

This allows the users to incorporate maintenance fee as a monthly charge of leasing the forklift.

Low Associated Costs:

Leasing a forklift saves business owners from the costly purchase of the fork lifts.

Forklifts are costly, but the business manager can forego these costs by leasing the forklifts for a period of even five years.

These helps minimize costs within the business entity.

They also improve productivity as they are not exposed to events of breakdowns due to the constant changes in the models while leasing. Hence work continues as normal.

When Should I Consider Buying  Forklift?

Buying is a costly event when in need to use a forklift. However, it becomes the most preferred option under the following scenarios:

• If as a manager you wish to possess all capital equipment, buying is the best option.
• Additionally, if as a business entity you have a ready market that can facilitate leasing or renting the forklift, it is best to buy one.
• If your company guarantees a stability that requires the forklift to be in use for over 20 years, it is best to buy a forklift.
• If the amount of money to purchase the forklift is readily available, then buying should be the best option.
• If a company opts to incorporate all capital equipment in its books, buying the forklift is suitable in this case.

What Is The Best Forklift Size?

Forklifts come in different sizes depending on the type and also the functions it is exposed to. Therefore, the best forklift size entirely depends on the type of forklift you choose.

Normally, the standard forklifts have a width of 4 to 7ft and a height that ranges between 8 and 10ft.

However, for narrow aisle forklifts they should be within 5ft in length.

For warehouses, standard counterbalance forklifts should be 13ft wide to facilitate easier turning, and navigation of pallets.

Height is also a factor that contributes to the size of a forklift. As earlier outlined, tele handlers offer the highest height to reach of about 55ft.

However, the standard forklifts can go as high as 10ft and 15 ft.

How Do I Choose The Right Forklift?

To choose the right forklift, below is a criterion that can help,

First of all, determine the right capacity that can handle the cargo you are about to use the forklift on.

This entails determining the amount of weight of the cargo or pallets.

Secondly, determine the amount of weight the ground of the warehouse can sustain. Forklifts are heavy machines and the ground should offer sustainability to the forklift.

Thirdly, the height of the warehouse should be able to accommodate the forklifts.

As earlier outlined, a standard forklift operates between 10 and 15ft height, hence the warehouse height should be higher.

Also be sure to select the forklift based on the most preferred fuel type. There are those that are power operated and those that depend on gas.

Lastly, choose a forklift that can withstand the type of terrain in your warehouse.

There are pneumatic tyres-fit for rough surfaces, and cushion-tyres on forklifts exposed to smooth surfaces.

What Is A Forklift License?

This is a certification presented to OSHA to show that the employer is well trained and equipped to operate a forklift truck.

What Are The Hazards Associated With Operating Forklift Trucks?

There are six hazards associated with forklifts that every operator should cautiously be on the lookout.

Attachments

A forklift comes with various attachments that need to be carefully addressed before engaging the forklift to its functions.

These includes the worn forks, stretched chains and other additional parts that aid the functioning of the forklifts.

Attachments can result to serious injuries if not carefully installed.

As a result, it is important to make a background check of the entire forklift truck to ensure all attachments are strongly attached to the truck.

Fueling

The diesel and propane are the most used type of fuels for this trucks.

Consequently, these type of fuels have a high flammability property that can result to unforeseen fires in a warehouse.

For operators of this trucks, they should avoid smoking or any another fire related activities near the forklifts especially while refueling.

Maneuvering And Speed

Due to the nature of forklifts, the operators most make movements in reverse. This is due to the blockage caused by the cargo being carried.

In busy scenarios, there is the susceptibility of the truck to hit pedestrians especially in the narrow aisles.

The operators of the trucks need to make careful turns when in these environments.

Additionally, high speeds can cause unintended accidents and injuries. Maintaining a low speed is highly advised to the users of the forklifts.

Blind Spots

These are majorly caused by poor visibility caused by poor lighting in warehouse facilities. Blind spots can cause detrimental injuries to the operator.

Ensuring proper lighting enhances visibility and hence helps evade these blind spots. Additionally, closing of potential blind spots can easily facilitate a safe working environment for forklifts.

Loads

Forklifts have a designated amount of load they can withstand. This allows the forklifts to evade scenarios of toppling over due to excess weights.

It is important to adhere to the stipulated weights as they further facilitate the balance of the forklifts.

Floor Conditions

Slippery floor as well as presence of debris that can affect the maneuvering of forklifts pose as a serious hazard in the warehouses.

The ground to which these forklifts are operating in should be even and free from causing accidents.

What Are The OSHA Requirements for Forklift Safety?

OSHA mandates that the following requirements should be fully met when operating a forklift to enhance safety;

As an operator, OSHA requires you to be aware of the type and class of forklift you are using as they all have different operational requirements.

You are also supposed to be aware of the safety hazards exposed to the forklift as earlier outlined in the article.

Employers must have a training program for the operators before they fully engage on suing the forklift.

This must include both formal and practical lessons

Employers must present a certification to OSHA as proof of training and credibility of the operator to safely operate the forklift.

What Is The Importance Of Forklift Safety Training?

A forklift training is exposed to employees or rather the operators who are responsible for the functioning of the forklift.

This training is essential because it equips the operators with all the safety precautions and protocols that they must adhere to.

This improves the safety of the workers while operating the machine.

The training also minimizes costs related to the safety of the employees.

The operator is best equipped with the safety precautions of the machine hence presenting low risks to injuries.

Lastly, the training increases life span of the forklift since employees are trained on how to properly use the forklifts.

They are also trained on what parts to constantly be on the lookout for maintenance.

Do I Need Liability Insurance For Forklift?

Yes. It is a must for every business that uses a forklift on a daily basis to have an insurance liability in place.

The liability can be in the form of public liability or employer liability.

How Do I Know Which Policy To Take For My Forklift Trucks?

If the business has an auto policy, then there will be no need to take another policy to cover for the forklift trucks. This applies when the forklift is classified as a street vehicle.

If you need a cover that guarantees to cover bodily injury costs and the forklift, a general liability policy for insurance is suitable.

The policy totally depends on the costs you want the insurance to cover in case of any hazards.

In case you want to import forklift from China, TJ China Freight team is here to help.

Contact us now for all your freight forwarding needs from China.

Let’s look at another important term in freight industry – fuel surcharge.

If you want to know what it is, calculation process or how it affects shipping from China – then read this guide.

What Is A Fuel Surcharge?

A fuel surcharge is a cost that carriers add your final shipping invoice to over for the fluctuating fuel cost. Fuel often fluctuates, resulting in loss-making on the part of your carrier during the shipment of your goods.

The fuel surcharge helps in mitigating the effect of fluctuation and stabilize the shipping process.

However, the actual cost varies depending on the type of carrier you are using and the type of goods.

Why Do Carriers Charge A Fuel Surcharge?

The price of fuel is relatively unpredictable due to several factors such as demand and OPEC policies.

This causes the price to change, often making it hard for your shipper to determine it accurately.

To ensure the smooth shipment of your cargo, carriers usually add a charge on the shipping cost to cover the unexpected fuel fluctuation.

This charge is the fuel surcharge.

Which Issues Contribute To The Volatile Rise Of Fuel Prices?

The volatility rise in fuel prices is due to several factors. Some of these factors are controllable, while others depend on external forces.

Such factors include:

OPEC Members

OPEC members are those countries that produce oil and therefore affect their overall supply.

Therefore, the decision they come up with has a bearing on the fuel supply and prices.

These members regularly meet to discuss oil demand and supply and control the prices of oil and oil products.

Political Issues

Most of the world oil supply comes from the middle east. However, the political instability of that region causes the price of oil to change.

When there are no fights in the area, then the price remains constant until when instability begins.

Unstable Economic Outlook

An unstable economic outlook causes the price of fuel to drop to meet the demands.

This is because there is minimal cash to purchase the fuel.

However, when there is a positive outlook, the demand usually increases fuel prices.

Demand And Supply

Demand and supply affect the price of oil in the same way as it affects prices of other goods.

When the demand is high, OPEC members tend to reduce the volume of production, which translates to the high price of fuel.

When there is low demand, members agree to increase supply which reduces the price of fuel.

Production And Storage

The production and storage of fuel differ among the OPEC members.

For instance, the production and storage of oil in the US is higher than that of the middle east.

Recent years has seen countries producing fuel store in for future use while reducing the production volume.

Naturally, this affects the overall price of fuel.

What Is The History Of Fuel Surcharges?

You can trace the origins of fuel surcharge back to the 1970s when there was a fuel crisis.

Then, Congress mandated the interstate commerce commission to permit carriers to bypass rate approval systems.

Such carriers would impose a fuel surcharge within a day’s notice to shippers.

One of the key functions of this commission was regulation of trucking rate to ensure there is fair pricing.

In the 1970s, the Interstate Commerce Commission formulated that allowed carriers to impose fuel surcharges.

However, the carriers also were free to develop their policies on how to apply the fuel surcharge rates.

How Does Fuel Surcharge Work?

The main intention of the fuel surcharge is to regulate the shipping process and ensure free and fair competition.

When a carrier ships goods, they have to ensure that the fuel pricing aspect is spread across the cargoes.

The calculation of this cost differs from one carrier to another.

However, there are different factors that all carriers have to consider before deciding their fuel surcharge cost.

These factors include base fuel cost, base fuel mileage and average fuel prices. A fuel surcharge cost assures the shipper of secure shipping of your goods.

How Are Fuel Surcharges Calculated?

There is no definite way of calculating the fuel surcharge for your shipment.

Different shipping companies have different ways of calculating their fuel surcharge.

However, the following are critical when calculating your fuel surcharge:

Base Fuel Rate

Base fuel rate refers to the price of fuel beyond which there is an activation of the fuel surcharge.

When the prices of fuel rise beyond the base fuel rate, you shipper has to factor the fuel surcharge on the final invoice.

Base Fuel Mileage

This refers to the amount of fuel that shipping vessels consume per mile.

Base fuel mileage gives you a factor of fuel consumption that shippers use to calculate the fuel surcharge.

Average Fuel Price

The average fuel price refers to the national average fuel.

It depends on the geographical region and government authority of a shipper.

The common formula for calculating a fuel surcharge in average fuel priceless base fuel rate.

The result you divide by the base fuel mileage.

(AFP-BFP)/BFM= Fuel surcharge.

What Is The Purpose And Advantage Of Fuel Surcharge Calculator?

A fuel surcharge calculator helps give an accurate cost that you are to pay for shipping your cargo.

This prevents the likelihood of your carrier conning you or you shortchanging your carrier.

It is advantageous since you can predict the cost you are to pay at the end of your shipping.

Is Fuel Surcharge Applicable On All Shipments?

Yes. Fuel surcharge applies to all shipments.

This is because for you to receive your cargo, you have to ship your cargo. Shipping uses fuel whose price varies during shipping.

You, therefore, should expect a fuel surcharge cost on the final invoice that you get from your carrier.

What Are The Factors On Which Fuel Surcharge Is Dependent In Shipping?

Fuel surcharge depends on the following factors during shipping:

Distance

The longer the distance is for your shipping. The higher the fuel surcharge you have to pay.

This is because fuel consumption by your carrier depends on the distance it is travelling.

You can reduce the fuel surcharge here by checking on the shortest route possible that your carrier can use.

Carrier

The different carriers available use different strategies to calculate the fuel surcharge that you are to pay.

You, therefore, have to select a carrier with favourable fuel surcharge rates for use.

You can also negotiate with such a carrier to reduce your fuel surcharge before engaging them.

Volume Of Goods

In most cases, a fuel surcharge is not a flat rate fee that you pay regardless of the shipping volume. Instead, the rate depends on the quantity of your shipment.

The higher the quantity, the higher you have to pay for your shipment. However, you can still negotiate with your shipper to reduce this cost for you.

This is by buying a large volume of cargo and enjoying the benefits of economies of scale.

Packaging

An ideal packaging is the best way of ensuring the safe shipment of your cargo.

However, packaging has an impact on the fuel surcharge that you are to pay.

You can consult with your freight forwarder on the best packaging material to use to prevent the additional fuel surcharge.

Season

The season you are shipping in determines the amount of fuel surcharge to pay.

High season shipping attracts high fuel surcharges compared to low season shipping.

This is due to the high demand for shipping space on the shipping vessels.

Therefore, the best way of reducing your fuel surcharge here is to ship during the low season.

Can I Negotiate A Fuel Surcharge?

Yes. You can negotiate a fuel surcharge depending on your carrier.

However, you need to understand that shipping is an expensive affair, especially the cost of fuel. Therefore, most carriers propose that you have a long-term contract with them, reducing the overall fuel surcharge cost.

What Is The Difference Between Fuel Surcharge And Bunker Adjustment Factor?

There is no difference between a bunker adjustment factor and a fuel surcharge in terms of their function.

However, a fuel surcharge is common in the trucking industry, while the bunker adjustment factor is common in ocean carriers.

Are Fuel Surcharges Legal?

Yes. Fuel surcharges are legal.

Legal requirements help regulate the shipping industry and ensure shippers don’t get lost during the process.

It also facilitates the faster shipment of your goods.

Is Fuel Surcharge Taxable?

Yes. A fuel surcharge is taxable.

However, the tax percentage depends on your region and that of your carrier.

You will notice this figure when you receive the final invoice from your shipper.

You can also ask your shipper for the taxation procedure for this fee.

What Does 100 Fuel Surcharge Mean?

This indicates the party which claims the fuel surcharge cost and how much they claim.

For instance, if you have 100 fuel surcharges, it means the entire amount of your fuel surcharge goes to your carrier.

However, this price does not affect the final cost you are to pay as a shipper.

Who Regulates Fuel Surcharges In The Freight Industry?

A fuel surcharge is an accepted international cost of shipping. Its regulations depend on the region and the laws governing the particular industry.

How Does A Fuel Surcharge Affect My Shipments?

A fuel surcharge is an additional cost to your shipment.

The effect of this is you have to spend more for purchasing a given amount of goods.

Fuel surcharge keeps changing depending on external factors. This has a negative impact if you are handling a small or medium business.

You have to keep adjusting the prices of your product to reflect the fuel surcharge cost.

Unfortunately, price variation means you don’t have stable clients, which can ruin the profitability of your business.

There are several ways you can control fuel surcharges from affecting the profitability and operation of your business.

For instance, you can opt to purchase your goods in bulk.

This way, you have stock to cushion you if there is a change in fuel surcharge cost.

You can also opt to ship during off-peak seasons when fuel surcharge is low.

Entering a long-term contract with your shipper can help reduce the effect of fuel surcharges.

This way, you don’t have to worry about the changes since the contract guides you.

What Are The Tips To Reduce Fuel Surcharges During International Shipping?

Reducing fuel surcharges during your international shipping is essential in reducing the overall shipping cost.

There are several ways in which you can achieve this, including:

Searching For The Best Rates

Each shipper has its fuel surcharge rates, which they offer depending on several factors.

Most shippers factor in a small percentage of profitability on their surcharges.

It is therefore critical that you check on these factors before deciding which shipper to use.

Negotiation

Once you have your shipper, you can reduce the fuel surcharge by negotiating with them.

There are several factors you can include during your negotiation, such as distance and shipping time.

The longer the distance, the higher the fuel surcharge.

Going through the various alternative routes helps in deciding which distance is shorter hence reducing the charge.

Off-peak Shipping

Peak seasons means there is a higher demand for shipping vessels hence an increase in the fuel surcharge.

In addition, most shippers are also afraid of shipping risks hence tend to increase the fuel surcharge.

You can reduce this charge by choosing off-peak shipping.

Packaging

How you package your goods determine the overall fuel surcharge that you pay.

If you want to reduce the overall fuel surcharge, you have to use the correct packaging material.

You can consult your manufacturer on which material to use for your packaging.

The right material ensures you have the right fuel surcharge while protecting your cargo.

Can I Completely Avoid The Fuel Surcharge On My Shipping Expense?

It is impossible to avoid a fuel surcharge on your shipping expense completely.

This is because for you to receive your goods, your carrier has to ship them.

Shipping results in the use of fuel from which is critical in basing the fuel surcharge.

However, it is possible to minimize this cost by considering several options.

Is Fuel Surcharge Any Different From Emergency Bunker Surcharge?

No. there is no difference between an emergency bunker surcharge and a fuel surcharge.

However, emergency bunker surcharge is common in ocean and air freight.

A fuel surcharge is a common term in truck shipping. Both terms help in minimizing the fluctuating fuel cost.

What Are Some Additional Shipping Surcharges?

There are other additional shipping surcharges that you experience aside from the fuel surcharge. They include:

Additional Handling Surcharge

This cost is for extra handling of your goods during shipment.

It ensures shipping of your goods is n the correct way, and there is no damage during handling.

It mostly covers goods that are above 48 inches.

However, the exact amount varies depending on various factors, like carrier and the handling requirements for your goods.

Packaging Surcharge

Packaging prevents any tempering of your goods during shipping.

For instance, proper packaging prevents water sipping to your goods, thereby damaging them.

Packaging surcharge is a cost that covers such an expense on your shipping.

Print Return Label Surcharge

If you use a print label for your return cargo, you have to pay a surcharge fee.

Delivery Area Surcharge

You have to pay this charge if you want your carrier to deliver your cargo to your location far from their designations.

It facilitates delivery while protecting your cargo.

The cost of surcharges differs depending on the carrier.

Therefore, you must shop around before deciding which carrier to use for your shipment.

How Can A Third-Party Logistics Company Help Me Avoid Shipping Surcharges?

There are different ways in which third-party logistics can help you avoid shipping surcharges. Some of these ways include:

Packaging Process

Packing using inappropriate packaging material can increase your fuel surcharge.

A reliable third-party logistics company can help you reduce this by offering the right packaging material for your goods.

The right packaging material reduces the overall packaging and fuel surcharge for your cargo.

Shortest Shipping Routes

Longer shipping distances increases the shipping surcharges for your cargo.

However, you can minimize these surcharges by selecting a shorter shipping route for your cargo.

A shorter shipping route reduces the fuel surcharge since the fuel consumption is low.

A third-party logistics can help you in finding a carrier with a shorter route for your cargo.

Bargaining

Bargaining is critical in lowering your shipping surcharges.

Finding reliable third party logistics can help you in the professional bargaining of your fuel surcharge.

Shipping Season

Logistic providers understand the right shipping season for your cargo.

When you engage them, they can give you advice on when it is the right time to ship your goods,

There are numerous benefits when you ship during the low season.

For instance, you get enough space for your cargo and at a cheaper rate.
This helps in reducing the overall shipping surcharge.

At Tj chinafreight, we help you reduce the shipping cost when importing from China – contact us now.

Today, I will answer all questions you have been asking about gating in.

So, if you want to learn more about this freight term, read this guide.

What Does Gating In Mean?

Gating refers to the process in which your shipping container checks in at a container yard before delivery for loading.

This happens before the cut-off date and schedule sailing.

What Is The Container Gate In Process?

This refers to the process of allowing empty containers or full containers to unload or empty ones to load at the port’s CFS or CY.

The container gate process depends on the volume of the terminal and the traffic at the port.

Container loading at the CFS or CY helps in preparing your goods for shipping.

This is by ensuring there is proper sealing and packaging of the goods.

You are also able to get a correct freight quote which facilitates payments.

What Is Gate Out Meaning In Shipping?

Gate out refers to the process of sealing and loading your container onto a shipping vessel.

This covers the terminal exit point of the port.

Gate out freight rates consists of terminal handling rates.

What Is The Difference Between Container Yard And Container Freight Station?

A container yard refers to a place where the storage of empty containers takes place before loading on a shipping vessel.

You can also use a container yard for unloading containers from the shipping vessels when they dock at the port.

The primary use of a container yard is in total container loading (FCL).

The use of container freight stations is of use in less than container loading.

Less than container cargo owners consolidate their goods and place them in a container freight station for loading.

At the CFS, weighing and loading your goods takes place before loading them onto a shipping vessel.

You can use container yards and container freight stations interchangeably depending on the point of origin and destination.

These terms are:

CY/CY:

This refers to the process of shipping your full container cargo by your freight forwarder.

This is from a container yard at the port of origin to a container yard at the destination port.

In this case, your freight forwarder’s liability starts at the CY port of origin and terminates at the CY port of destination.

The use of this shipment means that you have a single consignee and shipper.

CFS/CFS

This refers to shipping your goods as less than a container.

You, therefore, have consolidation of your goods with others by your forwarder before shipping.

This process starts at the CFS port of origin and ends at the CFS destination port.

Finally, the deconsolidation takes place at the destination port.

CFS/CFS has multiple consignees and shippers.

CFS/CY

This type of shipment features a single consignee and multiple shippers.

For instance, a freight forwarder may consolidate goods for different shippers and ship them as their own.

Therefore, the starting point is at the CFS at the port of origin and terminates at the CY at the port of destination.

It is a common type of shipment when shipping and LCL/FCL cargo.

CY/CFS

CY/CFS features multiple consignees and a single shipper.

The process starts at CY at the port of origin before shipping to the CFS at the destination port.

Deconsolidation takes place at the port of destination.

What Is A Freight Quote?

A freight quote refers to an estimate of the total cost of your shipping, depending on the information you give.

Such information includes dimensions, weight, and the type of cargo you are importing.

Providing accurate information on your shipping gives you an accurate freight quote which facilitates easy payment.

Your freight forwarder usually lists the shipping cost on the invoice since it is unknown at the initial shipping stages.

You need to follow the following steps if you need to get your freight quote.

Select The Point Of Getting Your Freight Quote

There are different ways in which you can get your freight quote.

For instance, you can get it from a freight broker, a freight line searching for an online exchange portal.

When searching for an ideal option, you have to ensure you get the best deal and that your information is safe.

Provide All The Shipment Details

Providing accurate data concerning your shipment is critical in getting a freight quote.

Such information includes the contents of your cargo, its dimension, and weight.

Handling Process

The handling process of your cargo is critical in ensuring a smooth shipment process.

Therefore, the different ways of handling your cargo have an impact on your freight quote.

Depending on the nature of your goods, standard handling processes include refrigeration and hazardous material shipment.

Shipment Destination

The further your shipment destination, the higher your freight quotes.

You must indicate the destination port for your shipment to get the correct freight quote.

What Is Gate In/Gate Out?

Gate in/Gate is a shipping process that includes submitting an empty container either to the CY or CFS. While here, there is the consolidation aspect for LCL, loading, and sealing of your cargo ready for shipping.

The process ends when after loading the cargo onto a shipping vessel at the port of origin.

Therefore, Gate in/Gate out includes cargo shipment from your forwarder at CFS or CY at the port of origin.

Therefore, the freight rate here includes several aspects material handling and loading charges.

This term is with large multinational shipping companies that have lasting bilateral engagements with international groups.

What Is Free In And Free Out Meaning In Shipping?

The main feature of this term is it encompasses all the shipping surcharges and costs by your carrier.

In addition, your carrier rates for cargo handling both at the port of origin and at the port of destination.

What Does Gate In/Free Out Mean?

Gate In/Free Out means that the freight rate constitutes freight, accompanying surcharges, and cargo handling before departure.

However, it excludes the cargo handling rate at the destination port.

It is a common term in shipping goods from Asia and Europe.

What Does Free In/Gate Out Mean?

Free In/Gate out means the rate includes the freight cost and its accompanying surcharges.

It also consists of the cargo handling rate at the port of destination.

Do Freight Rate Quotes Expire?

Yes. Freight rate quotes expire.

Freight rate quotes have a validity period beyond which they become obsolete.

Therefore, the expiry of the freight rate quotes also means the expiry of its associated rates.

Which Factors Influence Shipping Rates?

The following factors are crucial in influencing shipping rates:

Political Stability

Shipping depends on the political stability of the port of origin, the port of destination, and the shipping route.

Therefore, when there is political instability and these parties, you will pay a higher shipping rate.

This is because a higher shipping rate covers all the risks involved in shipping to your port of destination. For instance, you have to pay a higher insurance claim for such shipment, which raises the shipping cost.

Seasonal Changes

Shipping during low seasons attracts low shipping rates.

This is because of the low demand for shipping vessels and goods.

You, therefore, get a low shipping rate for shipping a high volume of your cargo.

However, this depends on the type of freight forwarder and shipping vessel you select.

Distances

The longer the distance between the port of origin and the destination port, the higher the shipping rate.

This is due to the logistics involved in shipping to longer destinations.

Fuel Cost

Fuel cost keeps fluctuating due to the changing demand of oil prices around the world.

You, therefore, get to know the final cost when you receive the final quotation for your shipment.

High oil price demand raises the fuel price surcharge while a lower demand reduces it.

Currency Conversion

The shipping rate depends on the currency you are using for your shipment.

The use of a stable currency for both parties means you get a steady shipping rate for your cargo.

However, using an unstable currency means that you can end up paying more for your shipping cost. Therefore, most forwarders and shipping companies prefer to use the US dollar due to its stability and high recognition.

What Happens If A Booked Shipment Quote Expires?

If your booked shipment quote expires, you have to re-quote it with new and updated rates.

This facilitates the process of getting in and locking your cargo at the container yard or container freight station at the port of origin.

Should I Still Book In Advance A Quote That May Expire?

Yes. You still have to book in advance if you have a quote that may expire.

This is if you think the current rates will pass before getting in of your goods.

During the low season, you can book in advance for up to one week.

However, during the high season, you can book in advance for up to 2 weeks.

The booking process depends on the availability of the shipping vessel and the space on it.

How Are Shipments Measured During Gate In?

There are two ways of measuring your cargo at the Gate in that is by volume or by weight.

These two measurements are critical in understanding the final freight quote for your cargo.

Why Are Shipments Measured?

Measuring shipment is vital in checking out the actual volume of your cargo.

In addition, this helps in proper handling during the loading process.

Checking the volume is one of the critical factors that help get the freight quote for your shipment.

Do Shipment Measurements Change After Gating In? Why?

Yes. There can be a change in measurements on your shipment.

This is due to the tour supplier giving an estimate of your cargo’s volume and weight.

The packaging material and palletizations also increase the volume and weight of your cargo.

Will Re-Measurement Affect My Freight Quote?

This depends on the outcome of re-measurements of your cargo.

For instance, if the re-measurement increases the volume and weight of your cargo, then the final freight quote increases.

If the re-measurement process reduces your cargo’s weight and volume, you should expect a lower freight quote.

This is because pricing depends on the volume or weight basis, whichever is higher.

Is The Gating In Procedure The Same For All Shipments?

No. the Gating in the procedure is not the same for all shipments.

This is due to the different handling procedures for each type of cargo.

For instance, the handling process for LCL is different from that of an FCL.

This is because you have to consolidate LCL cargo before loading it into your container.

Specialized cargo such as refrigerated goods and dry bulk require special handling, unlike other goods.

It is therefore critical that you check on the type of goods you are shipping before Gating in.

This is because the Gating process impacts your freight quote.

What Are The Requirements For Cargo Declaration At Gate In?

There are two main requirements that you should present during cargo declaration at the Gate.

These requirements include authorizing slip number and the vehicle time slot booking.

These requirements help in facilitating the Gate in process.

What Is Marine Gate Terminal Throughput Capacity?

This refers to the availability of a Gate at a port of origin and destination.

It also includes the hours in which they are open.

It also consists of the rate of transacting process for these gates.

The number of gates available for large port terminals is proportional to the volume of goods they expect to transact.

Such terminals also can convert existing gates to either serve the inbound or outbound shipment depending on their needs.

What Are The Common Operating Hours Of Marine Gate Terminals?

The typical operating hours for marine gate terminals depend on the availability of the gates and the port’s policies.

You also have to consider the span duration of these gates.

For instance, a single shift gate operates from 7 am to 5 pm, while there a double shift gate usually works throughout.

Working hours for your marine gate usually indicate the Gate cut-cut capacity for a particular port terminal.

What Is Gate Cut-off?

This refers to closing gates to allow for working on the containers already in the CFS or CY.

Gate cut-off depends on the volume of a CY or CFS at the terminal.

For a large port, Gate cut-off rarely happens due to the availability of large capacity for the CY and the CFS.

The existence of numerous inbound and outbound gates ins also allows for flexibility when one side is overloaded.

What Is A Late Gate In?

Late Gate refers to the process in which your container arrives at the port’s terminal long after the gate cut-off process is over.

What Are The Consequences of A Late Gate In?

The significant consequence of a late in is it delays your shipment schedule.

This is because those handling your cargo have to postpone it to the next vessel due to delays in loading the empty container.’

You have to pay the penalty in some cases for late Gating in of your cargo.

For all your shipping needs from China, contact Tj chinafreight now.

Today, I will discuss everything you need to know about general order.

So, if you have any question about this freight term, you will find the answer right here.

Keep reading to learn more.

What Is General Order In International Shipping?

General order, often abbreviated as GO, is a status that the Customs and Border Protection (CBP) assigns to imported goods.

When the goods lack proper documentation or cannot be cleared by the CBP for other reasons, they are retained under general order.

If goods are not cleared within 15 days, customs hold them under GO, and they are moved to a general order warehouse.

What Are The Top Reasons Why Goods Are Placed Under General Order?

Some of the top reasons why goods are placed under general order include:

• Goods may be held under general order if the necessary fees, taxes, and duties have not been settled.
• If the importer fails to provide or fill in correctly the documents required by customs, goods are held under GO.
• If the shipment is not correctly or legitimately invoiced, they are flagged.
• Incomplete commercial invoice- for customs to consider a commercial invoice, it should include details like description of goods, details of the buyer, seller, and shipper, quantity of the goods, weight of the goods, and the goods’ value classification of the goods, among others.
• Missing or incorrectly stated country of origin- the country of origin is where the commodity is produced or manufactured. If an importer incorrectly lists the C/O, then customs may hold the goods under general order.
• Inaccurate HS Code (Harmonized Commodity Description and coding system) or ECCN numbers may result in goods being held by CBP.
  When these numbers are wrong, it makes the rest of the documentation uneven. Therefore, Customs has to hold the goods under general order until corrections are made.
• Goods may be held under general order if customs do not approve their valuation. Customs must make sure your goods are according to the customs value.
  If not, they are held as customs try and find out the shipment’s actual value. Custom value assists in determining the total amount of import duty and other taxes that require payment.
• The consignee of the goods denies being registered as the importer. This can come about if the consignee does not understand the import process or doesn’t want to be involved. If this happens, customs hold the goods under general order.
• If the goods lack the HTS classification- customs require that the HTS classification is listed on every item on the commercial invoice following the Codes of Federation Regulation. Failure to which customs may hold your goods under general order.
• A participating government agency may request the CBP hold goods for them as they inspect and examine them. Sometimes PGAs randomly select goods for these routine checks.
• Goods can be put in general order as they await a contraband enforcement team (CET) test. This is common for goods with particular regulations and restrictions.

How Do I Know If There Is A General Order On My Shipment?

Usually, customs will alert the importer or their customs broker electronically.

The CBP might move on with examining the shipment or ask for the importer to provide more or accurate information.

Customs will then release your goods if you provide what they require. If they are not content, they continue holding the cargo under general order until everything is set for clearance.

What Customs Clearance Documents Do I Need For International Shipments?

Import documents that you may need include the following:

Bill Of Entry

This is a document that a customs clearance agent or an importer files before the goods arrive at the destination port.

Packing List

A packing list contains detailed information about the goods in the shipment.

This information includes; packing details, the quantity of goods in the consignment, dimensions, weight, handling instructions, etc.

Bill Of Lading (BOL)

A BOL is a document that a carrier issues to a shipper. Its purpose is to highlight the journey of shipment from the country of origin to the destination.

Commercial Invoice

This is one of the primary documents that you require for international shipments. It is a legal document that binds the supplier of the goods and the customer.

It provides a clear description of the goods and states how much the customer owes.

Customs use a commercial invoice to decide on the customs duties and other taxes.

Pro Forma Invoice

This document provides the commitment of a seller to supply the said goods on the date and time set down.

Country Of Origin Certificate

A certificate of origin provides information on where the goods were produced, manufactured, or grown.

Insurance Certificate

Importers provide this legal document as proof that the shipment has been insured against damages throughout transit.

Customs use the information in this document for shipment valuation and determine the duties payable.

Import License

The government issues this license to grant permission for the importation of goods into the country.

Health Certificate

A health certificate only applies to food-related shipments. It certifies that the product is safe for human consumption and it meets the necessary set standards.

A consignment is issued with a health certificate having gone through the required inspections and exams.

How Long Does It Take To Clear Cargo Through Customs?

Time taken to clear cargo through customs differs for sea freight and air freight. Ocean shipments may take between 5 days to clear before landing and cargo recovery from the port.

For air shipment, customs will clear goods between the time the plane takes off and the time of cargo recovery at the airport.

It is typical for goods arriving by plane to be cleared even before touch down.

What Is A General Order Warehouse?

If customs do not clear goods within 15 days, they are moved to a general order warehouse. This is a bonded facility that holds goods classified as general order.

General order warehouses can store goods for up to 6 months. At this time, the consignee may file a warehouse entry with the relevant customs and pay all the outstanding duties.

Failure to do this, customs repossess the goods and might auction them or even destroy them.

Is General Order Warehouse Any Different From Container Freight Station (CFS)?

There are distinct differences between a general order warehouse and a container freight station.

A GO warehouse is used to store and hold goods that have exceeded the fifteen days’ time limit for clearance.

On the other hand, a CFS is a temporary storage facility where shipments are stored before export/import.

A GO warehouse can hold goods for up to six months, while a container freight station stores cargo for way shorter periods.

As said, the latter is just a temporary storage space/facility.

How Long Will Customs Hold My Cargo In General Order?

Customs will hold goods under general order for not more than six months.

During that period, you are still in a position to clear your cargo. You can hire a professional to help you with the customs clearance process.

However, there may be consequences if the six months go by and your cargo is still in the general order warehouses. In this case, the government will seize it or auction it to offset the accumulated expenses and liens.

What Is A General Order (GO) Date In Shipping?

The GO date is the date that customs give the consignee before putting their shipment under General Order. A GO date acts as a deadline for the goods to be cleared, failure to which they are declared as general order.

What Are The Different Types Of Customs Hold In US Import Procedures?

The different types of customs hold include the following:

• Manifest hold– get ready for a manifest hold if the information or the data you provide is inaccurate. Also, if you do not forward your Import Security Filing (ISF), you are likely to encounter this type of hold.
• Commercial enforcement hold– the CBP puts this type of hold on goods for any issues that are likely to arise. During this hold, the hired agency reviews the paperwork and inspects the goods.
• Statistical validation hold– customs hold selected shipments for verification of declared versus actual statistical data. The CBP must ensure that they validate the statistical data of a shipment before allowing its clearance.
• CET Exam hold– customs may hold goods as a Contraband Enforcement Team (CET) exam. CET is also known as A-TCET (Anti-Terrorism Contraband Enforcement Team)
• PGA Hold– one of the participating government agencies (PGA) can request CBP to hold goods for them as they review and examine them.

What Is The Meaning Of 1S In Relation To Customs Holds?

1S is a disposition code in the Customs and Border Protection’s Automated Manifest Interface titled, ‘Ordered to General Order.’

It specifies the time of lay order, according to which the status of the goods is decided, is over with the goods still uncleared.

When customs generate a 1S code, the goods in question will be declared general order and moved to a GO warehouse.

After transferring the goods successfully to the bonded warehouse, their disposition code will change from 1S to 1U.

What Are The Lien Charges In A General Order Situation?

We can define lien charges generally as claims or funds for settlement of a debt or payment for services provided.

Some of the lien charges in a general order situation are as follows:

• Arrival warehouse charges- you will have to clear all the fees incurred at the arrival warehouse to allow goods transfer to the general order warehouse
• Freight charges
• GO warehouse charges; this includes administrative charges, storage, and handling of the cargo.
• Moving charges by the GO trucking company. (for moving the cargo from the arrival warehouse to the general order warehouse.)
• Work done on behalf of the cargo by the customs broker or freight forwarder.

Do I Need To Pay Storage Fees For Cargo In General Order Warehouse?

General Order warehouses charge by the month. For instance, even when your cargo stays there for five days, you will still pay the monthly charge.

The longer goods stay in a general order warehouse, the more you will pay.

On top of the storage fees, you will need to pay for services like maintaining and cleaning the cargo. You will also need to pay for any other expenses incurred for the period goods are in the GO warehouse.

Who Pays For General Order Cargo Transportation?

As the cargo owner, you are responsible for paying the transportation costs of the goods to and from the GO warehouse.

What Happens To Unclaimed GO Cargo

Depending on several factors, customs can decide to take the following actions on unclaimed GO cargo:

Auctioning

If the cargo is still unclaimed after six months, it is taken to an auction location by customs. They follow through with the standard auction procedure, where the highest bidder gets the commodities.

When one buys goods from the auction, they are responsible for clearing the goods through customs at their own cost.

This includes payment of any pending taxes, fees, or customs duties.

Customs use the proceeds of the sale to settle the pending expenses and liens.

Destruction

Customs destroy unclaimed goods that are perishable or HAZMATs. Perishable goods, for instance, fresh flowers, fresh farm produce animal products like meat and dairy.

Examples of HAZMAT goods are explosives, radioactive items, flammable goods like perfumes, alcohol, etc.

Customs also destroy goods of low value instead of taking them to the general order warehouse.

Donated To Charity

Though it is pretty uncommon, unclaimed cargo is sometimes given out for free to charitable courses.

Seizure

In some cases, the government confiscates the abandoned cargo and repossesses it.

When this happens, the goods become government property and can be used as the government wishes.

How Do I Clear General Order Cargo Entry?

Clearing your general order cargo entry will need you to follow the following simple steps:

• First, you will need to file the General Order entry. After which, a general order warehouse operative or a CBP officer will provide you with a general order number.
• You will have to enter the general order number in both the manifest and general order tabs. Ensure that you check out the NON-AMS file, as your bill shall not be presented electronically.
• Take away the AMS bill and put the general order number as the master bill of lading number.
• Finally, forward the entry via ABI.

What Are Some Tips To Avoid Cargo From Entering The General Order Status?

Some of the tips to avoid cargo from entering the general order status include:

• Make sure your customs broker is aware of the incoming shipment and what it contains. Custom brokers do not always know everything about shipping.
  Therefore, you should alert them before having enough time to find out details about each item being imported.
  They need to find out the duty rates; HS tariff classification, restrictions/ special regulations, etc.
• See to it that your customs broker has all the essential documents and data needed for declaration.
  Customs cannot clear your shipment if the customs broker does not have the necessary documents and the data in them is inaccurate. To avoid this, it is better to make sure that your customs broker has everything beforehand.
• Ensure that you are aware of all your incoming shipments. Better yet, ensure that our suppliers/vendors notify you of any incoming shipments. If you get an unexpected shipment, it is almost impossible to get customs to clear them in good time.
• Make sure that you value your shipment correctly. Customs have to cross-check that the contents of your shipment are accurate of the value that you have stated.
• Ensure that your cargo’s invoice is legal and all the information provided is accurate.
• Confirm that the consignee is well conversant with their roles and duties. And that they are willing to be listed as the importer.

What Should I Do Is My Goods Are Held In Customs?

It would help if you tried to resolve the situation by first finding out why your goods are being held.

Then, contact your customers to alert them of possible delays. This helps maintain your good reputation and minimizes assumptions and disappointments.

Also, you can try to contact the carrier as most of them have connections that might help hasten the release of the goods. Make sure you verify the status of the shipment before you take any further action.

As you all this, be prepared to provide all the documents and information that CBP may need to verify your shipment. Make sure all the shipment information and documentation are correct and up to date.

Ensure that you clear all the pending payments, taxes, and liens.

If you cannot settle the issue by yourself, then it is time to hire professional assistance. There are many companies or individuals experienced and specialize in these kinds of customs clearance issues.

Select your most preferred company or agent and start the customs clearance process.

In other cases, especially in consolidated shipments, you will have to wait.

Consolidated shipping involves combining many shippers’ goods into one shipment. So your goods may be held due to a fault in another shipper’s goods.

Unfortunately, you can’t clear only your goods. Clearance has to be done for the whole shipment. Meaning, you have to wait until the responsible shipper sorts out their issues with customs.

Can A Customs Broker Help Sort General Order Issues?

A customs broker is a third party that offers professional services to help clear goods faster and more efficiently.

So yes, you can hire a capable customs broker to sort out goods held under general order. The broker can liaise with the players involved in ensuring all documentation is available and correct. They will also see to it that all taxes, duties, and fines are paid.

For any question or inquiry about any freight term, TJ China Freight is here to help.

Contact us now for all your freight forwarding needs from China.