Economy Shipping – The Ultimate FAQ Guide

I know probably, you have any questions about economy shipping.

A reason this guide will make everything easy and simple to understand about this type of shipping.

The best part – you’re likely to save a lot of money.

Let’s find out how it works.

What Is Economy Shipping?

Economy shipping is for the common people. It is the most inexpensive and secure way of

transporting a product.

Although economy shipping is not faster than standard or expedited shipping when it comes to reaching its destination, economy shipping is cheaper.

Besides, it is more reliable than any other transporting service.

Almost every courier delivery company offers economy shipping. If you don’t have an urgent delivery that cannot be delayed, then economy shipping is the best option for shipping.

Usually, fragile, bulky goods are being transported domestically since economy shipping can prevent fragile products from breaking in transit.

This method of transporting is environmentally friendly and comes with options like biodegradable Styrofoam.

How Does Economy Shipping Work?

Economy shipping offers many services, including international shipping.

So when you order a product via the economy option, courier services pick your product up from the assigned warehouse.

They then move that product just like any other product.

It’s been done alongside their supply chain. However, when it’s time for final delivery, it arrives at the closest hub and is then handed over to USPS.

The post office then makes the delivery to your house. That is why economy shipping is more affordable.

The package is delivered just like any other mails you receive daily.

What Is The Difference Between Standard Shipping And Economy Shipping?

There are three key differences between economy and standard shipping.

Cost:

The expenses of these two shippings are the biggest difference between them.

Economy shipping, as the name suggests it is economy friendly. It’s way cheaper than standard or express courier services.

You can easily ship bulky items with less price. Standard shipping usually delivers smaller items with much higher prices.

Delivery Time:

Another difference between economy shipping and standard shipping is delivery time.

Since economy shipping is more affordable and does not have any urgency in delivering products, it takes more time than standard shipping for package delivery.

Economy shipping is done on land via the post office, so it takes longer than standard shipping.

The difference in delivery timing can range from 2-10 days.

Standard shipments are delivered more early because of the urgency of the product.

Tracking:

Tracking an economy shipping is more efficient than standard or express shipping.

Economic shipments have scan codes printed on them when they are collected and when they have been delivered.

Since economy shipping is cheaper and happens in bulk, the tracking is limited, and there is less scanning potential.

On the other hand, tracking standard shipping is more difficult than economic shipping.

Why Should You Consider Economy Shipping?

Nowadays, online businesses are growing rapidly, so shipping has also become a crucial part of it.

However, shipping is a long process and expensive.

That is why E-Commerce firms want their shipping to be timely and less costly so that their customers can get the products in time with less money.

If your product does not have an urgency for delivery, then economic shipping is the most reasonable way of shipping your products.

Economic shipping is more effective when it comes to delivering products domestically.

You can easily track down your economy packages.

Many online retailers use economy shipping to avoid any damages to the product and also to afford the shipping charges.

Almost every courier service, including UPS, FedEx, and USPS office chair low cost economy shipping. You can also use economy shipping for international products.

Although economic shipping takes a longer time than standard for express shipping to deliver products, it is less costly and more safer.

If you are shipping heavy or fragile products, economy shipping is a more suitable and reliable option for you.

Another reason why you should consider economic shipping is because it is eco-friendly and offers packaging options.

These include options like biodegradable Styrofoam to avoid fragile items from breaking in transportation.

Can You Save Money Using Economy Shipping?

The answer to that question is yes.

You can save a lot of money using economy shipping since economy shipping does not have any urgency when it comes to delivery.

Also, economic shipments are usually delivered via the post office, so it’s more affordable.

You can easily ship heavy or frag products using economy shipping to avoid items from breaking in transportation.

Many companies offer discounts of up to 70% to their customers.

What Are The Benefits Of Economy Shipping?

Economy shipping has more benefits than cons. Here are some benefits of it.

  • As we have already mentioned before, economy shipping is less costly since the post office delivers the product.
  • It is the ideal shipping method for delivering bulky or fragile items. Also, it’s a better option for shipping in bulk.
  •  Economy shipping is more time-consuming. However, when you are shipping products domestically via economic shipping, it can be as quick as standard shipping.
  • Economy shipping can be easily tracked. So it’s more reliable and safe.
  • Economic shipping is environmentally friendly. It offers packaging options like biodegradable Styrofoam so that the items don’t get damaged in transportation.

 Who Delivers Economy Shipping?

Almost every courier service nowadays offers economy shipping to their customers.

However, these companies offer the most reliable and cost-friendly economy shipping.

They are DHL, FedEx, USPS and UPS. Let’s take a look at them.

DHL:

DHL is one of the biggest shipping giants in the world. They provide B2C economical delivery to more than 220 countries. With DHL, you can easily deliver products weighted up to 2 kg.

However, if you want to ship items heavier than you may have to go for another company.

It is the most reliable and trustworthy courier service for economy shipping.

DHL is the best option when you are shipping small items worldwide.

They offer economy shipping with less completed customs clearance.

FedEx:

FedEx is one of the famous courier services that offer economy shipping to over 215 countries. It is a United States based company. Usually, they offer delivery within  2-5 business days.

However, there is a limit on the size and length of the package. You can only ship products weighed up to 150 pounds domestically.

FedEx also offers international Economy shipping.

USPS:

It takes up to 2-8 business days to deliver via USPS economy shipping.

The duration of the delivery depends on how far the delivery has to make.

It is usually delivered by the post office, so it can take a little longer. So if you don’t have an urgent delivery, USPS is the best option for shipping.

However, just like any other companies, there is a limit to the package’s size.

You can only ship products up to 70 pounds and up to 130 inches in length and width.

They do deliver items heavier than the limit, but then the price of those deliveries will be even higher.

UPS:

unlike the above companies, UPS is faster. They offer quick economy shipping within 1-5 business days.

Although there is a size limit when you are sleeping heavy products, UPS is more secure and more reliable when it comes to economy shipping.

Is Economy Shipping Safe?

Economy shipping is more reliable and safe if you are trying to ship heavy products or products in bulk.

Standard or express deliveries are much quicker, but most of the time, the quality of the delivery service is so poor.

The items are not packed well and take and break easily in transportation.

Economy shipping is safer because they don’t have urgency in delivering, so the items are being well packed, and then they are delivered.

Economy delivery can also be easily tracked down so that the customers can rest assured that their products are being delivered properly.

How Long Does Economy Shipping Take?

Unlike standard shipping or express shipping, economy shipping takes a longer duration of time when delivering products.

Domestically it can take around 1-8 business days to deliver the package. The duration of delivery time also depends on its destination.

Internationally, economy shipping can take up to 15 business days or more. Usually, economics shipping delivers heavier items or items in bulk that do not have any urgency.

However, you can make your delivery faster with economic shipping, but then you may have to pay more in order to do so.

But you can easily track down your economy shipping and see when your package is right now.

Is Economy Shipping Better Than Standard Shipping?

One of the main issues of economy shipping is the duration of the delivery. Compared with standard shipping, economic shipping takes longer to deliver items.

However, the difference between these two is only visible in international shipping. Domestically, economy shipping can be as quick as standard shipping.

The reason behind this standard shipping is more expensive than economic shipping.

Usually, standard shipping delivers smaller and less items.

That is why the delivery is faster. Economy shipping also delivers small items, but you can also ship heavy items with more safety.

Economy shipping is cost-friendly and environment friendly.

Standard shipping has many issues with the quality of the delivery. However, customers can rest assured when they choose economy shipping.

Do International Courier Companies Offer Economy Shipping From China?

There are many international companies that offer economic shipping from China. Also, there are many China-based companies that offer economy shipping globally. These are:

DHL:

DHL or DHL Express is an international German courier service that offers economy shipping from China. The Chinese head office of DHL is located in Beijing.

FedEx:

FedEx is a US-based courier service that has its Chinese head office located in Shanghai. Also they have more than 82 branch offices and 220 cargo flights that deliver from China every week.

UPS:

UPS or United Parcel Service is also a US-based courier service that has its office in China. UPS also offers economy shipping in China domestically.

TNT:

TNT is an international courier company bought by FedEx in 2015.

It has its head branch located in Shanghai along with regional offices in more than 37 cities in China. TNT offers express economy delivery.

China Post:

China Post Group Corporation is a state-owned Chinese courier service. The head office is situated in Beijing.

It’s the biggest China-based courier service that offers economy shipping internationally.

China EMS:

China Postal Express & Logistics Co., Ltd is a China post group corporation on the mail service.

It offers economy shipping in all the cities in China along with shipping to more than 200 countries.

Hong Kong Post:

It is a state-owned courier service based in China and has its head office located in Hong Kong. It is one of the most prominent delivery services that offer economy shipping internationally from China and has more than 125 post offices in Hong Kong.

SF Express:

SF Express is also a Chinese own courier service that has its head office situated in Shenzhen.

It is the second biggest courier service in China. Economy shipping internationally and domestically are among its many services.

How Can You Track Economy Shipping?

Tracking economy shipping is much easier than other shipping methods.

Since it is limited to a scan on the package when the product is collected and when it’s in transportation.

Sometimes a second scan is needed at the time of delivery.

The reason behind this is economic shipping delivers products in bulk to keep them cheap.

That is why tracking down economic shipping is less complicated and limited to a few scanning.

Standard delivery or express delivery is more difficult to track since the shipping involves various processes.

Can You Deliver International Economy Shipping?

You can use economy shipping to deliver products domestically or internationally.

However, delivering packages worldwide, even if you are using economic shipping, can be more expensive and can take a longer period of time to deliver the items.

It is less cheap, however, compared to other shipping services.

Almost every courier service offers various International economy shipping services to eCommerce businesses and individuals. You can also ship heavy items internationally with economic shipping.

What Service Does Economy Shipping Offer?

Economy shipping is the cheapest method of shipping regionally or Internationally.

Economy shipping offers many services, including air courier service, ground shipping services and international shipping services.

Economy Ground shipping services include:

Ground Pick Up:

Shipping companies offer to take your package from your home and ship them domestically within 1-5 business days. You can track your package.

Ground Drop Off:

It means the shipping company will deliver your package to your doorstep within 1-5 business days. You don’t need to drop or take your package from the post office.

Economy international shipping services include:

Small Package Service:

Smaller items will be picked up from your house or work and will be delivered worldwide within 3-9 business days.

Ground International Drop Off:

Your package will be delivered at the nearest FedEx Drop Off location. And then it will be delivered to you within 2-5 business days.

Does eBay Offer Economy Shipping?

eBay is a US-based multinational e-commerce corporation located in California. They offer standard, express and economy shipping to their customers.

eBay offers really cheap Economy shipping both domestically and internationally.

eBay also has a protective cover option that you can choose when you’re booking your shipments. It may require extra money for it.

Can You Get Economy Shipping When Buying From AliExpress?

AliExpress is a Chinese online retail service. It is owned by Alibaba Group.

AliExpress offers a variety of shipping services within China and globally as well.

They include more than 1859 international economy shipping products to choose from when you’re making a purchase.

AliExpress offers Cainiao Super Economy when you can ship items globally with Paid + Free Shipping and Cainiao Super Economy Global service. However, you can not track your package.

What Are The Real Challenges In Economy Shipping?

Economy shipping may be the best option for big shipments and can help to reduce the risk of common issues related to shipping.

Still, there are many challenges when you choose Economy Shipping.

  • The most key challenge in Economy shipping is the duration of time. Economy shipping takes longer than other shipping services. You may have to wait forever for your package to be delivered.
  • Heavy industrial items sometimes are delivered via Economy shipping. If the quality of the shipping services is not good, the items can be damaged in transportation.
  • Even though Economy Shipping can deliver bulky items, there is a limit to the package’s size. If your package is heavier than the limit, you have to pay more for the shipping. It can become very expensive.
  • When shipping globally, the Shipping routes can be disrupted. There are many factors that can cause a delay in delivery, such as political unrest, natural disasters and pandemics.

Which Good Does Economy Shipping Offer To Deliver?

Usually, heavy items and items in large amounts are delivered using Economy Shipping.

Industrial companies or tech companies, or agriculture firms use Economy shipping for their products.

Goods, like heavy industrial machinery, papers that come with huge bundles, tech products, pesticides, or even large furniture are being delivered through economy shipping.

More Resources:

Express Shipping From China

Ecommerce Shipping From China

Shipping From China

For all your shipping needs from China, contact Tj chinafreight China now.

Preferential Duties: The Ultimate FAQ Guide

This guide covers all information you’re looking for about preferential duties.

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

Keep reading.

What Are Preferential Duties?

When the duty rate is lower than the value set on imports of a particular commodity line in an FTA member country, then we can call it a preferential duty.

The preferential duty rate is more formal and applies to certain trade terms.

For instance, when goods being imported from member countries are identified to meet the FTA requirements, it thus applies.

How Can You Claim Preferential Duty?

Claiming of a preferential duty rate is based on the free trade agreement set between the participating countries.

With or without a certified certificate of origin, claiming the preferential duty rate is still possible.

The difference comes in on the claiming procedures where they differ slightly.

With a certified certificate of origin for goods being imported at that particular period;

First, you have to indicate a valid reason for claiming the preferential duty rate.

This is done through TradeNet when making your In-payment permit.

Submission of your certificate of origin (CO) or self-certification alongside a permit comes second. Not forgetting a commercial invoice and bill of lading.

They all serve as supporting documents to your claim just to do away with the benefits of the doubt.

With a certified certificate of origin for goods bonded at a licensed warehouse;

You are required to submit a certificate of origin, a commercial invoice, and an In-Non payment permit.

Once these documents are processed, go further and declare an In-payment permit.

Without a certificate of origin or self-certification;

Here, the first step is to give a reason for claiming the preferential duty rate.

The process is done through TradeNet when handing in your In-payment permit.

Full payment of custom duty for your goods is a necessity.

Next, get a customs endorsement on your documents, thereafter submit a refund through TradeNet. This should be within the same year upon completion of duty payment.

Submit the documents to the customs.

What Are The Benefits Of Preferential Duties To Import-Export Business?

They have led to the promotion of economic integration to greater levels.

They have played a great impact on the development of regional and global networks.

Regular shipping of goods at lower costs has been made possible through preferential duties.

Global networks have led to reduced tariffs between partnering countries thus low production costs.

Maximum use of locally available resources and economies of scale.

How Do You Know If Your Imports Are Eligible For Preferential Duties?

The eligibility of imports is determined by the country of origin of the commodities.

Your state country has to be a member of tariff under the Free Trade Agreement and meet specific requirements as agreements vary.

Goods produced from this FTA partnering territories are therefore eligible to preferential Duties.

Are Preferential Duties Same As Bound Tariff Rate?

No, they defer regardless of the two falling under tariffs.

Bound Tariff rates are usually made by individual states that are members of WTO and are known to have the highest rate.

Their ideologies tend to be more specific on their kind of commitments.

In general, when you maximize your MFN tariff level of a certain commodity line, what you have on the table is a Bound Tariff.

The tariff does not necessarily rely on the applied rates but instead gives room for negotiations about bound tariff rates within member states of WTO.

This flexibility of increase or decrease of the tariff rates is allowed as long as it does not go beyond their set limits.

In case Bound Tarif rates of a member state exceed the limit, members come together and agree on settlement terms if not claiming compensation.

For preferential duty rate, the rate set by member states is usually lower when compared to the MFN rate.

Normally, they use Global Preferential Trade Agreement Database (GPTAD) to obtain details of several preferential details.

Preferential Trade agreements are found on this database where indexing is done with the help of classification consistency.

Classification is done based on the WTO criteria. The preferential duty rate is always zero for member states.

We have other benefits associated with it except that they defer between partner states based on the desired agreements.

This involves lowering the MFN tariff percentage for state members.

Developing countries do not meet these requirements. For that reason, they are given unilateral preferential treatment.

More Resources:

Free Trade Agreement

World Tariff Data

For all your freight forwarding services from China, contact us now.

Transloading: The Ultimate FAQ Guide

This guide explores everything you need to know about transloading.

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

Keep reading to learn more.

What Is Transloading?

To be precise, transloading refers to a logistics process involving the shipping of goods via different modes of transport.

It is significant in cases where a single mode of transport is not enough to successfully deliver goods to the final destination.

For instance, once a container arrives at the port, the goods are taken to a warehouse after which they are loaded into a truck.

Thereafter, the truck delivers the goods to the final destination which can either be a warehouse or distribution center.

What Is The Main Purpose Of Transloading?

Transloading is done to ensure efficient shipping of goods from one location to the other to fulfill the demand for all types of goods.

What Are The Benefits Of Transloading?

Transloading has several advantages some of which are outlined below;

  • Transloading bridges the gap between different locations both locally and internationally thereby facilitating business growth.
  • Reduces shipping costs – Being able to select your preferred mode of transport allows you to decide on the most cost-effective option.

Additionally, costs incurred when returning empty containers are reduced.

Not forgetting that transloading has eliminated inland shipping of goods in containers which would otherwise cost more.

  • Helps your business reach new markets -Transloading provides an opportunity for you to use different shipping methods depending on the destination of goods.

This way, you have the potential to explore new markets.

  • Improves efficiency – Transloading makes it easy and efficient to ship goods from one point to another at reasonable costs and save time.
  • Reduces transit time for shipments -This is quite important especially when shipping perishable goods.
  • Saves time -Transloading speeds up time and delivery of goods. It also eliminates the need for distribution centers which in turn saves on time and money.

How Does Transloading And Intermodal Shipping Differ?

Intermodal shipping always involves the use of rail transport together with another mode of transport.

Technically, it entails the transfer of containers between road and rail carriers.

On the other hand, transloading involves shipping goods via different modes of transport.

What Reasons Would Make Your Cargo Be Transloaded?

There are two main reasons why your cargo would need to be transloaded;

  • If you are delivering your shipment to different locations.
  • If the distance to transport your goods from the port to the final destination is longer. By so doing, per diem charges are evaded.
  • When shipping FCL to a residence

What Is Transload Fee?

The transloading fee is meant to cover the labor costs involved when deconsolidating your shipment, palletizing, and loading it into trucks.

What Type Of Shipment Will Need To Be Transloaded?

Transloading is commonly done on Amazon shipments which are mostly shipped to several FBA warehouses.

In addition to that, you will need transloading for FCL shipment especially when shipping to a residence.

How Does Transloading And Cross-docking Differ?

Cross-docking involves unloading goods from a truck and storing them in the warehouse.

The storage lasts for a short period after which the goods are loaded into another truck ready for outbound shipping.

With transloading, goods are unloaded and deconsolidated then later re-palletized for outbound shipping.

What Types Of Goods Can Be Transported Via Transloading?

Almost any products can be transloaded including;

  • Household goods-House hold goods can include anything used at home be it electronics, furniture, and home décor just to mention some.
  • Building materials -Some of these include; bricks, loose gravel, metals, and lumber among others.
  • Special freight -Hazardous materials including dangerous chemicals, temperature-sensitive shipment, cryogenic materials.
  • Oversized cargo – Some of the bulky cargo include; heavy machinery, military equipment, transformers, military vehicles, and aerospace equipment among others.
  • Foods and beverages – Whether it’s grains, spices, bottled or canned drinks, sauces all can be transloaded.

How Is Transloading Process Carried Out?

Once goods are loaded in a container in the country of origin, they shall be received at the destination port.

It’s at the port where the goods can either be moved to a warehouse for a short period or loaded directly into trucks.

In the warehouse, the merchandise undergoes deconsolidation after which they are loaded into trucks.

Trucks are used to transport the goods from the port to the final destination.

Transloading can also involve shipping by rail and thereafter switching to trucking services to deliver the cargo.

More Resources:

Rail Freight From China

Sea Freight From China

Air Freight From China

LTL Freight

Full Truckload Shipping

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Chargeable Weight: The Ultimate Guide

This guide explores everything you need to know about chargeable weight.

The information will help you estimate shipping costs.

So keep reading to learn more

What Is Chargeable Weight?

It is also referred to as the paying weight hence the amount charged on your invoice.

This chargeable weight is used when a freight company wants to charge you for your shipment.

This weight was created as a conversion factor for air freight majorly, to cub the difference between weight and volume.

This weight is greater than two weights, that is volumetric weight and gross weight.

How To Calculate Chargeable Weight

Chargeable weight is the difference between dimensional weight and gross weight.

The first step of calculating chargeable weight is finding the volume of the cargo in cubic inches.

This is done by employing the formula: volume = length multiplied by width multiplied by the height.

Then you divide the volume gotten by an appropriate constant to get its volumetric weight.

If it’s a domestic cargo you divide by 194 but if it is an international cargo you divide using a constant of 166, these are pounds.

Then you calculate the gross weight of your cargo, that is you weigh it on a scale.

You will use the greater volumetric weight or actual weight to create a fair chargeable weight.

When you talk about a fair chargeable weight we can compare the weight of feathers and steel plates.

The cotton actual weight of cotton will weigh less compared to steel plates.

But the cotton will need more room for the cargo to hold it than the steel plates.

This simply means that cotton utilizes space while steel utilizes weight.

By comparing the two, weight and space occupied, the chargeable weight helps the freight company bill the customers accordingly.

Types Of Weight You Should Know

Actual Weight;

This is the exact weight of your product.

The weight includes the product plus its packaging.

This weight is weighed and recorded on the scale.

Volumetric Weight/Dimensional Weight;

This is the volume weight of your cargo.

This volume is converted into a weight equivalent.

Here the length, width, and height of your shipment in inches are measured.

The results are entered in a computer which in turn multiplies the numbers and then divides the result by 194 if it’s a local cargo.

For international cargo, the volume of the cargo is divided by 166.

The result is found in our dimensional weight.

Chargeable Weight;

This is the greater weight of the actual and volumetric weights.

It is used to calculate the shipping rate of your cargo.

Benefits Of Knowing Chargeable Weight In Advance

Knowing the chargeable weight of your cargo in advance helps you know the amount you will be charged.

This saves you from getting stranded when you want to send your cargo to the freight company.

More Resources:

For all your shipping from China, contact Tj chinafreight now.

Tariff Quotas: The Ultimate FAQ Guide

Tariff quota allows a certain quantity of imported goods with duty-free or lower tariffs rate. However, claiming a quota can be very hard if you don’t have any knowledge regarding the process.

This guide provides you with the best option when you’re trying to make a claim for Tariff Quotas.

Keep reading:

What Are Tariff Quotas?

Tariff quotas can be defined as a total or limited waiver of the normal tariffs that have been granted temporarily by the government to some extent of imported goods.

Quotas can be claimed to reduce the import tariffs. Once the period of a quota is finished, then the goods will be imported with usual tariffs.

 Many association treaties and free trade arrangements like WTO agreements, the EU GSP can affect tariff quotas.

WTO tariff quotas can be used to import goods from all countries.

Tariff quotas also cover those countries that are in the list of agreements.

Tariff quotas cannot be applied in those countries where there is no agreement.

Many companies apply for tariff quotas the same way they apply for tariff suspensions for their goods.

How Does Tariff Quotas Work?

Tariff quota allows a certain quantity of imported goods with a duty-free or lower tariffs rate.

If the quantity reaches its limit, then quotas will not work and you have to pay a higher duty rate.

However, if you claim a tariff quota, then the duty rate of imported goods can be less.

 The government maintains and overlooks the system of licensing tariff quotas and importers. This is to maintain the difference between the higher domestic price and the foreign price.

Tariff quotas can also vary from one country to another.

The tariff laws are different in every country.

Who Benefits From Tariff Quotas?

 Everyone with a proper authorized license can claim Tariff Quotas.

Tariff quotas can be very beneficial for manufacturers and exporters, merchant exporters who are trying to support manufacturers and service providers.

What Is The Difference Between Tariff And Quotas?

Tariffs and Quotas are different factors in the trading world. There are key differences between these two factors.

  • Tariffs refer to the tax rates of imported goods. And a Quota refers to the limited quantity of imported goods defined by the government.
  • Tariffs generate revenue for the country and also increase the GDP. On the other hand, Quotas are imposed on the quality of goods, so it does not have any effect on the country’s GDP.
  •  Tariffs affect the supply chain by increasing consumer demand. However, quotas reduce the consumer surplus.
  • Tariff is a source of collecting revenue for the government. It increases the income of the traders, though. But quotas help to increase the income of traders.

What Is The Impact Of Tariff Quotas On The World Supply Chain?

Tariff Quotas have many impacts. Once the tariffs are higher, it can affect the business in one of these three ways:

  • Absorbing the higher cost
  • Increasing prices for the customers
  • Trying to rework the supply chain in order to avoid the higher tariffs

This can have both positive and negative impacts on the global supply chain.

Many businesses try to rework their supply chain to reduce import tariffs.

They may relocate their production to another country where import tariffs are less or can switch their suppliers.

 A Positive impact of this is that it can widen a company’s global reach and can provide a solid and reliable supply chain to avoid any future challenges.

It can also reduce the cost of importing goods.

However, there is also a downside.

Moving the supply chain from one country to another country can be very expensive. It can also delay shipments that can affect the business itself.

While switching to new suppliers can take so long and sometimes it can reduce the quality of your products.

What Is An Example Of Tariff Quotas?

It is a two-tiered tariff system consisting of import quotas and tariffs. Tariff quotas can be different based on their agreements.

For instance, as of 2021 UK allows companies to apply for 2,195,000kgs of poultry goods to import and the tariff rate is 25%. More good than this above amount will include extra tariff rate.

What Goods Are Covered In Tariff Quotas?

Tariff quotas can cover many products, but it all depends on different countries.

For instance, the US allows tariff quotas on poultry goods such as milk and cream, Canadian cheese, peanuts, sugar, cotton fabric, infant formula, blended syrups, and also on tobacco.

When Can You Claim Tariff Quotas?

Tariff Quotas can be claimed when you’re importing goods that are entering free circulation. The maximum time limit of making a claim is up to 3 years for your goods to import.

You can check the status and balances of the quota. You can also claim Quotas after they are exhausted or

How Can You Claim Tariff Quotas?

Claiming different Tariff Quotas varies from country to country. Different governments have different laws regarding how one can apply for tariff quotas.

You need to enter the tariff quota order number on the following import declaration:

  • If you want Customs Handling of Import and Export Freight (CHIEF), then in box 39
  • If you have the Customs Declaration Service in Data Element 8/1

You will need to attach documents of your imported goods that can support the available claim on your declaration.

If your claim is critical, then you have to pay the full rate of security duty fees.

Once your quota limit is over, then your claim will no longer be valid and you have to pay full tariffs.

Even if you have a license quota, you need to provide the tariff quota order number on your declaration.

How Can You Claim A Quota using Simplified Declarations For Imports?

You can make a claim for tariff quota while submitting your supplementary import declaration only if you have permission to use simplified declarations.

When you’re claiming quota using simplified declarations for imports, there are two different methods.

The Declarant’s Records Entry:

Here you need to enter the goods in your records, and then you need to give detailed information regarding your goods on a supplementary declaration.

Simplified Declaration Procedure:

You can give a simplified frontier declaration online where you don’t have to provide much info on your goods.

You only need to give full information on a supplementary declaration.

In case you have any questions of inquiry about tariff quotas, contact Tj chinafreight now.

What Is Bonded Zone – The Complete Guide

In this guide, you will find all information you’re looking for about bonded zone.

Whether you want to learn about bonded zones in China, benefits or limitations of bonded zones, you will find all information right here.

So, keep reading to learn more.

Meaning Of Bonded Zone

Bonded zone refers to a domestic area with certain boundaries and which has special terms of trade or policies.

For instance, any goods imported into the country can enter the area and be exempted from paying duties and being kept bonded.

Foreign cargo arriving in the zone under bonded status can be stored, processed, developed, redid, mixed, categorized, and re-exported.

Of course, this is without customs procedures or payment of duties.

Essentially, any form of trade and manufacturing being conducted within the bonded zone is exempted from sales taxes and value-added taxes.

So, how is this possible?

Bonded warehouses and Free Trade Zones have made it easier for companies to penetrate through different markets.

Free Trade Zones have been introduced in different cities globally and it is in these zones where bonded warehouses are situated.

Custom Bonded Warehouse Vs Free Trade Warehouse

First introduced in the 1800s, Custom bonded warehouses are used to store imported goods.

That is, goods, which are exempted from payment of duty up to 5 years from the day of importation.

The main purpose of bonded warehouses was to facilitate the competitiveness of small to medium-sized export producers.

Of course, by exempting them from payment of taxes and duties.

Bonded warehouses are often licensed by the commissioner of Customs.

Goods stored here will only be liable for duty payment once they are moved from the warehouse for distribution.

Some of the benefits of a customs bonded warehouse are not limited to;

  • Onsite storage of cargo
  • Goods stored in custom bonded warehouses can easily be moved between other bonded warehouses.
  • Deferred payment of duty and taxes
  • Gives importers greater control over their finances. This is because there is no collection of duties until the cargo is withdrawn for consumption.
  • Timely delivery for manufacture and general trade
  • Minimal cash tied up in taxes and duties.
  • Safety of goods is guaranteed
  • Bonded warehouses facilitate international trade transactions
  • Proximity to ports- Most bonded warehouses are located near major ports or airports thus reducing costs.

As compared to customs bonded warehouses, free trade warehouses goods can not only be destroyed or manufactured but also all non-restrained cargo can be admitted.

Not forgetting that a free trade warehouse lacks restrictions on the amount of time cargo can be stored from the day of importation.

Some of the benefits of storing goods in FTZ warehouse include;

  • Goods evade passing through official customs procedures when first stored in the warehouse.
  • In turn, payment of duty can either be delayed or reduced, or eliminated.
  • Rules and regulations in FTZ warehouses are less strict as compared to bonded warehouses.
  • Goods can be manufactured, destroyed, or manipulated. Bonded warehouse limits such activities to only selected classes of bonded warehouses.

Bonded Zones In China

Bonded zones have been in existence in China since 1990 and up to now, there are six customs supervision areas.

This also includes the free Trade Areas, Bonded ports, export processing zones, comprehensive bonded zones, and bonded logistics parks.

Currently, China has at least 11 FTZ each focusing on a specific industry with corresponding incentives to allure foreign investment.

Below are some of the cities with free trade zones in China;

  • Shanghai
  • Shaanxi
  • Guangdong
  • Zhejiang
  • Tianjin
  • Hubei
  • Hainan
  • Fujian
  • Sichuan
  • Liaoning
  • Chongqing

The bigger free trade zone areas are located in big cities such as Shanghai, Shenzhen, Chongqing, Guangzhou, and Tianjin.

Reasons Why Bonded Warehouse Is Right For Your Business

Bonded warehouses have proven to benefit not only importers but also businesses.

If you’re not sure if bonded warehousing is right for your business, below are some reasons why you should consider it;

  • Zero import duty when exporting goods – Storing your cargo in a bonded warehouse will save you both time and money when exporting goods.

If by chance you are importing to export to non-EU countries this would definitely be something to consider.

What this would mean is that your business will evade paying duty twice thus providing savings of around 25-30%.

  • Improved cash flow – Deferring payment of duty until your cargo has been purchased will positively affect the cash flow of your business.

How?

You may ask…

Well, once you decide to store your goods in a bonded warehouse, import duty will mostly be applicable once the goods enter the market.

This saves you from spending money on payment of taxes upfront even though there is no guarantee of sales of your goods to recoup the costs.

  • Port-centric Logistics – Most bonded warehouses are normally situated in close proximity to ports and airports.

This allows you to store your cargo at the port of entry until they are ready to be distributed.

What this results in are reduced costs which are brought about by the reduced lead times and minimized probability for damage.

Others include savings on transportation costs as well as carbon emissions.

Disadvantages Of Bonded Warehouse

In as much as bonded warehouses are quite beneficial in several ways, there are some drawbacks to them.

When thinking of using bonded warehouses, you’ll also want to consider such factors;

  • You will incur costs hiring a bonded warehouse as opposed to using a private warehouse.
  • In some cases, the importer might fail to pay customs duties.

In such instances, customs authorities are forced to put the bonded goods on auction in order to recover the duties.

  • If the importer happened to have paid the duty at once, he or she will pay a higher duty when moving goods from a bonded warehouse.

World Free Trade Zones

Currently, there are over 5400 FTZs globally, 1000 of them having been established in the past five years.

Below are some of the most important world’s free trade zones

  • European Union Single Market
  • Association of Southeast Asian Nations Free Trade Area
  • North America Free Trade Agreement
  • African Continental Free Trade Area
  • China Special Economic Zones

At Tj chinafreight, we will help you in all your shipping needs from China.

Contact us now for all freight forwarding services.

Pre Pull: The Ultimate FAQ Guide

This guide covers yet another important term in freight industry – pre pull.

So, if you have any questions about pre pull, you will find the answer right here.

Let’s dive right in:

What Is Pre Pull?

A pre pull is when a trucker picks up a container from the port and stored overnight at the trucker’s yard instead of immediately delivering it.

This is majorly facilitated by a shipper who organizes on how the cargo is taken to the warehouse for storage.

This is a service that is offered in order to avoid demurrage fees at the port after the free days.

Can Pre Pull Help You Avoid Paying For Demurrage Fees?

Yes.

A pre pull is necessary when you can’t accept the delivery before the last free day because your goods require a drop off appointment.

Demurrage fees is charged after the drop off appointment if a container is picked up two days late and the daily container late fee is $200 each.

The best way to avoid demurrage fee is by requesting the receiving warehouse if they can receive without appointments.

What Are The Benefits Of Pre Pull?

Some of the benefits of pre pull include:

  • A pre pull can help you avoid expensive demurrage fees if you cannot accept a delivery before the last free day.
  • Pre pull also helps you book appointments to the final delivery location.
  • For fair rates and fast service, you can get your containers moved and settled immediately.
  • During pre-pull, your cargo is guaranteed good security and handled by truckers who are highly experienced.
  • Pre pull helps reduce congestion at the port since the cargo is moved to the carrier’s warehouse for later transportation.
  • Pre pull helps avoid port duties and taxes which are incurred by storing your containers at the port.

Are There Pre Pull Fees?

Yes. Only if the trucker picks up a container from the port and does not get it loaded at the same day.

Pre pull fees falls under an ‘origin or destination charge from the trucker who is offering trucking services

The best way to avoid it is by ensuring that the receiving warehouse can receive the cargo without appointment.

During pre-pull chassis fee may be incurred if the container to be moved is not in the same location as the chassis, hence an additional cost to the pre pull service.

Why Is Pre Pull Necessary?

It is necessary when you cannot accept the delivery before the appointment day at the delivery location.

It will also be necessary if the receiver will require an early morning appointment hence the container will be picked up and be delivered in the morning.

It helps reduce the cost of demurrage fees which are charged within the agreed time for delivery.

How Can You Avoid Demurrage Fee and Pre Pull Fee?

Here are some of the ways to avoid some of these fees:

  • Demurrage fee is avoided by not extending the time when the container should be loaded on the ship or when the ship departs.
  • Demurrage is also avoided by ensuring that the appointment at the receiving location is not delayed as earlier planned.
  • Ensure you read and understand the chatter agreement.
  • Locate special requirements for the cargo import which is held by the port authorities or customs.
  • Make timely document release if the cargo is under letter of credit.
  • Distribute all the delivery documents to all the involved parties for easy loading and unloading process.
  • Interact consistently with the driver, loader, broker and port authorities.
  • Secure a copy of an original bill of lading to safe guard the shippers payment.
  • Negotiate with the port authorities for an increase in the number of free days if necessary.

Which Challenges Will You Face During Pre Pull?

Some of the challenges are:

  • Damage to cargo: a pre pulled shipment is likely to be damaged if not secured properly.
  • Incomplete paper work: having no proper documentation may affect the location and release of cargo, hence more delays.
  • Custom problems: the shipper provides strict regulations for any unanticipated delays and delay costs on the pulled cargo.
  • Weight limits: overweight trucks may lead to fines, additional costs, rehandling and load redistribution.
  • Residentials: there are extra charges even if the move your cargo from a public storage area, you will incur a pre pull charge for the residential move.
  • Delay costs: there are inevitable delay charges if the cargo is not delivered according to the appointment from the receiving location.

Does Pre Pull Apply To Cargo You Ship Through Air Freight And Ocean Freight?

In Air freight pre pull may vary depending on the nature of the cargo.

  • Non-perishable: flights are generally more frequent, less expensive and widely available, but require tight schedules which if not met there may be need for pre pull.
  • Perishable cargo: pre pull is not considered since the products require to reach the destinations while they still offer maximum appeal and shelf life.

Ocean freight is transporting of containerized cargo loaded onto vessels by sea.

  • A freight forwarder can consolidate the consignment to reduce cost when the cargo is pre pulled.
  • Pre pull is necessary for ocean routes and timetables are usually inflexible, hence need for storage of the delayed cargo.
  • Pre pull enable convenient tracking of cargo that is stored at the warehouse rather than having them stocked at a congested port.
  • Pre pull help reduce the cost of port duties and taxes.
  • Carriers guarantee safety of consignment when they are kept at their warehouse after pre pull.

Are Pre Pull Fee Lower Than Demurrage Fee?

Pre pull fee are lower than demurrage fee.

  • Pre pull: Your carrier charges you for storing all your cargo at its private yard which is less costly than paying for each container.
  • Demurrage: is a kind of late payment fee which is incurred after the last free day.

The fee is quite costly for they are charged by container and by day.

How Does Pre Pull Work?

Your carrier will pick up your cargo at the port just in time after the last free day.

Then, temporarily store it is its yard until you can deliver it to the final destination.

Is Pre Pull Legal?

Pre pull is legal:

It is necessary when you want your carrier to pick it up for you from the port then stored it up at the carrier’s yard when you don’t want it delivered immediately.

How Much Is Pre Pull Fee?

  • Trucking fees wait: most drivers will allow for 2 free hours of waiting while the cargo is being loaded.

After expiry they will charge on an hourly rate for trucking wait fees.

  • Drop fees: The trucker drops off the container at the warehouse, and then leaves.

The driver will charge extra for a drop, since it requires an extra trip.

  • Chassis fee: this is a flat fee which varies by trucker to transport the cargo to the warehouse.

Useful Resources:

For all your freight forwarding needs from China, contact Tj chinafreight now.

Related Parties: The Ultimate FAQ Guide

This guide covers all information you’re looking for about related parties.

So if you have any question about related parties, read this guide.

What Is Related Parties?

Related parties are the relationships between the seller and the importer of record which affects the price or the financial statements on the customs entry to a related family.

A Related party is a close member or a person known that is related to the reporting entity hence is a member of its key managerial personnel.

Why Is Knowing Information About Related Parties Important?

It helps to adopt a risk-based approach to the audit of related party relationships and transactions through;

  • Discussion among the engagement team of related parties’ issues.
  • Inquiry of management about the identity of related parties.
  • Inquiry of management to understand the entity’s controls on related party,

How Do You Determine If Transaction Is Of Related Party?

Here is what you can do:

  • Higher risks: related party transactions may not pose a higher risk of material misstatement of the financial statements than similar transactions with unrelated parties.
  • ISA 550 approved: The auditing standard that deals with the auditor’s responsibilities relating to related party relationships and transactions.
  • Professional skepticism: the auditor is able to identify and respond to conditions that may indicate possible misstatement due to error or fraud.
  • Engagement team discussion: this is undertaken at the planning stage of the audit and suitably documented.
  • Identification of related party: management is likely to be aware of the relationships that have economic significance to the entity and to carry a risk of material misstatement.
  • Related parties’ controls: the in-house legal counsel have the authority to initiate, process or record significant transactions outside the normal course of business.

What Are Related Parties In Customs?

This is an importer of record that determines if and how the seller in an international transaction is related in customs transactions.

These are officers or directors of an organization in international trade who monitor the transactions between shareholders in custom relations.

A pension and profit-sharing trusts that are managed by or under the trusteeship of the entity’s management.

What Is Related Party Trade?

Related party trade is the transaction which takes place between a dominant shareholder company to other companies.

That is, who hold a pre-existing connection prior to the transaction.

It is a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest.

The Companies often seek business deals with parties with whom they are familiar or have a common interest.

The related-party trade is conflict-free and do not affect shareholders’ value or the corporation’s profits negatively.

The related party-trade carry the innate potential for conflicts of interest, so regulatory agencies scrutinize them carefully.

Are Related Party Transactions Taxable?

Related party transactions can have unexpected tax hence taxpayer is not allowed to deduct a loss.

There will be no tax paying if the property is still sold to the owner whose name is retained in the company unit or in the family.

This disallowance rule has been upheld by the U.S supreme court.

Never the less in every rule there is always an exception.

If the buyer sells the property to an unrelated party, the profit gain on the sale can pay tax of the loss disallowed in the previous sale.

Loans between related parties are also looked closely by IRS.

The loan is structured like any loan hence the rate is not lowered than the going market rate.

If the loan terms is favourable in that the interest rate is lower than the AFR, the IRS will accept the loan like a gift which has different tax deduction.

What Determines If Buyer And Seller Are Related?

There are many factors that influence the relationship between buyer and seller;

  • Social bonds hence members of the same family have social interactions.
  • Trust-It brings out confidence from both parties results to firm belief that the trustworthy is reliable and helpful.
  • Reputation-it signifies honesty from the company and how it is concerned about its customers.

Having a good reputation creates a great opportunity for a company to be chosen by the potential business partners.

  • Mutual goals-This is when partners share goals that can be accomplished through hardship and maintenance of the relationship.
  • Commitment-It is an emotional attachment of continuity between exchange parties hence members will tend to do development in the relationship.
  • Cooperation-It is of the greatest importance hence it creates strong relationship value and maintenance.
  • Adaptation-One party adapts its processes to accommodate the other party hence to create a positive influence value in a relationship.
  • Structural bond-This bond brings the members together and cause them to interact in a relationship.

Is There Anything Wrong With Related Party Transactions?

The auditor may face some practical difficulties when trying to obtain audit evidence in respect of all the various aspects of a related party transaction.

  • It is Difficult to confirm whether other terms and conditions are equivalent to those that would apply with an independent party.
  • The Material misstatement may occur when the editor is trying to evaluate related party disclosures in respect of the applicable financial reporting requirements.
  • There is suspected fraud when the auditor may point out to the director’s significant related party transactions not appropriately authorized and approved.
  • If the owner withholds disclosure of record for personal gain, the transactions could go undetected.
  • The transactions with related parties may be recorded among similar normal transactions, making them difficult to distinguish.
  • The International Revenue Service scrutinizes property sales between related parties and deductible payments between related parties.

More Resources:

Related Party Transaction

Importing From China

Shipping From China

Cost Of Shipping From China

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Ship From Address (Amazon): The Ultimate FAQ Guide

This guide covers all information you’re looking for about ship from address.

So, if you want to learn more about ship from address, read this guide.

What Does Ship From Address Imply In Amazon?

Ship from the address in Amazon refers to the warehouse where goods are kept during shipment plan to await collection once you do the payment.

While goods are here, they undergo preparation which involves labelling, palletizing among others before you pick them up for delivery to Amazon.

Your supplier’s address should never be used as your ship from address.

Why Does Amazon Seller Central Require Ship From Address?

Ship from address is known to be one of Amazon seller central requirements.

The reason behind it is for the generation of a ship to address, which is usually the allocated FBA warehouse.

Which Information Should Be Your Ship From Address When Using Amazon?

What should you include on your ship from address information?

When shipping to Amazon, including all information related to the assigned FBA warehouse as your ship from address.

This information should not include the supplier’s address.

It is at these warehouses where preparation services are taken care of and delivery is done thereafter.

Can You Change Ship From Address In Amazon?

This is only possible in a state where the shipping process is yet to begin.

Once shipping is underway, it becomes difficult to proceed with changes and instead requires you to seek alternative measures.

This possibly means going for undeliverable packages.

It requires you to contact the third party to help you update the shipping address of the seller items that are yet to be shipped.

Thereafter, you can make a reorder after the cancellation of the older one.

Here, you can now make your order information changes by selecting the order details link where you are provided with details on change options.

With a set of guided instructions, you can now change information to your desired interests.

Is Billing Address Same As Shipping Address In Amazon?

Billing is only considered to be equal to shipping once you only have one address on your profile.

All Amazon invoices contain information on billing and shipping addresses.

Once the printing of these invoices is done, both details are printed on it separately regardless of the number of addresses on your profile.

Otherwise, they are known to be different from each other.

How Can You Delete Shipping Address On Amazon?

Deleting of order from an address is possible but on the condition that you not only have one shipping address.

You are provided with a set of instructions in the settings bar with which you have options you can select from based on changes you wish to make.

To delete a shipping address, select the general shipping settings.

Here you are provided with a shipping address section as your default setting.

Begin by clicking edit in this section.

Next, click delete right next to the address you are to delete.

Deleting only applies when you have more than one shipping address since you cannot delete your default address.

It is recommended you create a new address that has to act as your default address, from there you can delete other forms of address.

Only one default shipping address is allowed per seller account.

To set the default app, click general shipping address settings.

Go to the default shipping address and select edit.

You are provided a menu from which you have to select your default shipping address.

Next is to save your new changes by clicking on the save option.

It takes a minimum of 6 hours or more for you to see your results.

Finish by clicking yes to delete.

What Should You Consider When Choosing Amazon FBA Ship From Address?

Amazon FBA ship from address is made in such a way that they are not equal.

For this reason, you have to consider their specific needs before making your choice.

Factors to consider while making this choice include price, turnaround time, location, and warehouse capabilities.

Amazon FBA ship from address vary.

Price

Pricing is one of the highly ranked factors to be considered.

Price is quite easily the number one concern most sellers have when vetting FBA prep service centers.

It is natural to be concerned with the expense associated with outsourcing FBA prep.

However, it shouldn’t be the only consideration.

Charging rates vary from one company to another.

Some incur charges per item, ideal for non-regular retailers whereas others have monthly rates, all depending on your specific interest and ability.

Monthly rates work best for retailers doing impulse shipment.

Turnaround Time

Turnaround time for FBA ship from address vary.

It may range from days to months based on the goods ordered and requirements.

Ensure you inquire about turnaround time so that delays do not affect transactions with your customers or Amazon.

Usually, it takes 24-48 hours to do item prep work.

Location

Location is more fundamental since the closer the FBA the smoother the shipping.

When it is far, the inventory has to travel far which makes it expensive.

If you are shipping from overseas, make it close to the port to ease up the shipment.

Warehouse Capabilities

Warehousing condition requirements vary for different inventories.

Some FBA provides their retailers with specific requirements including the size of the storage facility. Enough space to accommodate massive items is guaranteed.

How Can You Manage Ship From Addresses On Amazon?

Yes, to manage ship from address, select general shipping settings.

Here you are provided with a default shipping address section, go to edit.

If provided an address entry, click edit, and if not add a new address.

Start editing by entering your address name

Key in your country of origin

Next, you provide your physical shipping address.

Your postal code about the shipping address.

Verify the process by clicking on the check postal code.

You will be asked to enter your city/town, state/county/region, phone number, and email address.

Save the information by clicking on save.

When Using Amazon, Are There Restrictions On Ship From Address You Can Use?

Yes, ship from address restrictions exist and require you to provide additional information for you to proceed with shipping. Some of the restriction requirements include;

Name of the recipient.

Name of site location to the recipient.

Drop number/ Department of the recipient.

Specific site address to the recipient.

Site address city, state, and zip to the recipient.

What Are The New Ship From Address For UK Amazon Sellers/Buyers?

With effect as from January 2021, all online marketplaces were set to be charged with VAT collection for sales made to the UK.

The new changes made by Amazon were to help trace the actual ship from the address upon confirmation of shipment.

Everyone has to comply with the new tax regulations whether you are a seller from overseas or UK. This is for as long as you are selling to customers in the UK on Amazon.

The new changes apply in three different areas as part of the shipment confirmation.

These are; Seller central, Shipping confirmation template, and MWS API.

For the seller central, the new amazon ship from address field appears on the shipment confirmation page once you confirm shipment.

It is therefore upon Amazon to pre-select the default ship from the address you created in settings.

Shipping from different addresses requires you to give the actual ship from the address.

This is opposed to you shipping severally from one address. Here you are only required to provide information detailing your previous shipment confirmation process.

Confirmation of shipment using Amazon can also be done with the help of shipping confirmation templates.

Usually, the new ship from the address field is added to the template.

Confirmation of shipment requires you to provide the actual ship from the address.

Failure to, Amazon uses the default ship from the address you created in your settings.

For MWS API, you are provided an additional ship from the address field with which you are supposed to confirm shipment.

Provision of the actual ship from the address is also mandatory.

The ship from the address you provide in settings is considered useful by Amazon in case you fail to provide these details.

Is Ship From Address Amazon Refers To My Suppliers Address?

No, your supplier’s address should not be used as the ship from address.

For this reason, a safe collection of items for final delivery to Amazon has been achieved.

Some preparation services are done before the delivery of the shipment to Amazon.

This involves labelling, palletizing, etc.

For all your shipping needs from China, contact us now.

Shippers Letter of Instruction: The Ultimate FAQ Guide

Let’s explore some of the fundamental aspects you need to know about shippers’ letter of instruction.

Of course we will explore what it is, why it is important, and why you need it among other fundamental aspects.

So, keep reading to learn more.

What Is Shipper’s Of Instruction (SLI)?

A shipper’s letter of instruction is usually a letter that comes from the exporter to freight forwarders. It instructs them on where and how to handle the shipment export.

The exporter generally permits the freight forwarder to take action on the authorized forwarding agent.

Who Are The Main Parties In Shipper’s Letter Of Instruction?

The main parties for the Shipper’s letter of instruction are;

  • The exporter
  • The freight forwarder
  • The recipient of Importer

How Do You Fill Out Shipper’s Letter Of Instruction?

Filling Shipper’s letter of instruction is not an easy task, but you might find online templates in which you will fill out the required information.

With the help of a template, you will be guided on filling in the following information;

  • What product is shipped
  • The name and telephone number of a freight forwarder
  • Name and phone number of the exporter
  • Qualities, weight, and dimensions
  • How a product is packed
  • How to handle the product
  • The exporting restrictions
  • Who will pay the freight forwarder
  • Type of freight used (rail, air, or road)
  • If goods should be shipped alone
  • Insurance details
  • Documents accompanying shipment

What Details Does Shipper’s Letter Instruction Contain?

Well, Shipper’s letter of instruction is an optional document used for shipping.

There are usually no original standards for it.

You can decide to create one SLI for your company.

But remember the following information is important and will have to be included in the Shipper’s letter of instruction;

  • Your business address and names
  • The recipient business address and names
  • The freight forwarder details
  • Where the pick-up and delivery of goods will be
  • Consignment detail (license number, weight, and value) of the goods
  • If the goods are hazardous
  • Shipper’s signature

What Are Some Benefits Of Completing Shipper’s Letter Of Instruction?

Completing Shipper’s letter of instructions have a lot of benefits which include;

  • You will be able to prevent delays of goods while shipping.
  • By giving forwarders clear instructions and understanding will avoid unnecessary mistakes.
  • It will reduce the risk of any damages of goods since the condition of the goods is indicated.
  • In case of any arising problems, it will be able to provide written evidence.

Who Is Responsible for Preparing Shipper’s Letter Of Instruction?

The person who is typically responsible for preparing the Shipper’s letter of instruction is the exporter.

They fill the Shipper’s letter of instruction in advance to provide precise details to the forwarders.

By filling the SLI, the exporter will be sure that goods are handled appropriately, loaded, and unloaded safely with better storage.

What Is The Importance Of Shipper’s Letter Instruction (SLI)?

Shipper’s letter of instruction has importance such as typically

  • The shipment information is always in one place. All details of contacts, collection, goods condition, and freight type are on one document, which makes everything easy.
  • Issuing the export documents will be the best way to ensure that the freight forwarders know how to handle the goods. It has all the information they will need during the shipping process.
  • Another importance is here is proof of instructions given to freight forwarders in case of hazardous goods or particular goods in advance.
  • SLI will always allow freight forwarders to act on the Shipper’s behalf.

For Which Products Will You Need To Fill The Shipper’s Letter Of Instruction?

Well, the exports from the U.S. usually require this document to be issued by the Shipper.

This will help the freight forwarders to access a standardized file with important details or information about a particular shipment.

Sea freight services will mainly be required with the Shipper’s letter of instructions.

This is due to the nature of sea freight, where cargo ship stops in multiple ports.

SLI will ensure the safety of the goods throughout the process.

What Guidelines Do You Need While Submitting Shipper’s Letter Of Instruction?

While submitting Shipper’s letter of instruction, there are specific guidelines you need to put in mind, which will also help speed the process of approval.

The guidelines are

  • To submit the Shipper’s letter of instruction on time
  • To ensure correct details
  • Find an SLI template that is suitable
  • I need help you request
  • Appoint a freight forwarder in advance

Is Shipper’s Letter Of Instruction Necessary?

This always depends on the country of delivery and collection, but usually, the SLI is not mandatory.

But for countries such as the U.S., it is a requirement to have a complete shipper’s letter of instruction.

 Can Shipper’s Letter Of Instruction Be Classify As A Legal Document?

Yes, Shipper’s letter of instruction is a legal contract and document created between the exporter and freight forwarders company, organizing the logistics and shipping of your goods.

Do I Need To Sign A Shipper’s Letter Of Instructions?

Yes, you need to sign the Shipper’s letter of instruction since it’s a part of the requirement to be complete.

 Is The Difference Between Shipper’s Exporter Declaration Form and Shipper’s Letter Of Instruction?

Many exporters use the Shipper’s exporter declaration in the U.S., but it does not contain the option to include all the details required.

This will mean that your freight forwarders will always contact you to get any additional information they may need along the way.

While for Shipper’s letter of instruction, it’s mandatory to give the details of all parties involved for it to be valid and makes it easy for freight forwarders to do their jobs.

For any questions or inquiry about freight forwarding services from China to any global destination – contact Tj chinafreight now.