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This guide will answer all your questions about unit loading device.

If you want to learn more about unit loading device, read this guide.

What Is Unit Load Device?

A unit load device is cargo container that is used to transport baggage and also mail on wide-body aircraft and narrow-body aircraft.

What Is The Purpose Of Unit Load Device?

A unit load device is used as containers for cargo while they are being protected to prevent movement within the hold in the flight freight.

Which Advantages do Unit Load Device Have?

Unit load device have varieties of advantages such as’

They maximize the use of the aircraft’s space when the cargo is packed.

They are key in transporting air cargo safely and quickly improving cost effectiveness.

Unit load device also allow the easy transfer of goods between the planes.

They are always tightly packed to prevent the goods from being damaged during an air freight.

Unit load device reduce time wasting since it is quick in loading and unloading process.

How Many Types Of Unit Load Device Are There?

We have two types of unit load device;

Container Aircraft.

They are normally used to give good protection against all kinds of weather.

Aircraft container prevents unauthorized access to the goods.

It also makes loading and unloading goods easier.

Container aircraft can provide a good protection against damage to the goods.

They eventually provide better protection against damage to the aircraft by the goods.

Pallet Aircraft.

Pallet aircraft is cheaper and affordable to everyone compared to container aircraft.

Oversized goods that cannot fit in container aircraft are loaded and accepted by pallet aircraft.

Pallet aircraft are stackable hence they are easy to store empty and return by plane.

Where Is Unit Load Device Used?

Unit load device is used in air freight thus they are designed for fuselage of each aircraft type hence they make loading and unloading easier.

What Is Aircraft Unit Load Device?

Aircraft unit load device is a container or a device that is used to transport goods by air hence they are designed to be restrained by the aircraft cargo.

In the late 1950s the aircraft unit load unit has been providing safety and efficient of the air transport.

Aircraft unit load device is designed to maximize the use of aircraft contours.

Aircraft unit load device such as temperature -controlled container, horse stall, cattle stall, fire resistant container facilitates the transport of special goods by air.

How Does A Unit Load Device Work?

It is either an aircraft pallet or an aircraft container that is structurally able to restrain the cargo and provide adequate protection to the aircraft system during a flight

What Does Unit Load Device Leasing Mean?

This is the process of renting the container for full container loading to enable easier documentation and easier block and bracing in the aircraft.

Which Specifications Do Unit Load Device Have?

Unit load container comes in two forms which is Containers and pallets while the exact weight limitations and dimensions will vary from the manufacturer.

Specifications include:

• LD-1
• LD-2
• LD-3
• LD-3 Reefer
• LD-4
• LD-6
• LD-7
• LD-7 With Angled Wings
• LD-7 With Folding Wings
• LD-8
• LD-9
• LD-9 Reefer
• LD-11
• LD-26
• LD-29
• LD-29 Reefer
• LD-39
• M-1
• M-1H
• M-2
• M-6
• M-6 (118”H)
• M-6 Twin Car Rack
• MDP
• PLA Half Pallet
• PMC/P6P Pallet
• PNA Half Pallet
• Demi

What is Certified and Non-Certified Unit Load Device Compare?

A Certified Unit Load Device;

Is designed and tested in accordance with the requirements where the results are scrutinized and accepted.

This is  by the appropriate aviation authority to give an approval letter to the manufacturer.

A Non-Certified Unit Load Device;

This has not been through the process of approval.

And has not received any kind of assessment of its performance standards by an appropriate aviation authority.

What Does A Unit Load Device Identifier Consist Of?

• Containers and pallets are identified by unique combination of letters and numbers.
• 3 leading letters define the type of unit load device.
• The 4^th or the 5^th numerals are unique number allocated by the operator.
• The 2 trailing letters show a 2 letter ICAO code which indicate the owner or the airline or the leasing company.
• It may also carry a bar code which will usually replicate the visible IATA-standard code.

What Does Unit Load Device Stand For In Relation To Manual Handling?

Containers are typically made of lightweight structures comprising of aluminum. Extrusions, a relatively thick aluminum sheet, composite side and roof panels and metal door.

They are made as light as possible although they may get exposed to severe handling conditions.

The unit load device is specifically designed to be handled by a forklift.

At Tj chinafreight, we help you in all shipping needs from China to any global destination – contact us now.

Let’s look at yet another important term in the import-export business – Uitnodiging Tot Betaling.

If you have any question on Uitnodiging Tot Betaling, you will find the answer right here.

Keep reading.

What Is UTB?

Uitnodiging Tot Betaling is a Dutch term that refers to the actual duties bill.

When importing goods into the European Union, you will be required to pass through customs.

Therefore, the UTB will contain calculations of customs debt for your imported goods.

Anti-dumping/ countervailing duties and import duties are included in the total amount.

It is worth noting that some national taxes are not categorized under customs debt.

Such taxes are not limited to;

• Excise duty
• Coal tax
• VAT
• Consumption tax

Nevertheless, these taxes are levied on the Uitnodiging Tot Betaling.

What Is Uitnodiging Tot Betaling Document?

Uitnodiging Tot Betaling is a document that contains the calculation of customs debt for imported goods.

It’s normally issued once a custom declaration is accepted by customs.

What is Contained In The Uitnodiging Tot Betaling Document?

The Uitnodiging Tot Betaling document contains the following details;

• Import duty
• Anti-dumping duties
• Excise duty
• VAT
• Coal tax
• Consumption tax

Who Issues Uitnodiging Tot Betaling?

Customs officials are responsible for issuing the Uitnodiging Tot Betaling.

Customs authorities conduct checks to know whether or not the importer is obligated to pay taxes during the importation of goods.

What Determines The Amount To Be Paid For UTB?

The amount to be paid for UTB is determined by the customs debt.

Keep in mind that custom debt is incurred only after acceptance of the customs declaration.

That said, not only does the quality and value of goods determine the amount to be paid but also the commodity code.

By commodity code, I mean the classification of the goods since some goods are free from custom duty based on their classification.

A good example would be goods being imported from another EU country.

If the goods have been manufactured in that country, you will not be required to pay customs duties.

Meaning, customs officials will not issue you with a Uitnodiging Tot Betaling.

On the other hand, if you import goods into the EU from outside the European Union you will be charged customs duty.

Importing into the EU will require you to pass your goods through customs.

Therefore, you will be subjected to pay duties and taxes before your goods are allowed for free circulation.

Once customs officials accept customs declaration, a customs debt of import duties emerges.

Afterward, a payment notification (Uitnodiging Tot Betaling) will be sent to you by customs.

To have a proper estimate of your payment, the customs duty calculator has been formulated to easily offer custom duty calculations.

How Will I Know If I Will Be Issued With A Uitnodiging Tot Betaling?

Knowing whether or not you will be issued with a Uitnodiging Tot Betaling is not quite easy. Normally, the Uitnodiging Tot Betaling is issued once the customs declaration is accepted. Customs officials assess your goods and check whether they fall under the accurate GN code.

Later, they have the final verdict on whether or not to issue you with Uitnodiging Tot Betaling.

Bear in mind, this applies to goods imported from other countries outside the European Union.

Therefore, once customs accept the customs declaration, they will send the payment notification (Uitnodiging Tot Betaling).

Is It Possible To dispute Uitnodiging Tot Betaling?

If you aren’t satisfied with the customs judgment, you can dispute UTB by filing an objection.

It’s worth noting that the custom’s viewpoint may also be inaccurate.

How Long Does An Importer Have To Submit An Objection To Customs After Receiving UTB?

The importer needs to submit a statement within 6 weeks after issuance of UTB.

Are Uitnodiging Tot Betaling Terms Similar In Every EU country?

Yes, Uitnodiging Tot Betaling terms are similar in all EU countries since custom duties and taxes are handled similarly.

Nevertheless, individual countries have their own rules when it comes to importation and therefore expect to counter that when importing to different EU countries.

When importing goods from one EU country to the other, you will not be issued with a Uitnodiging Tot Betaling.

This is because the European Union is a single trade area.

Who Takes Care Of Uitnodiging Tot Betaling?

The importer takes care of Uitnodiging Tot Betaling.

When Is UTB imposed?

UTB is imposed as soon as there’s an incurrence of custom debt. Certain goods classifications will have you be issued with UTB.

For any questions about importing from China to EU, contact Tj chinafreight team now.

If you have any question about valuation challenge, you will find the answer right here.

Keep reading to learn more.

What Is Valuation Challenge?

This is basically a checkup carried out by the customs authorities when they have a reason or reasons to be skeptical about the value of your customs.

Which Documents Do You Need During Valuation Challenge?

The following export import documents are required while carrying out a valuation challenge:

1. Bank statement- it is a printed document issued to the account holder that states the amount deposited and withdrawn from the bank
2. Sea freight insurance policy- this is marine insurance that covers goods against risk of loss, damage, an accident like fire collision or explosion.

It’s not limited to sea only, it also covers transportation after sea say you use road or railway transport to get goods to the final destination.

• Commercial invoice– it’s a very important document that is legally provided by the seller to the buyer.

It acts as a contract and proof of sale between the two.

1. Sale invoice- this document acts as proof of debt.

It contains the amount the buyer owes the seller for the purchased products, the payment details like the exact date, invoice number, etc.

1. Transport invoice- this document shows the total transport cost you owe.
2. Purchase order- is a promise document the importer sends to the exporter stating that payment will be made on a designated date.

It contains details of the product the quality and the type.

It benefits both parties in that it guarantees the seller of payment and also the buyer is able to keep track of the order.

The promise reminds them to adhere to the agreed date.

• Insurance invoice- this document highlights the insurance bill
• Bill of Lading– it is a document issued by the carrier to the shipper that contains the type of a product, quantity, and the final location of the goods.

Ideally, it acts as a shipment receipt that normally goes along with your goods

1. Export declaration- it’s a document issued in the airport that contains details of the goods that are yet to be exported.

It’s used by the customs authorities exporting goods out of the EU.

1. Clearance order-

this document is issued when your goods meet custom clearance entry formalities hence goods can then be released from customs to the importer

1. Direct representation- here the stated party appoints a representative like a carrier for example.

The party transfers the right of provision via a message to the representative.

The representative also carries all activities relating to declarations associated

How Does Valuation Challenge Work?

Here’s how the procedure works:

The shipment is selected among the rest for a valuation check after a physical inspection has been done.

The cargo is selected only when the customs is suspicious of the customs value of your shipment.

You will be expected to produce the documents mentioned above although you are not limited to them, to prove the value of your goods is correct.

What Is The Difference Between Valuation Challenge And Normal Customs Inspection Procedures?

There is a thin line between valuation challenge and normal customs inspection procedure ;

Mainly because they are all inspections carried by the customs authorities but there is more than meets the eyes.

A valuation challenge is a procedure done after the inspection procedure has taken place.

It’s done once the customs doubt the customs value of your cargo.

Your cargo is separated from the rest for the procedure to begin.

Inspection procedure on the other hand is a normal checkup done before goods are shipped to their destination.

This procedure verifies the quantity and quality of goods and also ensures they are free from defects and they meet the safety requirements of the final destination.

Under What Circumstances Do Valuation Check Take Place?

A valuation check only takes place when the customs authorities are unsure of the customs value of your goods.

What Is Supporting Evidence During Valuation Challenge?

Supporting evidence is what you use to show the current valuation of your goods is correct.

In this case, producing the relevant document will fully support your case.

For any questions on customs clearance or freight forwarding from China, contact us now.

A Fiscal representative is a VAT agent specializing in helping foreign companies with VAT registration in respective countries where they are needed.

Generally, the fiscal representative is responsible for reporting VAT and correct VAT calculations for their clients.

How Does Fiscal Representation Operate?

The fiscal representative usually operates on the following steps;

• Step 1: Background check
• Step 2: Bank guarantee
• Step 3: VAT registration
• Step 4: Paying your VAT bills
• Step 5: The monthly compliance check
• Step 6: Payment for fiscal representation

Who Requires A Fiscal Representative?

You will require a fiscal representative if you want or are currently trading in a country in which you are not a resident or have no establishment.

What Is The Role Of The Fiscal Representative?

Some of the duties for a fiscal representative include;

• To deal with local VAT registration
• Regulatory watch
• To audit physical and invoicing flows
• To manage the VAT declarations and intrastate
• To do a monthly report
• Assist in fiscal and custom inspections
• To design optimized solutions
• They do Act as technical consultants in accounting compliance and processing.

What Is The Cost Of  A Fiscal Representative?

The fiscal representative cost varies. We charge the representation per annum. You can contact the customer care team via our website for more details.

Which Countries Do You Need A Fiscal Representation?

We do have some of the countries below that will need a fiscal representative, which includes;

• Germany
• Belgium
• Netherlands
• Hungary
• Portugal
• Slovakia
• Sweden
• Slovenia
• Croatia
• Bulgaria
• Finland
• Denmark
• Greece
• Australia

What Do You Mean By VAT Fiscal Representative?

VAT fiscal representative is a local entity that generally represents a company in a foreign country by correctly calculating and filling the tax business. They also have a duty of providing monthly tax reports.

How Do You Compare A Limited Fiscal Representation (LFR) VS A General Fiscal Representation (GFR)?

General Fiscal Representation

It is also known as GFR, and generally, they represent a non-resident business concerning all services for which they register their business for VAT in their names.  Furthermore, they also help in the customs process, tax calculation, and filing tax returns annually for a company.

Limited Fiscal Representative

Limited fiscal representation is also known as LFR. It only represents foreign or no residents’ companies’ importers who bring goods into one EU member state.

At the same time sale, the goods in other EU members state to import without paying any value-added tax at the time of goods importation.

Does Online Market Require A Fiscal Representation?

Yes, the online market will also need a fiscal representative so long as you want to trade in a foreign country that will require a fiscal representative.

VAT is paid by both the online and physical business, which is stated by the law.

What Are Some Of The Benefits Of A Fiscal Representative?

Having a fiscal representative is one of the best decisions you may ever make since they come with the following benefits;

• The fiscal representative will smoothly register your business with the local office for VAT.
• They help you in the submission of your VAT returns
• They efficiently process your VAT payments

What Is The Similarity Between Fiscal Representation To General Fiscal Representation?

There is no any similarities between Fiscal representative and general fiscal representative. They are both the local entity that generally represents all foreign business to register their companies for VAT.

How Long Will It Take To Change My VAT Registration To Fiscal Representative?

Okay, the change of your VAT registration to a fiscal representative will take a few weeks. But as the Brexit deadline approaches, we will expect the change to take longer.

The local tax authorities usually receive a bigger number of requests, so we advise you to plan ahead of time.

Does Additional VAT Reports Being Affected By Fiscal Representation?

No, the additional reports will not have any effect on fiscal representation. But you have to note that once the transition period ends, VAT transaction treatment will likely change.

This may affect the possible requirement for additional declarations, which may be thoroughly reviewed as we get closer to 1^st January.

For Reclaiming A VAT Occurred In EU Under 13the Directive Claims Do You Need A Fiscal Representative?

Generally, the documentation needed might significantly vary. VAT recovery under the 13^th directive claims to some member states may require a fiscal representation.

For all your importing from China, Tj Chinafreight is here to help – contact us now.

Probably, you’re wondering what yard storage is all about.

Well, this guide answers all your questions on yard storage.

Keep reading to learn more.

What Is A Yard Storage?

It’s a place whereby shipping containers in a trucker are stored in a gated yard.

This happens where the containers might not be delivered to their final destination before their last free day.

How Much Do You Charge For Yard Storage Services?

We usually charge for the yard storage services depending on the foot unit of the container. But it’s always an average of $20 to $450 per month.

What Types Of Goods Do You Keep On Your Yard Store?

We accept all types of goods so long as they are well preserved and may not cause any damages in the yard stores.

How Do You Qualify For The Yard Storage Services?

Anyone who has the legal documents required and can make payments for the yard storage services is qualified.

Are Your Yard Storage Containers Waterproof?

Yes, our yard storage containers are 100% waterproof, so there is no need to worry.

Our Office Hours And Gate Hours The Same Thing?

Well, office hours are when our yard storage offices are open for business, with the activities such as making payment in person if you wish so and making other official inquiries.

While gate hours are when our clients can access their containers, this will be done after gate clearance to enter the yard storage, no need to visit the office.

What Hours Do You Allow Access to Your Yard Storage?

We allow access to the containers from 10 am to 6 pm. Past 6 pm, no one will be allowed to the storage ward unless you have extended access.

Will You Provide Extended Access for The Yard Storage If Requested?

Yes, we provide extended access for yard storage for our business clients only. But in case you also need extended 24 hours access, with a valid reason, you will be allowed.

We need you to fill the special access hour application form.

You will be responsible for paying background checks for everyone you want to access the yard storage after the gate hours.

How Do You Book A Space For Yard Storage Service?

Booking a space for yard storage is easy and fast too.

You will only book via our website directly, or you can contact our customer care team, who are available 24hours to book the space.

Can You Book A Yard Storage Service In Advance?

Yes, you can book the yard storage services in advance by making a down payment of 25%.

Which Form Of Security Do You Offer For Your Yard Storage Services?

Our form of security to the yard storage is video surveillance and pin access to the yard.

Also, note that most of the managers live on the site of the storage yard for security purposes.

How Can You Tell The Size Of Storage Space You Will Need In The Yard?

We have our managers to guide you through the storage space you may need.

In the yard, or you can opt to use a size guide which we also provide for you to be aware of the storage space you might need.

What Is The Limited Number Of Containers Do You Need In Your Yard Storage?

We do not limit our clients for yard storage services unless the yard storage is full. In which we will refer you to our next nearest yard storage available.

For How Long Should My Container Stay At Your Yard Store?

Okay, our contacts normally run for one month in which you will be renewing monthly if you are interested in staying longer.

Your container may stay as long as you need in the storage yard.

What Are The Rules And Regulations On Your Yard Storage Services?

We have very simple rules and regulations guarding our yard storage. Below are some of the rules you may need to know;

• Our offices hours are from 9 am- 5 pm from Monday to Saturday
• The gate hours are strictly 10 am- 6 pm from Monday to Saturday
• On public holidays and Sundays, we do not operate
• Any late payment for the yard storage will be penalized
• Only one vehicle will be allowed at the gate
• You should assign one or two individuals only to access your container in the yard storage.
• If you do not have all the required documents, you will not be allowed to use our yard storage services.

What Is The Process Of Terminating The Yard Storage Services?

Well, termination of our yard storage services is quite easy.

You will be required to give a two weeks’ notice and submit the contract letter to our office to be processed.

Do You Cover For Damages Inside Your Yard Storage?

Yes, we will be held responsible for any damages inside our storage yard.

What Does Will happen In Case Of Late Payment For My Yard Storage Services?

We generally have a penalty of 10% on top of your regular service payment in case of any late payment.

What Goods Do You Consider Hazardous For Yard Storage Services?

Explosives, flammable liquids toxic materials are considered hazardous in our yard storage facility.

If you have further questions about then give us a call for clarification.

What Documents Do You Require For The Container To Be Stored On The Yard?

What we need from you to get our yard storage services are;

• Insurance cover/proof that your goods are insured
• A national identification cards
• Copy indicating the type of goods which are inside the container

What Happens If My Container Got Lost In The Yard Store?

We advise you to get insurance cover for such cases, which rarely occur.

But in case the container gets lost, we will investigate and cater for the losses as per the agreement.

At Tj chinafreight, we offer cost effective shipping solution from China – talk to us now.

If you have any question on stuffing, you will find the answer right here.

So, keep reading to learn more.

What Is Shipping Container Stuffing?

Container stuffing is a planned process of loading goods into a shipping container to be transported.

This planning process is done to ensure that the goods are not damaged while they are in transit and the de-stuffing process can take place safely on the other end.

The containers are also well balanced for shipping hence to ensure dangerous goods are not transported together.

How Does Stuffing Less Than Container Load (LCL) Compare To Stuffing Full Container Load?

Less than container load is a small ocean freight shipment where the shipper does not contract for a full container.

Full container load is an ocean freight shipment where the shipper contract for full container.

Less than Container Load allows you to maintain a smaller adaptable goods inventory while Full Container Load for a big volume of goods.

Less than Container Load involves multiple shippers products packed together while Full Container Load all products in a container is owned by one shipper.

Benefits Of The Two Modes Of Shipping Are;

Less than Container Load freight cost depends on cargo weight as opposed to a flat rate as is the case with Full Container Load shipments.

With Less than Container Load you spend less due to shipping fewer products more frequently on the inventory space.

When shipping a Less than Container Load you can pick up and drop off your container directly from the stores.

Where the containers are loaded and unloaded.

Full Container Load has a lower risk of damage since it is owned by one party.

Full Container Load is cheaper than Less than Container Load making it more economical option even though the whole container was not occupied to its maximum capacity.

Full Container Load shipping time is also perfect compared to Less than Container Load because the whole container is transported directly to the final destination.

Disadvantages Of The Two Modes Of Shipping Are;

Full container load shipping takes a longer time to reach its final destination hence due to long transit time shippers are advised to plan accordingly.

Less than Container Load is more expensive per cubic meter than Full Container Load.

Less than Container Load has a higher risk of products damage because it involves multiple shippers’ products.

Is There Recommended Shipping Container Stuffing Procedure?

The following steps are the fundamentals for a successful container stuffing;

The Right Container

The shipper has to take into consideration the type of freight he wants to ship such as frozen, dangerous or bulky cargo require different kind of containers.

Maintenance Of The Container.

It is important to regularly ensure that the container is maintained in good condition to avoid water contamination damages via holes and damaged doors.

The Vessel’s Route.

An often overlook problem is climatic disruptions during the vessel’s course.

In tropical climates the temperature in a container could increase up to 50C and cause wet damage like rusting due to lack of ventilation.

The Right Packaging.

If the cargo is not packed following its properties it is more likely to get damaged regardless of the chosen shipping or the stuffing method.

How Does Shipping Container Stuffing And De-stuffing Compare?

De-stuffing is the opposite of stuffing hence they are commonly used when the goods are loaded or unloaded from their final destination.

De-stuffing is the unloading of goods from a container at their delivery port while stuffing is the loading of goods into a container before departing from the port.

These terms are usually used during transportation of the goods from one destination to another hence are used on roads, seas and even air transportation.

What Is Shipping Container Stuffing Location?

Shipping container stuffing location is a specific location where the products were stored into a container.

The process of locating heavy cargo position to be below lighter cargo to ensure the container’s centre of gravity is low.

This is majorly considered by layers and dangerous cargo that are stuffed within the containers.

What Should You Consider Before Stuffing Shipping Container?

• Pre-treatment.

All the products must be treated correctly earlier to stuffing hence to reach their destinations in good condition.

• Pre-cooling of cargo.

Sufficient pre-cooling of the goods will have a positive result compared to the products that have not been pre-cooled.

• Optimal stuffing.

Proper coverage of floor will improve the flow of air during shipment.

• Avoid wedging or jamming cargo into containers.
• Cargo to be stripped or unloaded first should be stuffed into the container last.
• Place the goods that are heavy or wet on the bottom will light goods on top.
• Dangerous and incompatible goods should not be stuffed in the same container.
• The container has to be balanced by distributing cargo weights evenly as possible.
• Block and bracing.

Cargo should fill the container accordingly to avoid it from moving during transportation.

• Provide a lift clearance at the top for the items to be handled by the forklift.
• Do not exceed the maximum payload of the container.
• Containers have to be stable with the weight of cargo evenly and carefully distributed.
• Choose the best experts in the container stuffing.
• The container should be sealed with the customs official during stuffing.
• Choose the best container stuffing to make shipping safe and efficient for your product and that helps in money savings for your company.
• It is important that the container is filled as full as possible but not so full that goods would be damaged or the stripping would be slowed down.

How Should You Stuff Shipping Container Without Wasting Spaces?

Stuff shipping should be done without leaving spaces in between the cargo in a container to prevent movement during transit.

This is avoided by;

• This is the process of preventing the loading from moving up and down.
• It is the method of preventing the load from moving side by side.
• This method can be done using various materials such as ropes, timber beams, plastic foam or chains hence to prevent cargo from sliding in any direction.
• The first decision you’ll need to make is whether you will ship loose cargo or palletized goods.
• Choosing the right pallet will maximize the storage of your container, reduce transportation costs and ensure efficient handling of your goods.
• Loose cargo.If you are shipping loose cargo its’s best to have your cargo palletized.

Cargo consolidation occurs when cargo from one or more shippers is combined into one shipping container.

What Is The Difference Between Shipping Container Stuffing And Shipping Container Stripping?

Container stuffing is a planned process of loading goods into a container to be transported.

Shipping container stripping is unpacking or unloading of cargo from the container.

Stuffing is the process of loading a container with loose goods prior to shipment while stripping is the process of unloading a container when it arrives at the port.

Container stripping is the unloading or unpacking of cargo from the container.

Conversely container stuffing refers to the loading of cargo onto the container with the aim to use as much of the container’s capacity.

This ensures that the cargo will be protected from loss or damage during the transit.

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

DDU means Delivered Duty Unpaid. DDP means Delivered Duty Paid.

In a DDU shipment, except duty or taxes of importing country, all other charges hasDifference between DDP and DDU terms of delivery copy to be paid by the seller of goods. In other words, the selling cost of goods included all charges to deliver goods up to the door of consignee except duty or tax of importing country. In a DDU shipment, the seller takes care all necessary transportation, customs clearance charges, and shipping charges etc. at load port and destination port inclusive of handling charges at port of loading and port of discharge.

Who pays for DDP shipments?

DDP means the sender is responsible for paying the duties. Often, the eCommerce seller includes these fees at checkout, directly collecting the payment from the customer.

Who pays for DDU shipments?

DDU (delivery duty unpaid) means that the customer is responsible for paying the taxes and duties. They will be contacted by customs once their shipment arrives to settle any charges in order for the shipment to be released and delivered.

Who Pays Customs Duties?
Both DDU and DDP require the seller to take full responsibility for damage or loss during any transportation route until the agreed-upon destination. However, DDU terms place the responsibility for paying customs clearance duties or taxes solely on the buyer. While the seller pays shipping charges, insurance costs, and other international shipping fees, the buyer must pay the destination country’s actual duties.

DDP terms require the seller to pay for the duties and taxes in addition to all other fees and costs associated with shipping. All the buyer has to do is wait for the shipment to arrive.

With DDP shipments, sellers may charge slightly more to recoup the cost of duties and other fees. However, they are still responsible for paying the appropriate parties on-time and with no delays.

The seller also has to absorb any unexpected costs, even if the duties are much higher than expected. If there are paperwork-related delays at customs, the seller is also responsible for any storage or additional administrative fees.

Using a Freight Forwarder
Freight forwarders help sellers navigate the intricacies and occasional changes to DDP and DDU shipping. They take care of the logistics required for DDP shipping, including working with customs brokers to ensure all duties and taxes are paid as quickly as possible. Using a freight forwarder makes subsequent connections to drayage and intermodal shipping hubs as seamless as possible.

Freight forwarders can also help with DDU shipping. The seller’s freight forwarder is responsible for everything up to the customs clearance process, where the buyer’s freight forwarder or customs broker takes over. In many cases, the responsibility for the goods transfers back to the seller’s freight forwarder if further transportation over land is required.

What is DAP?
DAP stands for Delivered-at-place and essentially means that a seller has agreed to pay all the costs, including transportation costs, and is ready to incur any probable losses of moving cargo from origin to destination. The buyer’s responsibilities include carrying out all import formalities and paying for unloading, import duties, and clearance or local taxes after the shipment arrives at the destination port.

What is DDP?
DDP stands for Delivered Duty Paid. This Incoterm states that the seller is responsible for all costs and risks related to the goods’ movement from origin to destination port until the buyer receives them. This is the Incoterm that places maximum responsibility on the seller while the buyer is only responsible for receiving his cargo and unloading it.
Just like Delivered-at-place, DDP applies to all modes or a combination of modes of transportation. DDP must also be accompanied by the destination port’s name wherever mentioned within the agreement or other shipping documents.

DDP vs DAP
DDP shipping services vary only slightly from DAP shipping procedures. The significant distinction separating the two Incoterms is that DDP shipping services ensure the cargo arrives at the buyer’s physical location after the shipment is imported. By comparison, DAP shipping services are only responsible for ensuring the cargo arrives at the country’s drop-off location.
While DDU is usually the standard, some sellers use a DDP model.

How to make your customers happy
What are the consequences for foreign customers? If VAT and/or customs exceed the exemption limits, all duties must be paid on the doorstep upon receipt of the consignment. If the recipient is not present at the time of delivery or the outstanding amount cannot be paid, a collection invitation will be left for the consignment.

Please note: If you deliver your goods DAP and do not communicate this clearly when the order is placed in the online shop, the resulting customs duties may irritate your foreign customers.

When a supplier (or seller) of a product commits to a sale, they enter into a contract with a buyer. Depending on the terms of the sale contract, either the seller or the buyer may be responsible for the costs to ship the product. This sale term can be referred to as FOB shipment, or free on board shipment. There are two types of FOB shipment terms: FOB shipping point and FOB destination. Depending on what terms were outlined during the initial product sale, there are a few key differences that may affect the seller or buyer, respectively.

In this article, you will learn what FOB shipping point and FOB destination mean in regard to the sale of goods, as well as the key differences that set these two terms apart.

What is FOB Shipping?
FOB shipping is also called FOB shipping point or FOB origin. As soon as the goods arrive at the transportation site, and are placed on a delivery vehicle, or at the shipping dock, the buyer is liable for any losses or damage that occur after. The buyer would then record the sale, and consider their inventory increased.

With FOB shipping point, the buyer pays for shipping costs, in addition to any damage during shipping. The buyer is the one who would file a claim for damages if needed, as the buyer holds the title and ownership of the goods.

As an example, U.S. Company A buys watches from Vietnam and signs a FOB shipping point agreement. The cargo arrives at the receiving dock and the buyer takes ownership and liability. The watch glass breaks during transport overseas. The buyer is responsible, even though the watches were damaged before arriving on U.S. soil.

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What is FOB Destination?

FOB destination, sometimes called FOB destination point, means that the buyer takes ownership from the shipper upon delivery of goods, usually at the buyer’s receiving dock. To be crystal clear whether a shipper is referring to UCC or Incoterms, a shipper might include the final destination name and specify Incoterms definitions, by referring to FOB Savannah (Incoterms 2020) in the contract. That means the delivery port is Savannah and Incoterms definitions are referenced. Incoterms 2020 considers delivery as the point when the risk of loss or damage to the goods is transferred from the seller to the buyer.

This is also the moment that the supplier should record a sale since they’re taking ownership at the receiving dock. It’s common for high-value goods to be sent via FOB destination designation. That allows the buyer to ensure they arrive in good condition and can be inspected upon receipt. The seller retains liability until the buyer accepts the goods, ownership, and liability at the receiving dock, office or agreed-upon place of transfer, after inspecting for damage.

What is the Difference Between the Two Types of FOB?
The key difference between the two terms is which point they transfer responsibility for the goods. FOB Shipping Point means the buyer takes responsibility when the goods arrive at the shipper, but with FOB Destination the buyer doesn’t take responsibility until the goods arrive at their port.

Variations of FOB Destinations
There are four variations to FOB Destination.

Freight Prepaid and Allowed
The seller pays the freight charges and continues as the owner of the goods during transit.

Freight Prepaid and Added
While the seller pays the freight charges, they are billed to the buyer. The seller continues as the owner of the goods during transit.

Freight Collect
The buyer pays and bears freight charges when the goods are received, but while in transit the seller remains the owner.

Freight Collect and Allowed
The buyer pays the freight charge when the goods are received and deducts the freight charges from the invoice. The seller bears the freight charges and is the owner during transit.

Accounting Differences
It’s important, buyers and sellers have a point in time where the buyer takes ownership of the goods for accounting and capital assets. The moment of product transfer is needed, so it can be accurately entered in company records.

With FOB Shipping Point, the seller and buyer record the delivery when the shipment leaves the warehouse or shipping dock, but with FOB Destination, the seller and buyer record the sale/purchase when the shipment reaches the buyer’s dock. Ownership of the goods is defined by the bill of lading.