/ By TJ China Freight / Logistic • Moving • sea freight forwarder • Shipping • Warehouse

2022 Latest Freight Forwarding Guide

What is a freight forwarder?

Freight forwarder, literally short for freight forwarder, is an international freight forwarder. In terms of job content, it is the acceptance of a client’s commitment to complete a particular aspect of the transport of goods or a link related to it, and any work involved in this area can be done directly or indirectly by finding a freight forwarder to save capital. Depending on the goods there are also overseas agents. A freight forwarder is a general term for the business of providing various transport services in the field of circulation specifically for those who demand and supply capacity for the transport of goods. They serve the whole society and act as a bridge and link between cargo owners and capacity providers, China is one of the biggest importing and exporting markets, and a professional China freight forwarder will build a strong relationship between suppliers and clients.

Mode of transport

  1. Ocean Freight Forwarding

Refers to the international freight forwarding agent that provides waterborne cargo transportation services and related services. It can be specifically divided into two types of ocean freight forwarding and river freight forwarding.

2、Air freight forwarding

Refers to the international freight forwarder who provides air cargo transportation and related services.

3、Land transport agency

Refers to the provision of road, rail, pipeline transport and other cargo transportation services and related services of freight forwarding.

4、Intermodal Transport Agency

Refers to the international freight forwarder who provides cargo transportation services such as road, rail, and pipeline transportation and related services. This kind of agent can be further divided into sea-air intermodal transport agent, sea-rail intermodal transport agent, air-rail intermodal transport agent and other types.

As with any logistics service, there are many factors that play into the end-to-end process. Freight forwarding may seem like a win-win situation for customers. Despite this, there are also some caveats to be aware of before diving in with a forwarder service. Below are a few of the advantages and disadvantages of freight forwarding.

Advantages of Freight Forwarders

  1. Freight forwarder services offer competitive pricing based on services needed by a customer. They can also lower prices through the consolidation of cargo from other customers. This allows for a single full container load with multiple customers’ cargo. Also, this serves to reduce final freight charges for less than container shipments.
  2. Freight forwarders usually specialize in a specific service, mode of transportation or market. This allows the company to choose the services the forwarder should handle. In turn, this gives the company greater control over the handling of its shipment.
  3. Knowledge and expertise are crucial when importing or exporting products. This work is performed via the customs clearance process. Freight forwarders have the most up-to-date information on customs regulations. Additionally, they can handle documentation, pay tariffs and handle taxes.
  4. One of the main advantages of a freight forwarder is their ability to offer services relating to trade. Some services include documentation, bank paperwork, cargo insurance, and inventory management.

Potential Disadvantages of Freight Forwarders

  1.  Often, freight forwarding services aren’t the operators of the transportation moving the cargo. For this reason, their influence on what happens on board the ship, rail car, truck or airplane is minimal. Additionally, their participation in the transportation steps is typically completely hands-off.
  2. If you perform all documentation and forwarding, your costs are controllable. But, with a freight forwarder, there is no way to know what kind of service markup the forwarder is adding. A company might charge $2,500 for land transportation to a destination. Conversely, a freight forwarder can state the price as $5,500 and skim the $3,000 markup off the top.
  3. Product loss is a hard reality of some shipping processes. Putting trust in a freight forwarder to handle all shipping can lead to a loss of supply chain control. If the freight forwarder is detail-oriented, things are fine. But ineptitude can wreak havoc on shipments and lead to losses.

Do You Need Freight Forwarding?

Freight forwarding is an easy way to take your business and cargo to the next level. But, there are times when it is more effective to ship directly with the shipping company. Especially when they provide the same end-to-end supply chain services as forwarders, without the markup.If you happen to be in need of one, TJ China freight is highly recommended, offering sea freight, air freight, rail freight, FCL, LCL, DDP, DDU and more. One of the top-ranked companies in China in terms of freight rating.

/ By TJ China Freight / China Freight News • Logistic • sea freight forwarder • Shipping • Warehouse

Black Friday 2022 is Just Around the Corner and You Need Professional Freight Forwarders!

You may say, why should I call you professionals when I can contact the logistics myself?

  1. Going it alone

For most shipments, it is simply not possible to arrange international shipping online with a sea or ocean freight forwarder.

It can be done even without a freight forwarder, but for the layman it is a dangerous game. When it comes to freight, there are many things that can go wrong, and often do. You need to cover your bases with freight insurance.

  1. Your supplier arranges for the shipment to be located furthest away within the United States

This is a classic trap that often sees inexperienced importers fall into. Many suppliers offer to arrange shipments as far as the US ports. This may seem like a good deal if you only add in the cost of local trucking. But there are other costs involved.

Such shipping arrangements often use one of the “C” Incoterms, particularly the CIF Incoterms. These Incoterms have several disadvantages for the importer, including the common situation where the importer is held hostage by inflated costs.

  1. Your supplier arranges the entire shipping process

Your supplier may be an expert in manufacturing or trading, but they will not be an expert in shipping.

If they have an arrangement with a local freight forwarder that can manage the entire shipping process, it is unlikely to be any better than what you have arranged. At the end of the day, the supplier will be looking to recover their costs.

If they cost account for freight costs, they have no incentive to secure a good price. This means you could be paying inflated shipping costs.

If they offer a sales/freight package, they are likely to jack up the price.

This will result in you walking out the door with high logistics costs and no insurance. We all know that reaching the exporter’s warehouse requires customs clearance, tax payment and customs brokerage……. Anything that goes wrong at any point in the process will not guarantee the timeliness of your shipment.

Let TJ China Freight help you reach another peak in your career with this upcoming biggest promotion of 2022!

/ By tjchinafreight ivy / Warehouse

Amazon FBA warehouse vs third-party overseas warehouse

At present, many e-commerce platforms and export companies are deploying overseas logistics systems by building "overseas warehouses". The construction of overseas warehouses enables export enterprises to send goods in batches to foreign warehouses to achieve local sales and local distribution in China. For cross-border sellers, you can choose the Amazon FBA delivery mode, or you can choose the third-party overseas warehouse delivery mode.

Warehouse
Warehouse

Two overseas warehouses PK

Amazon FBA warehouse

The service provided by the FBA warehouse is impeccable. The platform has mature development, abundant capital and high degree of informatization. However, the storage capacity is limited, and the warehousing cost and the processing cost of slow-moving products are relatively expensive.

Third-party overseas warehouse

Arranged by a third-party logistics company, the selection range is wide, and the sales platform is not limited, but there are many participating sellers, and there is no consistent standard for service quality.

When looking for overseas warehouses, new and old sellers should not look for overseas warehouses without formal legal operation procedures, not subject to the certification and supervision of relevant functional departments, small overseas warehouses, imperfect systems, immature related services, and unreasonable low-price strategies. .

What is the difference between them?

Shot of a young man using a digital tablet while working in a warehouse
Shot of a young man using a digital tablet while working in a warehouse

Service difference

FBA does not provide customs clearance services

Some overseas warehouses provide customs clearance services, and some also include tax payment and delivery to the warehouse.

Warehousing Product Requirements

FBA does not provide assembly services, and requires sellers to affix the outer box label and product label before entering the warehouse. If the product label is found to be damaged, it will be returned for refurbishment.

Overseas warehouses will provide sorting and assembly services before products are put on the shelves.

Return

Amazon supports unconditional returns for buyers, and FBA warehouses do not conduct any evaluation of returned products and do not charge buyers any fees. Even if the returned product has no quality issues, Amazon will not resell the product to other buyers.

As for overseas warehouses, if the returned product is not a quality problem, it can be repackaged by the seller and then sold.

Choose

Amazon FBA warehouse has certain restrictions on the size, weight and category of products, so the choice is biased towards small, high and high-quality products

Overseas warehouses have a wider range of choices than FBA warehouses. This means that products that can enter Amazon FBA warehouses must be able to enter third-party overseas warehouses, but products that can enter third-party overseas warehouses may not be able to enter Amazon FBA warehouses.

/ By tjchinafreight ivy / Warehouse

Dropshipping from overseas warehouses

Amazon has been able to stabilize the position of the head of the cross-border platform for a long time. The most important point is to do local overseas warehouses in various countries. In 2021, the price of most industrial land exceeds that of commercial and residential land. Based on a forecast by real estate services firm CBRE that U.S. e-commerce sales will grow by $330 billion from 2020 to 2025, the U.S. will need to add about 330 million square feet of storage space by 2025.

The general concentration area of ​​overseas warehouses in the United States
The general concentration area of ​​overseas warehouses in the United States

A generation of hot is an inevitable trend

According to data from the Ministry of Commerce, as of December 2021, the number of overseas warehouses in my country has exceeded 2,000, with a total area of ​​more than 16 million square meters.

Overseas warehouses in the United States are generally concentrated in the east and west regions of the United States. The west of the United States is close to my country, and the lead time is shorter. The east of the United States covers about 70% of the population, and has an inherent advantage in the timeliness of goods delivery. US orders from overseas warehouses are generally dispatched within 1~2 days, not more than four days. Cross-border sellers can compete with local US e-commerce sellers!

At present, there are two main methods for drop shipping from overseas warehouses. One is to ship goods from overseas warehouse suppliers, and the other is that sellers stock up their own goods to overseas warehouses and then ask service providers to help them on behalf of them. Most sellers choose the latter.

The charm of overseas warehouse drop shipping

warehouse
warehouse

Warehousing costs are lower

As the world's largest e-commerce platform, Amazon is the best choice for many cross-border sellers. However, the warehousing cost and the processing cost of slow-moving products on the Amazon platform are very expensive. In this case, many sellers have to consider third-party warehousing as a "transit station" to reduce operating costs without affecting Amazon store operations. At this time, overseas Warehouse has become the "best choice" for cross-border sellers.
The goods sold are exported to overseas warehouses, mainly by sea and land transportation in bulk, and the required logistics costs are doubled compared to retail direct mail air transportation.

The disadvantages of self-built warehouses are highlighted

In the past few years, the disadvantage of "self-built warehouses" in the cross-border e-commerce industry has gradually become prominent.
According to the survey, 63% of sellers are troubled by local policies and regulations, and 56% of sellers are troubled by overseas recruitment and management. Another 30% of sellers are worried about policy and tax risks; 30% of sellers are worried about the risk of unsalable goods, and they also face risks such as financial pressure, goods safety, and poor management.

Complete chain

Overseas warehouses are not simply renting a warehouse, but a window to display brand, after-sales, consulting and even maintenance services.
At present, the overseas warehouse service provided by mainstream platforms is to provide sellers with one-stop services for warehousing, sorting, packaging, delivery and other items. Combined with the local logistics characteristics of foreign warehouses, it can ensure that the goods arrive at the terminal safely, accurately, timely and at low cost. in the hands of the buyer.
At present, retail direct mail is generally carried by air, which greatly limits the type and volume of goods. If the goods are shipped to overseas warehouses in bulk, large and fragile goods can also be traded through cross-border e-commerce. Compared with the era of postal parcels, overseas warehouses are more formalized and comprehensive.

/ By tjchinafreight ivy / Warehouse

Do you need a bonded warehouse?

What is a bonded warehouse?

A bonded warehouse is a place used to store and process goods imported into new markets. Goods stored in bonded warehouses are not subject to customs duties (a type of tax). Any applicable customs duties shall be paid when the goods are transported to the next destination. Bonded warehouses can be owned by governments or private companies, helping to improve inventory and cash flow efficiency.
Using a bonded warehouse means that goods can be moved closer to their final destination, and payment of duties can be deferred until the product is moved.

The system provides significant benefits for commercial transactions across different jurisdictions. For organizations importing and exporting goods, bonded warehouses can be used to eliminate the need to pay customs duties, further increasing efficiency.

Why use a bonded warehouse?

  • Bonded warehouses can be an ideal option for importers and exporters of certain products for a number of reasons. These include:
  • Deferred payments for such products mean that no tax is due until the item is sold, which can greatly improve a business's cash flow. In many cases, this can be between 25% and 33% of the upfront cost of imported goods.
  • If the goods are set for export, there is no duty to be paid in the UK, but in the destination country. This means double spending will be avoided, resulting in further savings.
  • Goods can be imported and stored in bonded warehouses ahead of peak season, which means they can fulfill orders without delay.
  • Many times, bonded warehouses have specialized facilities, such as deep freezing vats for storing wine or spirits.
  • Entry and exit customs documents are usually provided by bonded warehouse facilities.

If you're not sure whether bonded storage is right for your business, here are three reasons why you should consider it.

1) Improve cash flow
Delaying payment of tariffs before purchasing goods can have a positive effect on cash flow. By storing your goods in a bonded warehouse, you only pay import duties when the goods enter the UK market, so if you have any difficulties moving your goods, you don't have to pay taxes in advance. You can't guarantee the sale will pay for itself. In bonded storage, all shipments are classified as suspended duty, which avoids prepayment of duty on products that may be in stock for several months.

2) If you export the goods, you do not need to pay import tax
If you're importing to exporting to a non-EU country, using a bonded warehouse is a breeze. Storing your goods in a bonded warehouse means you don't have to pay any import duties on exported products, saving you time and money. This means businesses can avoid paying tariffs twice, often saving around 25-30%.

It's also worth noting that if your goods need to be destroyed without selling, you won't have to pay import duty on them.

3) Port-centric logistics
Most bonded warehouses are located at or very close to ports (for example, John Good has a bonded warehouse in the Port of Felixstowe), which means you can store your goods at ports of entry and distribute them when needed. This lowers costs across the supply chain due to shorter lead times, lower potential for damage, significant savings in transportation costs and lower carbon emissions.

/ By tjchinafreight ivy / Shipping • Warehouse

Bonded Factory Goods Clearance

What is a bonded factory?

A bonded factory is a bonded area licensed by the person in charge of the customs to manufacture processing of foreign and domestic goods as raw materials. The bonded factory system is one of the main export support measures of the customs rebate system. Foreign goods brought into a bonded factory, manufactured and processed while retaining customs duties. Therefore, exports can be promoted by reducing the financial burden of enterprises and simplifying customs clearance procedures to improve the international competitiveness of export commodities.

Customs clearance procedures for bonded factory goods

1. Goods shipped to bonded factories

1.1 Import from abroad

When a bonded factory imports raw materials, it should prepare a raw material import application (B6) and go through customs declaration procedures in accordance with the procedures applicable to ordinary goods. If the customs deems it necessary, it may send customs personnel to the location of the bonded factory to inspect the imported raw materials.

1.2 Import from bonded area

1.2.1 For the bonded goods sold by enterprises in export processing zones, science and technology parks or other bonded factories to the bonded factories, the buyer and the seller shall jointly issue a declaration with necessary documents (B2, invoice, packing list) to declare to the customs goods. They can apply to customs on a monthly basis for permission to declare.

1.2.2 For the goods supplied by the bonded warehouse to the bonded factory, the owner or the manifest holder shall prepare the necessary documents (D7) to declare the goods to the customs, and the warehouse operator and the customs supervisor can confirm the mark and quantity according to the customs declaration or bill of lading After that, it will be shipped from the warehouse.

1.2.3 For the goods sold from the self-provided bonded warehouse to the bonded factory, the buyer and the seller shall jointly prepare a customs declaration form (D7), attaching the documents required for the goods to be declared at the customs. Only after confirming the identification and quantity with the customs clearance or bill of lading, the goods can be shipped from the warehouse. They can apply to customs on a monthly basis for permission to declare.

1.2.4 For the goods provided by the logistics center to the bonded factory, the factory and the center shall jointly prepare a declaration form (D7) and attach the necessary documents, and the center shall declare the goods to the customs electronically. After customs clearance, the goods can be delivered. They can apply to customs on a monthly basis for permission to declare.

1.3 Imports from taxable areas

The processing raw materials sold by domestic suppliers to bonded factories need to be deducted or refunded for import duties and taxes. When the raw materials enter the bonded factory, the buyer and seller should prepare and sign the application form for import and export of raw materials (B1) together, together with the invoice, packing Form, etc., and report to the competent customs for approval. Raw materials are allowed to enter the factory and be recorded. The competent customs shall, within 20 days from the date of approving the application, approve and issue a duplicate application to domestic suppliers as export goods as evidence for applying for tax refund and tax credit.

2 .Goods shipped from bonded factories

2.1 Courtiers bound for abroad

When a bonded factory exports products, it should prepare a product export application form (B9), and indicate the page number and reference number of the relevant "Detailed Table of Raw Material Usage per Unit" in it. "With the approval of the supervisory customs, (when the customs at the export port deems it necessary, the bonded factory may be required to provide a copy of the approved list of raw material usage per unit product") or the reference number of the relevant application submitted or received to the supervisory customs, if the annex Awaiting approval and filing with customs at the port of export for customs clearance in accordance with the procedures applicable to the export of general goods.

2.2 When the bonded goods are sold to enterprises in science and technology parks or export enterprises in export processing zones or other bonded factories for further processing and export, the bonded factory that sells the goods and the buyer shall jointly prepare an application (B2) for the import and export of such bonded goods, together with Invoices, packing lists, approval documents issued by the competent department of the bonded area and other related documents shall be filed with the supervising customs or the local customs branch for customs clearance at the seller's office.

2.3 Driving to the taxable area

2.3.1 For further processing and export to export processing plants eligible for credit recording of import duties and taxes payable:

The buyer and the seller should jointly prepare an export/import application (G2) for the deep-processed products processed and sold in the bonded factory, export to the export processing factory that meets the taxable amount for record, and file with the relevant documents such as invoices, packing lists, etc., at the bonded factory. Before leaving the factory, go through import duties, credit purchase tax and release procedures with the supervision customs. Bonded factories can submit monthly reports. Import duties and taxes on credit purchases for the above-mentioned export processing plants shall be handled in accordance with the "Administrative Measures for Import Duties and Tax Credits or Refunds of Raw Materials Used in Exported Products",

2.3.2 For products sold to domestic companies:

In principle, the products of bonded factories are exported. If domestic sales are required, an application shall be made to the competent customs for approval. If the products processed by the bonded factory are approved to be sold domestically, the bonded factory alone or jointly with the buyer prepares an application for "import of foreign goods" (G2); and when the above application is submitted, the customs supervision will supplement and verify the import tariff according to the form and state of the product when it leaves the factory. The product may not be released until the factory.

Enterprises purchasing the products for domestic sale may apply to the supervisory customs to choose one of the following methods to calculate and collect the import tariffs of the products. Once selected, they cannot be changed within one year, but more than 50% of the materials used for assembly tile-shaped intermediate products are manufactured for domestic sales. product, the import duty of the product shall be levied at the rate applicable to the dutiable value of the product.

/ By tjchinafreight ivy / Warehouse

Customs warehouse guide

Customs Warehouse: Definition

A customs warehouse is a warehouse where goods are stored under customs supervision and security. They are stored in designated places and are not subject to import duties and taxes until they are designated a final regime.
The type of entry into the customs warehouse mainly depends on the final destination of the goods and the commercial needs of the importer

Types of customs warehouses

There are basically five types of customs bonded warehouses:

Private warehouse
This type of warehouse is owned and operated by the company in which its imported or manufactured goods are stored. Goods from the port are received here and then distributed, for example, to various stores in the retail chain.

Public warehouse
Here, everyone can store their goods for import, export, manufacturing and distribution. Businesses use these facilities to address their short-term distribution needs. When there is no more space in the retailer's warehouse, excess goods can be stored in public warehouses.

Automated warehouse
Many warehouses have been modernized thanks to advances in computer and robotics. They use the latest technology to operate faster and more efficiently. The level of mechanization can range from small conveyors that move goods from one area to another to fully automated warehouses. Automation reduces labor and operating costs. It also simplifies functionality, making warehouses run faster, smoother, and generally have fewer bugs.

Temperature controlled warehouse
Many products require special handling; these include products such as computer equipment, sensitive electronic parts, frozen foods, produce, and flowers. To keep these shipments in ideal condition, make sure your warehouse offers air-conditioned and humidity-controlled space within your specifications.

Distribution center
This type of warehouse helps distribution companies receive products from various suppliers and then ship them to their customers. The point here is not storage, but reorganization and movement. Goods entering a distribution center can be broken down, aggregated or reprocessed, ready to be shipped to a store or customer.

Advantages of customs warehouse

As a major benefit, we highlight the advantage of being able to store goods without paying import duties and taxes until a final regime is specified for their transport.
Also comment on the improvement in the quality of customer service as it makes it easier for the company to get inventory and you will enjoy greater lead time efficiency.
On the other hand, another advantage to consider is cost savings for the company.

  • Configuration files and operations of customs warehouse:
  • Custodian: is the person in charge who is authorized to manage deposits.
  • Depositor: A person who is bound by a statement incorporated into the system, or who has been assigned the rights and obligations of the previous system.
  • Representative: Represents any of the above (the depositor or depositor) and provides statements related to the deposit.
  • Customs Control: Customs control of the warehouse in question depends on it.
  • Inventory accounting: A set of records for operations on stored goods: entry, exit...
  • Transfer between warehouses: The transfer between two commodity warehouses related to the system.
  • Declaration/Information: A communication from the depositor, custodian or representative, where appropriate, to the relevant customs office.
/ By tjchinafreight ivy / Shipping • Warehouse

Guidelines for Bonded Warehouses, Bonded Factories, and Export Supervision Warehouses

warehouse

Bonded supervision place is one of the important forms of customs bonded system. There are several common modes of bonded warehouse, export supervision warehouse, bonded factory and bonded logistics center. With so many similar concepts, can you tell them apart? Today, TJ chinafreight will introduce these concepts and related tax refund policies to you.

Bonded warehouse

A bonded warehouse is a place used to store and process goods imported into new markets. Goods stored in bonded warehouses are not subject to customs duties (a type of tax). Any applicable customs duties shall be paid when the goods are transported to the next destination. Bonded warehouses can be owned by governments or private companies, helping to improve inventory and cash flow efficiency. Using a bonded warehouse means that goods can be moved closer to their final destination, and payment of duties can be deferred until the product is moved. The system provides significant benefits for commercial transactions across different jurisdictions. For organizations importing and exporting goods, bonded warehouses can be used to eliminate the need to pay customs duties, further increasing efficiency. The purpose and structure of a bonded warehouse varies from country to country.

Bonded Factory

A bonded factory is a factory or enterprise that has been approved by the customs and specialized in processing and manufacturing re-exported products with bonded imported materials. The materials and parts imported by the bonded factories for the production of export products are customs bonded goods, and the customs will fully bond them. After the processed and manufactured finished products are exported, the imported materials and parts will be exempted from import duties, import value-added tax and consumption tax according to the actual consumption.

Export supervision warehouse

The export supervision warehouse refers to the special customs supervision warehouse that stores goods that have gone through customs export formalities, carries out bonded logistics and distribution, and provides marketable value-added services. Including the export distribution warehouse (storing the actual exit of the export) and the internal transfer warehouse (storing the export and internal transfer).
Bonded warehouse refers to a warehouse dedicated to storing bonded goods and other goods that have not gone through customs formalities. Including public bonded warehouses, self-use bonded warehouses and special bonded warehouses (such as liquid dangerous goods bonded warehouses, material bonded warehouses, agency sales bonded warehouses, etc.).

Inbound and outbound cargo management between the logistics center and overseas. For goods entering and leaving between the logistics center and overseas, the customs in charge of the logistics center shall implement record entry and exit management. Goods entering the logistics center from abroad upon approval by the customs shall be bonded, office supplies, transportation, transportation tools, consumer goods, etc. for self-use imported from abroad, as well as imported machinery, loading and unloading equipment, management Equipment, etc., go through relevant procedures in accordance with the relevant regulations and tax policies of imported goods. When the goods stored in the bonded logistics center leave the logistics center and are finally exported to overseas, the customs shall implement the record management.

Management of incoming and outgoing goods between the logistics center and areas outside the domestic bonded supervision area. The goods entering the logistics center are deemed to be imported, and the import declaration procedures shall be handled according to the actual trade mode and actual status of the goods; the goods entering the logistics center from the territory are deemed to be exported, and the domestic consignor shall go through the export declaration procedures, and can enjoy the refund of export goods (exemption). tax policy.