If you have any question about import documents when shipping from China by air freight, ocean freight or rail, the answer is right here.

So, read this guide to avoid any costs or delays that may be caused by non-compliance.

What are Import Documents?

They are the forms and letters, which often accompany a particular consignment getting into the country from a foreign destination.

These documents outline various elements revolving the imports, including the importer, country of origin, nature of goods, and the final destination, among others.

Some of the aspects typical import documents capture include shipment date, specifications of the consignment, quantity, name of the customer, and shipping method.

These documents might also vary depending on the import policies set by the customs clearance department in a particular country.

Import documents

How do you Ship Imports Internationally?

Shipping is one of the core elements of importing goods internationally.

It is usually a complicated process, which requires a high level of understanding to enhance seamlessness, convenience, and efficiency.

If you are importing a consignment from a foreign nation, there are a few options you can consider depending on numerous prevailing factors.

Water vessels, airplanes, trains, and automobiles are all modes of transportation you can utilize when importing commodities from a foreign country.

Even so, it’s vital to understand different postage methods fit different situations.

Here are the common shipping methods;

Airfreight – It is one of the popular means of importing goods from foreign nations. It merely involves use of cargo planes to airlift various types of shipments from the origin to destination.

China airlines cargo

Air freight has been used for a long time and is often regarded as the fastest and most convenient means.

However, it is comparatively costly than other means of transport.

Sea Freight – It is also a traditional shipping method, which has been used globally to ferry millions of containers.

It entails use of water vessels of different sizes to transport consignments from the seaport of the exporting country to importing nation.

It is considered as the cheapest means of importing goods, irrespective of quantity and size.

However, it is a bit slower compared to other shipping methods.

COSCO Shipping

Rail freight-It refers to the use of train vessels to transport goods from one country to another.

This method is effective where there is a rail network linking different countries.

It is relatively faster than sea freight and also transports a large number of goods at the same time.

Express shipping – In all likelihood, this is the shipping method you are most familiar with.

It works more or less like postal service, but this involves direct delivery of an item to your door.

In most cases, a courier is used for importing items, which are less than 100kg.

It is also an effective way of shipping personal items and gifts.

It is fast, reliable, convenient, but relatively expensive.

Express shipping from China

What are the Documents needed for Importation?

They are quite a number but, in some cases, tend to vary depending on the importation policies of a particular country.

Also, different countries have wide-ranging bilateral agreements as far as international trade is concerned.

Of course, this may lead to exemptions when it comes to documentation requirements for customs clearance.

Nevertheless, the standard import documents for shipment include the following;

Bill of entry – It is a legal document filed by customs clearance agents or importers before or upon arrival of the shipment.

It has details of the consignment, merchant, types of goods, and country of origin.

Commercial invoice-It is a primer document outlining all the items sold and the amount of each issued to the customer by the manufacturer or dealer.

It is a fundamental import document since it helps in determining customs duty during clearance.

Bill of lading – It is a document, which a carrier issues to the person consigning the goods as an acknowledgment receipt for cargo shipment.

It confirms the quality, condition, and quantity of goods received by the carrier.

Import license-It refers to a legal document issued by the government authority of a particular country approving importation of certain commodities into its terrain.

Insurance certificate-It is an importation document demonstrating support against the merchants as far as terms of delivery are concerned.

It enables the customs department to verify and determine the exact amount of payable import duty.

Purchase order-It is a letter or document issued by a creditor, an assurance of the merchant honoring payment to exporter in completing a transaction.

Technical write-up– This is a document, which provides details of the function or purpose of the imported commodity.

The essence of this document is to enable the customs authority to derive the precise market value for import duty.

COO certificate – It is a document, which merely proves the imported goods were manufactured and acquired in the specific country of origin.

Test report – It is a document, which shows the commodity meets the quality standards set by the government or authorizing agency. It is a mandatory document for specific imports.

Health certificate – It is a legal document, which approves the commodity’s, especially food and beverage material suitability for human or animal consumption.

How do Shipping Documents compare to Import Documents?

The primary difference between these two is that shipping documents tend to lean mainly towards the freight or transportation of the consignment.

They are critical in facilitating and safeguarding the safety of the shipment while in transit.

On the other hand, import documents tend to lean towards the clearance of the shipment into the country.

They are essential in facilitating approval and clearance of commodities upon arrival to get into the country for the target market.

Both shipping and import documents are used in international trade for facilitating movement of shipments from one country to another.

They are also assessed and evaluated by the customs department for clearance of the consignment to leave and enter a country, respectively.

Shipping and import documents are legal forms, which must be stamped and signed by appointed customs officials.

What are the Steps for Importing from China?

Typically, importing from China is a process laid down properly to enhance convenience and efficiency.

It is important to understand how the process works to make your work easy, especially if you’re importing goods for the first time.

Also note, the complexity or simplicity of importing commodities here may vary.

This depends on the nature of products, quantity, shipping method, and destination, among others.

Here are the steps involved in importing goods from China;

1) Determine the goods you want to buy – This is the first but critical step in importing goods from China.

This country produces millions of items hence the need for making sure you identify what you require.

Once you get this step right, it becomes easy for you to maneuver through other ensuing steps.

2) Find out legality or illegality of the goods in your country – Not all goods manufactured in China are permitted to all countries.

There are nations with some restrictions; hence can only allow limited quantity.

So go through the customs policy of your country to determine the specific goods you can import before you start sourcing.

3) Classify your goods and determine the lading cost – For every commodity you import from China, there is always a 10-digit tariff classification number.

This classification number and COO certificate are used for calculating payable duty rate during importation.

It then allows you to find out the land cost before placing your order.

It enables you to figure out whether you are working with a flexible or limited budget.

4) Find the right supplier – This is one of the ultimate stages when importing from China.

Typically, China has several manufacturers located in different parts of the country.

So you have to do a thorough background search concerning a particular supplier before settling on one.

While at it, you must also agree on all modalities revolving purchasing and shipping of the goods.

5) Organize for your cargo shipment – Ideally, shipping of consignment involves several aspects, particularly as far as cost is concerned.

You must figure out each cost individually to determine the approximate amount of money you’ll spend.

Get a reputable carrier to give you the quote and find an ideal freight forwarding company such as Tj chinafreight to facilitate the process.

6) Track your cargo – At this stage, your shipment is on the verge of arriving in your country.

It is in the shipping process, which might take shorter or longer, depending on means and distance.

At this stage, verify your commercial invoice and all other related freight documents.

It will enable you to arrest or troubleshoot a possible issue with the customs officials by the time your shipment arrives.

7) Get your shipment – Once the consignment arrives in the country from China, it has to go through the normal customs clearance procedures.

It can take time here also depending on the nature of the shipment, traffic, and other formalities.

But once it goes through and comes out from the customs clearance, you can pick your goods and leave.

Are Shipping Documents the same for Import and Export?

Not necessarily, but in most instances, they tend to complement each other.

On many occasions, you’ll notice you require more or less the same shipping documents when importing or exporting goods.

The major difference is that each is used at different stations for a different purpose.

In other words, shipping documents for imports are used at the port of entry.

On the other hand, export documentsare required at the port of the country of origin of the shipment.

Is an Import License Mandatory in International Shipping?

It depends on the nature of product you are importing and the bilateral agreements between the two countries.

There are specific products where the merchant must obtain this license before importing.

Failure to acquire this document lead to seizure of the shipment at the customs of the destined country.

In instances where there is a bilateral agreement between the two trading countries regarding a particular product, it might not be mandatory.

Even so, this document is necessary for international shipping since it facilitates ease of movement of shipment from one country to another.

What is a Shipping Advice Document in Import?

It refers to a commercial document issued by the exporter who happens to be the beneficiary of the purchase order.

It is issued to the importer to provide shipment details, which happens to be the applicant of a letter of credit.

The essence of shipment advice is to enable the importers to organize for applicable shipping insurance promptly.

Creating shipping advice is always starts as soon as shipping details are available.

The recommended timeline for creating this document is between three and five days.

Typically, shipping advice entails all the information about the shipment.

This way, it makes it easy for the importer to make insurance coverage with details provided by the shipment advice only.

Do you get Charged Customs for Importation?

Absolutely right!

Apart from the specified goods such as donations, all imports are charged customs duty upon arrival in the country.

Of course, the customs duty might vary depending on various elements, such as the product classification.

Nonetheless, if the product is not exempted from customs levy, the importer must pay the respective duty accordingly.

How do you Process Import Documents?

Once you venture into international business, you’ll need different types of shipping documents.

Such documents facilitate the clearance and shipping when importing a consignment.

Processing import documents is a vital element, which you must also consider in the entire venture.

In some instances, it can be somewhat demanding, depending on the inter-country relations.

The general procedure involved in import document process include the following;

1) Receive an inquiry-The process starts upon expression of interest from a potential customer regarding purchase of your products.

In many instances, the customer will send a letter of inquiry and request a formal quote for the product.

2) Evaluate the potential customer – The moment you receive the inquiry, it is imperative to ensure you can do business with them.

Therefore, screen the potential customer accordingly.

This enables you to know whether or not they are viable to sell to.

Check the nitty-gritty to make sure you capture all the details before engaging them further.

3) Issue profoma invoice – Once you realize the customer is “clean” and viable for business, give them the profoma invoice.

This document should cover all the details of your company, product descriptions, and other important details.

It is a reflection of a commercial invoice, and in some countries, it is a legal document for controlling their currency.

4) Complete the sale – After issuing the profoma invoice, the buyer is at the discretion of either accepting rejecting or negotiating.

Once you agree on various aspects revolving around the terms and conditions, you’ll have a written contract.

In some instances, a verbal contract would suffice.

The contract covers different elements other than the payment and shipping of the products.

5) Get the goods and shipping documents ready – After sealing the contractual terms, prepare the products and all the relevant shipping documents.

Primarily, this involves sorting and packing the goods accordingly.

The shipping documents may vary depending on many factors, such as type of goods, country of origin, and mode of shipping, among others.

6) Run a restricted party scanning – Before you dispatch the goods from your warehouse, do a restricted party scanning once more.

The essence is to guarantee nothing’s altered on any restricted party. It is also vital when it comes to paper trail during the audit process.

7) Prepare other relevant forms and ship the goods – Since the shipping process is usually extensive, here are a few documents you may as well need to capture and prepare.

Some can be optional but may be helpful when it gets to paper trail and record keeping for future reference.

Once this is over, you can simply ship the goods to the predestined location.

What is the Best Way to Send Import Documents?

Since import documents are quite sensitive, there is a need for ensuring they are safeguarded until they get to the importer’s hands.

Usually, you can use different ways to send them over to the merchant.

One way is by including in the shipment so the merchant will pick them upon arrival.

This is usually a bit slow and hence can lead to unforeseen inconveniences.

The second approach is tasking your forwarding and clearance agent to scan and send the copies of the document electronically.

It’s among the safest means since other than preventing loss, alteration, or damage of the documents, and it also upholds privacy.

It is also convenient since this can happen in real-time.

However, it becomes a challenge when the customs department insists on the original hard copies to facilitate clearance process.

And lastly, you may as well consider sending the documents via courier services.

It is arguably the safest means since you get the documents within the least time possible.

The courier services also offer unmatched convenience since they deliver the documents directly to your home.

But this can be a bit costly, depending on the distance and other prevailing factors.

What is a Packing List in International Import?

It refers to a shipping document usually, which indicates all the goods or commodities a particular consignment contains.

It is an important document because it compliments the commercial invoice hence necessary for fast-tracking clearance process.

This document outlines the description of the product, quantity, weight, and other fundamental factors for the shipment.

It helps in the verification process, especially at the customs.

It also comes in handy in determining the customs duty payable for the consignment since it outlines the weight.

Sample packing list

Who Prepares a Packing List for Importation?

Preparation of packing list is the sole responsibility of the supplier.

It is the supplier who must capture all the items in a shipment in regards to description, weight, and quantity.

The packing list also needs to bear the name and logo of the supplier.

It thus makes it necessary for the document to come from the manufacturer or supplier.

Who issues an Import Bill of Lading Documents?

It is the carrier who prepares and issues the bill of lading documents to the shipper.

They also retain a copy for record-keeping in case there is a dispute surrounding the inbound import.

In essence, this document contains all the titles of goods in the consignment.

Secondly, it also acts as a receipt for all the shipped products.

And more importantly, it acts as a representation for the agreed contractual terms for shipping of the consignment.

Sample bill of lading

What do you Check in a Bill of Lading in International Shipping?

In many instances, a bill of lading often consists of business and legal jargon, which can make it difficult for a newbie to understand.

Such cases could lead to confusion due to misunderstanding of the actual meaning of the terms.

When checking a bill of lading, some of the vital elements to look into before signing it include the following;

Identify of the shipper – Always ensure the name, identity, and address of the shipper is on the bill of lading.

It helps especially when issues surrounding the indemnification of the carrier and back freighting of the consignment arises.

Quantity and description of commodities-Before approving this document, make sure the quantity and description of products are correct.

The value for the same should also match what is loaded or what is already onboard.

Counter check the shipment documents with the receipts the shipper is providing.

Port of discharge – It is vital to ensure the vessel precedes with all the dispatch to the indicated port of discharge.

Condition of the goods – Make sure you verify the commodities are in good physical condition.

Confirm whether there are dead-freights or short-loading and if the document mentions the same.

Freight – Ensure the bill of lading is stamped “freight paid” only if it true.

If possible, find the written agreement between the shipper and shipowner regarding status of freight.

Conflicting terms – At no point or situation should there be a conflict between bill of lading and charter party terms.

And in case the bill is claused according to the party terms the references should be clear.

Port and date of loading – The loading date should match the receipt. It indicates the origin of the shipment.

It can as well determine the permissibility of the products into the country and the customs duty structure.

Signature – The bill of lading must bear the signature of the shipper and shipowner.

It is the only way you can raise a valid claim in case an issue such as loss, damage, or short -loading arises.

What is the Difference Between Shipping Bill and Bill of Lading in Import Business?

Shipping bill refers to the document with details pertaining to the shipment.

Some of the information includes the product, origin, destination, date, address, weight, quantity, and value, among others.

It is an important document often used by the customs authority when clearing commodities for shipment.

On the other hand, a bill of lading is the document issued by the shipping company to the shipper or transporter when they load the commodities to the vessel.

It is equally an important document, especially at the inbound port, for the clearance process.

How do you Generate a Shipping Bill?

It varies depending on the country you are importing the goods from.

For instance, when importing from China, you have to generate this document online.

The process can be tedious, depending on the nature of goods you are shipping.

But a general overview of how to generate a shipping bill include the following;

• The supplier has to register with the relevant customs authority in the country.

And this is only possible upon submitting all the relevant and verified documents.

• Upon submission of the documents, there is a checklist generated to ensure your submission meets all the requirements.
• The details of the vendor upon verification are captured in the system for easy access.

Once the data is in the system, it generates the shipping bill number, which is also endorsed the back of printed checklist.

It is then issued to the supplier or exporter.

• The entire generation of shipping bill is automated in many countries hence does not require human intervention. But this only happens based on vendor’s or exporter’s declarations.
• The exporter or vendor will get the shipping bill at the service center once it is ready.

What is the Difference Between Straight and Order Bill of Lading Documents?

Straight bill of lading refers to a non-negotiable issued to the transporter by the freight forwarder upon loading of the commodities in the vessel.

It is common in instances where the goods are already paid for or do not necessarily require payment.

Under the straight bill of lading, the forwarder or shipper can never re-assign it to anyone else.

Some of the common commodities, which utilize straight bill of lading include donations and gifts, among others.

The consignee, in this case, will receive the shipment from the shipper upon presentation of their identification documents.

Order bill of lading, on the other hand, is the type where the named consignee is the ultimate owner of the cargo.

The consignee can as well order for the shipment to be shipped by a different entity by simply endorsing the bill of lading to the particular party.

This type of bill of lading outlines the particular conditions the shipper imposes.

Why are there 3 Original Bills of Lading in Import?

Ideally, there is no restriction when it comes to the number of bills of lading to be issued.

You can issue as many as possible.

The most important thing is making sure the number of copies issues is indicated on the bill.

For security purposes, it is advisable to only produce a few copies, specifically for the consignee, transporter, and banker/broker/freight forwarder.

The lesser the number of these bill documents,the lower the chances of theft and release of goods to the wrong address.

It also lowers chances ofunauthorized release of goods, and fraud, among others.

These three entities must receive the original copies of the bill since they are all directly involved in the consignment.

How do you File a Bill of Lading for Imports?

Generally, there is no standard template for bill of lading.

Different entities have different binding terms and conditions and policies on this document.

You can fill a soft copy form of this document online or hard copy physically.

Even so, some of the basic information a bill of lading must capture include the following;

• Date
• Bill of lading number where applicable
• Reference number
• Shipper and consignee names, address, and zip codes
• Third-party name, address and zip codes (where applicable)
• Desired time-based service, delivery date and time
• Cost of the product
• Number of shipping units
• Class specification
• Correct weight of the shipment
• Length, width, and height of the shipment
• Declared value of goods
• Shipper’s name and signature

How many Types of Shipping Bills are there in Imports?

They include the following;

Free shipping bill – It is applicable on shipments, which are exempted from tax and not entitled for duty drawback.

Drawback shipping bill – It is applicable in instances where a refund of duties is acceptable on the goods exported.

Dutiable shipping bill-It applies to goods, which attract import duty. It may be or may not be entitled to duty drawback depending on different circumstances.

Ex-Bond shipment shipping bill – It applies to imported goods designed for re-export and are kept in bond.

What is an Import Clean Bill of Lading Document?

It refers to a document, which declares zero-damage, tampering, or loss of the goods during shipment.

The carrier issues it to the consignee after thorough inspection and verification of the shipment.

The consignee only signs the clean bill of lading after ensuring there is no damage, deviations in quality, and missing quantities.

Itremoves any liability from the carrier once the consignee appends its signature on the document.

What is the Difference Between an ImportBill of Lading and Bill of Entry Document?

Import bill of lading is a document, which lists all the details about items the shipper receives and the destination.

It can also serve as an acknowledgment receipt for the second party the moment they receive the items.

In simple terms, it is evidence of shipment and proof of receipt of goods by the shipper from an individual or entity providing the cargo for shipping.

Bill of entry, on the other hand, refers to a document prepared at the customs department confirming billing or importation of the goods.

It is filed by the importer or customs department agents and used as part of a clearance procedure at the port of discharge.

Preparation of this document is on the basis ofseveral import documents, including commercial invoice, bill of lading, and packing list, among others.

What is the Difference Between a Profoma Invoice and a Commercial Invoice?

A profoma invoice is a reflection or speculation of the cost of an order before it filled.

It shows the seller’s commitment to sell the commodities according to predetermined terms and conditions.

The essence of a profoma invoice is to provide the buyer with a clear idea of what to expect when purchasing the goods.

It provides the quotation of the items before payment and also provides room for negotiation for a better deal.

The buyer can use it to obtain a purchase order or letter of credit from the bank or any other creditor.

And you can as well decide to buy or not to buy the goods upon reviewing the profoma invoice.

Commercial invoice is a reflection of the actual situation since it shows the price and quantity of the goods sold.

The purpose of a commercial invoice is to request payment for the goods sold.

It is also used as acknowledgment receipts for goods sold.

What is the Significance of a Commercial Invoice in Import?

Sample commercial invoice

• It shows the actual amount to pay for all the goods sol

Today’s guide will answer any question you have about import and export duty.

So, before you import from China, read this guide.

It will help you save time and money.

Keep reading to a better understanding of what you should do.

What is Import and Export Duty?

It refers to an indirect tax, which is often levied on a wide range of imported and exported goods.

In most instances, it is always known as customs duty.

This type of tax is a fundamental element in international trade.

The actual import/export duty often varies depending on several prevailing factors surrounding the trade.

In most instances, though, the customs duty is usually determined based on the assessable value for items, which duty is charged ad valorem.

Why is the Import and Export Duty required for the Economy of a Country?

Import and export duty is an integral element in international trade since it fosters growth and enhances this sector in several ways.

This type of duty is essential for the economy of any country, which imports or exports different types of commodities.

Some of the reasons it is critical for an economy of the particular nation include the following;

Protection of domestic industry – Ideally, most of the countries tend to have different categories of industries ranging from emerging to established.

Customs duty, therefore, helps to protect most of the infant industries from the aggressive completion from foreign nations.

In essence, it helps in controlling the growth of domestic manufacturers to establish and become formidable in the market.

Protecting job opportunities – Customs duty is also essential in ensuring a country secures job opportunities for its people.

This, of course, happens as a result of ensuring there is sufficient control and protection on emerging domestic industries from stiff international competition.

Source of fiscal revenue – Import/export duty is also a fundamental source of national fiscal revenue, specifically for the central government.

It serves as a component for national macro-control. Therefore, it plays a vital role in determining the GDP of a country.

Safeguarding the environment – This type of duty is also essential for a country since it helps it from possible environmental degradation.

Essentially, it controls the types of products allowed to get into a country hence ensuring prohibited goods are restricted from into and out of the country.

What are the Duties and Taxes for Importing Goods in China?

When importing or exporting goods with China, it is ideal to understand the specific types of duties and taxes your products will be subjected to.

The import/export duties and taxes in China tend to vary depending on the specific type of product, country, and means involved.

In many instances, there are three types of taxes for importing goods from China, which include the following;

Value-added tax-Currently, all the products imported to China are subjected to VAT of either 9% or 13%.

The 9% VAT tax is available for specific products categorized within the agricultural and utility items.

On the other hand, the 13% VAT applies to other items subject to this particular type of tax.

Consumption tax -This refers to the type of duty imposed on organizations or companies manufacturing, processing, selling, and importing taxable products.

The rate of consumption tax for goods in China often varies depending on a specific product.

In many instances, you can always figure-out the consumption tax by either using ad valorem or quantity-based method.

Some of the products taxable under China’s consumption tax include cosmetics, jewelry, alcohol, tobacco, and automobiles, among others.

Customs duty-It is arguably, the largest form of tax, which generates the highest amount of revenue for the economy of China.

It essentially includes import and export duties with a total of about 8600 items subjected to this tax.

Computation of customs duty based on either quantity or ad valorem criteria.

Nevertheless, the actual tax you pay as customs duty is dependent on the type or category of a particular product.

Is Import Duty and Customs Duty the same?

Not necessarily, but there is a formidable correlation between the two taxes.

Import duty ideally is a type of tax often charged on goods or products getting into the country from other nations or destinations.

The specific rate of import duty is dependent on various pre-existing factors, such as the type of product.

Tariffs

On the other hand, customs duty refers to a type of indirect tax, often levied on different kinds of products imported and exported to and from the country, respectively.

The difference here is customs duty is collective since it covers all goods getting in and out of the country.

On the other hand, import duty only covers the goods or products getting into the country.

What are the Types of Import Duty?

There are four major types of import duty, which include the following;

Basic duty-It refers to the type of duty imposed on the value of products at a specified rate since it is fixed on ad valorem basis.

It is relatively more or less the same as central excise duty.

Additional customs duty-It is the type of duty often levied on goods, which are imported from outside the country.

Its application varies from one country to another.

However, in many instances, it is usually equal to central excise duty on the same products if they are manufactured in the same country.

True Countervailing duty – It refers to the type of taxes typically imposed on goods, which have received government subsidies in the original country importing or exporting the same.

Anti-dumping duty – It is a type of customs duty on imports, which protects against the dumping of goods in a particular economic trade region.

The prices for this form of duty is usually a bit lower than the normal value of the product.

Who Pays Import Duty?

Import duty is the sole responsibility of the owner of the consignment or a customs broker.

In practice, import duty is charged the moment the shipment gets to the border of the destined country.

It, therefore, implies all the relevant file entry documents must be filled at the port of entry, thus the need for paying estimated duties to customs.

At this stage, it is either the consignment owner or the appointed broker who’ll ensure the duty is paid.

What is the Purpose of Customs duty on Imports/Exports?

Customs duty plays an integral role in imports/exports.

First, it serves as a key source of revenue for fostering the economic growth of a country.

In other words, it provides a source of income for governments to budge in different sectors of economic growth.

Originally, this was the main function of this type of duty on imports and exports.

However, with time it has become a passive function, especially for developed nations.

Secondly, this type of duty serves as a trade policy tool, which helps in protecting domestic industries.

It happens by ensuring it alters some specific conditions under which the goods compete in the local market.

For instance, you might find some authorities imposing low or zero duties to imports up to a specific volume.

Nonetheless, the same authorities may apply relatively high rates to imports, which surpass the quota level.

Thirdly, customs duty on imports/exports serve as a remedy to trade distortions.

And this is from the aspects of punitive function for the dumping of goods or products.

Significantly, this duty helps in regulating the particular products getting into the country, hence preventing prohibited goods.

What is a Harmonized System (HS) Code for Shipping?

It refers to a code designed by the World Customs Organization as a multipurpose international product classification describing the type of goods being shipped.

It is a necessary code in international trade since all the customs officials must ensure they use it for clearing any commodity, which crosses transnational borders.

Furthermore, the HS code facilitates the interpretation and synchronization of a wide range of customs procedures.

This code also conforms to the details of the Kyoto Conventions of 1974, which enhances efficient procedures and rules for implementation.

HS code structure

Is Schedule B and HS Code the same?

Not at all!

The schedule B code refers to a coding system administered by the Foreign Trade Division in the US census bureau.

It is specifically used in the US to monitor a wide range of exports.

Typically, the B code has a total of ten digits, the first six making up the HS codes.

The extra four digits are essential in identifying and classifying the goods.

On the other hand, the HS code refers to a six-digit standard, commonly known as subheading used in the classification of goods for taxes and duties.

The HS numbers are constant across the globe and are administered by the World Customs Organization.

However, the B code is used solely in the US and administered by a body known as Census Bureau’s Foreign Trade Division for export statistics.

Another difference is for schedule B codes must be reported to shipments valued at more than $2500, or when consignment requires an export license.

HS codes, on the other hand, are used mostly in commercial invoices and other international export documentation.

What is the Difference Between HS Code and Tariff Code?

A tariff code refers to a product-specific code conforming to Harmonized System and maintained by the World Customs Organization.

This type of code is available in almost every product, which is involved in international commerce.

Ideally, a complete tariff code can be up to 10 digits but not less than six digits.

On the other hand, HS code, also known as HTS code, is used for classifying and defining products, which are traded globally.

On what Commodities is Export Duty Levied?

Ideally, this is entirely dependent on a particular country.

There are specific export products, which are duty levied in one country and exempted for such duty in another country.

Therefore, the export duty levy on a commodity is entirely dependent on a specific country.

Taxes

Why do you need HS/Schedule B Numbers, and How can you Find them?

It is always important to know and have HS/schedule B numbers as an international trader because of the following reasons;

• It is vital when it comes to determining all the applicable import tariff rates. While at it, it makes it possible for you to figureout whether the product is eligible for preferential tariff, especially under the Free Trade Agreement.
• To assist in completing shipping documents, which include a certificate of country of origin, among others.
• To file the electronic export information in Automated Export System.

How do you Calculate Customs Duty?

To determine the precise customs duty, you ought to pay for a certain product; you find the sum of different elements.

These elements include freight, value, insurance, and other additional costs.

Once you find this total, you’ll then multiply it by the duty percentage rate.

Most importantly, it is to understand different countries tend to calculate customs duty based on several aspects.

It is thus vital to ensure you confirm with your country customs office, website, or your carrier to determine the specific percentage.

What is the difference between Import and Excise Duty?

Import duty is merely the levy a particular commodity is subjected upon arriving at the port of entry from a foreign country.

On the other hand, excise duty refers to the tax levied on the act of manufacturing an excisable commodity.

Primarily, excise duty is subjected to products manufactured locally.

So the major difference in this aspect is a levy simply based on the origin of the commodity.

Is Import Duty Applicable to the Import of Services?

Absolutely correct!

Ideally, what is often referred to as Basic Customs Duty or BCD will always be taxed on the import of goods besides IGST.

With respect to import of services, the service recipient will be liable to pay duty on the service.

This is if the same is offered by an individual who is a foreigner or resides outsides the country.

What is the difference between Direct and Indirect Tax in the Import/Export Business?

Direct tax refers to the type of duty paid directly to the government either by an individual or an organization.

On the other hand, indirect tax is collected by a third party in the supply chain on behalf of the government.

Primarily, the consumer pays this type of tax by paying more on a commodity given the tax is already added to the product’s price.

The other notable difference here is a direct tax is charged on income and related activities conducted.

Indirect tax, on the other hand, is levied on products and services.

Direct tax is often paid upon the income getting into the hands of a taxpayer.

However, in indirect tax, the payment is made before the commodity gets into the hands of a taxpayer.

It is relatively difficult to transfer the burden of tax in case of direct tax.

On the contrary, it is quite easy to shift the burden of tax for indirect tax.

Tax collection indirect tax is somewhat a bit difficult.

It all depends on the goodwill of the taxpayer to remit the levies.

It requires proper structures to ensure all loopholes are completely sealed.

However, indirect tax is quite easy to collect since the levy is already pegged on the commodity.

Therefore, you only need to collect it immediately;the customer pays for the product.

Who Pays Export Duty in International Shipping?

It is dependent on several factors.

The major aspect determining the payer of the export duty, in this case, is the shipping agency.

Some agents will dictate the exporter as wholly responsible for paying the export duty.

In some cases, it is the importer who is responsible for paying this levy.

Additionally, there are some agents where a third party pays export duty for international shipping.

In other words, there is no definite party responsible for paying export duty.

It depends on several prevailing factors, as well as the various policies of a shipping agency.

Can you Import Goods without Custom Duty?

Most definitely!

But this depends on the specific type of commodity you are importing.

Understandably, there are some products, which are exempted from customs duty.

Such products could be donations, or foodstuff depending on the customs policy of a country.

In this case, you need to specifically, confirm with the customs authority of your country before you import duty-free goods.

Where do you Pay Customs Charges when Shipping Internationally?

Ideally, most countries have established different departments within the customs authority.

It is the responsibility of the customs authority to ensure the customs charges are paid by the importer, exporter, or the third party.

Therefore, the taxpayer has to ensure they pay the customs duty at the specific designated customs offices.

How can you Reduce your Import/Export Duty Costs?

Customs duty in international trade is indispensable and inevitable.

However, it is always necessary to ensure you reduce these duties for your business for optimum profitability.

Even so, it is understandable the nature of international business involves a significant number of forms and paperwork.

It can be tiresome, but it is necessary to determine the best ways possible of reducing the costs of customs duty.

Some of these ways include the following;

Determine the tariff differences between countries – In most instances, different countries often create new tariffs whenever an order is raised.

It is thus necessary to ensure you confirm the specific customs duty for each country and avoid assuming the tariffs are similar across the countries.

Scrutinize the information – Ideally, rates and taxes are always subject to change depending on various prevailing factors.

You should, therefore, ensure you confirm the duty rates often and also determine whether or not the information is updated.

Never be complacent to rely on older rates every time.

Use tariff codes – Ensure you use the right tariff codes for the commodity and the country.

Look at each product on your catalog individually and make sure the right code applies.

It could be a bit time consuming but eventually, might be worth it in saving you a few expenses.

International tariff code

Determine the regulated products – In several countries, some specific products must be in line with the customs duties.

In some cases, you may incur additional costs on commodities with special regulations, which is often costly.

The best thing to do in this case as a way of avoiding such instances is figuring out the regulated commodities for a particular country.

Importing the right way – In as much as paying customs duty is inevitable, it is always necessary to ensure you use the proper channels in this business.

You can save a substantial amount of money by using the right channels and agencies rather than seeking short-cuts.

What’s a CBP 29 Form in Importing and Exporting?

Sample CBP Form

It refers to the Customs and Border Protection form given to the importer or exporter as a notice of the action.

Ideally, this form is used as a tool for communicating the assessment of CBP’s additional tasks and the commencement of the liquidation process.

Secondly, it is also used in alerting the importer or exporter of the CBP’s intention to evaluate additional duties.

Technically, when the CBP 29 is proposed as an action, as in importer, it implies you have about 20 days from the date of issuance to provide your response.

Failure to respond to the notice within 20 days, it is assumed by the customs you agree with the proposed action.

Can you Claim back Import Tax?

Absolutely correct!

It is quite possible to claim back import tax, which was either paid erroneously or in excess.

Even so, it is vital to understand different countries have varying stipulations in regards to the refund process of import tax and interest.

It can be relatively involving depending on the nature, quantity, and country of origin of the commodities.

In general, though, most stipulations surrounding refund on import duty stipulates the possibility of claiming back the tax.

It provides for either a person who pays the duty in pursuance to order or evaluation or a person who has borne the tax.

What are the Features of Customs Duty?

Customs duty is unique but serves almost the same purpose in all countries across the world.

It mainly helps in regulating control of domestic businesses, environment, jobs, and industries, among others.

Several factors determine the basis of which customs duty is calculated.

Some of these factors include material of the product, the origin of commodities, weight, and dimensions of goods as well as the place of acquisition, among others.

The customs duty structure varies from one country to another.

The common denominator in the structure is the central government.

Others within the structure depend on the number of tiers of government in a specific country.

It is the customs authority in a particular country that is in charge of collecting customs duty.

What is a Stamp Duty charge in International Shipping?

It refers to a tax levied on single property purchases or documents.

The stamp charge is based on the nominal rates or value of the transaction on particular financial instruments.

Some of the property purchases and documents subjected to stamp duty include receipts, cheques, land transactions, and commission receipts, among others.

Ideally, the actual stamp duty varies from one country to another.

The modalities used in determining the definite stamp duty also vary depending on the nature of the transaction.

What is Customs Clearance?

It primarily refers to the process of taking commodities through the customs authority or office.

The essence of this act is to facilitate the movement of consignments from the foreign country of export into the country of import.

It is usually a demanding process since it entails verification of quite a number of aspects, including the goods and the documents.

Customs clearance can as well indicate the issuance of documents by the customs authority to a shipper.

This is to indicate all duties surrounding the consignments have been paid, and the shipper’s commodities are thus cleared for export.

Customs clearance

How do you Clear Customs Clearance for Imports/Exports?

This process starts immediately; you submit all the relevant documents to the customs clearance officer.

The official will look into your shipment paperwork to verify their authenticity and whether they match the consignment.

All international shipments must have a commercial invoice.

It is a document, which lists both the shipper’s and receiver’s information, including contact.

It also contains details regarding the consignment, such as description and value, among others.

The next step in the process entails the clearance officer determining the specific duty and taxes applicable to your shipment.

Of course, this is dependent on the types of consignment, value as well as regulations of the importing country.

This allows the clearance officer to figure out whether all the applicable duty and taxes have been paid before approving for the next step.

Once every clearance detail is clear and all the documents presented match the shipment, it is then released and dispatched to its final destination.

At this point, you’ll have to deal with your broker to help to facilitate shipping of the goods to the respective destination.

The clearance process is as simple as such.

The most important element in the entire process is making sure all the paperwork is done correctly.

It enables you to stay away from trouble with the clearance officers and also prevents unnecessary inconveniences.

What is Proof of Export, and Why is it Needed?

It primarily refers to documentary evidence indicating the goods are exported and not necessarily used for indigenous consumption.

In other words, it is a combination of various documents corresponding to the details of the exporter and consignment.

It can take various forms depending on various aspects revolving the shipment.

For instance, if the shipment went through the customs clearance process in the exporting country, the document would suffice.

There is also a need for an ocean lading bill, which indicates the items were loaded on a specific outgoing vessel.

And this is specific when the consignment left via ocean, and in some instances, the document can be negotiable.

If you are shipping the consignment via air, the air waybill number is the proof of the document.

This document is non-negotiable since the waybills are often issued prior to loading of the goods on the aircraft.

The essence of proof of export is to enhance the efficiency of shipping the goods from the country of origin to the destination port.

This document prevents the fraudulent process of sneaking goods in an export process.

Moreover, it comes in handy to avert cases of confusion when it comes to a specific shipment.

It also helps to enhance clearance process at the customs department, thus making it ideal in preventing unforeseen inconveniences.

How Long can Customs hold your Goods when Shipping Internationally?

Generally, this is quite dependent on a wide range of factors.

The reasons might also vary from one customs department in a country to another one.

Even so, the customs can hold the shipment for as long as they deem it necessary.

For instance, if they are awaiting specific additional information regarding the shipment, it can as well take several days up to weeks until they confirm receipt of the same.

It is also the same thing, which happens if the shipment has issues surrounding paperwork and payment of customs duty.

Additionally, if the goods do not meet the criteria stipulated by the customs department of a particular country, they can hold it for as long as possible.

And it is the reason it is always advised to ensure you verify whether or not the specific commodities you are importing to the country are acceptable.

In a nutshell, there is no definite duration, which customs can choose to hold your goods.

It depends on many aspects surrounding the consignment itself.

What Happens if you don’t Pay Customs Charges for Imports/Exports?

You can never take possession of any import/export consignment unless you pay for customs charges.

In most instances, any import/export is often subjected to payment of customs duty within a specific period.

And if you fail to pay the levy within the period, the customs department has a right to auction the shipment and recover the duty and other expenses owed.

Also, the goods can be processed for disposal after a particular period.

The other likelihood is the consignment is transshipped to rental warehouses where they are stored until the duty is paid, be it in full or partly.

Also, in some instances, the carrier will inquire from the shipper whether to leave the package at the destined port or ship it back.

Can you Clear Customs by Yourself?

Most definitely!

It is quite possible to clear any shipment yourself, but you have to be physically present at the customs office.

However, you need to understand all the processes involved to make your work easy.

Moreover, you also need to present all the documents and ensure the paperwork is appropriate.

What are Clearance Documents in International Shipping?

Ideally, the types of documents required for customs clearance are dependent on the commodity being shipped.

Also, the required documents may vary based on the country of origin and destination.

That notwithstanding, there isa specific set of documents involved in international shipping.

They include the following;

Shipping documents

Customs invoice – It is a critical document, which contains useful information regarding the consignment, such as description, freight insurance, and weight. It also provides details such as selling price, quantity, delivery, and payment, among others.

Shipping bill – It is a report, which d

Every importer would like to get short manufacturing lead time.

It allows you to introduce new products at the right time in the market, and be ahead of the competition.

In today’s guide, you will learn the fundamental aspects that can guarantee short manufacturing lead time when importing from China.

Keep reading if you want to learn more.

What is Manufacturing Lead Time?

It refers to the duration between the time placement of an order is initiated and completion of the shipment of the same to the customer.

In other words, manufacturing lead time is the time it takes from when the customer places an order and the time he receives it.

In foreign trade, it has become a fundamental aspect worth considering, especially from the supplier’s perspective.

Of course, manufacturing lead time often varies depending on a wide range of factors.

Lead time

Why is Lead Time important in International Shipping?

Ideally, manufacturing lead time is an integral element in international trade and shipping.

However, the impact of this element is only practical when it is reduced.

Here are some of the ways in which reduced manufacturing lead time is vital in this type of business;

1) Customer satisfaction-In an ideal world, any customer ordering a product would expect to have it as soon as possible.

And the customer will always appreciate obtaining the goods with the least effort possible.

Therefore, establishing workable lead time would play a great role in enhancing levels of customer satisfaction.

2) It prevents inconsistency in stock variance – A feasible lead time is essential is averting instances of holding inventory within the supply chain.

With proper structures and modalities of manufacturing lead time, there will be easy control of the stock variation hence since it prevents the issue from compounding.

3) Offers competitive advantage-It helps in giving the particular supplier a competitive edge in the business area of specialization.

In essence, it enables you to outpace your competitors since it allows you to outpace them with more efficient and faster output.

4) Increases business turnover – Manufacturing lead time is also vital when it comes to increasing cash flow since it results in enhanced order fulfillment.

5) Enhances efficiency – With proper lead time in place, it becomes easy to meet deadlines easily and consistently.

It is also fundamental when it comes to improving flexibility, particularly when there are rapid or unforeseen shifts in the market.

How do you Calculate Lead Time in Manufacturing?

When determining the right manufacturing lead time, it is often ideal to ensure figure out a list of all the products needed for the potential job.

So to calculate the precise manufacturing lead time, here are some of the vital steps you need to follow;

Process lead time

Step 1: Come up with a bill of materials (BOM) suitable for the end product and find out the quantity of units needed in each element in the BOM.

The list herein may refer to the equipment, materials, and assemblies required for production of the end product.

Step 2: Determine the duration between material order date an expected delivery date for every item in the BOM.

When calculating this duration, you need to consider the supplier’s raw material requisition, processing, and shipping.

Additionally, figure out the work schedule of your organization and for the vendor or sub-contractor too.

Step 3: Find the component in the BOM, which has the greatest lead time.

Ensure you review the lead times for every material in the list as a way of prioritizing one with the greatest lead time.

Step 4: Review the schedule of production to figure out the specific dates and times, which the product quantities shall be available.

You should then adapt the period yielded herein in your organization’s workweek.

This makes it easy to accommodate weekends and holidays in ensuring the production operations are seamless.

Step 5: Now, calculate the administrative lead time. It is primarily the time needed for processing all the necessary paperwork and also completing any requirements of materials purchase.

This involves determining the time required for choosing a supplier, purchase order preparations, purchase authorization, and transmitting the order to the supplier.

Step 6: Here, you’ll calculate the lead time for inter-operations. It is the time required for the task to move from one work center to another during the production process.

Determine and calculate and add all the individual aspects of inter-operations, including the queue time, preparation, post-operations, waiting, and shipping times.

Step 7: Now, you can calculate the overall lead time for the manufacturing process by adding all the different lead time aspects and finding the total.

You’ll then find the total manufacturing lead time of the particular product.

What is the Difference Between Manufacturing Lead Time and Delivery Time?

Manufacturing lead time primarily refers to the commencement time of physical production of the first sub-module, process it, and render it ready for delivery.

In other words, the overall time taken between starting and completing the production process of a particular product awaiting delivery.

On the other hand, delivery time refers to the duration between completed production process and the customer receiving the product.

In simpler words, the delivery time is the period taken during transportation of the commodity from the manufacturer to the customer.

How does Lead Time affect Cost?

Lead time vs cost

Ideally, lead time tends to have a substantive effect on the inventory size of any particular supplier.

Poor management of lead time often leads to stock-outs, which is critical since it reduces fulfillment of customers’ orders as well as product assembly.

In general, underestimating the amount of stock required often tends to be costly to the company in cash flow, turnover, and reputation.

Therefore, appropriate lead time leads to receipt of all the necessary components arriving together.

It thus helps in reducing costs related to shipping and receiving.

Furthermore, improper lead time management can also result in excess inventory, which often tends to put a strain on the company’s budget.

In a nutshell, lead time has a general impact on the company’s income generation and cash flow.

If it is poorly managed, it affects the supplier’s modus operandi, turnover, and reputation among the customers as well.

What is a Lead Time in Procurement?

It refers to the interval between the initiation of procurement action and receipt into the supply module of the production model purchased due to such actions.

In other words, lead time in procurement is simply the period between the first effort initiating products or services until the time of arrival.

Production lead time factors in establishing the need, determining the product and sourcing vendors, negotiation time, ordering and paying.

Additionally, procurement lead time also incorporates the purchasing and its lead time.

In most cases, the purchasing lead time is often measured in months.

But in some instances, it can as well be measured in weeks.

This depends on the scope, size, and quantity of the product being procured.

What is the difference between Manufacturing Lead Time and Shipping Lead Time?

Manufacturing lead time refers to the duration between the start of processing an order and the time the production process is over.

It is basically the time taken between processing the raw materials and finished product.

In some instances, it is always referred to as production lead time.

On the other hand, shipping lead time refers to the duration between dispatch and receiving of a particular shipment.

In some cases, shipping lead time is also known as handling lead time.

Why is it Important to Reduce Manufacturing Lead Time?

Lead time reduction is beneficial to any type of business setting.

It is imperative to ensure you formulate various interventions of reducing lead time for the success of your business.

Some of the benefits for reducing manufacturing lead time include the following;

It helps in process improvement-Reducing lead time helps to automate several elements in order processing.

It eliminates unnecessary tasks, waiting time, and waste in different processes.

It thus helps in focusing on improvement actions.

It increases output and revenue – Generally, the more you sell, the more money you make.

Reducing manufacturing lead time, of course, leads to higher output, which in the long run, translates to increased turnover.

And this is essential for business sustainability and revenue generation.

It enhances customer satisfaction – Ideally, all customers’ expectation upon placing an order is to receive the consignment within the soonest time possible.

Therefore, the shorter the lead time, the higher the customer gratification.

And the essence of this is it builds the reputation of the business and generating more income as well.

It reduces dead stock-When a product takes more time than anticipated to arrive in the warehouse for whatever reason, customers often tend to look for alternatives.

The more it takes to arrive, the more options the clients seek.

And so by the time the goods finally get to your warehouse, they end up as dead stock.

This can be costly since it affects the balance sheet, budget plans, and cash flow of the company.

It enhances flexibility – Reduced lead time enables the company to understand the variations in stock.

In a significant way, it enables you to understand the dynamics of the market and also process the products based on the demand and fluctuations of the market.

How can you Reduce Lead Time?

Generally, lead time is a partial function of your order management system.

The manner you communicate supply of your orders with the vendors and time it takes for fulfillment of the same is also a determinant factor of lead time.

So to reduce the lead time, there is the essence of working from both ends and get buy-in from vendors.

Here are some tips of ways of reducing lead time;

Order in small bits but frequently – Generally, larger orders often take time to be fulfilled and shipped.

The trick is always to produce stock on a more regular and rolling basis.

This helps to attain agility when it comes to meeting market demands.

Additionally, it also makes it easy for the manufacturer to produce and ship the product relatively quickly.

Go for automated inventory management – The likelihood of making a human error when juggling multiple suppliers’ lead time by using basic computer applications is extremely high.

To eliminate the inevitable administrative errors and risks, it would be imperative to automate your inventory management system.

Such a system makes it easy for you to create an order when the stock gets to the reorder point.

Vertical integration – If your company has enough capacity in terms of machinery, space, capital, and human resources, this would be the best idea.

It merely entails sourcing, producing, and assembling internally.

It is easy to integrate suppliers vertically.

In this instance, you’ll be able to meet the demands of retailers within the shortest time possible since all aspects are within the control of your company.

Formulate a clear lead time contract – One of the stipulations of your lead time contract to suppliers should be clear repercussions for any late shipments of your order.

The repercussion could as well stretch to late warnings affecting stock availability, damaged products, price change, and discontinuation, among others.

This will enable you to avert incurring expenses arising from the inconveniences of the supplier.

Share your sales information with your supplier – Ideally, this is more or less of incorporating the supplier as your partner.

The more you share your sales data with the supplier in advance enables them to determine what’s popular.

It also allows the manufacturer to anticipate your needs and get ahead of an order before it is created.

What is EOQ Model in Manufacturing?

It is an abbreviation for Economic Oder Quantity model, which merely refers to the ideal order of quantity a particular company should procure to reduce inventory-related costs.

For instance, EOQ helps in minimizing costs such as order costs, holding costs, and shortage costs, among others.

The essence of EOQ model is to ensure the right quantity of inventory is ordered according to the batch.

This is helpful because it bars a company from frequently ordering from the supplier.

It also helps to ensure there is no excess inventory sitting on the hand.

EOQ

How does EOQ Model Work inLead Time?

Before calculating the EOQ in lead time, it is necessary to determine the setup cost, holding cost, and demand rate.

You also need to consider the reordering timing, order placing cost, storing costs.

In essence, of the company makes orders in smaller quantities but frequently as a way of upholding a specific inventory level, the costs become higher.

What is Lead Time in Logistics?

It refers to the duration from the time a purchase order is created for the supplier until the moment the commodities are delivered to the customer.

Logistics lead time often takes a holistic dimension, given you have to know the other elements of supply times.

For instance, you have to know the production lead time, delivery lead time, and shipping lead time, among other dimensions.

What is the difference between EOQ and POQ Models?

Primarily, EOQ model is the order quantity, which minimizes the total handling and ordering costs.

EOQ tends to take into account inventory holding costs, including shortage, ordering, and storing costs.

POQ model, on the other hand, tends to provide solutions on how-to on the ideal quantity to produce in a particular situation as well as the right time to order specific quantity.

The major difference between these elements revolves around the variance.

EOQ model variance is independent, whereas the variance in POQ model is dependent.

Additionally, the demand rate for EOQ hardly changes, thus making it somewhat predictable.

On the other hand, the demand rate for POQ model is dependent on the production level of the chain.

The other difference here is that naturally, EOQ model’s assumption is the company will produce its quantity at any specific time.

Contrary, the assumption of POQ model is the company will produce every unit only when the company has placed the order to the suppliers.

What is Inventory Management,and why is it Important in your Business?

It refers to the control of inventory and stock items.

It essentially involves supervision of goods flow from manufacturers to the warehouses and point of sale stores through the suppliers and distributors, respectively.

In simpler words, it is the process of ordering, storing, and using the company’s inventory.

It is quite critical in the overall manufacturing lead time. Some of the ways this element is important in your business include the following;

Accurate order fulfillment – It helps in ensuring the stock is always up to date. The essence of this is to help to prevent overstocking and stock out.

Additionally, it helps to develop a relatively robust plan hence enhancing high return volumes and preventing loss of customer base.

Enhances inventory and planning – Inventory management helps to gauge necessary products, which are in good condition, and arrived-as-described.

It is integral in mitigating stock variance issues and also helps in creating space and cost-effectiveness.

Increases efficiency and productivity – This process helps to eliminate manual input of the stock items hence allowing employees to focus on other fundamental areas of the business.

Enhances customer management and satisfaction – A well-organized inventory management will help to supervise your customers and meet their demands accordingly.

The net effect of this is increased sales turnover and gratification of the customers.

Saves money and time – Keeping track of inventory enables you to save a considerable amount of money and ample time.

This is by determining possible dead stock and finding ways of eliminating the same and also preventing ordering more.

What is Reorder Point?

It refers to the specific level of inventory, which prompts action to stock up the particular inventory.

In simple words, it refers to the threshold a stock should never go below.

It is the least amount possible of a certain commodity, which a company holds in stock, and it’s triggered to re-order should stock fall to the amount.

The essence of the reorder point is to enhance efficiency and convenience by ensuring stock is replaced as soon as it runs out.

This is vital since it helps to avert incidences of stock-outs hence helping in seamless business continuity.

Reorder point is also vital in preventing unnecessary inventory holding costs, which may arise due to placing orders a bit early.

Reorder point

How do you Calculate your Reorder Point?

When calculating the reorder point, it is necessary to use the formula after factoring in all the essential components.

One of these elements is determining the safety stock levels.

Also, in this case, you need to determine the average daily sales and lead time in days.

Once you are preparations are clear, you can use easily calculate the actual reorder point using the following formula;

Reorder Point = (Average Lead time by Average Daily Usage) + Safety stock

Alternatively, you can use a relatively shorter formula to calculate your reorder point.

But this formula does not necessarily factor in the safety stock.

This formula merely requires you to give an estimate of the maximum quantity of materials or products you might require per day.

You’ll then multiply the figure you arrive at by maximum lead time for manufacturing or procuring activities.

In this case, the figure you arrive at will be more or less conservative since you are using estimated maximum usage.

Reorder Point = Maximum Lead Time by Maximum Daily usage

What is Safety Stock, and Why is it Needed?

It refers to the level where surplus stock is often maintained as a way of mitigating risks associated with stock-outs often triggered by uncertainties in demand and supply.

Carrying out safety stock is vital in many ways including the following;

• Protects against unpredicted discrepancy in supply
• Prevents stock-outs hence keeping customer service and general satisfaction levels relatively high
• Averts disruptions revolving around the manufacturing and delivery of goods
• It helps to compensate for calculation inaccuracies

In a nutshell, it makes it easy for business operations to stay afloat.

Moreover, it also makes it easy to manage and control inventory, thus enhancing efficiency and cost-saving.

How is the Safety Stock Set?

When calculating safety stock, you merely need to have all the necessary information surrounding your purchase and sales order history at hand.

After that, you only need to apply this formula, also referred to as inventory equation to determine the safety stock;

Safety stock = (maximum lead times in days x Maximum daily usage) – (Average daily usage x Average lead time in days)

Using this stock holding formula makes it easy for your business to navigate safety through any possible fluctuations in demand as well as lead time.

Is Safety Stock same to Minimum Stock?

Not necessarily!

Safety stock is basically the inventory, which a company holds in excess of its requirements to cover for the risks associated with lead time.

Ordinarily, there are unforeseen uncertainties, which might arise due to unavoidable or deliberate cases.

In such instances, the safety stock keeps the company going, especially when it comes to continuous supply and delivery to the customers.

Minimum stock level, on the other hand, refers to the level, which indicates the need for reordering based on the strategy and movement of the company.

Ideally, an item in stock should never be allowed to fall below the minimum stock level.

Safety stock

What is the Optimal Safety Stock Level?

There is no definite optimal safety stock level.

Generally, it depends on the service level, and this involves balancing the inventory costs and the stock-out cost.

And this gives you a vital variable for determining the appropriate amount of safety stock.

In other words, the higher the service level, the more the safety stock you need to hold.

What is the Difference Between Cycle Stock and safety stock?

Cycle stock refers to the inventory anticipated to be sold depending on the demand prediction.

In some cases, it is referred to as working stock.

This explains why it is described as a portion of inventory available to meet the specific demand within a particular period.

It is the cycle stock that the customer’s order will be fulfilled from in the inventory.

Safety stock, on the other hand, refers to the stock utilized whenever the actual demand supersedes the sales forecast.

It also comes in handy when perhaps the production output happens to be less than planned.

Ideally, safety stock is merely designed as a cushion for the inventory in case of any unforeseen occurrence in meeting the demand and supply.

What are some of the Best Practices that you can Advise for Inventory Management?

In the supply chain business, inventory management is an integral element in enhancing efficiency and success of the trade.

It determines whether or not the business will be sustainable.

However, you need to ensure you apply best practices to maintain and enhance quality inventory management.

Some of the ideal practices you might consider include the following;

• Utilize a cloud-based inventory management system
• Classify the inventory using systemized analysis
• Identify your inventory KPI’s
• Utilize accurate reorder point formula
• Streamline your stock take policies and procedures
• Use batch tracking
• Maintain minimal stock levels
• Never ignore the inventory errors irrespective of how small they seem to be

What is Inventory Carrying Cost?

It refers to the sum of all the expenses, which are related to storing non-moving or slow-moving goods.

The total, in most instances, usually incorporatesintangibles such as warehousing costs, depreciation, and lost opportunity cost, among others.

In most instances, the inventory carrying cost often totals to about 20-30% of its total inventory costs.

What are the Important Components of Carrying Cost?

There are several important components of carrying cost, but the common ones include the following;

Capital cost – It refers to the cost in which a business expands on carrying inventory.

It is arguably the largest component of the total cost of carrying inventory.

Storage space cost-It refers to the cost combination of several factors surrounding storage and safety of the materials.

Such factors include handling, warehouse rent, air conditioning, lighting, and heating of the material, among others.

Administrative cost – It is the cost related to manpower and the system necessary to manage an inventory effectively.

Administrative costs, in most instances, range from 3-6% of the total carrying cost.

Inventory service cost-It refers to the charges related to service fees such as insurance, local government taxes, and other levies.

Inventory risk cost-It is the charges paid for cushioning the inventory from a wide range of risks it could be exposed to.

Some of these risks include damage, fire outbreak, expiry, and incorrect storage, among others.

How do you Lower your Carrying Costs?

One of the best strategies in business is reducing your holding costs.

You can use several approaches to attain this, and some of these ways include the following;

Your stock should be based on the demands of the customer rather than expectations.

This approach is feasible since it enables you to invest only in inventory you’re sure will retailers and shoppers will purchase.

Enhance the arrangement of your warehouse and storeroom.

It is necessary to ensure your warehouse and storeroom are arranged in relevant categories and groupings depending on various aspects.

In essence, this helps you to easily establish items, which need replenishing. Additionally, it helps to search for an item on the shelves effortlessly.

Automate your inventory management.

For efficiency in all aspects of managing your software, you need to invest in software.

Essentially, this helps you to establish a desirable reorder point and also saving cost and time as well.

Automation is also essential in tracking the inventory hence enabling you to know the status of your stock at any moment.

Go for long-term contracts with your suppliers.

This approach is also helpful in reducing your carrying cost.

Suppliers will always be certain of working with you on a long term basis hence finding ways of reducing the cost of production.

How does Manufacturing Lead Time Affect your Carrying Cost?

Ideally, there is a direct correlation between work in progress inventory and the overall duration it takes to respond.

Therefore, an increased number of products in work in progress translates to more time for moving the products.

And this will impact the market share since the company will certainly lag behind the competition as far as responsiveness is concerned.

What is the Average Manufacturing Lead Time when Importing from China?

There is no standard manufacturing lead time when importing from China.

It is typically based on the specific industry, products as well as volume of order.

Nonetheless, manufacturing lead time is when importing from China is usually set somewhere between 30 to 60 days.

How do you Manage Delivery Delays from Chinese Manufacturers?

Delays of goods from the manufacturer can cause significant inconveniences, particularly to the distributor or wholesaler.

It is, therefore, necessary to ensure you put up the vital preventive measures to ensure you mitigate risks of shipment delays.

Some of the ideal interventions you can look into include the following;

Monitor production to enhance lead times – You need to inspect the production during the process and before the shipping of the consignment.

It helps in guaranteeing quality since the inspector will monitor goods during production in real-time.

Be certain of quality before voluminous production – Ideally, it is always vital to work with reliable and reputable suppliers from the start.

It is thus necessary to look into all the factors when picking an ideal supplier.

It will go a long way to avert delay incidences, especially where mass production is a concern.

Verify your order throughout – This approach is also essential in managing delays when importing from Chinese manufacturers.

It possible, hire a third party to help you in inspecting the order from production to shipping.

The quality control checks are suitable in ensuring you obtain the ideal products and averting inconveniences.

How do Chinese Manufacturers Guarantee Fast Lead Time?

Most of the Chi

Certifications are not only important when importing from China, but also guarantee the quality of any type of product.

Just like the CE certification, UL certification is one such certification commonly spotted on different product categories.

Let’s dive into the guide below to earn more.

Why Quality Certification is Important when Importing from China

Quality certification is an important entity not only when importing from China but also in any other country.

A quality certificate ensures that the user is well protected from the harmful effects of the products.

In addition to that, it guarantees users of safety while using the product in question.

As the majority of us know, China produces both high quality and low-quality products.

As preferred by most, high-quality products are what you want to get.

Therefore, the quality certification ensures that the products conform to the performance as well as safety and environmental standards.

What is UL Certification?

UL (Underwriters Laboratories) certification is a safety certification offered by UL.

UL is a certification company that ensures product safety for both consumers and sellers since 1894.

Benefits of UL Certification

UL certification is of importance for various reasons not excluding;

• Safety –UL certification guarantees users of the safety of the products purchased.

It certifies that the products have gone through thorough testing and have proven to be safe for use.

• Boosts competition with other businesses. Frankly, a business having UL certified products is more likely to be recommended by clients as compared to one without.

This is because UL certification will build the credibility of your business.

• Apart from safety, UL certifications test for durability, resistance as well as longevity of products.
• UL certification also facilitates better insurance coverage since safety, as well as quality, is guaranteed.
• Commitment – UL certification on products portrays the commitment a business has towards safety and quality.
• Risk management – UL certification verifies that your products have been tested and retested and conform to the set safety requirement.

That said, you are guaranteed the effective functioning of the product as per its specifications.

This also allows your business to grow as you will gain trust from your buyers.

Who Issues UL Certification for Importing from China

UL certification is issued by Underwriter Laboratories (UL) itself.

Founded in 1894 by Willian Henry, Underwriters Laboratories is globally recognized and has offices in 46 countries.

UL certification symbol

Content of UL Certification for Importing from China

Each UL certification for importing from China includes the following details;

• Certificate number
• Date of issue
• The standards for safety
• The products tested
• Company to be issued with the certification
• Reference number

Key UL Standards for Different Products

As most if not all of us know, UL standards not only applies to electrical products but also;

UL certified charger

• Industrial control products
• Plastic products
• Building products
• Life safety products
• Wire and cable products

There are several UL standards for different equipment as well as appliances some of them including;

UL Standards for Industrial Control Products

1. Ul 61800-5-1, Adjustable speed electrical power drive systems
2. UL 508A, Industrial Control Panels
3. UL 508, industrial control equipment
4. UL 508C, Power conversion equipment

UL Standards for Plastic Products

1. UL 746C, Polymer materials, (for electrical equipment evaluation)
2. UL 746B, Polymer materials: (for long-term property evaluations)
3. UL 746D, Polymer materials for fabricated parts)
4. UL 746A, Polymer materials (for short-term property evaluations)
5. UL 746F, Polymer materials
6. UL 94, (Tests how flammable plastic materials in devices and appliances behave

UL Standards for Building Products

1. UL 1256, this is a Fire test of roof or deck constructions
2. UL 10A, For Tin-clad Fire doors
3. UL 486E, equipment wiring terminals for use with aluminum and/or copper conductors
4. UL 20, General-use snap switches

UL Standards for Life Safety Products

1. UL 268A, Smoke detectors for duct application
2. UL 1971, Signaling devices for the hearing impaired
3. UL 217, Single and multiple-station smoke alarms
4. UL 1626, Residential sprinklers for fire protection service

UL Standards for Wire and Cable Products

1. UL 2556, Wire and cable test methods
2. UL 758, Appliance wiring material
3. UL 62, Flexible cords and cables
4. UL 817, cord sets and power supply cords

UL Standards for Electronic Products

1. UL 1598, luminaires
2. UL2267 standards for safety –fuel cell power systems
3. UL 50, enclosures for electrical apparatus
4. UL 60950, Information Technology equipment
5. UL60950-23, information Technology Equipment –Safety, Part 23: Large data storage equipment
6. UL 60335-2-34 Household and similar electrical appliances, Part 2: Particular requirement for motor compressors.
7. UL 1995, Heating and cooling equipment
8. UL 1642, Lithium batteries
9. UL 197 for commercial electrical cooking appliances
10. UL 6500, for audio/video and musical instruments apparatuses for household, commercial and similar general uses.

How to Verify UL Certification for Importing from China

Sample certificate of compliance

Not every supplier is reliable when it comes to producing quality products in China.

However, you can easily rule out a quality product if it carries a UL certification.

Remember, faking UL certification isn’t easy nor is it uncommon.

That is why you need to check for the following aspects to verify UL certification whenever you are importing from China.

• Check if the UL listing mark is correct
• The Number–If you are not satisfied with checking the UL listing mark checking the certificate number should be your next step.

Ensure that you look for the following when checking the certificate number.

1. A fabricated UL qualified part number –If the number is missing in the directory, it is not valid.
2. UL certificate misapplication – Sometimes a valid UL certificate could be used on a product that is unqualified for UL certification. Always ensure that the product in question matches the product number.
3. A nonexistent UL certificate – In some cases, the UL certificate number may be expired, false, canceled or declined after not conforming to UL standards. Therefore, such numbers end up not being listed in the UL certifications directory.
4. Use of a component UL certificate for the fixture – The UL certificate of a specific part or component of a product might be valid. However, it only covers the component of the fixture and not the complete product. Therefore, the UL certificate of the component is used to represent UL certification of the complete product.

• The label– After checking the number, check the label. Photoshopping the label is one of the easiest ways of faking UL certification.
• Nevertheless, it’s also the easiest way to identify whether or not the UL certification is genuine. Check the following five features on your UL label.

Elements of UL listing mark

1. UL trademark –The UL should be enclosed in a circle with the “U” slightly positioned above the “L”
2. The word “LISTED” or “CLASSIFIED” –Under the UL mark, the term “LISTED” appears in capital letters.
3. Control or issue number –the control number consists of alphanumeric characters while the issue number has digits ranging from 4 to 6 numbers. The issue number might also have two letters or written “Issue No” after the numbers.
4. The type of product – From the diagram above the product identity shows the type of product.
5. Other marking such as company logo, catalog, or model among other features included.

Cost of UL Standards Catalogue

One type of UL standard is the UL standard catalog.

Primarily, you need to purchase UL standard catalog.

All purchases of UL standards are made through the UL’s online sales site.

The cost of the UL standard catalog ranges from $400 to $1000.

Remember, each product might require more than one standard.

Not forgetting that you might as well need to pay for consultation fee.

That’s if by chance you need guidance in implementing a standard in a real-life product.

How much UL Certification Process Costs

The cost of the UL certification process ranges from $5,000 to $15,000.

Note that this price only covers the service provided by UL and excludes the cost of product development.

If by chance you are planning to develop an OEM product, I would advise you to hire a UL consultant.

A UL consultant will make your work easier when it comes to ensuring that your product meets the applicable standards.

Most of the UL consultants will charge you $150 per hour.

UL Marks

What to Expect after Product Testing Process for UL Certification

After your sample product has been tested, you will be informed by UL whether or not your product conforms to the required standards.

If it does, a formal report will be created by your project engineer.

This report will be used during the follow-up services which are periodically conducted in the factory afterward.

Remember, before UL begins testing your product, you will be required to agree to participate in the follow-up services.

On the other hand, if your product is tested and conclusions are made that it doesn’t meet the set standards, you will be sent a letter.

This letter describes the requirements that were not met by your product.

You can also choose to modify your product and inform your project engineer about your interest in retesting. Good luck.

How UL Categorizes Products

Based on the use of your product, UL will decide on which category to place it.

Remember, some products might have several standards applicable.

In such a case, UL determines the ideal standard suitable for the product.

Types of UL Certifications for Importing from China

There are three main types of UL certifications;

• UL recognition–UL recognition means that the components or parts within a complete product or system have been evaluated by the UL. The components need to be associated with a product for it to perform an end task.
• UL listing– UL listing means that a product sample has been tested by UL and concluded that the product conforms to specific defined requirements.

The requirements are determined by UL’s published and nationally recognized Standards for safety.

• UL classification– UL classification means that samples parts of a product have been tested and evaluated by UL as per certain product properties. Products can either be classified by UL as;

1. Standards of other organizations
2. Applicable UL requirements

The UL classified mark should be used together with a statement showing the specific scope of the classification.

How to Find UL Compliant Manufacturer in China

It can be quite tasking to find suppliers and manufacturers that are UL compliant in China.

One way you can do this would be through approaching a manufacturer and requesting for their UL certificate.

Secondly, sites such as Alibaba, Made in China display the certifications for each manufacturer making it easier for you to spot one.

After identifying your UL manufacturer from these platforms, make sure you request the certificate from them to confirm their certification.

How to get UL Certification for Importing from China

Underwriters Laboratories ensures that products are tested and meet the set standards by OSHA and ANSI for proper safety.

The process of acquiring UL certification comprises of a couple of steps as explained below;

1. Contact underwriters Laboratories –Every type of communication can easily be done online. Log into the UL website.

From the “contact us” section you can be able to access all forms and important information regarding the submission of a product sample for UL testing.

2. Submit a product sample –Pack your sample product carefully to avoid damage during shipping and send it.
3. Product testing begins –Soon after receiving the product sample; UL conducts its evaluation and testing process.

The sample product is examined to see if it meets the OSHA and ANSI standards.

After the test is over, UL can either rule out whether or not the product has passed the test.

Not forgetting that you shall be required to pay a fee for the test conducted.

4. Product verification –If the sample products pass all tests performed, UL issues a certificate to the manufacturer.

The certificate is meant to authorize the placement of the UL logo onto the rest of the products manufactured to certify that they meet the set standards.

Remember, continuous audits by UL field representatives shall be conducted to ensure the manufacturer remains compliant with the guidelines.

What to do when Submitting Product for UL Certification?

UL Listing Mark

Before anything, you will be required to fill out the “Request for Quote” form.

This form is vital in providing the information needed by UL to prepare your quote.

Thereafter, UL associate will send you a “Quote for service” which includes the standard assumptions and pricing for services provided by UL.

Is UL Certification Mandatory in USA

No, it’s not.

There is no law stating that products must have UL certification.

However, there exists codes and regulations that ensure products are tested by the local certified boards before being introduced to the market.

Is UL Certification Accepted in Australia

Yes, it is.

UL certification is not that old in Australia and it’s offered by the Underwriters Laboratories.

Additionally, the certification is not mandatory and it is only available on limited products.

Nevertheless, more and more products will be included gradually.

Do you Need UL Certification when Importing from China to Asia

UL certification is not mandatory when importing from China to Asia.

Meaning, the law does not require you to follow the UL guidelines.

It’s up to you to ensure that your products are safe.

The same applies when importing from China to the USA.

How to know If Imports from China are UL Certified

The good news is that most Chinese manufacturers are aware of UL standards.

They use them together with the European Union directives (eg. RoHS).

The easiest way to know if imports from China are UL certified is by asking for a UL certificate or test report from your Chinese manufacturer.

This will help you verify that the products are UL certified.

UL is the only existing body that issues UL certification and you can always confirm with them.

Therefore, your work is made easier.

Validity Period for UL Certification

UL certification is valid for 3 years from the date it was issued.

Manufacturers are advised to have an inventory control system to ensure that the use of the label does not exceed the expiration date.

How UL Certified compares to UL Listed

UL listed involves UL testing sample products and confirming that they meet specific special requirements.

Manufacturers are allowed to have this certification once their products have proven to meet UL’s recognized safety standards.

Not forgetting that UL testing involves far more testing.

As compared to UL listed, UL certified does not require as much testing.

In addition to that, UL certified generally certifies that products have met the UL set safety standards.

How ETL compares to UL

Most people fail to get the difference between ETL and UL since they have so much in common.

Both ETL and UL function as Nationally Recognized Testing Laboratories.

However, there is a slight difference between the two in that UL comes up with the testing standards.

On the other hand, ETL uses UL standards to perform their tests.

I hope you are getting the difference.

Another difference is evident in the label as illustrated below;

UL vs ETL

Which Products can be given ETL Listed Mark

ETL listed mark confirms that a product has been tested and proven to meet the required published standards.

Some of the products that have the RTL listed mark include;

• Telephone and communication equipment
• Building materials
• Domestic electrical products
• Industrial equipment
• Equipment used during hazards or in explosive environments

How UL Listed Compares to UL Recognized

The main difference between UL listed and UL recognized is that UL recognized focuses on a component or part within a larger product.

In simpler terms, it certifies that a part within a larger product meets the UL standards.

Take for instance a bolt in a bicycle, with the bolt being the smaller part in a bicycle.

As compared to UL recognized, UL listed certifies standalone products rather than components.

The products are often consumer-ready and are afterward released to the market.

This clarifies why UL listed is more popular as compared to UL recognized.

Are there Similarities Between UL and ETL

Yes, there are. ETL and UL are considered to have more or less the same features.

This drags us to why they have more similarities than differences not excluding;

• Both functions as Nationally Recognized Testing Laboratories.
• Both ET and UL certify to their clients or consumers that their products conform to the required safety standards.
• Also, both UL as well as ETL test to similar OSHA standards.

Is ETL good as UL?

Yes, it is. However, most importers and manufacturers prefer using ETL owing to the faster speed when testing and certifying products.

Remember, both of them have the same certification and therefore either of them works well.

Types of UL Standards

There are two main types of UL standards;

• UL Environmental Standards –Just as the name implies, UL environmental standards recognize the Implementation of eco-friendly mechanisms in the manufacture, distribution, use, and disposal of the product.
• UL standards catalog –The UL standards catalog has all the harmonized and safety standards listed.

Is UL Certification Accepted in Canada

Yes, it is. UL certification in Canada is issued by Underwriters Laboratories of Canada.

In addition to that, the certification is highly used in several products such as fire protection products.

What happens if a Product is not UL Tested

UL certification is not mandatory in most countries and therefore this shouldn’t worry you.

Remember, UL is meant to certify that a product has met the set safety standards.

Therefore, if a product lacks the UL mark it just means that it has not been tested to meet the safety standards.

What makes UL Certification Stand Out among other Certifications

If you have been keen on checking some of your home appliances, you might have come across the UL certification mark.

UL certification is one of the most recognized certifications and this is why;

• Proper track record –Having been in the industry for a long time, the Underwriters Laboratories have a superior track record. Every time they test and approve a product they keep on building their reputation.

Being the only testing laboratory operating in more than 100 countries makes it the global leader in this field.

• Continuing third-party verification –UL field representatives pay a visit to the manufacturer to ascertain that the product safety standards are still upheld.

They normally do these appearances without notice for them to get the truth of the matter on the ground.

If the manufacturer is found to have violated the set standards, his or her products will be required to undergo another intensive recertification procedure.

• Firm Certification requirements –As compared to other types of certifications, UL certification not only involves comprehensive but also strict testing procedures.

The main three fields tested by underwriter laboratories include the following;

1. Fire safety
2. Mechanical safety
3. Electrical safety

While performing these tests, they also test for the durability of the product as well as its resistance.

Not to mention that when testing for durability, the product in question is normally put under very hostile conditions.

This guarantees the user of a high-quality product on every UL certified product.

• A non-profit organization –With UL certification, you just have to apply other than buying. The main aim is to ensure that the safety of consumers is upheld.

UL certification neither needs trade membership organizations nor the company’s professional relationships to acquire it.

How many UL Standards are there?

The fact that UL has existed for more than a century, you can easily expect the number of UL standards to be high.

With time, UL has been able to develop more than 1500 standards for different products.

UL standards are used together with other national standard bodies in various countries to ensure the safety of products.

Is UL Certification for Importing from China needed in Europe

No, it isn’t.

UL certification is a voluntary safety mark in Europe.

It’s up to the manufacturer or supplier to ensure that the products are safe.

In addition to that, most if not all European countries have their local standardization boards that ensure safety and quality of products.

In short, UL certification is important whenever you are importing products from China.

The best part, this guide has outlined everything you must consider when evaluating, applying or confirming UL certifications.

In case you have any questions or inquiries, Tj chinafreight team is here to help.

I know the cost of shipping from China is a major concern if you’re importing from China.

Today’s guide will explore and explain everything that will help you reduce the cost of shipping from China.

So, before you import from China, read this guide.

How Freight Forwarder Help Reduce Cost of Shipping from China

As a business man, your main intention is to reduce cost of production in order to maximize your profit.

Well, you can reduce the cost of shipping cargo from China by using freight forwarders.

Freight forwarders have the ability of organizing transport at a cheaper cost through the following ways.

· Planning at the Right Time

Freight forwarders will advise you on the best time to ship the cargo thus taking advantage of available discount offers.

They will offer proper time and storage for your cargo until the appropriate time when you will get proper transport costs.

· Finding Most Suitable Shipping Methods

Depending on the type of cargo, freight forwarders will assist you by choosing the right mode of transport.

They will ensure that your cargo is safe, and reaches your destination using the fastest mode of transport at affordable costs.

· Use Local Transport

Your freight forwarder has more information about the local transport and hence has the ability to make better deals.

The freight forwarder will be in a better position to lower the cost of labor and expenses.

Additionally, they have friendly exchange rates as they will be operating with their currency thus reducing overall cost of transport.

· Purchase Large Quantities

You should also consider purchasing large quantities of goods and use the freight forwarders to transport them.

In addition to that, you can also allow the freight forwarder to use the contacts they have locally.

The freight forwarders will use their contacts to get the cheapest suppliers and then ship them to you at cheaper costs.

· Proper Packaging and Insurance

The freight forwarders will package your products well to ensure that they don’t break on transit.

Apart from that, they will also insure the goods so that you are eliminated from blame in case of damages.

This reduces the cost of shipping by eliminating the cost of having to repair or replace damaged goods.

· Cargo Consolidation

The freight forwarders will put all the goods that are similar together to conserve enough space for more cargo.

This will allow you to use cheaper modes of transporting the cargo as they will occupy less space.

· Choosing the Right Container

The freight forwarder also understands the sizes and types of containers that will suit your cargo.

With that information, they will choose the cheapest type of container to transport your cargo safely.

Types of shipping container

How to Find Cheapest Way to Ship from China

You will find the cheapest way of shipping your cargo from China by finding the right freight forwarder.

Here are some of the tips that you can follow so as to find a good freight forwarder from China.

· Doing Proper Research

First, you can go through the internet on trusted sources of information to get a list of different freight forwarders.

You are sure to get a long list of freight forwarders in China who offer different services at different rates.

It is important, that you conduct further research on the companies to ascertain how big their operations are.

Apart from that, you will also have to find out how reliable they are by doing a proper background check on the companies.

· Look at the Levels of Experience

Here, you will look at the levels of experience that a freight forwarding company has had over time.

You should ask the company of choice questions about the level of experience that they have in handling your goods.

· Check on their Membership and Licenses

You will know you are in the right direction if the company of choice is a member of a respected association.

Membership in such associations is an indication of reliability, financial strength, efficiency and excellent service delivery.

· Look for Point of Contact

Here, you will check if the company of choice has various distribution channels operating within your locality.

You will look at ease of coordination and submission of relevant documents for the shipment to take place.

· Deadlines

You will determine if the company is capable of meeting your timeline, packaging and storage requirements at affordable costs.

Remember to ask about the seasonal cost variation that usually occurs during different periods of the year.

With that information, you will settle on a particular freight forwarder who will take care of your needs accordingly.

How China Shipping Cost Calculator Works

It is best if you have a rough estimate on how the cost of shipping your cargo from China to your destination.

You can achieve this by using a shipping cost calculator to determine the most accurate cost of shipping.

Here, you will need particular information such as:

• The country of origin which, in this case is China
• The destination of the cargo which you will specify
• The proper description of your package in terms of size and other important details
• The weight if the cargo that you intend to ship from China

You will key in that information and then get an accurate estimate of the total cost of shipping from China.

Remember that there are other factors that will add on the cost of shipping such as:

• Cost of shipping insurance
• Other shipping related charges such as transport to your destination
• Cost of handling the cargo
• Cost of taxes and duties

A good example is the freight calculator.

Freight cost calculator

How Time Affects Cost of Shipping from China

Well, you can purchase your cargo in China and have it at the doorstep in a matter of days depending on the distance.

Apart from distance, the mode of transport will also influence the time it takes to have your cargo at your doorstep.

For instance, depending on the urgency, you can use an express shipping mode to transport cargo from China.

You must, however, note that the faster the shipping rate, the higher the cost you will pay.

Implying that air freights which are faster, will cost you more than the sea freights which are often slower.

Factors Affecting the Cost of Shipping from China

Well, transporting your cargo from China will involve particular factors which will affect the overall cost.

Here are the main factors that you will look at when determining the cost of shipping your cargo from China.

1) Transportation from Factory to Port

Here, you will key in the cost of transporting your cargo from your manufacturer to the loading port.

2) Export Clearance

In this case, you will have to deal with the customs in China to clear the cargo before loading it on the ship.

You will have to pay for the taxes and duties in accordance to the custom laws in China.

3) Freight Cost

This is the cost of shipping your cargo from the loading port in China all the way to the destination port.

In this case, there are two main ways that you will look at the cost of freight.

i. High cost of freight will attract low local charges

ii. Low cost of freight will attract high local charges

The cost of freight will depend on the destination, weight, volume, and origin of the cargo you are shipping.

The type and mode of shipping will also have an effect on the total freight cost from China.

4) Insurance

You must also factor in the cost of insurance which will take care of the cargo in case of a problem while on transit.

Without insurance, the forwarder will not pay for the cargo in case of an accident during transportation.

5) Port of Destination Charges

You must also consider the cost that you will incur at the destination port in terms of off-loading the cargo.

Apart from that, you will look at the cost of taxes and customs that the destination country charges in imports.

6) Domestic Transport

This is the final cost of transporting the cargo from the destination port all the way to the specific address.

How Incoterms Affect Cost of Shipping from China

Incoterms are the terms of trade that you will use when dealing with shipping of cargo from China.

Different incoterms have specific meanings and will also have particular impact on the cost of shipping.

After selecting the incoterm to use, you will pay for all the costs of logistics from the supplier to your doorstep.

You will pay for the above costs plus the unit cost of the cargo depending on the incoterms that you choose.

The incoterms will only specify the responsibility of each organization you involve in importing your cargo from China.

When shipping from China, you can choose from:

• Freight collect terms such as EXW, FCA, FAS or FOB
• Freight prepaid terms such as CFR, CIF, CPT, CIP, DAT, DAP, or DPP

Cost of Shipping 40ft Container from China

Well, the cost of shipping a 40ft container from China, will vary according to your destination.

With all the factors of shipping in place, the distance from China will affect the overall cost of shipping 40ft containers.

Let’s assume that you are transporting your cargo from China to a port in the UK by sea.

Here, you will have to factor in the loading port in China and the destination port in the UK.

On average, the cost of sipping the 40ft container will range between 1500 to 2200 US dollars.

Estimating Cost of Express Shipping from China

Express shipping is the fastest mode of shipping your cargo from China to your destination.

The cost often depends on the company you are using to ship the cargo by air.

In this case, you must have specific details at hand which include:

• Weight of the cargo
• Custom taxes and duties
• Cost of shipping which depends on the company

You can consider any of the following when choosing express shipping from China – FedEx,DHL, TNT,EMS, ePacket and China Post, amongst others.

Express shipping from China

Calculating Cost of Shipping from Alibaba

Well, shipping from Alibaba is easier than direct shipping since Alibaba will take care of most of the logistics.

Implying that, you will not have to look for freight forwarders in China to help in shipping your cargo.

All you have to do is make the purchase through Alibaba and choose the mode of transport.

Alibaba will calculate the total cost of shipping the goods to your specified destination and send you an invoice.

It will also provide you with the details of tracking your cargo while on transit.

How Air Cargo Rates from China compares to Sea Freight Charges from China

Air cargo rates will cost you more than the sea freight charges because of the speed.

Air freights are often faster and will deliver your cargo within a very short period.

On the other hand, sea freight charges are less because they often take longer while at sea.

Apart from that, air cargo fee is higher because it requires special considerations such as space.

It does not involve a lot of sharing of space such as that you will find on the sea freight.

This makes the cargo safer and will definitely lead to an increase in overall cost.

Estimating Cost of Shipping 20 Foot Container from China

Since the size of the 20ft container is smaller, the shipping cost will definitely be lower.

Implying that, the 20ft containers occupy less space on the ship and will definitely weigh less.

The cost will also depend on the destination port of your cargo.

The further the distance, the more money you are likely to pay for the cargo.

How to Save Freight Cost from China

There are tricks that you can use to pay less for the shipping of cargo from China.

Here are some of the factors that you should consider to lower the shipping cost from China.

• Find the right freight forwarder offering efficient services at friendly costs
• Choose the best mode of shipping depending on the type of cargo
• Use courier and air shipping only when it is necessary as they often cost more
• Weigh the parcel that you are shipping to get the best rates at that weight category
• Purchase large cargo quantities that will cost you less as you will be bulk shipping
• Compare the cost of shipping that you receive from different freight forwarding companies
• Use the shipping calculator to get a rough idea on the overall cost of shipping the cargo
• Optimize the packaging space by packaging as many goods as possible on the shipping container
• Consolidate all the common goods together such as collecting and packaging all the small goods together.
• Proper planning and optimizing of the services offered by different freight forwarding companies.

Cost of Shipping from China to India Alibaba

Since you are using Alibaba, the supplier of the cargo will arrange for the transport of the cargo.

Your supplier will also arrange on the mode of transport after looking at your preferences.

The shipping cost will depend on the weight of the cargo that you intend to ship from China and the destination.

FCL shipping of 20 ft containers from China to India will range between 500 to 800 US dollars.

FCL shipping for 40 ft containers from China to India will range between 700 to 1100 dollars.

Note that the cost will vary depending on the mode of shipping and the incoterms in use.

How to Determine Shipping from China to Amazon FBA Cost

You can choose between two main options of shipping from China to Amazon FBA which include:

• Direct shipping from China to Amazon FBA
• Shipping personally or via a middleman to Amazon FBA warehouses

The cost of shipping from China to Amazon FBA will depend on quite a number of factors such as:

• The type of goods that you intend to ship
• Weight of the goods that you intend to ship
• Destination of the goods you intend to ship.

Amazon FBA will often take care of the logistical procedures and you will only have to pay for the quoted cost.

Cost of Shipping from China to US DHL

DHL will charge you according to the overall weight of the cargo you intend to transport from China to the US.

The cost of shipping via DHL from Shenzhen China to the US will range between 3 to 19 US dollars per kilogram.

Shipping from China to U.S.A. using DHL charges will also depend on the type of cargo that you are importing from China to the US.

DHL shipping from China

Estimating Cost of Shipping from China to UK

Here, you will look at the port of origin in China and the port of destination in the UK.

Apart from that, you will also look at the type of goods and overall weight of the goods.

Here is a summary of the different shipping costs depending on the shipping mode.

· LCL Shipping from China to UK

Generally, you will spend between 50 to 80 US dollars to ship to various destinations in the UK per cubic meter.

· FCL Shipping from China to UK

You will pay around 60 to 90 US dollars per cubic meter when transporting from China to the UK.

How much Clearance of Cargo Cost when Importing from China

In China, the standard fee that you will pay for customs clearance is 50 US dollars.

Apart from that, you will also pay between 100 to 120 US dollars for clearance with the CBP.

This is often subject to the inspection to ascertain the type of goods you are shipping from China.

Here is a comprehensive guide where you can learn about custom clearance when importing from China.

How to Pay Shipping Cost when Importing from China

The best and most secure way of paying for the imports from China to your destination is via bank transfers.

You will be able to have proper proof of payment as the banks are more trusted institutions.

You will also have proper sense of security and proper authorization channels for money transfers.

You can use many payment options such as T/T payment to China, Western Union, PayPal, Visa, MasterCard, etc.

How Cost of FCL Shipping compare to Cost of LCL Shipping

LCL and FCL are the two most common shipping terms that you will use in transporting cargo from China.

FCL shippingis an abbreviation for full container load while LCL is an abbreviation for less than a container load.

FCL often has a flat rate which you will pay according to the size of the container you intend to use.

On the other hand, you will pay according to the size of the cargo you are importing on LCL.

Implying that, you will only pay for the space in cubic meters that the cargo occupies inside the container.

LCL shipping is, therefore, the most cost-effective mode of transporting cargo from China especially in small quantities.

FCL is also the most cost-effective mode of transporting large consignment cargo from China.

FCL vs LCL Shipping

What is a Kickback Rate in Calculation of the Cost of Freight from China

Kickback rate is the additional cost that you will pay to the freight forwarder to provide you with certain favors.

It is often an illegal act to pay kickback rates to the freight forwarder for particular favors when importing.

In case you pay kickback rates, it will also have an overall impact on the cost of shipping the cargo from China.

Why Include Insurance in the Total Cost of Shipping from China

You must includemarine cargo insurance in the total cost of shipping from China to secure your cargo.

Shipping your cargo from China does not have a complete guarantee of safety of your cargo.

So, you must have an insurance that will guarantee the safety of your cargo while on transit.

Implying that the freight forwarder will have to compensate you in case of damages or loss of cargo.

Cost of Including Insurance for your Cargo in the Cost of Freight from China

The cost of including insurance for your cargo in the overall cost of shipping will depend on the insurance company.

For instance, the most common insurance company in use when shipping from China is PingAn Insurance company.

This company will charge a rate of 0.02% of the 110% of the FOB cargo.

For instance, if you purchase goods worth 50,000 US dollars, you will only pay 110 US dollars insurance.

In an event of damage or loss of the goods, the insurance will be able to pay for the insured goods.

Factors Affecting Destination Port Cost when Shipping from China

At the destination port, you will have to part with more money depending on the country of destination.

The charges will also differ depending on the type of goods you are importing to that particular destination.

FCL will be charged according to the cost of the whole container rather than the cost of a cubic meter.

On the other hand, LCL will be charged per cubic meter of the total size of the cargo.

Apart from that, you will also have to include the cost of taxes and duties on arrival at the destination port.

The cost of taxes and duties will also vary according to the country where you are importing the cargo to.

How Single-Entry Bonds compare to Continuous Entry Bonds

You will use the single-entry bond when importing goods into the country once.

In this case, all you have to do is carter for the bonds depending on the charges of the destination port.

On the other hand, in case you intend to import cargo more than once a year, you need the continuous entry bond.

It is a cheaper bond in comparison to the single-entry bond if you are importing more than once a year.

Effective Tools to use in Calculating Cost of Shipping from China

The most effective tool that you can use in calculating the shipping cost from China is a shipping calculator.

In this case, you will use the shipping cost calculator to determine the overall cost by determining particular requirements.

Among the calculators that you can use is the Easy ship’s Shipping Rates Calculator.

How Suppliers Reduce Cost of Shipping from China

Suppliers can reduce the cost of shipping your cargo from China through different ways.

Here are some of the ways through which a supplier can assist in cost of shipping reduction.

• Offering a Discount

You can get a discount on the goods that you are purchasing especially if you purchase in bulk.

This will have an overall effect on the shipping of cargo from China to your destination.

• Offering Free Delivery Services

Your supplier can also transport your cargo from his factory or warehouse for free depending on the purchase agreements.

• Proper Negotiations

Suppliers often have proper knowledge of different freight forwarders and their charges.

Your supplier can refer a cheaper and more reliable freight forwarder to ship your cargo.

Apart from that, the supplier can also organize a good discount with the freight forwarder for your cargo.

How to Get Free Shipping on Alibaba

Free shipping on Alibaba is often courtesy of the supplier who usually takes care of the shipping charges.

In most cases, you can get free shipping from Alibaba only on specific goods from specific suppliers.

It is a strategy that suppliers on Alibaba use to ensure proper and faster sales of goods.

How to Estimate Air Freight Cost from China

You can use the freight calculator to estimate the cost of shipping via air from China.

Just like the shipping cost via sea, you must have specific details such as:

• Airport of origin and destination
• Dimensions of the goods
• Mode of shipping via air.

The other factors of importing will also apply such as duties and taxes charged on importing the cargo into the country.

Meaning of Third-party Service Cost when Shipping from China

Third party service cost is the amount you will pay when you hire an agent in China to conduct your business.

The cost you will pay will vary according to the type of agent you hire and the amount of work.

They often ensure that the cargo you are purchasing is according to the right specifications.

They will also do quality assurance checks on the cargo all depending on the amount of payment.

How to Calculate Duties and Taxes when Importing from China

You will calculate duties and taxes depending on the country of origin and destination.

There are two main domains where you need to pay duties and taxes which include:

• Country of origin which is China in this case
• Country of destination

China has a specific rate on the taxes and duties depending on the type of goods you are exporting.

You will, however, pay different rates of duties and taxes depending on the destination country.

I hope at this point; you can estimate the cost of shipping from China to destination.

However, in case you have any questions, Tj chinafreight is here to help you – Contact us now.

I know you need high quality furniture from Foshan Market.

Or, you would like to get competitive prices when sourcing furniture from Foshan Market.

Maybe you just want to learn more about how to source furniture from Foshan Market.

Whichever the case, you will get all information you’re looking for here.

Keep reading to learn more.

Know Location of Foshan Furniture Market

First things first; where is Foshan furniture market located?

Foshan Location

Foshan is situated in central Guangdong province, China.

It is a prefecture-level city town with an urban population of approximately eight million.

It covers an area of about 3,848 km^2,and it is on the western part of the Pearl River Delta Economic Zone.

Foshan is on the east of Guangzhou, and adjacent to Hong Kong and Macao to the southern part.

Presently, Foshan has over 30 towns specializing in different industries with furniture topping the list.

It is a vibrant city with rich culture, mild climate, and evergreen seasons.

Its location in the central part of Pearl River Delta (PRD) gives it an edge mostly from the economic point of view.

How to Reach Foshan Furniture Market in China

This city is relatively large, about 3,848 km² hence can be a bit challenging to maneuver.

Ideally, you can choose several options for reaching Foshan furniture market.

Some of the common means include the following;

· By Plane

Foshan furniture market is located near Guangzhou.

This makes it possible for potential and existing customers to access it by using an airplane.

The nearest large international airport in Foshan is New Guangzhou Baiyun International Airport.

This facility is ideal for both domestic and international customers.

Several local and international flights use this airport daily.

Since this airport is nearer to Foshan market, you can choose to fly into it and connect with a bus.

It takes approximately 50 minutes to drive on an inter-city bus from the New Guangzhou Airport to Foshan furniture market.

Baiyun International Airport

· By Bus

It is one of the popular options for reaching this famous furniture market in China.

The bus connection into and out of Foshan from Guangzhou is deliberately organized.

Direct metro buses ply this route from different parts of the country.

Coaches from Guangzhou arrive into Foshan after every 15 minutes.

The drive is anything between 50 and 60 minutes.

You can also use the inter-city buses passing through Foshan from other cities in Guangdong province.

A handful of long-distance bus services.

However, for convenience and efficiency when using long distance services, you’d rather get to Guangzhou and connect with a metro bus.

· By Train

Foshan has one of the best local train station facilities in China.

It is served by domestic trains in most cases, particularly the ones heading west.

Trains to Guangzhou daily are relatively few, and it also takes about an hour to Foshan.

They run every few minutes from 6 am to 11 pm.

Most weekends, they rarely operate.

It is thus much convenient to take the metro or a bus if you are coming from Guangzhou.

· By Metro

Guangfo Line is making it easy for residents, visitors, and businesspeople to reach Foshan.

It’s the first inter-city rapid transit line in China jointly run by Guangzhou metro and FMetro.

The metro services are quite affordable, highly organized, and takes about an hour from downtown Guangzhou to Foshan.

Guangzhou metro map

· By Taxi

It is the most convenient means of getting into and around Foshan furniture market.

They are available all over any time you need.

But during rush hour or when it’s raining, they are mostly full; thus, you can wait for a while to get one.

Taxis are somewhat costly but highly convenient, especially for moving around the city.

As you can see, these are ideal options you can explore when getting to Foshan seeking furniture items.

In the next section, I’ll let you know the aspects revolving around the most convenient time to import furniture from Foshan market.

Best Time to Source Furniture from Foshan Market

Sourcing furniture products from Foshan market requires strategy.

Whether it is for domestic purpose or importation business.

You must understand the best place and means of obtaining these items from this region.

Take your time and explore the area carefully.

For business persons, it is often ideal for exploring any element, which increases the profit margin, however little.

If you can cut costs related to the aspect of importing these items, the better.

And one way of attaining this is by knowing the best time for sourcing furniture from Foshan market.

Of course, this is fundamental whether you are a first-timer or regular customer.

What aspects make a particular time ideal for sourcing for furniture products from Foshan market?

Evidently, an attractive discount is the bottom line in this case.

In short, you can get some of the top-rated quality items at amazingly discounted rates.

Some of the ideal times for buying these materials from Foshan market include the following;

· China International Furniture Fair

It is arguably the most established and largest furniture fair in China and possibly in the world.

It is an event, which entails exhibition of different furniture products from various Chinese manufacturers.

It allows buyers to see and order some of the appealing designs at amazingly discounted rates.

During the China international furniture fair, the manufacturers also take the advantage to display some of their new products.

They offer discounted rates as a way of attracting potential buyers, both local and international.

The CIFF usually happens in different schedules.

For instance, the CIFF Guangzhou 2020, which is the 45^th edition, is scheduled from 27^th July to 30^th July.

During this trade fair, you can always find a variety of furniture products.

You can find home décor and furniture machinery, components as well as raw materials, among others.

In a nutshell, this is one of the best times to source furniture from Foshan market in China.

· Chinese New Year

It is also another ideal time to import furniture components from Foshan.

Ideally, it should be just about or immediately after the CNY.

What happens is during this period,manufacturers always rush to clear the stock.

The rush often results in low pricing as a way of attracting the customers.

The holiday often lasts between three to four weeks, depending on various prevailing factors.

It becomes feasible for suppliers to dispose of the stock in readiness for the new stock after the event.

Therefore, you can do due diligence to establish the specific stores more likely to offer substantive discounts during this period.

In essence, you have to window shop thoroughly and establish a good rapport with top suppliers and sourcing agents.

Benefits of Sourcing Furniture from Foshan Market

Sourcing furniture from Foshan furniture market presents a wide range of advantages.

Some of these benefits include the following;

· High-quality Furniture

This is no brainer.

The type of furniture quality you find in Foshan is impeccable.

This is important irrespective of the use of the furniture you are buying.

Manufacturers here embrace advanced technology in making sure they deliver top quality designs.

Raw materials are also abundant hence leading to uncompromised quality.

· Affordability

Most of the furniture designs available in Foshan market are pocket-friendly.

There is always something for everyone.

Your budget does not matter.

You can be certain of obtaining something, which suits your needs.

Moreover, the overall cost of sourcing these items is also relatively low.

· Superior Infrastructure

China’s economy has been surging upwards in recent years.

This leads to unprecedented innovation and infrastructural development.

In Foshan, for instance, there has been an increase in the number of domestic trains, freeways, metro bus services, among others.

These help in faster movement in and out of the town.

It also increases efficiency in transportation of the items and also lowering the cost of doing business.

· Low Taxes

Most of the furniture products you buy from Foshan furniture market are subjected to reduced taxes.

It is a deliberate move by the Chinese government as a way of attracting international businesspeople.

In the long run, it helps you to cut on operational costs.

And this is fundamental since it allows you to increase your profit margin.

· Variety to Pick From

In Foshan, the number of furniture manufacturers and suppliers is uncountable.

You can never get enough of what you are looking for.

And the significance of wide variety is it enables you to pick the specific types and designs, which suit your needs.

The availability of numerous options to pick from eliminates any attempt of compromising your furniture irrespective of prevailing factors.

At the end of it, you’ll be gratified with your particular choice of furniture design or type.

The benefits of sourcing these items from Foshan market are countless.

Even so, these advantages only make sense if you know the specific types of furniture to source.

In the next section, I want to take you through different elements of understanding the types of furniture in Foshan market.

Know the Types of Furniture in Foshan Market

When shopping for furniture, it is imperative to know the precise type and design you need.

This goes a long way to determine the aspects which the furniture should have depending on your requirements.

Of course, Foshan is a general market for all types of furniture in China.

It is the reason it is fundamental to be specific as a way of attaining the best results in this venture.

One of the best ways of determining the ideal types of furniture in this market is by using a reliable sourcing agent.

This type of agent knows all the aspects revolving around the market.

They can easily direct you to the specific mall, which deals with particular items.

Additionally, a sourcing agent will also take you to the best places, which offer great discounts on purchase.

Some of the type of furniture you are likely to get in Foshan market include the following;

1688.com is a leading online B2B supplier directory in China.

It is a subsidiary of Alibaba in China and has over 50,000 companies and 120 million users.

If you’re experiencing challenges procuring items from 1688.com, you are at the right place.

This guide helps you to understand and enhance efficiency when buying goods from the platform.

Differences between 1688 and Alibaba

Ideally, 1688 is a sister website to Alibaba. However, there are few differences between the two, which include the following;

1688 Website

1688 is exclusively for domestic trade.

It is designed to allow the Chinese nationals to order goods and products from suppliers herein.

In contrast, Alibaba is designed for both domestic and export business.

Its principal focus is on exports, but you can as well use it for domestic purposes.

The coding language for 1688 is Chinese.

It is a clear indication of the reason the target market is domestic trade.

On the other hand, Alibaba is coded in English but has translations in numerous languages.

Some of the major translations include French, Russian, Italian, and Spanish, among others.

Alibaba

1688 consists of local suppliers, majorly from mainland China.

Only a few international suppliers from neighboring countries are starting to make a move into this platform.

Alibaba majorly deals with both multinational Chinese suppliers and other international sellers for export trade.

The quality of products in 1688 is relatively inferior to those on Alibaba.

You can find both low and high quality of 1688, and the cost is usually affordable.

On Alibaba, the quality is top-notch since the products must conform to various standards set by different international agencies.

The price of goods on Alibaba is comparatively high than on 1688.

History of 1688

1688 is a subsidiary of Alibaba. It was designed to cater for the local trade in mainland China specifically.

The name 1688 is derived from the Chinese words”Yao Liu Ba Ba”, which almost sounds like Alibaba.

The essence was to find an online platform allowing Chinese internationals to solely sell and buy from domestically.

Since its inception, 1688 has grown significantly and currently has over 50,000 companies and 120 million users.

How to Find Suppliers and Factories on 1688

Essentially, 1688 is a platform, which allows for as many factories and wholesalers as possible.

Therefore, there is a likelihood of finding a wide range of suppliers and companies.

For most Chinese domestic traders and buyers, it is quite easy to find relevant suppliers and factories on this platform.

However, for other international unfamiliar with Chinese language, it can be quite a daunting task.

Nonetheless, you can use several interventions to find your ideal supplier and manufacturer on this platform.

Some of the means you can consider include the following;

· Using a Sourcing Agent

It is arguably the best method for a non-Chinese international to utilize.

1688 is all-Chinese, thus requires a local sourcing firm or individual to carry out this task.

These agents understand various aspects surrounding selecting ideal suppliers and factories on this platform.

Moreover, a Chinese sourcing agent can read this language, thus making it easy to determine the appropriate one for your demands.

Even so, you must confirm you are seeking the services of a reliable and reputable sourcing agent.

Some may capitalize on the situation to scam you in various aspects.

If need be, you may want to consider Tj chinafreight.

It is a leading and reputable agent in China for all 1688 product sourcing solutions.

Using a sourcing agent for this task is vital since it enables you to save time.

It is also efficient and convenient, given you’ll not undergo the daunting process of looking for these entities.

· Searching from the Platform Yourself

It is another practical option you may want to consider when looking for suitable suppliers and factories on 1688.

The process involves signing up on the platform using the required credentials.

Upon logging in, you’ll be able to search for all the relevant companies offering the products you’re looking for.

Upon creating an account, you can always maneuver the website and find all the necessary information aboutthe companies you’re seeking.

This method is ideal since it allows you to find as many entities of your choice as possible.

In essence, it gives you the freedom to select your preferable merchant based on different aspects.

However, it is relatively overwhelming, especially if you are a newbie.

You also need to understand Chinese, which is the only language used on this platform.

Ultimately, it can be time-consuming since the platform has over 50,000 entities.

Therefore, for efficiency, you have to be familiar and grasp the language.

Alternatively, you can translate Chinese language used on the platform into English.

Still, the process can be tasking if you don’t understand the dynamics of this portal.

How to Buy from 1688 Successfully

Buying from 1688 is not as daunting as it may seem to be, especially if you are familiar with Chinese language.

If you understand the changing aspects of this portal, it also becomes easy to shop from it.

However, the entire experience is a process, which requires meticulousness.

Some of the imperative steps in purchasing from 1688 include the following;

Sign up to Create Account

This process entails using your credentials to create a 1688 account.

Once your credentials are verified, you’ll be able to log in and access the portal.

· Choose a Product

Determine the product you are looking for on this platform.

There is a search bar you can always use to look and choose a particular item you require.

· Choose a Supplier

Once you find the product, start looking for the ideal supplier for the same.

There are over 50,000 suppliers, wholesalers, and companies on this platform.

This can, at some point, make it a bit difficult to sieve and select the best one.

Nevertheless, certify you have the right information about the particular company you are choosing.

It helps in determining the right company to trade with from this platform.

· Place the Order

After picking the specific products from the suppliers, place your order.

Your order should entail the correct details for the order, including description and quantity.

· Make the Payment

The merchant will generate a quotation for the order you have placed.

Consequently, you’ll be able to know the specific amount of money you ought to pay for the same.

You will also get the payment details of the merchant, such as bank account and number, among others.

This, however, is dependent on the mode of payment the two parties agree on.

· Quality Check

It entails verification of the products to make sure they meet the required quality standards.

The items must always be consistent with 1688 product listing description.

· Shipping

Shipping merely involves transporting the items from the vendor to the customer or buyer.

Shipping, in many instances, depends on the preferred mode.

It could be air freight, sea freight, trucking or rail freight.

The choice also depends on the urgency of the item, size, and quantity.

The shipping process and duration usually vary from one carrier to another.

However, as a foreign importer, you may as well choose to buy products on 1688 through sourcing agents.

This is a better option, especially if you do not have a verified Alipay account.

Find a reliable and reputable agent and provide them with the links of products you intend to buy.

The charges may vary depending on the agent. Some would charge per link or the general service they provide.

Common Problems when Buying from 1688

When buying from 1688, you should anticipate a few challenges surrounding the process and the experience at large.

Some of the typical problems you are likely to face include the following;

1) Payment Issues

Most of the domestic suppliers and manufacturers are accustomed to domestic payment methods.

Some of these methods include cash, WeChat, Alipay, and local bank transfers.

Thus for overseas importers, it can be quite challenging to find Chinese suppliers receiving money in a different currency.

In essence, it makes it difficult to use domestic payment for international purchases.

2) Lack of English Support

It is difficult to find a sales representative on 1688 who can speak even basic English.

If you hardly understand Chinese language, you’ll need to seek assistance from native speakers.

And this can be challenging since you are never certain of whether or not there is genuinity.

Moreover, it will be an added cost, which can affect your budget.

3) Product Quality Variance

Most vendors on 1688 do not necessarily take the essence of high quality into account.

They can sell a product of any quality, whether good or poor, since the standards herein are not strict.

You can thus end up with poor quality after spending a lot of time and a significant amount of money.

4) Inconsistent INCOTERMS

Buying goods from 1688 exposes you to various risks and unforeseen obstacles.

The incoterms, as well as international formalities, are inconsistent and unknown.

5) Missing Export Licenses

Since most of the companies on this platform are accustomed to domestic customers, they rarely seek export licenses.

As an importer, this can be challenging, especially if you’re ordering a large quantity.

Most sellers would deliberately fail to hassle for an export license when the order is relatively small.

Benefits of Buying from 1688

The advantages of purchasing from 1688 include the following;

· Affordable Rates

The cost of the products on 1688 is relatively affordable.

On average, it becomes cheaper to find a particular item per-piece on this platform.

Most of the sellers on 1688 target local users, thus making it possible for the price to be a bit cheaper.

Even so, you need to consider the quality of the product, depending on the amount you’re spending.

· Faster Responses

1688 uses several tools, which the clients can use to get the relevant service.

It has a top-notch mobile app, which is quite effective.

Most suppliers have staff members who will always respond to any queries raised within a few seconds.

However, the responses are 99% in Chinese.

It thus can be advantageous if you’re dealing with a domestic sourcing agent like Tj chinafreight.

6) Variety of Quality

The design for 1688 is to accommodate and promote local manufacturing.

Most manufacturers, therefore, tend to sell a variety of products on this portal.

In the long run, it enables you to sample a wide range of quality products depending on your budget.

And this is essential since it means you can always obtain the right quality, which meets your demands.

7) Ideal for Sub-suppliers and Complex Projects

It is a great option for anyone managing complex sourcing operations.

This is particularly if the operation involves numerous sub-suppliers who send semi-finished items to the same assembly.

When dealing with 1688, the likelihood of most issues tends to diffuse.

The sellers understand ways of circumventing potential issues.

8) Variety of Suppliers

The portal is designed for domestic trade.

Therefore, you can be able to find decent wholesalers, who your competitors cannot necessarily access.

Some of these suppliers often opt to remain somewhat inactive on this platform for several reasons.

In some instances, they could be missing export licenses or have enough business in the mainland.

You may land on such wholesalers and get the best deals and high-quality products than you can ever imagine.

9) Low MOQ

You can order any quantity of your preferred item from this platform.

Most suppliers here do not have stringent measures when it comes to MOQ.

How to Work with 1688 Agent

First is to ensure you are working with a credentialed 1688.com agent.

You can use several ways to confirm certification of the agent before seeking their services.

You have to sign a contract regarding the terms and conditions surrounding the service the agent provides.

The contract is essential since it acts as a back-up document in case of litigation issues.

So you’ll identify all the products you need from 1688.com.

Alternatively, you can let the agent do this upon providing the necessary description, quality, and quantity of the items you need.

It is the responsibility of the agent to source for the items from all the suitable suppliers selling the same.

The agent negotiates places to confirm the samples for quality and places the order.

You can make payment to the agent’s account or still decide to pay directly to the manufacturer or supplier.

At the same time, he makes follow up to confirm each detail of the process is conformed to.

Upon obtaining the goods and verifying the quality, they organize for shipping to your destination.

All this time, the agent is always in contact with you to update the progress of every bit in the process.

Once the goods leave, you’ll wait for delivery at your store or port of destination depending on mode of transport.

Products you can Buy from 1688.com

Products in 1688

You can find all types of products manufactured in China or even abroad.

These products can range from apparel, furniture, jewelry, machines, tools, and equipment, among others.

You can as well find kitchenware, home improvement items, construction materials, electronics, mobile phones, and numerous gadgets, among others.

Ideally, you can find almost all the products you are looking for from this portal. Most of these goods are manufactured locally.

However, you can as well find items, which are imported from foreign countries.

Some suppliers usually order for products from abroad and store them in their warehouses.

Translating the 1688.com Website from Chinese to English

For international importer, it is always advisable to make certain you understand the communication therein.

And since 1688 is coded in Chinese, it becomes ideal to ensure you translate it to English.

The translation process is quite straightforward.

You only need to understand a few tricks to guarantee you do it effortlessly.

While at it, it is recommended to use Google chrome as the ideal web browser when accessing the 1688 website.

This browser can translate the webpage content into English or your preferred language directly.

The process starts with loading the 1688 webpage on the browser.

Look for the option to translate the language and choose the “translate to English” button.

All the information on the website will change into English apart from the images.

Even so, the English may not be as perfect as you’d expect, but it is readable.

How to Navigate 1688.com Website for Foreign Importers

Foreign importers will typically encounter communication challenges when accessing the 1688 website.

Navigating through this website can be tricky since it contains a lot of information.

You need to be familiar with many aspects of this portal to successfully procure different items effectively.

As a foreign importer, the first thing to do is ensuring you translate the default Chinese language into your preferred language.

Translation to English is usually more effective than other languages.

You’ll type the webpage link on the browser to lead you to the homepage.

At the home page, there’s a search dialog box where you need to type specific elements you are looking for.

If you need to get suppliers, you’ll search, and it will take you to the respective directory.

It is the same thing you also need to do with products.

The website is user-friendly since it has all the relevant buttons and icons, which direct you to the ideal action.

Step-to-step to Verifying Authenticity of 1688 Suppliers

1688 has over 50,000 companies, suppliers, and trading entities.

You cannot, therefore, pick any of these and consider it for business.

You must do specific and thorough due diligence to certify you get the right supplier to deal with.

It is a process but worthwhile to undertake.

Here are the step-to-step process of verifying the authenticity of suppliers you come across on 1688;

Open the vendor’s homepage – Ideally, you ought to access this website from a web browser particularly, Google chrome.

It is the first step you need to undertake since it allows you to access all the information you need.

Search for the supplier – You’ll then look for the particularly preferred supplier on the search bar of 1688 webpage. It is the first way of filtering the information since there are tons of suppliers offering similar products.

Click on company profile –There is a button on the vendor’s homepage, which allows you to find all the relevant details of your preferred supplier.

You will see all the relevant information displayed on the window.

It highlights the specialties of the company, history, and whether or not it is approved.

Check on business registration information – Still, at the profile of the supplier, there is a link to confirm other details surrounding its registration.

You’ll be able to see the company name, registered capital, unified social credit code, and registration authority.

Additionally, you’ll see its operating period, business scope, address, establishment date, type of enterprise, and approval logo.

It is also recommended that you go through the policies of the website.

Understand what the policies entail regarding returns, backorders, and damages, among others.

The contact information, as well as the physical address, must as well be available on their website.

Authenticity verification of suppliers on 1688 is fundamental.

It prevents incidents of scam and enhances trust between the two parties.

It also guarantees that as a buyer, you are dealing with reliable, credentialed, and reputable suppliers.

How to Communicate with Suppliers on 1688 Suppliers

Communication in any form of business is a key element of enhancing efficiency.

Many suppliers opt for 1688 since there desire is to sell their products on the domestic market.

Ideally, most of the local manufacturers and wholesalers rarely have employees who can speak or write English to manage their accounts on 1688.

And this makes it difficult to communicate effectively during the procurement process.

You can choose three options to communicate with suppliers on this platform.

The first choice would be to take basic Chinese language lessons to enable you to order from the business directly.

This option, however, can be time-consuming and unsuitable, where urgency is a concern.

It can also be a bit costly since you’ll have to pay for the lessons.

The other option you may choose to consider is hiring a translator.

A translator will link you with the supplier, especially during the procuring process.

This method is only ideal if you get a reliable and reputable translator.

A translator may as well be another costly option since you’ll need to pay for these services.

The best option nevertheless is to find a local procurement agent to assist you in communicating with suppliers.

An agent will handle all aspects of communication with particular suppliers to make sure they obtain the right products.

In this case, a local-based sourcing agent such as Tj chinafreight would be a relatively cheaper option.

In essence, the communication between the two parties will be effective and faster.

They understand one another hence making it easy for procuring and sending the items to your address.

Knowing MOQ when Importing from 1688.com

When procuring items from 1688, it is always essential to know the MOQ.

This platform does not have any restrictions as far as MOQ is concerned.

Typically, the vendors on 1688 tend to define MOQ for wholesale business.

In many instances, the MOQ can be subject to the following conditions;

• MOQ for a single product; in this instance, your order for a particular product should be relatively large than the MOQ.
• MOQ for sellers’ orders; apart from MOQ on a single product, you ought to meet the condition of the MOQ for the seller’s orders. Often, the seller tends to define the specific quantity to be the MOQ for the seller’s orders.

However, you need to understand the parameters surrounding the minimum order quantity you are making.

If you are an importer, rarely would you find a supplier on this platform who engages you on other elements of MOQ.

Ordinarily, you may pick many pieces of the same item from this platform from your supplier.

Alternatively, you may select numerous pieces of different items still from the same supplier to meet the MOQ.

It is all based on the terms and conditions guiding the MOQ for a particular seller.

In many instances, though, merchants in 1688 hardly have a specific MOQ on their products.

Depending on the type of product, purchasing small quantities from 1688 would end up being relatively costly.

In most instances, the Chinese customs authority usually change export duty depending on the size of the consignment.

Therefore, where possible, always think of procuring a sizeable quantity when importing from this portal.

It gives you value for money in the long run.

How to Pay for Goods on 1688.com

You can pay suppliers on 1688.com using various means.

The ideal method is dependent on what the seller seems perfect.

Remember, it is a domestic business platform, so most merchants prefer local payment options.

Some of the ideal payment methods you may consider include the following;

Alipay – It is a digital wallet, which allows buyers to carry out transactions directly from mobile devices. However, you need to have a verified Alipay account to use this payment method.

Wechat – It a multipurpose mobile payment application used across different countries around the world. Most Chinese sellers use it as a means of receiving payment for international transactions.

RMB Account – You need to have a standard local account, which you use for receiving USD and then converted to Renminbi. In this case, the transaction counts as a domestic transaction; hence there is no export rebate.

Personal bank account –You can also open a personal account and use it for receiving USD and convert to RMB before paying the supplier.

Use a payment agent – If you have a reliable agent, you can use his or their account to pay for the goods from 1688. You need to send money, and they will find ways of clearing with the merchant on 1688.com.

In any case, the buyer must obtain an export license if the supplier accepts US dollars currency.

And the process is usually hectic, thus the need for an agent to assist you with payment in US dollars.

Verifying Quality of Goods on 1688.com

1688 Website

It is vital to ensure you confirm the quality of the product before you order it.

This can be challenging, especially if you are an importer.

However, an ideal way you can use is by asking for a sample, especially if you are about to make a large order.

This way, you can determine whether or not the specific item meets your demands in terms of quality.

You can also request the vendor to send you the photos of the product you are looking for.

If you’re familiar with it, you’ll be able to tell whether it is of the right quality for your needs or not.

The other option, which is highly recommended, is to work with a trustworthy procurement agent.

It could be an individual or a company.

Whichever the case, they should be able to source for the items and confirm they meet the expected quality standards.

Sourcing agents understand the right quality for your needs based on your description and budget.

Since most of them are local-based, it becomes easy to verify the quality of goods when buying from 1688.com

Sourcing agents also come in handy in this verification, especially if the products are customized.

Custom-made goods require a keen eye to determine whether or not they meet the required quality standards.

The other option, which is also common, entails the 1688.com agents verifying the quality of the goods.

Once the supplier delivers the items to the 1688.com warehouse, they are subjected to quality checks.

If confirmed to meet the recommended quality standards, the goods are then shipped to the buyer.

How to Ship from 1688

There are several shipping options you may want to consider upon purchasing items from 1688.com.

The cost, speed, and efficiency of the shipping options also vary based on a specific one of your choice.

The fastest means you can consider is express shipping.

It is the safest and more convenient method since delivery of your consignment is done on your doorstep.

Express shipping entails using carrier services that pick the item from the vendor and deliver it directly to the buyer.

It is a bit costly and ideal for shipment weighing less than 100kgs.

This method allows you to obtain your product within the shortest time possible.

It can be within hours or a few days, depending on your destination.

You can also opt for air freight.

It involves use of airlines, which offer cargo transportation services.

Once the cargo is cleared at the customs, it transported to the respective destination using the airline carrier.

This method is also safe, fast, and convenient.

However, it can be a bit expensive, thus ideal for a consignment of 500kgs and below.

Trucking is the other ideal means of shipping you may want to consider.

It is relatively fast compared to rail freight.

Even so, it is only limited to countries bordering China.

You can also choose rail freight to ship consignment from 1688.com.

It is comparatively slow compared to trucking and air freight.

And the most commonly used shipping method when buying items from 1688 is sea freight.

This is largely used by importers who purchase large quantities from this B2B online platform.

It is cost-effective but can take significantly more days before you receive your consignment.

Ways to avoid Scam when Buying from 1688

To prevent scam when purchasing from 1688.com, you may want to consider the following aspects;

• Always be skeptical of any branded product retailing at lower rates. It should serve as a red flag until you verify it from reliable sources.
• Ensure you are buying from a verified seller or supplier on this platform. If the merchant has a blue tick on its name, it is verified. Where there is no blue tick, the supplier is unverified; hence you must tread carefully.
• Refrain from making advance payments to an individual account. It does not matter whether or not the person is the owner of the company. Only send money to verified company’s bank account.
• Never buy any form of software or application from 1688.com. It is difficult to find a genuine tech-related product on 1688.
• If a supplier is unwilling to send samples, whether paid for or otherwise, try to be tread carefully. It could be a sign of scam in the offing.
• Never send money to any supplier using Western Union or Money gram. Choose other acceptable payment methods such as Alipay and Wechat, among others.
• If the supplier inflates the cost after issuing the profoma invoice, it could be a sign of a scam. The best approach is to always consider 2-3 suppliers concurrently. So that you can contact other alternatives should the first one inflate the price.
• Ensure you apply for trade assurance when dealing with new merchants on this platform.
• Utilize the services of a reputable and trustworthy agent. It can help you significantly from any form of scam on 1688. You will be dealing directly with the agent, and should any issue arise, they must take full responsibility.

As you can see, you can benefit from importing from 1688.com more so if you don’t speak Chinese.

However, Tj chinafreight is here to help you shopping and ship from 1688.com easily.

Contact Tj chinafreight today for all your importing needs from 1688.

Before you shop in Guangzhou wholesale market, read this guide.

It covers everything you need to know about Guangzhou market such as products to buy, mode of transport, and quality verification amongst others.

Take a look.

How to Find Guangzhou Sourcing Agent

You need to have a sourcing agent in China to help free up your time as sourcing for goods can be tedious.

The sourcing agent will make wok easier for you at a very affordable fee.

Here is a guide on how you can find a good sourcing agent in Guangzhou.

· Do Proper Research

You need to do proper research on the sourcing agents that you would like to hire via different online platforms.

Doing a research will help you narrow down your long list of sourcing agents to a few who are credible and trustworthy.

· Choose Specific Sourcing Agents

It is important to narrow down your search to specific people or sourcing agents who specialize in specific goods.

You will settle on a company that has plenty of experience sourcing the type of goods that you need from Guangzhou.

· Have Proper Knowledge of Your Requirements

You should do more research on the sourcing agents to get more information about their resourcefulness.

A proper sourcing agent often has information on the things that you require including specifications and proper paper work.

· Choose Industry Cluster Sourcing Agents

As you narrow down your choices, you should consider choosing sourcing agents within a particular industry.

This makes it easy for you to have proper access to the goods through the sourcing agent with no additional cost.

· Choose One that has Proper Market Knowledge

In addition, you should go for the sourcing agent who understands how the Guangzhou wholesale market works.

This will make it easy for you to find the right goods from favorable suppliers and at friendly costs.

· Choose Experience and Skills

Despite the fact that you will to pay more for experienced sourcing agents, it is important to get one with skills.

Such sourcing agents will make it easy for you to get the goods you need at the Guangzhou wholesale market.

Products to Import from Guangzhou Wholesale Market

You can import quite a lot of products from Guangzhou wholesale market that will suit your requirements.

Here are some of the products that you can purchase and import to your destination from Guangzhou.

Section of Guangzhou wholesale market

• Clothing for different uses such as casual wear, uniforms and even sports clothes.
• Jewelry such as watches, chains, rings and bangles among others
• Electronics such as television sets, computers and even music systems among others
• Communication gadgets such as mobile phones
• Cosmetic products such as make up kits
• Women accessories such as handbags
• Shoes for different purposes such as sportswear and casual fittings.
• Used or second hand products such as mobile phone in great condition
• Restaurant and Hotel Supplies
• Fabric for making different types of clothes or furniture
• Auto parts for your vehicles
• Beauty products for women such as hair weaves
• Toys for kids
• Eye wear and glasses

How to Get Best Prices when Buying from Guangzhou Wholesale Market

When shopping in Guangzhou wholesale market, there are different prices for different things.

You can get the best prices for the materials that you want through the following ways.

· Using a Proper Local Sourcing Agent

Well, you can get the best price when buying from Guangzhou wholesale market by using sourcing agents.

Sourcing agents with plenty of experience and skills will help you get suppliers who have good products at affordable costs.

They will also have the proper language of negotiation thus getting the best prices for the cargo.

· Purchase Goods in Bulk

Apart from that, you can also purchase your products in bulk and get good prices and discounts from suppliers.

Due to economies of scale, the supplier will work out proper prices if you take a huge consignment.

· Purchase from the Factory Outlets

You should consider purchasing from the main factory outlets which often offer lower prices or factory prices.

In this case, you will find at the factory outlets that supply the kind of goods that you need.

Where to Buy Clothes in Guangzhou Wholesale Market

You will purchase clothes from the clothing market in Guangzhou which is the leading market for clothes.

Depending on your location, you should consider going for the clothes at the Guangzhou wholesale market.

Some of the clothes wholesale markets that you will find in Guangzhou include:

· Baima Clothes Wholesale Market

Here you will purchase the women high end clothes at wholesale prices for you to retail.

You can access Baima clothes market through this address “No. 16, Zhannan Road, Yuexiu District, Guangzhou, China”.

· Shisanhang Clothes Wholesale Market

In this market, you will purchase middle- end clothing for both gender of different age groups.

You can access Shisanhang clothes wholesale market through “Shisanhang Road, Guangzhou, China” address.

· Shahe Clothes Wholesale Market

In case you are looking for low-end clothing, then you can go to the Shahe clothes wholesale market.

You can use “No.57, Zhanxi Road, Yuexiu District, Guangzhou, China” as the main access address to Shahe clothes market.

· Zhanxi Clothes Wholesale Market

You will find the best type of men’s clothing are at the Zhanxi clothes wholesale market.

You can access this market through “No.57, Zhanxi Road, Yuexiu District, Guangzhou, China” address.

How to Buy Electronics in Guangzhou Wholesale Market?

You can also purchase different types of electronics such as television sets and mobile phones from Guangzhou market.

In Guangzhou, there are two main wholesale markets where you will purchase the electronics from.

New Asia International City of Electronic Science & Technology Wholesale Market

You can purchase different types of electronic products from this market at affordable prices.

You can get to this market through “55 Xidi 2ndd Rd, Changti Road Shipping Leisure street in Liwan District of Guangzhou”.

· Nanfang Building Wholesale Market

You can get access to different electronic materials such as laptops, mobile phones and their accessories in this building.

The main address of the building is at the “Nanfang Mansion, in the Liwan District”

Where to Buy Souvenirs from Guangzhou Wholesale Market

Well, just all the other products, you will purchase the souvenirs from the souvenir market in Guangzhou.

The main markets where you can buy souvenirs in Guangzhou wholesale market include:

· Cantonese Embroidery Wholesale Market

The main location for the Cantonese Embroidery wholesale market is No.100 Yuehua Road.

It is famous for different types of souvenirs that have different and very bright colors.

· Jade Sculptures Wholesale Market

You will purchase the souvenirs from “Xia Jiu Lu, Hualin Jade ware Street” at the most affordable prices.

Modes of Shipping from Guangzhou Wholesale Market

Well, after shopping from Guangzhou wholesale market, you will package your cargo to the nearest port.

Depending on the mode of transport you can take it to any of the following ports:

• Sea port for transporting the cargo from Guangzhou to your destination via sea freights
• Airport where you will transport the cargo via air freight mode
• Train station where you will load the cargo on a train to your destination. Rail freight only works where there is infrustructure
• Road transport to closer destinations with proper road network connections

Top Guangzhou Wholesale Markets to Shop from

When shopping from Guangzhou, there are specific markets that you should consider visiting.

Here are the top wholesale markets in Guangzhou that you should consider visiting.

• Clothes wholesale market which include Thirteen Hong Kong Wholesale Market, Shahe Wholesale Market and Baima Market
• Electronics Wholesale market located at New Asia International City of Electronic Science & Technology and Nanfang Building
• Watch Wholesale Market located at the Zhan XI watch market and South Watch Center.
• Hotel and restaurant wholesale markets located at Nantian International Hotel Supplies wholesale market and Shanxi International Hotel Supplies wholesale market.
• Wedding Dress Markets which id found at the Jiangnan North Avenue.
• Jewelry wholesale market located at Xijiao Building Jewelry Wholesale Market, Liwan Plaza Wholesale Market and Taiking Jewelry City
• Guangzhou handbag wholesale market which you will find in Jinyi Leatherwear Plaza and Zhongyang Leatherwear Mall.

• Jeans wholesale market located at Xingtang International Jeans Mall.
• Cosmetic wholesale market located at Guangzhou Beauty Exchange Center and Guangzhou Xingfa Plaza.

Benefits of Buying from Guangzhou Wholesale Market

When you purchase from the Guangzhou wholesale market, there are particular benefits that you will enjoy.

Some of the benefits include:

· Affordable Cost

You will enjoy affordable prices for different types of goods that will fit your needs.

· Efficient Transport System

After purchasing your products, you can easily transport them to different destinations through the efficient transport system.

· Variety of Goods

Guangzhou wholesale markets have a wide variety of goods that you can choose from depending on your specifications.

· High Quality Products

Most of the products that you will purchase from Guangzhou wholesale market are of very high quality.

Location of Guangzhou Wholesale Market

Guangzhou wholesale market is a very big market with different goods at different locations in Guangzhou.

For instance, you will find the clothes wholesale market in a different location from that of watches.

Here are some of the locations where you will find different types of products.

• Fabric Wholesale Market located at Guangzhou International Textile City and Ruikang Lace Accessory market.
• Auto parts wholesale markets located at Guangdong Yangpu International Automotive Supplies Center and New Guangdong Auto Parts Trade Market.
• Eyewear wholesale market located at Guangzhou Glasses City.
• Toys wholesale market located at Onelink Plaza and Guangzhou Zhongyang Toys Wholesale Market.
• Underwear wholesale market located at Guangzhou Xinxiang Underwear City.
• Shoe wholesale market located at Guangda Foreign Trade Shoes Plaza and Buyuntiandi Shoes World.

Buying Second Hand Electronics from Guangzhou Wholesale Market

You can purchase second hand electronics that are in very good condition from the Second hand electronics wholesale market.

All you have to do is walk into the second hand electronics market and choose the type of electronics you need.

Common Challenges when Shopping from Guangzhou Wholesale Market

Shopping in Guangzhou wholesale market can be a little bit challenging especially for a foreigner.

Some of the challenges that you might experience include:

• Language barrier as most of the traders do not understand English and often trade in their native language.
• Currency barriers where the main currency in use is RBM thus rendering the dollar unacceptable as mode of exchange.
• Locating some of these markets can also be a challenge in case you do not have a proper guide to help you.
• You might be a victim of fraudulent behavior from different suppliers who might want to steal from you instead.

How to Travel to Guangzhou Wholesale Market

You can travel to Guangzhou wholesale market through different routes using different modes of transport.

The mode of transport that you will use will depend on your current location.

Here are some of the modes of transport that you will use to travel to Guangzhou.

Baiyun Airport

· Non-stop Flights

You can get on a non-stop flight all the way to Guangzhou airport from other cities in China.

· Road Transport

As soon as you alight from the plane, you can use a taxi to access Guangzhou market via road network system.

· High Speed rail

You can also get on the high-speed rail that will help you move from different cities in China to Guangzhou.

Food to Eat when Visiting Guangzhou Wholesale Market

Well, China has some of the best delicacies that you will enjoy while on the shopping trip to Guangzhou.

Some of the delicacies that you will enjoy while on your shopping trip include:

• The White Radish and Beef Offal
• Wonton noodles
• Steamed Vermicelli Roll
• Guangzhou Special Soup

Modes of Payment to use when Importing from Guangzhou Wholesale Market

Guangzhou suppliers do not accept other currencies such as the dollar or British pound.

The main currency in use while importing from Guangzhou is the RBM.

In case you have to pay cash for the cargo, then you must have the cash in RBM.

Apart from that, you can do bank transfers especially with more organized suppliers who have established bank accounts.

How to get Warehouse Services when Importing from China

As the goods await shipping, you will have to store them in a warehouse which can be a challenge to find.

Here are some of the options that you can explore to get very good warehouse services for your cargo.

• You can get proper warehouse service through the help of the sourcing agent who can ensure proper storage.
• Apart from that, there are suppliers who offer the complete package which involve storage of the goods as well.
• Additionally, your freight forwarder can organize for warehousing of the cargo as it waits to ship to your destination.

How to Find Guangzhou Freight Forwarder when Importing from Guangzhou Wholesale Market

A freight forwarder will be the main link between your goods and the destination of the goods.

You can get a freight forwarder through references from other credible suppliers or through proper research.

You must, however, be careful not fall victim of inefficient freight forwarder who will mishandle your cargo.

In that case, here are some of the factors to consider when choosing a freight forwarder:

• Credibility of the freight forwarder in terms of how efficient they are in handling cargo
• Experience of the freight forwarder to understand the skill level of the freight forwarder
• Proper documentation to know that the freight forwarder is complying to the rules and regulations.
• Membership to particular known organizations as an indication of proper financial power.

Disadvantages of Shopping in Guangzhou Wholesale Market

Guangzhou electronics market

Unfortunately, shopping from Guangzhou may not be as rosy as it has certain pitfalls.

Some of disadvantages that you may experience in Guangzhou wholesale market include:

· Unreliable Suppliers

Simply because a supplier has a booth in Guangzhou wholesale market, there is no guarantee that they are reliable.

You might come across shady suppliers who will supply you with very low-quality products.

Apart from that, there suppliers who can also defraud you of your money in Guangzhou wholesale market.

· Language Barrier

Most of the suppliers that you will meet on different booths do not have the ability to speak English.

You might have to hire a translator to help you with the translation the terns under use.

· Mode of Monetary Currency

In Guangzhou, most of the trades will not take US Dollars and will only accept RMB.

Implying that you will have to change your currency to RMB for easy payment options.

· Lack of Export Transport

Here, most of the suppliers in Guangzhou do not transport cargo overseas except for locally.

You must, therefore, look for a freight forwarder who will organize proper transport for your cargo.

· Unsuitable Products

You may also find products in Guangzhou that are not suitable for export to your destination country.

In this case, you will only purchase the products that will easily gain access into your destination country.

Where to Buy Bags in Guangzhou Wholesale Market?

Guangzhou has 24 wholesale markets with different types of bags for you to choose from.

Some of the top markets where you can consider purchasing the bag include:

• Zhongyang Leatherwear Mall located at 11-21, Sanyuanli Avenue, Baiyun District in Guangzhou
• Jinyi Leatherwear Plaza located at 1453, Jieffangbei Road, Baiyun District in Guangzhou

You can purchase different types of bags such as wallets, backpacks, and handbags that are made of leather materials.

How to Verify Quality of Products in Guangzhou Wholesale Market.

It is very important to verify the quality of the products that you intend to purchase from Guangzhou wholesale market.

This will help you avoid being a victim of counterfeit goods from fraudulent suppliers.

You can check the quality of the good by checking if they meet the technical specifications.

In case of machines, you can conduct tests on the machines to ensure that it is of good quality.

A credible supplier should also be able to provide after sales services such as installation to ensure quality products.

Using such tests, the supplier will ensure that the machines meet the right technical specifications.

As you can see, there are many products you can get in Guangzhou whole same market.

At Tj chinafreight, together with our partners, we make sourcing and shipping from Guangzhou simple.

If you’re importing from China, most probably, you have come across NVOCC.

Maybe, you don’t know what it is.

Or, you’re wondering how NVOCC compares to freight forwarders.

Today’s guide covers everything you need to know about NVOCC.

Keep reading.

What is NVOCC?

NVOCC is an abbreviation for Non-Vessel Owning Common Carrier.

It refers to operations involving sales, stuffing, and transportation of containers to various gateways ports.

This ocean carrier transports shipments without operating any ocean shipping vessels under its house bill of lading.

You can also describe it as a shipper to carriers and a carrier to shippers.

It may operate as a freight forwarder in some circumstances.

Loading ship

Functions of an NVOCC

It plays several roles in international trade and shipping such as the following;

• To establish a contract with ship-owners and for a predetermined number of slots in their vessels. This is in exchange for relatively lower rates.
• To contract shipping lines and ocean freight cargo to allow for movement of consignments from one point to another.
• To issue a bill of lading and assume any responsibility and liability for the consignment.
• To consolidate smaller container loads and charge for the occupied space.
• To pay for port space and transportation of the shipments. It is also responsible for payment of demurrage
• To liaise with the port authorities in ensuring the vessel berths on time. It also facilitates commencement and completion of the vessel’s operations within the specified timeline.
• To act as intermediaries in the transportation of shipments.
• To facilitate faster movement of shipment from one point to another. The essence of this is to reduce imminent inconveniences likely to arise at the port.

Types of NVOCCs

Ideally, NVOCCs are divided into three main categories based on the nature and scope of their business;

On-Carrier type NVOCC

It is a type, which engages in trans-shipment.

It has its agents and offices at major transit, as well as destination points.

The agents and branches are responsible for receiving the items from inland or road carriers and issuing the bill of lading.

The items are then transited to ocean carriers who complete the process to the destination and consignee ports.

On-Carrier NVOCC does not have restrictions when it comes to routes.

Carrier NVOCC

It is a type, which transports goods on their specific routes.

It accepts your shipments, offers a bill of lading, and accepts liability for the consignment.

Ideally, they are contractual carriers and do not necessarily complete the transportation process themselves.

Instead, they deliver the shipment to actual carrier and receive once the goods get to the destination to deliver to the consignee.

Broker NVOCC – This type gets the shipment from different importers, consolidate them and find transport means from a carrier or on-carrier NVOCCs.

Broker NVOCC engages in the organization of transport, distribution, and choice of modes of transportation.

It also focuses more on determining the best routes and service improvements, among others.

Difference between NVOCC and Shipping Line

There is a thin line between the roles and functions of these two entities.

Some of the differences between them include the following;

NVOCC refers to an agent whose principal function is to coordinate with different partner lines.

The essence is to obtain relevant paperwork to facilitate stowage plans and seamless operations.

A shipping line refers to the entity responsible for the direct or indirect carriage of the consignment by air, sea, road, inland waterway, or combination of all.

This undertaking usually arises under a contract of carriage.

COSCO Shipping Line

The core function of a shipping line is to provide containers for domestic and global trade.

This is in the form of carriage of domestic cargo in international containers movement.

On the other hand, NVOCC’s main role is to act as intermediaries in the transportation of shipment to and from different destinations.

NVOCC is responsible for handling different aspects of commercial activities if shipping vessels.

Such activities may include booking, issuance of own bill of lading, and other relevant documentation.

Shipping line, on the other hand, handles the actual operation of the vessel.

This involves navigating the vessel and ensuring the shipment arrives at the expected port of destination.

NVOCC works with different shipping entities as long as both parties agree on the specific terms and conditions of engagement.

A single NVOCC entity can work with numerous shipping lines simultaneously.

Shipping lines are independent entities.

They are licensed as individual operators for transporting goods to and from different places.

Why you should consider an NVOCC when Shipping from China

Sipping goods from China can be quite demanding.

It requires meticulousness and high efficiency to guarantee the best results.

And that’s where considering NVOCC becomes handy.

Some of the beneficial reasons why you need to choose NVOCC in this process include the following;

Visibility of supply chain through high-touch service;

You rarely get consistent visibility and communication throughout entire transport process in ordinary carriers.

Considering reliable NVOCCs guarantees dedicated and single point of contact, which provides you with constant communication.

It enables you to know the status of your shipment, all through until it gets to your hands.

Visibility and communication between transition points are vital since it averts inaccuracies and delays, among others.

It mitigates risks;

Direct carriers’ contracts are potentially risky whenever there is a shift in market conditions.

NVOCC becomes critical when there are sudden transportation needs outside the scope of your ordinary contract.

Ideally, NVOCC is versatile and has resources to neutralize all inevitable risks and guarantee a smooth delivery process.

While at it, NVOCC still maintains affordable pricing.

You obtain supply chain insight from professional from expertise forecasting;

It is a daunting task to analyze different reports, contracts, industry trends, and price volatility, among others.

You also need a professional with a specific bias in global markets to manage costs effectively.

Considering NVOCC herein becomes fundamental since it has a formidable network with various players in this industry.

It makes it easy for them to read, analyze, and interpret reports and data with authority.

Working an aptly credentialed NVOCC with reliable partners can establish unforeseen risks and have an impact on your supply chain.

It offers flexibility;

In international trade, your transportation needs may vary from time to time, depending on various prevailing circumstances.

NVOCC provides the necessary flexibility in regards to the carrier base.

It can also leverage it to enable it to find relatively favorable pricing or capacity.

How NVOCC compare to Freight Forwarders

Many people often consider NVOCC and freight forwarders as the same thing.

However, they differ both functionally and legally.

Some of the main differences between these two include the following;

A freight forwarder is an entity in international trade handling different activities related to shipments of imports and exports.

NVOCC, in contrast, refers to an entity, which provides services related to ocean freight as a carrier.

Even so, it could either have or lack its own or operated vessel.

Freight forwarder acts as an agent for shippers, whereas NVOCC acts as a carrier to the shipper and also shipper to carriers.

Freight forwarders may as well work as the agent for some NVOCC entities.

On the contrary, you can hardly find an NVOCC acting as an agent for a freight forwarder.

NVOCCs tend to own and operate and own their fleet of containers.

On the other hand, freight forwarders use containers provided by shipping lines.

NVOCCs are covered under carrier liability, as stipulated in the terms and conditions outline in FIATA.

On the contrary, forwarders are covered under their liabilities as outlined in FIATA terms and conditions.

NVOCC issues own house bill of lading.

This document may or may not be used depending on global standards.

Freight forwarder issues own bill of lading and other necessary paperwork.

All these documentations are based on standardized documentation provided by FIATA.

Most freight forwarders own and operate their warehouses.

It is essential when it comes to adding value to its shipping services.

NVOCC comparatively, do not own nor operated warehouses.

Functions of VOCC

To begin with, VOCC is an acronym for Vessel operating Common Carrier.

Essentially, they are the owners of the massive vessels you often see carrying numerous containers traversing the ocean.

They perform various roles more or less similar to NVOCC only that the latter does not own the vessel.

Some of these functions include the following;

• To provide transportation of different types of shipments between two or more countries for compensation.
• It is responsible for transportation of the cargo from the port of loading to port or point of destination.
• To issue the bill of lading and assume responsibility of the shipment all through until it gets to the recipient at the port of destination.
• To use a vessel operating between different ports for all or part of the transportation.

Difference between VOCC and NVOCC

In VOCC, the owners or the company operating the vessels who own them.

They maintain and control different aspects regarding transportation of the various consignments to and from numerous places.

In HVOCC, the entities do not own any shipping vessel.

Even so, they facilitate transportation of various items to different ports of destinations through other shipping lines.

In essence, these two perform a more or less similar function.

The major difference is VOCC owns and operates the vessel, whereas NVOCC does not own a vessel but still manage to transport goods.

The other difference is VOCC is independent and only works as a single operator.

In contrast, NVOCC is flexible and can work with carriers from multiple alliances.

Disadvantages of Using an NVOCC for International Shipping

Using NVOCC for shipping your cargo can have drawbacks, albeit a few. Some of these include the following;

Information lapse – In most instances, there will be slow information as far as shipment tracking is concerned.

NVOCCs do not operate the ships; hence cannot necessarily be in the position to know obtain all the tracking information when required.

Only suitable for small volume cargo – NVOCC is ideal for shipping a few containers.

If you are shipping thousands of containers every time, NVOCC would not necessarily be a suitable choice.

This is from the perspective of both cost-effectiveness and time-consciousness.

Efficiency of NVOCC is subject to its acceptance to all the responsibilities for the shipment.

It also must issue its bill of lading document.

Otherwise, it can derail the shipping process leading to unprecedented delays and inconveniences.

How to Select a Reliable NVOCC Service Provider

NVOCC service providers are many in this sector, making it quite challenging to pick on the most suitable one.

You need to be careful since not all providers are reliable in different aspects of providing this service.

Some important tips of obtaining and working with reliable NVOCC service provider include the following;

Are they experienced? – In this industry, experience is fundamental.

It is an illustration of exposure to all relevant information, which guides in the best decision making.

Always consider a provider with relative experience in handling such businesses.

Go for a credentialed entity – It always gives you peace of mind when dealing with accredited NVOCC service provider.

It becomes easy to trace the whereabouts of this agent.

Most importantly, it shows you are dealing with a recognized entity.

It should have multiple service contracts – It is a fundamental aspect when you are seeking alternative means.

And this is common after the availability of space on vessel, trucking, or Airline Company becomes an issue.

Should handle multiple types of shipments – The service provider should be versatile and able to provide alternatives in shipping different types of items to various destinations.

It should have relevant partners, experience, and know-how on how to go about shipping unique consignments.

Should have a network of agents in the destination country – This is an added advantage.

It facilitates easy, convenient, and faster movement of the consignment to your place.

In this case, the NVOCC service provider only coordinates with their network on the other end to enhance the efficiency of shipment.

Do they have the capacity? – An ideal NVOCC must have adequate human capital, facilities, and systems in place.

This enhances the efficiency of overall service delivery.

Required Qualifications for an NVOCC Service Provider

Before becoming an NVOCC service provider, you need to conform to specific regulations stipulated by the regulatory body.

Some of the requirements herein include the following;

You must obtain an operational license – Any NVOCC service provider must be credentialed by a particular organization regulating this trade.

An entity can only obtain a license after meeting all the required standards for the trade.

Proof of financial responsibility – The essence of this is to display the ability to pay off claims should they arise.

Ideally, it acts as a cushioning measure, which comes in handy when there is a claim repayment raised against the entity.

Published tariff – It is the document, which outlines the cost and guiding principles of NVOCC services. The tariff is vital since it guides the customers on determining the best suitable for them.

It also helps as a guide for payment of claims should they arise.

Benefits of Working with a Licensed NVOCC

1. It guarantees a certain level of protection. All licensed NVOCCs comply with stipulated regulations, including the shipping Act. Failure may so lead to risk of facing unprecedented fines.
2. A licensed NVOCC is well-cushioned in the business since it has to deposit a mandatory base capital upon registration. This provides a safety net for the customers in case the NVOCC goes out of business while having your consignment in their custody.
3. There is always a price catalog, which all registered NVOCC must adhere to. In this case, you can always raise a complaint; in any event, you are overcharged.
4. Licensed NVOCCs are also held to rules and regulations by a regulatory body. It makes it possible for you to get relative support as a shipper whenever you feel aggrieved or feel unfairly treated.

Risk of Working with Un-licensed NVOCC

1. There is no level of protection. It is a 100% risk since unlicensed NVOCC service provider can hardly be traced to determine any fine in case of gross misconduct.
2. Any form of price control does not apply to unlicensed NVOCC. It can choose to extort you irrespective of the existing conditions, and there is nowhere you can report about it.
3. There is no cushioning amount of money unlicensed NVOCC service provider subjected to. It operates freely, and should the business go under, you’re like not to obtain your cargo in case it has it in possession.

The difference between OTIs, OFFs, and NVOCC

OTIs refers to a Federal Maritime Commission-licensed entity to operate as an NVOCC or ocean freight forwarder or both.

It merely implies that OFFs and NVOCC are or can both be OTI.

OFFs refer to Ocean Freight Forwarders responsible for arranging international cargo shipments.

It may involve booking a space on a vessel or merely dispatching a consignment.

To become an OFFs, you must be FMC-licensed.

You must also provide financial responsibility for any imminent claims, which might arise from cargo transportation.

NVOCCs refer to carriers providing ocean transportation but hardly operate their vessels.

They contract transportation to a vessel owner, but the NVOCC is liable for the shipment.

Cost of NVOCC Services

The cost of these services varies significantly depending on many factors.

For instance, the quantity of the shipment determines the specific price you’ll pay for these services.

Large consignment is usually more expensive to ship using NVOCC compared to smaller shipments.

The distance is also another element determining the NVOCC shipping cost.

The longer the distance, the higher the charges.

Also, the specific mode of transport used influences the amount payable for this service.

The cost for air, trucking, and ocean freight vary hence determines the specific amount of money you will pay.

Moreover, the NVOCC entity you choose to work with also determines the actual price you’ll pay in the long run.

Even so, it would be important to understand a regulating body often controls the prices for this service.

Ocean freight

How to handle the Unexpected Situations when Shipping with NVOCC

Effective communication is vital.

You need to be in contact with the NVOCC agent at their respective office.

It enables you to know the specific status, and you can find a better solution jointly if need be.

You can raise a complaint to the licensing board regarding the situation, especially if it a case of gross misconduct.

The licensing board will look into the matter and come up with a fair solution to both parties.

How to Determine NVOCC Charges

A Non-Vessel Working Standard Transport(NVOCC) is an ocean carrier that transports stock under its own Home Bill of Recharging.

Or indistinguishable documentation, without working ocean transportation vessels.

Charges at NVOCCs are dictated by the taxes and rates unveiled following the (FMC) Government Sea Commission.

In most cases, you will find that the charges of NVOCC vary broadly.

It is important that you identify a reputable NVOCC services provider to discuss these charges

Also, the levy records are information based on tax distributors.

All the NVOCCs should hold bills of replenishing and related archives for a long time from the date of shipment.

The FMC reviews tax records and loads under levies of authorized NVOCCs practically on interest.

Finally, NVOCCs should not take part in unjustifiable or irrational segregation to treat transporters under taxes.

How House Bill of Lading Compares to Master Bill of Lading

The House Bill of Lading is a necessary document to move a cargo shipment.

It functions as a receipt of cargo benefits, an agreement between a cargo transporter, and an archive of title.

In contrast, a Master Bill of Lading is a record made for delivery organizations by their transporters as a receipt of the move.

The form incorporates the terms for moving the cargo and the distributor’s name.

Or the transporter and the representative, the individual who has the products.

Difference between Carrier Owned Container and Shipper Owned Container

Transporter Possessed Holder likewise saw as a ”COC” is a compartment claimed via transporter.

For this situation, the carrier asserts the Holder and controls most of the entire vehicle chain.

COC is regularly used for standard shipments on very clamoring courses.

Simultaneously, Transporter Possessed Compartment (SOC) gathers that a load holder is claimed by a proctor(consignee) or a holder possessed by the products’ transporter.

An extraordinary piece of a room of this is the cause of confinement or routine arrangement of costs charge and Demurrage portions.

They form part of the charges for drawing out the compartment’s usage.

When the transporter claims the container, it is called Transporter Possessed Holder (SOC).

When the Holder is possessed, worked, or rented by the transporter is called Transporter Claimed Holder (COC) of Carrier Owned Container.

Benefits of Neutral NVOCC

Since NVOCC can probably go as a carrier, they can give their Home Bills of Renewing (HBL).

These provide both the NVOCC and their customers the advantage of time-adequacy.

Consequently, leaving one-less development during the time spent getting your payload from its early phase endpoint.

NVOCC’s gives you more considerable flexibility with rates.

Much of this has to do with the setup associations, and associations kept up by NVOCC’s.

These are now and again prepared to figure out or lower rates on shipments gatherings.

Utilizing an NVOCC can diminish your costs.

Furthermore, an NVOCC works with both upsides of a payload forwarder and a carrier.

And your cargo can get from its beginning stage to objective without the impedances achieved by working with another airline.

NVOCC straightforwardly consents to a cargo arrangement with delivery organizations.

They upgrade venture competitiveness available.

NVOCC acknowledges transfer solicitations of cargo forwarder partners and, in conclusion, gives sea bills of replenishing for the organization’s sake.

Documents NVOCC Issues when You’re Importing from China

Some of the key documents include:

· Bill of Filling (B/L)

The bill of replenishing should have the name of the representative, name of the boat, the inception and objective, and the imprint and amount of the products.

There are two sorts of bills of replenishing.

A non-debatable statement of filling is a straight bill of replenishing.

The products recorded in the packing account must be received by a particular representative on the bill of replenishing at the port destination.

Besides, the conveyor bill of replenishing is negotiable.

In case the transporter may convey the merchandise to the proctor determined in the statement of filling at the port of destination.

Airway Bill

The transportation archive is given via air transporters of their representatives.

It is a receipt of the transporter’s products and the agreement between the transporter and the transporter.

 Airway bill is proof that the transporter is liable for taking care of your products to the assigned objective.

Commercial Solicitations

The record is delivered by the merchant, containing the name, amount, and transfer cost.

Consular Receipt

It is a particular type of invoice issued by the consul of the importing country.

Usually, the exporter fills in a form provided by the importing country’s consular office.

It is done at the customs office of the importing country.

Certificate of Cause

It is a certificate given by the consul of the government of the exporting country.

It certifies the origin or manufacture of goods to be exported.

Import Permit

A few countries require importers permit before the importation of goods.

It is a mandatory document for some countries, while others do not need it.

Fumigation Certificate

It is given to prove that an exterminator has fumigated the goods before exporting and importing them.

Mostly fumigated goods are grains, oilseeds, beans, and other different items.

Packing List

It is a document entailing what is contained in the shipment.

Packing list acts as an alternative form of an invoice.

It gives more details on the credit letter between the seller and the buyer.

Certificate of Hazardous Products

When importing and exporting certain dangerous goods to the environment such as shipping lithium battery, one needs the certificate before importing and exporting.

Insurance Certificates

An insurance certificate is offered by the insurer.

This is when you accept insurance goods during importation and exportation.

Cargo insurance is purchased at the export before shipment.

When goods are lost, stolen, or damaged during the transport, the insurance certificate will claim.

How NVOCC compares to Ocean Freight Forwarder

Ocean Freight Forwarders are agents to transporters who work independently under their own rules.

While NVOCC is carriers to transporters who oversee or hold freight holders.

How LCL Shipping compares to FCL Shipping

FCL is a type of shipments for which all merchandise in a compartment are possessed by one individual.

While LCL includes various transporters ‘products pressed together.

For example, LCL permits you to keep a more modest, more versatile item stock, while FCL is ideal for large and enormous volume items.

Difference between Less than Truckload (LTL) Shipment and Less than Container Load (LCL) Shipping

Less than Truckload (LTL) movements are mainly over the road shipments, while less than container (LCL) is a combination of both ground and water transportation.

Top NVOCC Companies in China

Some of the most common NVOCC companies include:

• Expeditors International of Washington
• Orient Express container
• Apex Shipping
• Phoenix International freight service
• Blue Anchor Line
• Top ocean Consolidation service
• Schenkerocean (Hong Kong)
• Honour Lane Shipping
• Henchy Shipping
• Ceva Logistics
• SDV/Boll ore Group
• Nippon Express
• Sino trans Limited
• Pantos Logistics
• Hellman Worldwide Logistics
• Kintetsu World Express
• Zhen Hua Logistic Group
• Keene + Nagel Inc.
• Sipco Transport Ltd
• AONE (HK) Cargo Service Co Limited
• Shenzhen Jialing International Freight Agency

How NVOCC Business Models Works when Importing from China

When NVOCC takes part in transportation, it gets into a contract with the client, issues transport reports (FCT, FBL), and bears liabilities for the transport.

NVOCC ensures it engages in legal transportation during shipment.

The NVOCC Plan of importing from China is in three categories.

1) Carrier – type NVOCCs

Such NVOCCs complete transport exercises on their transport courses, recognize the transportation items, issue bills of filling, and bear liabilities for adversities or damage to the product during transportation.

They convey the products to real carriers, receive the goods at the destination, and then deliver the consignee’s goods.

They are legally binding transporters and don’t complete the transportation themselves.

2) On – Carrier Type NVOCCs

Such NVOCCs only take part in the shipment.

They have several branches at various destinations, get products from transporters, and issue bills of filling.

After this completion, they then continue with transportation, transit, and ship goods to carriers.

The carriers then complete the transport, by receiving goods at the destination and then deliver new goods to the consignee.

3) Broker – type NVOCCs

This type does not directly provide transport services for shippers.

Instead, they take goods and deliver them in smaller packages to on- carriers.

This depends on the mode of transportation and directions then issue a bill of lading.

How to Verify NVOCC in China

Find the organization’s location, address, and the profile from the website on the internet.

In most cases, organizations will send their business license to potential clients.

You will use this to verify NVOCC in China.

If the information prov

Today, I will answer all questions you have been asking about another important import document – pro forma invoice.

You’re going to learn everything including what it is, the content, how it works, who issues the document, its purpose, among other important aspects.

Keep reading to learn more.

What is a Pro Forma Invoice?

A pro forma invoice is a shipping document that is sent by the seller to the buyer before the shipment of goods commences.

This document describes the items being purchased together with any other information regarding the shipment and payment of the goods.

Not forgetting that it also helps in calculating the cost estimates of your shipment.

Why do you need Pro Forma Invoice when Importing from China?

Sample pro forma invoice

There are several reasons as to why a pro forma invoice would be quite necessary when importing from China.

Some of the reasons why most importers use a pro forma invoice when importing from China include;

• Calculating cost estimates – When importing from China, a pro forma invoice will help in coming up with cost estimates of the shipment.
• A pro forma invoice facilitates smooth operations when goods are passed through customs.
• With a pro forma invoice, you can easily change your order if the need arises. You will only be required to update and convert your pro forma invoice into a full invoice.
• A pro forma invoice comes in handy in times when you are lacking the full details for a commercial invoice.
• Additionally, a pro forma invoice will help boost your profits as a business.
• A pro forma invoice also acts as a binding agreement ensuring that buyers know what they’re committing to.
• When importing from China, some financial institutions might use a pro forma invoice to open the letter of credit.
• A pro forma invoice is important in examining and reducing errors as the terms are clearly outlined.
• Not forgetting that a pro forma invoice forms a basis for bookkeeping as well as accounting.
• A pro forma invoice declares the value of the goods for customs which in turn helps speed up the payment process.

What is the difference between Invoice and Pro Forma Invoice?

A pro forma invoice refers to a trade document provided by the seller to the buyer giving clear information on what the buyer should expect from the sale.

In simple terms, a pro forma invoice states the quotation before you make your order.

On the other hand, an invoice serves as a proof of sale between the buyer and the supplier outlining the total amount to be paid.

An invoice will be issued after your order has been cleared.

Sample Invoice

Can you Pay Chinese Suppliers on Pro Forma Invoice?

No, you can’t.

A pro forma invoice is primarily used to clarify or establish the terms of a particular order and cannot be used for payment or accounting purposes.

However, there are several other payment methods that Chinese suppliers accept such as PayPal, wire transfer, and telegraphic transfers among others.

Can Pro Forma Invoice be cancelled when Importing from China?

No, it cannot be canceled.

However, you can choose to change the status of the same.

A Pro forma invoice doesn’t have any impact on accounting and therefore cannot be canceled.

Cancellation can only apply to account documents.

How do Pro Forma Invoices Work?

A pro forma invoice is a bill of sale sent by the seller to the buyers before the delivery of goods.

It is meant to ensure an efficient sales procedure.

Before you understand how a pro forma invoice works, let’s first have a quick look at contents of a pro forma invoice;

• The Payment terms
• The total amount due
• Reference number
• Buyers and seller’s contact details
• Country of origin
• The incoterms applicable
• All taxes including VAT
• Date of issue
• Signature and the title
• The unit pricing
• Description of the goods

After the seller sends the pro forma invoice, the buyer goes through it and decides whether or not he agrees to the invoice.

This includes the price indicated, the quantity of goods to be delivered together with any other inclusions contained in the pro forma invoice as stated above.

In as much as it includes cost details, a pro forma invoice does not demand payment of goods.

Its main purpose is to streamline sales operations as all terms are agreed upon upfront.

After the buyer is satisfied with the pro forma invoice, he or she issues a purchased order to the seller, and thereafter the sales process begins.

How does Pro Forma Invoice vs Commercial Invoice Compare?

Commercial invoice

Pro forma invoice and commercial invoice are two important documents in the import and export industry when dealing with any type of client.

One of the most asked questions is whether or not these two are the same. The answer is no.

A pro forma invoice and commercial invoice differ in a manner that;

Pro forma invoice is issued before the commencement of sales whereas a commercial invoice is issued after the acceptance of the sales contract.

To gain a better understanding of the two, here is a brief description.

Once a buyer shows interest in making a purchase, the seller sends him or her a pro forma invoice.

The invoice is meant to give the buyer a clear understanding of what he or she should expect.

After going through the pro forma invoice and accepting the terms stated, the buyer sends a purchase order or letter of credit to the seller.

It’s at this moment that the sales process begins as per the date stated in the pro forma invoice.

A commercial invoice prepared by the seller is sent to the buyer for the confirmation of sales made.

The contents of both the pro forma invoice and commercial invoice are more or less the same.

Nevertheless, the price might differ because the price stated in the pro forma invoice is not final.

Can you use Pro Forma Invoice for Advance Payment?

Yes, you can.

A pro forma invoice can be used to serve as a request for payment of goods that haven’t been sold yet.

In addition to that, it speeds up the payment process as the buyer is aware of what he owes to the seller.

How does Pro Forma Invoice vs Quotation Compare?

In as much as a pro forma invoice and a quotation might appear to serve the same purpose, they are different from each other.

A quotation refers to a document sent to the buyer detailing the goods needed together with their estimated costs.

On the other hand, a pro forma invoice is issued before the sales process and its main purpose is to give a clear outline of what the buyer should expect.

As compared to a pro forma invoice that shows commitment to a particular purchase, a quotation is normally sent in case of any inquiries.

Who Issues Pro Forma Invoice when Importing from China?

A pro forma invoice will be issued by your Chinese supplier.

They are responsible for preparing and sending you the pro forma invoice.

Sample pro forma invoice

Is there Specific Format for Writing Pro Forma Invoice?

Yes, there is.

Pro forma invoices have a specific format.

Preparing a pro forma invoice has been made simpler by the availability of several pro forma invoice templates as well as software.

Depending on your choice and preferences, you can choose one that is suitable for your business.

How do you Prepare Pro Forma Invoice?

The presence of several templates online has facilitated easier and faster preparation of pro forma invoice.

Once you download a template that best suits your needs or rather business, the next step will be to fill in your pro forma invoice.

First, fill out your contact details and business name.

You can also choose to customize it using your business logo.

Also, fill out your clients’ contact details, name, and business information.

Thereafter, include the payment due date, a unique invoice number as well as the invoice date.

Make sure that you have all the goods and services listed together with their costs.

Finally, do a calculation of the total costs and include them at the bottom part of your invoice.

Ensure that you have added the payment terms as well as any other additional information and specify that the pro forma invoice is “not a VAT invoice”.

Having done all these, your pro form invoice is ready to be sent to your buyer.

What is the Content of Pro Forma Invoice?

A pro forma invoice has a couple of contents that must not be omitted at any given time. Some of these contents include;

Content of Pro Forma Invoice

• The contact details of both the buyer and seller
• The terms of payment
• A full description of the goods in question
• The total amount due
• The date of issue
• Country of origin
• The seller’s banking details
• The unit pricing
• Incoterms applicable
• The reference number
• Signature and the title
• The validity of the pro forma invoice
• Al taxes applicable including the VAT

Can you use Pro Forma Invoice to Pay for Imported Goods from China?

No, you can’t.

Keep in mind that a pro forma invoice is not an actual invoice, it’s a “dummy” invoice.

Therefore, it’s not suitable and cannot be used for accounting purposes.

Is there Standard Format for Pro Forma Invoice?

No there isn’t.

A pro forma invoice can take different formats based on the seller’s preferences.

The different formats available are designed to suit different functions such as retail, services, as well as contract pro forma invoices among others.

Should Pro Forma Invoice include VAT?

Including VAT in a pro forma invoice is not mandatory.

However, including it in your pro forma invoice attracts other benefits such as;

• Creating awareness about the total amount to pay which in turn prevents any form of misunderstanding about the costs later on.
• Including a VAT will make it much easier and faster for you to convert the pro forma invoice into an invoice. To achieve this make sure that you make use of the same template.

What is the Difference Between Purchase Order and Pro Former Invoice?

A purchase order (PO) refers to a commercial trade document prepared and issued by the buyer to the seller to show interest in the purchasing of goods.

Once the supplier or seller receives the purchase order, he or she sends a pro forma invoice to the buyer.

The pro forma invoice states what the buyer should expect in terms of payment, delivery, and description of the goods among others.

What comes First – Purchase Order or Pro Forma Invoice?

A purchase order comes first followed by the pro forma invoice.

Remember a pro forma invoice is sent after the buyer sends a purchase order which shows the buyer’s interest in buying goods.

Does Pro Forma Invoice have a Number?

No, it doesn’t.

Invoice numbers are only held in reserve for finalized or completed invoices.

Who Signs the Pro Forma Invoice?

A pro forma invoice is signed by the buyer once he or she accepts the terms in the pro forma invoice.

Thereafter, the buyer submits the pro forma invoice together with a purchase order to the supplier.

What are the Best Practices when Creating a Pro Forma Invoice?

When creating a pro forma invoice you need to make sure that it is effective.

By this I mean, it should be easily understood, and be straight to the point.

To achieve this;

• As a buyer, ensure that you don’t mark the pro forma invoice as account payable. Keep in mind that the pro form invoice is only meant to clarify what you should expect and that you haven’t made any purchases yet.
• Including the dates is an important factor to remember as prices of goods and commodities fluctuate from time to time.
• As a seller, you should not mark the accounts as receivable as you are yet to make any sales.

When should you use a Pro Forma Invoice?

Pro forma invoices are important for most if not all types of businesses involved in buying goods and services.

Here are some instances that will prompt the use of a pro forma invoice;

• When acquiring import permits.
• A pro forma invoice can be used when paying for custom duties.
• Additionally, you can use it when opening a line of credit for a particular purchase.

Not forgetting that Pro forma invoice is applicable in most industries not excluding; manufacturing, import/export, wholesalers as well as trading industries among others.

What is the Validity Period of a Pro Forma Invoice?

The validity period of a pro forma invoice varies from one business to the other.

The validity is as stated on the pro forma by your supplier.

Is a Pro Forma Invoice Legally Binding?

No.

A pro forma invoice lacks legal validity and therefore it is not legally binding to either party.

It is used to highlight the terms of sale once an order is made.

I hope you this guide did answer all your questions on pro forma invoice.

In case you have any additional questions, Tj chinafreight team is here to help.