If you’re looking for any information about duty drawback, you will find it right here.

This guide explains everything about duty drawback, from basic to advanced concepts.

Keep reading if you want to learn more about duty drawback

What is Duty Drawback?

Duty drawback is a refund of import duties, taxes, and fees paid on imports that are subsequently exported.

The term also refers to recovered duties on imported articles manufactured and re-exported from the country.

A refund of duties and taxes paid on imported goods exported unused is also known as duty drawback.

Unused, in this case, refers to imports that were not used for their intended purpose.

Please note that customs authorities only issue drawbacks on imports that are re-exported or destroyed.

You also have to make an official claim within the stipulated timeframe to get drawbacks.

What is a Duty Drawback Program?

A duty drawback program is a scheme drawn to evaluate and implement a duty drawback opportunity.

Most countries allow duty drawback programs as a means to encourage local manufacturing and promote trade among nations.

These programs are aimed at reducing the financial burden and regrets experienced by international traders.

The program particularly focuses on preventing double taxation of goods brought in and out of the country.

You can easily reduce exportation costs by claiming refunds of duties paid on goods that you’d previously imported-recurrently.

You should find a reputable duty drawback agent to help you develop and manage a drawback program that will benefit your business.

How can a Duty Drawback help your Business?

Your business can benefit from duty drawbacks in the following ways;

• It can help you grow your sales with more competitive pricing.
• A duty drawback can be a great source of cash for your business. You can plow back the money into your business as stock capital or use it to cater for operational costs and other things.
• It increases your business revenue and general cash flow.
• Drawbacks can help enhance your business competitiveness by leveling the playing field. With almost 99% refund of customs duties when you export, you can easily manufacture or run your business duty-free.
• Lowers cost of goods thereby maximizing your profits.

How do Duty Drawbacks Work?

Duty drawbacks work in a fairly similar way as a sales tax refund.

You can claim a duty refund when you export goods that had previously been imported.

Similarly, you can also get a sales tax refund when you return goods to a store.

What is a Duty Drawback Evaluation?

A duty drawback evaluation is a process through which your eligibility for drawback is determined.

It identifies if you have a drawback opportunity as well as the number of duties you can recover.

The evaluation process determines the necessary steps to implement your drawback program if any.

Through this process, you get to know your eligibility for drawback and how much time and effort you will put in to get the refund.

You can contact us today to see if you qualify for a duty drawback program.

What is a Duty Drawback Assessment?

A duty drawback assessment determines if claiming a drawback is a viable option for your business.

For this process, you need to fill out a duty drawback assessment form.

This helps your agent work out a way forward in getting you the maximum drawback on duties in the shortest time possible.

Understand that getting started with a duty drawback assessment is quite tedious.

The process is meticulous and requires lots of information.

You will have to present the value and number of imports and exports over a specified period.

Specific export and import documents are also needed at this stage.

Note that the first steps of a duty drawback assessment will help you move through the process quickly despite all the work.

So make sure you provide every necessary information and paperwork to avoid delaying the process.

Who can Claim Duty Drawback?

Anybody can claim a duty drawback as long as they are in the business of importing and exporting goods in their country.

It can be an importer, manufacturer, or exporter.

All you need to do is provide the necessary authorization and paperwork to your respective country’s customs office.

How do you Claim Duty Drawback?

To get a duty refund, you must prove that, indeed, customs owes you some money.

The first step to proving this is to understand the circumstances that can make you eligible for a duty drawback.

That is, your imports must have been re-exported, used to manufacture other export goods, or destroyed.

After evaluating your eligibility for drawback, it is now upon you to get the necessary details and paperwork before applying for drawback.

Once your agent drafts a viable duty drawback program for you, go ahead and file your application.

Please note that in recent years, the procedure for claiming duty drawback has become much simple.

Just make sure that you have all the data about your import and export transactions for the past five years.

Once you have this, proceed to fill out a claim form.

It is important to give accurate data and account transactions for you to be guaranteed a 99% drawback.

After you fill the claim form and present it, the time frame to receive the refund via your bank account will vary.

Generally, you should allow 3-6 weeks to get the duty refund.

As you can tell, the entire process of claiming duty drawback requires patience and understanding.

If your claim application is unsuccessful, try to follow up and get the reasons for rejection.

If you feel that it was unjust, consult with your broker on ways to appeal the decision.

What is the Percentage of Duty Drawback?

You can claim up to 99% of duties, taxes, or fees paid to customs.

This is if your import goods are unused, exported, or used to manufacture another export product.

When is Duty Drawback not allowed?

In most countries, drawback recovery is prohibited for goods exported to the country’s held territories and military installations.

You may also fail to get a duty refund when you export to countries that do not allow duty drawback.

Check with your respective customs office to be sure of the exact circumstances you can claim drawback.

Your duty drawback broker can also advise you on this.

What Types of Duties are Eligible for Duty Drawback?

You can claim a refund on the following types of duties:

• AD Valorem where assessment is done according to the value of the shipment. The percentage of refund will be based on the entered value after assessment.
• The voluntary tender linking to a specific entry.
• Duty paid on goods with an incorrect country of origin label.
• Merchandise processing fees. This is charged based on the declared value of shipments.
• Specific duty, per unit of goods
• Harbor maintenance fees. This is imposed on goods that you ship by sea. A specific percentage of HMF fees (set by respective customs) are charged on the shipment’s value.

Are there any Exceptions to allowable Duty Drawbacks?

Yes, there are exceptions to duty drawbacks.

Apart from the circumstance we’ve mentioned in Q1, there are other specific instances in which you’re allowed to claim drawback.

These are the most instances in which you pay fees for operations that are not part of the manufacturing process.

They include fees paid for the inspection, repair, cleaning, repackaging, and blending, among other things.

Do you need Government Permission to Claim Duty Drawback?

Yes, you do. But first things first, you need to know the exact type of duty drawback you qualify for.

Then the types of applications and rulings you require before you qualify for the drawback.

Acquisition of the applications and rulings are subject to approval by the government.

The government needs to approve documents of transactions incurred before applying for duty drawback.

Can you Claim Drawbacks if you Buy Imported Goods from a Local Vendor?

Yes.

You can receive duty drawbacks in most cases, even if you are dealing with local vendors; you are purchasing from local vendors and exporting.

You need to agree with the vendor on personal terms and the manner of handling confidential cost data.

Additionally, you can approach the third party to keep your secret information and that of the vendor.

After agreeing and claiming the duty drawback, everyone wins without loss of any confidential information.

What is the Timeframe for Filing a Duty Drawback Claim?

The provided duty drawback regulations allow for three years from export to file for a duty drawback claim.

Lucky for you, if you’ve been exporting imported goods, you can file duty drawback claims for goods that you exported up to five years ago.

Besides, brokers are allowed five years to claim duty drawbacks on your behalf.

All you need to do is liaise with a broker of your choice.

Complete the broker’s drawback assessment and allow them to claim duty drawback on your behalf.

Should you Submit one Drawback Claim for each Export?

This depends entirely on you.

However, the process of duty drawback claim is hectic if done on a single export.

Assume you export more than ten products.

Attaching documents for each product will be tiresome and time-consuming.

To reduce strain and minimize time wastage, you can apply duty drawbacks on your exports together.

You start by grouping them periodically, that is, monthly, quarterly, or annually.

Then you claim drawbacks based on the quantities exported during these periods.

Grouping helps you claim lump-sum duty drawbacks at once.

What are the Elements necessary to Claim a Duty Drawback?

The whole process of duty drawback claim relies on data.

The data provided should be accurate and can be easily proven.

If you are claiming a drawback, you should provide documents whenever needed to back up the claim.

Accurate data is key as it saves on time wastage when you are asked for other information.

More importantly, your claim must meet all the elements necessary for a drawback.

These are:

• You must have previously imported the goods for which you’re claiming drawback
• You must have paid duty for these goods during importation and have proof to back up the claim.
• The goods should be entered for export within the government-stipulated time from the date you paid for their import duty-no matter provisional or final duty.

Customs can always extend the period for entry as long as you provide sufficient reasons for the extension.

• Customs must be able to identify the goods as what you’d previously imported.
• Re-exportation of the goods must be outside their import country.
• The claim amount must not exceed the market price of the goods for which you’re claiming drawback.

These elements are not cast in stone as each country has its requirements that drawback claims must meet.

How many Types of Duty Drawbacks are there?

There are three major types of duty drawbacks provided by the Customs services.

· Manufacturing Drawback

This is applicable when you import a product and then transform it into a new product or improve its quality before exporting.

In such a case, you can claim a refund on duties paid.

If the manufactured goods are destroyed before exportation, you can also ask for manufacturing duty recovery.

· Unused Drawback

In cases where you import a product and export it essentially in the same form, you are eligible for a refund on duties charged.

· Rejected Merchandise Drawback

This drawback provides for duty refunds on goods imported and destroyed or not used under customs supervision.

You can apply for this drawback if your goods are;

• Defective and do not conform to specifications.
• Shipped without the consent of the consignee
• Has been confirmed to be substandard during the time of importation

How do you Calculate Drawbacks?

Duty drawbacks are calculated based on set parameters.

You can use the following parameters in calculating duty drawback.

• industry prescribed rates
• the brand rate
• Special brand rate

Duty drawback is applicable when expenses are incurred on the packaging and acquiring extra indigenous goods to supplement the Import good.

The prescribed rates of calculating drawbacks are based on the following; duty drawback amounts, minimum drawback amount, and the minimum percent of duty drawback.

To calculate the duty drawbacks, multiply the estimated annual drawback paid by the percentage of sales made annually.

Further, calculate 99% of the amount you get after multiplying.

This will give you a rough estimate of your duty drawbacks.

 What Paperwork do you need when Obtaining a Duty Drawback?

Depending on the type of drawback applied, paperwork usually varies.

It is important to select an agent who will help you navigate the whole process and file the applicable documents.

The needed paperwork is categorized into;

· Import Paperwork

Here, you should be able to provide data that shows the duty charged on the imported materials.

Information can be in summary, and invoices received on duty charged.

· Manufacturing Paperwork

You should have details that verify the manufacturing of the imported product up to a finished product.

There should be time frames and details on the imported materials used of the same kind and quality as the exported final good.

· Export Paperwork

You should also provide export invoices and loading documents that prove the products were exported.

How Long does it take to get a Duty Drawback Claim?

The time frame varies depending on;

• Number of parties involved
• Existence of electronic records
• The complexity of the import and export transactions

Normally, the whole process of receiving the first check ranges from four to eight months.

To hasten the process, investing in a customs broker is beneficial.

You can also request customs privileges that can help hasten the compensation process.

The accelerated payment privilege (APP) for claimants in the US is one such example.

An APP can guarantee your claim within 45 days from the date of application.

You may have to wait for the estimated time ranges or even longer, depending on your customs service, without such privileges.

What is a Waiver of Prior Notice?

If you are in the re-exporting business, then you qualify for the waiver of prior notice.

It is a notice of intent that you provide to customs, and once obtained, you can always export your goods at will.

The waiver of prior notice may be applicable for a period allowed by the custom.

You are required to obtain another one once the given period lapses.

How do you know if you Qualify for Duty Drawback?

As long as you import or export products, you are eligible for some duty drawback.

Suppose within your business, one or more products that you supply are exported.

In that case, you and your customer can qualify for duty drawback.

To know if you are eligible for duty drawback, simply choose a trusted broker; inform them of your transaction.

They will help you evaluate the nature of your transaction and the possibility of qualifying for a duty drawback.

What are the Possible Duty Drawback Compliance issues?

You must conform to set standards and provide the needed proof before being eligible to receive duty drawbacks.

Among the possible duty drawback compliance issues are;

• Being able to prove the manufacture of materials
• Ability to keep with the statutory time frames
• Failure to keep the accurate bill of materials
• Failure to keep privileges and rulings current

You should address the following issues to increase your chances of getting duty drawbacks.

Can you Claim a Drawback for Past Imports and Exports?

Absolutely!

You can claim duty drawback from imports and exports you made up to five years ago.

You only need to have the necessary documents, check if you qualify, and apply for a duty drawback.

The process can prove tiresome and cumbersome, but it is worth every second of your time.

The refund can help boost your business.

Nevertheless, the date of the qualifying export should be after the date the import was made.

What is Substitution?

Substitution is for example where you, as a trader, import toys from China and at the same time acquire toys locally that are similar to those imported, mix them, and export.

In such a case, substitution makes it difficult to differentiate those imported goods from the domestic acquired ones.

What are the Advantages of Substitution?

Substitution is profitable to the importer who mixes imports with similar domestic products and later export to customers.

It has the following advantages:

• The customer receiving the exported goods is not able to differentiate goods exported.

They cannot specify the source of import.

• Substitution increases the duty drawbacks to be claimed on exports and imports.

Assume there is free duty to be imposed after a specific period. Duty drawbacks can be claimed on goods that are imported and exported after the period.

This can generate extra revenue for the company or business.

• Substitution can increase your output to be exported. You simply match the imports with similar domestic products and export.

Can you Apply Drawbacks to Damaged Exports?

Yes, you can apply drawbacks on goods that are destroyed.

But this has to be on the condition that the goods got damaged under customs supervision.

You need to provide solid proof that indeed the goods got destroyed under customs supervision.

The government will also have to ascertain this fact before deciding whether to issue you a refund on duties paid.

What is a Drawback Shipping Bill?

The shipping bill is an important document issued by customs services upon request by the exporter.

Its purpose is to allow the exporter to load goods, claim duty drawbacks, and get cleared.

A drawback shipping bill contains the following crucial information;

• Exporter, buyer, and customs agent’s details
• General cargo details
• The loading port and transportation port details
• Exchange rates and container numbers
• Duty drawback details
• Insurance amount of the commodity
• The invoice value of the cargo

The bill facilitates easy movement of the product out of the country.

To receive duty drawbacks on goods imported, you must attach the drawback shipping bill during application.

What should you look for in a Reliable Duty Drawback Broker?

It is paramount for any business engaging in importing and exporting to have a good broker to aid them in claiming duty drawbacks.

A good broker deals with the whole process meticulously to guarantee you the result desired.

In choosing a good broker, the following factors have to be put into perspective.

· Service Cost

The broker should charge a reasonable and competitive fee.

It would be best if you chose a broker with the best services at an affordable cost.

Compare different brokerage companies and choose the most cost-efficient one.

· Experience and Area of Expertise

The longer the broker has been in the market, the higher their experience.

It is important to choose a broker with a good reputation implied by a long time in providing brokerage services.

You can always verify the broker’s reputation based on their portfolio and testimonials.

The broker should be perfect and professional to increase the success rate of getting you the most drawbacks on time.

· Instant File Claims

Time is crucial when it comes to claiming duty drawbacks.

A good broker cuts the deal and begins the due process.

Your chosen broker should deliver on the agreement at the earliest possible time.

The whole process needs to be swift and such that you receive your drawbacks in your account at the earliest time possible.

· Connection with the Government

A reliable broker should have connections in the government to hasten the whole process.

You need your money as fast as possible.

With connection comes trust and favors hence improving the duty recovery process.

Claiming duty drawbacks is a legal process backed up by tariffs and laws.

The process should be transparent and in your favor. Contact us today for the best and affordable brokerage services.

How much do Duty Drawback Services Cost?

Usually, the cost of duty drawback services varies depending on several factors.

These are the type of duty drawback, the information you’re presenting, and the amount of refund.

To get a clear estimate, you’ll need to complete an evaluation questionnaire.

Your agent will use the information therein to create a befitting service quote for you.

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This guide answers all questions you have been asking about the ECCN number.

Whether you want to know about the requirements, charges, or minimum shipment value that qualifies for ECCN number, you will find everything in this guide.

Keep reading to learn more.

What is the ECCN Number?

ECCN refers to an abbreviated form of the Export Control Classification Number.

It consists of alphanumeric characters and is typically used in the classification and identification of different types of products.

Most of the items identified and classified using the ECCN number have applications for defense or military purposes.

The classification of ECCN is also based on product category, group, series, and the sequential numbering of the items.

ECCN number is derived from the nature and technical specifications of the products.

This entails the type of commodity and technology, among other aspects.

In many instances, it also requires a meticulous study to comprehend the item appropriately before attempting classification.

Technically, it is the record exporter’s responsibility to know whether their exported commodities have ECCN or not.

What is the comparison among ECCN, HS code, and HTS code?

All these numbers or codes are essential in facilitating the efficiency of international business.

However, they tend to vary slightly on specific grounds, especially when it comes to the purpose in international trade.

Here is how these codes vary in international shipping;

· ECCN Number

This refers to a five-digit alphanumeric designation used in CCL to identify specific products for export control purposes.

After you identify the ECCN number, you can figure out the reasons for controlling the item.

It also allows you to know the transactions, which may need an export license depending on the specific country of destination.

You may also determine the products with export license applications using the ECCN number.

· HS Code

This is a six-digit classification number used for identifying the tax rates for particular commodities.

It is used mostly by the customs authorities since it makes it easier for them to determine the duty and tax payable for an item.

In many cases, you use HS code when referencing the classification with your customers, vendors, and retailers, among others.

Most countries often add additional digits to the HS number to further differentiate products in particular categories.

Ostensibly, these extra digits usually vary in different countries.

· HTS Code

This is a 10-digit number used in import classification systems, specifically in the United States.

The HTS code is administered by the US International Trade Commission (ITC).

Moreover, commodity duty is often evaluated based on the HTS number classification.

HTS code and HS code take a similar format for the first six digits. However, the former has four different last digits.

If you are importing to the US, it is mandatory to use the HTS code.

How do you get ECCN Number?

There are several means, which can explore when in need of an ECCN number for your products.

Whenever you require this number, some of the options you always explore include the following;

· Talking to the Manufacturer

In many instances, manufacturers often have an ECCN number assigned to them.

It thus makes it easy for you to get if from them provide it to you whenever you want to export certain products.

· Commerce Control List

This refers to a list of categories and product groups used in enabling you to determine the necessity of an export license for U.S exports.

Therefore, you can simply go through this list carefully to determine the right ECCN number for your product.

Check through the specific categories and capture the right ECCN number, which closely fits your product.

· Electronic Request for Item Classification

Also known as ERIC, it is an online process allowing you to obtain the ECCN number for your respective commodity.

To start with this process, you’ll have to visit the BIS website. You’ll get a PIN code to use for applying online.

· Requesting from BIS

You can as well write from the BIS to request your ECCN.

This involves using of BIS multipurpose application form known as BIS-748P.

However, this often takes between 3-4 weeks. Therefore, if you choose to go in this direction, ensure you apply relatively early.

How is ECCN Number related to CCL?

Commerce Control List (CCL) is a list, which identifies the items regulated by the Bureau of Industry and Security (BIS).

This list makes it possible for you to determine whether the specific product group you are exporting requires licenses.

Ideally, a proper review of CCL makes it easy and necessary to determine the product’s ECCN.

The first ECCN digit represents the category of an item as outlined by the CCL.

Each of these categories is further subdivided into five product groups.

The sub-divided product group gives the second character of the ECCN.

The final digits in the ECCN number are provided by CCL and are dependent on the particular characteristics and functions of an item.

The product groups under CCL entail the following;

1) System, equipment, and related components

2) Test, inspection & production equipment

3) Material

4) Software

5) Technology

Are there Requirements for ECCN classification Requests?

Yes.

In many instances, every request is restricted to five items.

However, there can be exceptions on a case-by-case basis for numerous related commodities.

But this is pegged on substantiation and documentation of the relationship between products.

It is always recommended to attach brochures, descriptive literature, or technical specifications.

This allows the licensing officials to determine the right ECCN.

On form BIS-748P, you need to complete blocks 1-5, block 14 and block 22 (b, c, i, j).

If there is a need for more space for technical specification in block 22 (j), you can use Appendix Form 748 PA for additional space.

It is also necessary to attempt to identify the product.

After completing, you need to sign the form and submit to BIS at their respective address.

How can you find a Product on the Commerce Control List?

Ideally, CCL is divided into ten classifications.

The first numerical character in the ECCN is for the identification category within which the specific entry falls.

For instance, 4A001 is in category 4; computers.

The list of CCL product categories is as follows;

0. Nuclear elements, Facilities and Equipment, and Miscellaneous

1. Chemical materials, toxins, and Micro-organisms
2. Materials processing
3. Electronics
4. Computers
5. Telecommunication and Information security
6. Sensors
7. Navigation and Avionics
8. Marine
9. Propulsion systems, Space vehicles, and related equipment

In principle, each item is arranged by a group in each category.

The second character (alpha) indicates under which the respective groups the product is listed.

For instance, 3A001 would be in group A, equipment, assemblies as well as components.

Every category entails similar five groups, which are;

A. Equipment, Assemblies & Components

B. Test, Inspection & Production Equipment

C. Materials

D. Software

E. Technology

The rest of the digits are for identifying the purpose for control related to the item.

Ideally, you do not necessarily need to identify the specific reasons for controls associated with particular digits.

There is always a brief product description provided next to every ECCN.

You’ll also see the license requirements, license exceptions, and a list of items controlled sections.

Once you determine where your product fits within the CCL, you’ll need to use information in the License Requirement section.

This allows you to determine if there is a necessity for obtaining a license for the item.

You also need to check the Country Chart to ensure the license is not required for shipments exported to that specific country.

There is a possibility the specific product may not require a license.

However, due to the country of destination or the ultimate user, the shipment may still need an export license.

For items, which need a license, the CCL also outlines the specific reasons for control of the product.

Some of the reasons include Anti-terrorism (AT), National Security (NS); Regional Stability (RS); High-level computer (XP), and Missile Technology (MT).

Others include Crime Control (CC); Chemical and Biological Weapons (BC); Short Supply (SS); Significant Items (SI); and Encryption Item (EI) among others.

Are there Charges for Submitting a License Application to BIS?

Not at all.

You are never charged any fee when applying for a license application.

There are also no charges when applying a commodity request to BIS.

What is the Importance of ECCN Number?

ECCN number is an essential step in export compliance.

Ideally, it comes in handy in determining whether an export license is required to export a commodity.

This number is also essential for your shipment related to concerns regarding the parties to the transaction and the product’s ultimate use.

It allows you to refrain from unnecessary fines arising from incorrect classification of the product.

Technically, classification mistakes may lead to severe consequences in your business.

Moreover, obtaining the wrong classification may also subject your business to future exports.

Of course, this can be detrimental, mainly if your entity solely relies on international trade.

Thus getting ECCN number enables you to prevent all such incidents from arising.

The ECCN number also allows you to stay up to date with the ever-changing CCL classification.

Ultimately, it enables you always to get updated regarding changes, which might affect your products’ category.

What is the Code Format of ECCN Number?

In principle, ECCN is a five-character alphanumeric code.

For instance, 3A001.

So the format is structured as the following;

• The format begins with the category from CCL, which the specific product falls into. Ideally, there are ten categories to select from.

Therefore, an ECCN code, which starts with digit 3 would be electronics.

The ECCN for chemical exported would begin with digit 1.

• The next element in the code is a letter showing the specific product group.

Technically, there are five different product groups, including systems, material, technology, software, and test equipment.

• The last 3 digits outline the particular reasons for licensing control on the specific type of item or product.

What is the Difference Between Schedule B and ECCN Number?

These terms are common in international business and can be somewhat confusing, especially for a newbie in this industry.

Schedule B refers to a 10-digit number, typically a subset of HTS codes for the US importers.

In many instances, Schedule B is used by the US government for statistical purposes to monitor US exports.

In other words, Schedule B numbers are codes produced by the U.S Census Bureau.

The essence is to help in tracking trade statistics and measuring value and volume of exports.

Most entities, which export ordinarily prefer using Schedule B codes for their respective commodities instead of HTS codes.

Given the Schedule B codes are a subset of HTS codes, it’s often easier and faster for exporters to classify products under Schedule B than HTS.

On the other hand, ECCN number is 5-digit alphanumeric designations used for classifying products based on their nature.

ECCN is essential in giving the exporter heads-up to determine the right reasons for licensing and respective requirements.

Ideally, ECCN enables you to determine whether or not the product requires special controls before exporting.

What Happens if you Cannot Review a Product on ECCN Number?

In some instances, you may review the CCL and end up convinced your item hardly fits into the parameters of any ECCN classification.

However, this doesn’t in any way you are off the hook from fro export control.

Primarily, end-use and end-user are the reasons controls exist.

In instances where the item does not fit in any ECCN classification, it means it may be designated as EAR99.

Even so, it doesn’t imply that a different agency controls it.

And in such cases, you may export your commodity using the license exception NLR.

This license specifies there is no license required as long as all the following measures are met;

• Shipping to destinations that are not on the sanctioned destinations list
• Shipping to individuals or entities is hardly considered a sanctioned entity or denied person. Additionally, the end-user must also never be restricted from the use of that item.
• Shipping for a type of end-use that does not need higher controls.

If you are exporting a product, which meets all these conditions, it can be referred to as EAR99 (NLR). In this case, NLR refers to “No License Required.”

What is the Minimum Shipment Value that Qualifies for ECCN Number?

The value of the shipment does not influence the requirements for obtaining an export license.

Even so, the product’s value may affect the availability of license exceptions and requirements for filing an AES record.

Ostensibly, if an export license is required, it also means the AES filing is a requirement.

What does a Designation of EAR99 mean?

Ideally, most products exported from the U.S do not necessarily require an export license.

EAR99 designation refers to a classification for an item.

It indicates that a specific item is subject to Export Administration Regulation (EAR) but not essentially described in ECCN on CCL.

In other words, it means the item does not fit within the parameters of ECCN.

However, the item can still be subject to EAR but not necessarily under the control of another federal agency.

Such an item can therefore be designated as EAR99 and require no license on the following grounds;

• The item is not being transported to a prohibited destination
• The item is no transported to a denied party, sanctioned entity, or forbidden end-user

What is the difference between EAR99 and NLR?

Primarily, EAR99 is a classification designation for a product subject to the EAR.

However, such a product is not essentially described by an ECCN on the Commerce Control List.

NLR, on the other hand, is an acronym for No License Required, is a shipment designation.

You may use NLR for either EAR99 products or items on CCL, which do not require an export license for the destination, end-use, and end-user.

Items listed as EAR99 may be shipped under shipment designation NLR.

However, products shipped to a prohibited country, an end-user of concern or in support of prohibited end-use may require a license.

Does ECCN Number influence the need for an Export License?

Not really.

EAR99 items will always ship under the export designation “NLR,” which is a short form of “No License Required.”

However, if you’ll need to get an export license if your proposed export for an EAR99 item exhibits the following measures;

• Shipped to an embargoed country
• Shipped to an end-user of concern
• In support of a prohibited end-use

Do all Products have ECCN Numbers?

Not necessarily.

Most commercial products are not listed on CCL and do not have ECCN.

Thus such products are designated as EAR99.

In many instances, EAR99 products tend to consist of low-level consumer goods and technology among others.

Therefore, they do not essentially require an export license in most situations.

However, there is a specific threshold that your proposed export for the EAR99 item must meet to ship it without an export license.

Sending an EAR99 product to a forbidden country, to an end-user of concern, or in support of prohibited end-use requires this number.

Can you get the ECCN Number over the Phone?

Not at all.

What happens is ECCN number is based on the technical specifications of a specific product.

Essentially, the process for determining one needs meticulous analysis of the item.

Therefore, it is difficult for the commerce department to provide you the ECCN number over the phone.

Nevertheless, BIS has counselors who may come in handy to assist you in understanding ways of self-classifying a product using online resources.

The BIS counselors may also explain the process to submit an official request to BIS to classify on your behalf.

Can a Freight Agent Assist in Obtaining ECCN Number?

Yes.

Of course, the nature of obtaining the ECCN number is quite meticulous, demanding, and challenging.

In many instances, you could be dealing with multiple clients, business entities, product lines, and different time zones.

Therefore, it would be ideal to seek assistance of a freight forwarder where possible.

Most reputable and competent agents use various reliable online research tools to enhance classification determinations.

Using freight agents also makes it easy for you to obtain custom solutions.

This enables you to deliver quality determinations in a suitable and defendable format.

Moreover, seeking the assistance of this agent is also cost-effective and convenient.

You’ll save a considerable amount of time and resources in the long run.

Also, a freight agent has experience in this sector hence making it easy to enhance the efficiency of the entire process.

Is ECCN Number Permanent?

Not necessarily.

Ideally, the Commerce Control List and ECCNs often change from time to time.

There are instances when items are added to the CCL, specifications of the products are altered or removed.

Additionally, you may have an item, which may have technical specifications other than what was classified earlier.

Therefore, it is necessary to stay up-to-date with the changes to the Commerce Control List that may affect your product classification.

An ideal way of attaining this is by signing up for email notifications of changes to the EAR.

At Tj chinafreight, we help you ship all your products from China to any global destination.

Contact us now for fast and cost-competitive shipping solutions from China.

If you’re starting an automotive shop or, you may want to import from China automotive market.

Or, you would like to explore and find reliable suppliers in the automotive market in China.

If that’s the case, then you’re in the right place.

Because this guide will help you find suppliers, understand the market and save time when importing from China automotive market.

Let’s dive right in.

How Big is China Automotive Market?

China automotive market tops the world.

It’s estimated to hit an output of 30 million and 35 million by the year 2020 and 2025 respectively.

2018 saw China selling over 27 million Chinese vehicles not only to Local markets but also internationally.

The steady growth can be attributed to the increasing living standards which have lead people into acquiring items that were previously out of reach.

The automotive sector stands to be one of the leading pillars of the economy in China through which several people have gained employment.

Which are the Best Chinese Car Brands?

China being the leading automotive market globally, expect to find several varieties of car brands.

Some of the best Chinese car brands are not limited to;

• BYD
• Chery
• Wuling
• JAC
• Changan
• Great Wall
• Baojun
• Roewe
• Lifan
• Zotye
• Ranz
• Hafei
• Geely
• Brilliance
• Qoros
• JMC
• Maxus
• Haima
• Gonow
• Englon

What are the Benefits of Buying from the China Automotive Market?

There are several reasons why most automotive importers choose to buy automotive from the China Automotive market.

Let’s have a look at some of the benefits below;

• Cost-effective – Cars in the China automotive market are sold at relatively affordable prices as compared to other countries.

This is because of the cheap labor forces and the presence of many factories.

In addition to that, the favorable import policies and availability of raw materials also contribute to the cost-effective prices.

• Availability of a wide range of spare parts – Most if not all spare parts of vehicles can be found in the China automotive market.

Not to mention that most countries have shops that specialize in selling Chinese spare parts.

Therefore, you won’t have to worry about lacking spare parts as seen with some car designs.

• Modern design –Chinese manufacturers ensure that they keep up with emerging trends and produce the best card designs.

To achieve this, they compile parts from well-known cars and come up with a unique result.

• Good basic equipment in the cars– Regardless of the cheap price of a car, it might have functional features such as air conditioning, airbag, heated seats, and power windows. This not only makes it convenient but also practical.
• Wide variety – China automotive market offers a wide variety of automotive selections including spare parts.

Therefore it’s a great one-stop market for everything you will need for your automotive business.

• The flexible import policies in China facilitate easy and smooth importation from China’s
• automotive market.

Which Automotive Parts can you Import from China?

If you’re planning to import all your automotive parts, China would be the ideal place.

Whether used or brand new you can easily find the best automotive parts from China automotive market.

Some of these parts are not limited to;

• Axle
• Car batteries
• Brakes
• AC compressor
• Pistons
• Fuel injector
• Spare Tire
• Clutch
• Radiator
• Engine fan
• Sensors
• Optics
• Engine and drivechain
• Filters
• Chassis
• Steering system
• Rubber mount
• Belt
• Gaskets and seals
• Shock absorbers and lifters
• Driveshaft and axle
• Muffler
• Starter and alternator
• Glow plug and spark plug

Can you Import Used Vehicles from China?

Yes.

Used vehicles are readily available in the China automotive market and you can import at reasonable prices.

Can you Import used Automotive Spare Parts from China?

Yes. Several auto dealers specialize in used automotive spare parts and therefore importing shouldn’t be much of a hassle.

However, you need to keenly assess the automotive spare parts before purchasing as some might either be faulty or counterfeit.

What are the Challenges when Importing from China Automotive Market?

Just like any other import-export business, importing automotive from China could be challenging at some point.

Let’s have a look at some of the challenges you should be prepared for below;

• Language barrier –English is not an official language in China and therefore communication might be a huge challenge.

To overcome this, you might choose to seek the services of a sourcing agent.

• Quality issues – Before finalizing your order, ensure that you have received a sample and confirmed that it meets the expected quality standards.

Failure to this might result in disappointments after production.

• Scammers –There exist several scammers in the market and therefore you need to very vigilant when carrying out your deals with different auto dealers.

Confirm that they are legally authorized before initiating any purchases.

• Middlemen – When working with middlemen, be prepared to be presented with higher prices. Therefore, if you want to get the actual price consider working directly with the company or hire a certified agent.
• Finding a suitable supplier –With the huge saturation of suppliers in China, it might be difficult to identify the ideal one for your products.

In this case, you could consider working with a sourcing agent.

• Delays in delivery- Apart from National holiday’s delays in delivery could also as a result of emergence of a more profitable order.

As such, the manufacturer is likely to concentrate more on that and delay your order.

To prevent such instances, always provide accurate time schedule for your production before it starts and ensure that you conduct regular follow ups.

How much Duty will you Pay to Import Automotive Products from China?

Duties and taxes are part of any form of importation and the cost might vary depending on the country of importation.

The value of imports and weight are some of the factors that will determine the amount of duty you will pay.

That said, you need to confirm with your country’s customs authorities on the applicable duty for your China imports.

Which are the Leading Automotive Markets in China?

Automotive markets in China are located in cities such as Yiwu, Guangzhou, and Shenzhen among others.

Some of the leading automotive markets in China are not limited to;

• Yiwu Automobile Accessories Wholesale Market
• Guangzhou wholesale market
• Bagualing car accessories market
• Yiru autoparts market
• Yiyou market
• Guangzhou automobile components market
• Sanyuanli Auto fitting Foreign Trade market
• Xinguangcong Automobile parts city
• Guangdong Express Automobile Accessories market
• Yi Yun International Automobile Accessories Plaza

How do you get the Best Prices when Importing from China Automotive Market?

Getting the best prices for your automotive requires you to know the tricks on how Chinese suppliers and manufacturers operate.

Let’s have a look at some tips below;

• Bargain –Bargaining is an important aspect of any successful purchase.

Chinese suppliers and manufacturers are aware of this and that’s why you should never settle on the actual prices.

Just by bargaining, you will be surprised at how much less you will buy the same product.

• Make bulk purchases –A simple trick that most big businesses use is buying in bulk.

The reason being most if not all suppliers are willing to offer large discounts on bulk purchases as compared to smaller purchases.

• Buy directly from the factory – If you want to increase your profit margin further, consider purchasing your products directly from the manufacturer.

Not only does this reduce the number of middlemen but also puts you in a better chance to establish lasting business bonds with the manufacturer.

Keep in mind that the more the middlemen involved the higher the price of commodities.

• Hire a sourcing agent – Sourcing agents will not only identify a suitable supplier for your products but also bargain on your behalf.

This way you reduce the probability of being scammed and eliminate the language barrier.

Not forgetting landing at unbeatable prices from the best suppliers.

Therefore if you are a newbie in the business it would be of great help working with a sourcing agent.

Which Quality Standards should Automotive Products in China conform to?

Every automotive product should conform to the set quality standards to ensure proper functioning and safety of the vehicle.

The automotive products should be designed in a manner that;

• They last longer without wearing out.
• They function effectively with other car components without difficulties.
• They withstand harsh environmental conditions

That said, here are some of the quality standards to look out for when importing automotive products from China;

• ISO 6518-2 – For auto-ignition parts and systems
• CPA 101-102 covers external parts that are made of plastic, panels, fenders, grilles, door shells, and bezels just to mention a few.
• ISO 8984 defines the standards required to assess the performance of fuel injectors.
• SAE J1684 for radiator hoses and their respective electrical conductivity.
• AS 1566 covers requirements for copper alloy materials that are used in the manufacturing of auto.
• ISO 27667 for braking components and systems
• ISO 45001 for health and safety
• ISO 9001

How do you Ship Product from China Automotive Market?

There are four main methods through which you can ship your products from China automotive market;

• Airfreight -Air freight is the costliest shipping method while at the same time the fastest. It’s suitable if you are shipping urgent and less bulky products.

Most importers prefer not using this method due to the high costs involved.

• Sea freight –Sea freight is the commonly preferred shipping method.

This is because it is cost-efficient and suitable for shipping bulky products.

Nevertheless, you will need to wait longer for your products to be delivered.

The brighter side is that you will save on costs which in turn increases your business profit margins.

• Rail freight – Rail freight would be another alternative option for sea freight more so if you’re shipping to countries connected to China by rail transport.

Not only is it faster than sea freight but also less costly as compared to air freight.

Not forgetting it’s also suitable for shipping bulky products.

• Door to door shipping – If you want to save on cost, effort, and time then the door to door shipping would be the ideal choice.

With this method, your products will be shipped directly to your doorstep and therefore it saves you from a lot of inconveniences.

Which Incoterms can you use when Importing from China Automotive Market?

There are several incoterms available and therefore your choice will be determined by your import needs.

FOB and EXW are some of the suitable incoterms to use when importing from China automotive market.

EXW is ideal if so you are looking forward to saving on your costs.

Other available incoterms are not limited to;

• CIP
• FCA
• DAP
• CFR
• CPT
• CIF
• DAT

Why should you Hire Freight Forwarder when Importing from China Automotive Market?

Hiring a freight forwarder is always quite advantageous in several ways.

Freight forwarders smoothen your importation process as outlined below;

• Custom clearance – Custom clearance is one of the difficult processes for any importer since it involves a lot of documentation.

A freight forwarder is accustomed and has experience in this job and will do it in a short period without much hassle.

• Identifying warehouse for your products –A Freight forwarder will identify and secure suitable storage for your products.
• Freight forwarders also help in loading and offloading your goods.
• Timely delivery of goods –freight forwarders work on a strict schedule to ensure that they deliver their clients’ goods at the expected time.
• Cost-effective – Due to their experience in the field, freight forwarders have established networks with several couriers.

For this reason, they easily get to negotiate on prices and offer you the best prices available for your shipment options.

• Efficiency – Freight forwarders are skilled in quickly adapting to sudden changes made during the shipping process.

Can you Import Automotive Products from Alibaba?

Yes, you can easily import automotive products from online platforms such as Alibaba.

Other online platforms that you could as well consider include; Global sources Made in China, and DH Gate.

 Which are the Leading Automotive Trade Shows in China?

To get the most out of your importation, attending trade shows would be of great significance.

It will broaden up your knowledge of the specific products you intend to purchase.

Not forgetting that you might easily bump into a suitable supplier for your future purchases.

Here are some of the leading automotive trade shows in China;

• China International Auto parts expo
• The Chengdu International Trade Fair for automotive parts and aftermarket services
• Bi-annual Canton Fair
• China international auto modification and accessories expo
• Guangzhou International automotive fair
• Auto Maintenance and Repair Expo
• Beijing International Automobile Exhibition

What are the Benefits of Working with China Automotive OEM Suppliers?

Several benefits come with partnering with China automotive OEM suppliers.

With OEM the products produced by one company will be used by another company to manufacture finished goods.

Let’s have a look at some of the benefits of OEM suppliers;

• Customization –Working with an OEM supplier allows you to customize your products to suit your specifications.
• Direct shipping options – You will have the option to directly ship to your customer when working with China automotive OEM supplier.
• You as the buyer will own the intellectual property of the products.
• Working with China automotive OEM suppliers guarantees you support when the need arises.
• Ensures the smooth flow of business – It’s easier and faster to replace parts as the supplier already has your product specifications.

Who are the Leading Automobile Manufacturers in China?

Some of the leading automobile manufacturers in China are not limited to;

• FAW
• SAIC Motor Corporation
• Chang’an automobile Co.
• Brilliance automotive
• Guangzhou Automobile Group
• Geely
• Beijing automotive group
• BYD Auto Co.Ltd
• Dongfeng Motor Corporation
• Baoding Great WallSutomobile Holding Co.
• Lifan group
• Green Field Motors

How do you Identify Fake Automotive Products from China?

China is a country saturated with both quality and fake products.

Meaning, having the skill to quickly rule out between the two is critical.

You hack this and your business is set for impressive growth. To identify fake products;

• Check the pricing -Too good to be true prices should be a red flag.
• Inspect the branding and confirm the labeling and packaging details.

Most fake products will have names that appear similar to real brands to fool customers.

Also, a fake product won’t fit well in the packaging provided.

Not forgetting spelling mistakes on the products.

• Take an old part and compare the two side by side.
• Be on the lookout for products that lack labels or any identification numbers as they might be counterfeit.

Why Import Directly from Automotive Factories in China?

If you ask several automotive importers where they purchase their products from most will mention buying directly from factories.

This is because of the following reasons;

• Importing directly from the factory allows you to build solid bonds with the manufacturer for future business.
• You get huge discounts when you purchase directly from the automotive factories.
• Most if not all manufacturers will be willing to offer you customization services.
• By importing directly from the automotive factories you curb the chances of being scammed.
• Most factory manufacturers in China are conversant with English and therefore language barrier wouldn’t be a challenge.

Are there Special Requirements when Importing Automotive Products from China?

Yes, there are special requirements when importing automotive products from China.

First, your automotive products need to meet the quality requirements. Some of these include;

• ISO 8984
• CPA 101-102
• ISO 6518-2
• AS 1566

In addition to that, you need to have a license when importing automotive products from China.

Ensure that you have all the required import documents to avoid inconveniences during your importation process.

How do you Package Automotive Parts in China Ready for Shipping?

Different automotive parts will require different types of packaging for proper protection.

Some of the packaging items you will require for your automotive parts include;

• Foam
• Taped plastic film
• Cushioning
• Padding
• Bubble wrap

You can package your products in plastic or metal wired boxes that can bear the capacity, tensile strength, and are durable.

Also, triple-walled corrugated boxes and honeycomb protective packaging would be good packaging options.

Keep in mind the thickness, size, and design of the packaging will be determined by the type of automotive part.

Can you Find a Warehouse when Importing China Automotive Market?

Yes, there are several warehouses in China owing to the presence of various businesses.

However, sometimes you might find it challenging to locate a suitable warehouse for your products.

In such instances, freight forwarders would be of great help.

They have experience in this field and can easily identify an ideal warehouse for your automotive products.

Is there MOQ when Importing from China Automotive Market?

Yes, different suppliers will have different MOQs for their products.

The Minimum Order Quantity will also be determined by a couple of factors such as;

• Sizes of the product – Smaller-sized products often have a higher MOQ as compared to huge products.
• Size of the factory –Big factories will have a higher MOQ owing to the overheads that need to be covered.
• Customization – The more the customization the higher the MOQ.
• Raw materials and parts – When selecting your raw materials, you should keep in mind that costly or rare materials will raise the MOQ of your products.

Which Documents do you need to Import from China Automotive Market?

There are several documents that you need to have before commencing your importation process.

Some of these documents will be determined by the custom requirements of your country or the type of product part that you are importing.

Let’s have look at some of the needed documents;

• Packing list
• Import license
• Import declaration
• Commercial invoice
• Bill of lading
• Bill of entry
• Insurance certificate
• Import declaration
• Country of origin certificate
• Technical write-up

Is there Right Time to Import from China Automotive Market?

Yes, there is an appropriate time to import from China’s automotive market.

Before indulging in your importation take proper notice of the public holidays.

Most businesses remain closed during such occasions and therefore it would be the worst time to import from China.

Keep in mind that certain Chinese holidays such as the Chinese new year lasts for weeks.

Avoid making orders a few weeks to or a few days after the Chinese holidays.

The best part – Tj chinafreight will help you import all automotive products from China to your destination.

Whether you’re importing car parts from China, automotive engines, or vehicles, we will facilitate everything for you.

Contact Tj chinafreight today for all your freight forwarding needs.

Probably, you’re wondering how packing list looks like when importing from China.

Or, you just want to learn more about packing list.

This guide has all information about packing list you may be looking for – from definition, purposes, templates to content of packing list, among other vital aspects.

Keep reading to learn more.

What is a Packing List in Shipping?

This is a shipping document that lists all the purchased goods to be shipped and the specific shipment recipient.

You can also describe it as a formal document showing an itemized list of goods within a shipping package.

In simple language, a packing list is a document containing all necessary information concerning the item.

Such information could be the quantity of cartons, packing sizes, quantity of each product among others

This document is widely used in international trade and contains relevant information regarding contents of the exported items.

Typically, a packing list shows the details relating to the consignment, including how they have been packed physically.

In some instances, it is also referred to as a packing slip, shipping list, or order slip.

What is the Purpose of Packing List?

Arguably, a shipping packing list is one of the essential documents for sending or receiving freight shipments.

Therefore, it plays a fundamental role in accomplishing the efficiency of the overall shipping process.

The shipping department uses this document to enable them to understand the delivery specifics of the consignment.

It allows the shipper to ensure they have included everything in the shipment.

Moreover, the recipient or consignee can reference this document to confirm every item is included in the shipment.

Additionally, a packing slip helps in order management.

It facilitates smooth transitioning, processing, and shipping of orders.

Order management primarily involves managing a product’s lifespan and keeping its track until it gets to the customer’s destination.

Therefore, entities can easily check and track the status of the product shipment and consequently simplifying the management process.

It is also important when the order arrives in several packages.

In this case, it plays the role of keeping track of what’s arrived and what has not.

You may also consider using this document as an additional branding opportunity as a seller.

Ideally, you can create a design similar to your brand and use a microcopy to express your voice.

Why is Packing List Important in Shipping?

Ostensibly, a packing list contains a list and information of the specific products shipped from the seller to the buyer.

Hence it plays an integral role in the entire shipping process.

Here are some of the reasons why this document is imperative in shipping;

· Physical Proof of Shipped Items

A packing list is typically a hard copy of all the packed goods.

It thus acts as evidence that all products mentioned are indeed shipped.

Therefore, it serves as physical proof of all the shipped commodities.

And should there be any mismatch, the shipment team should always be ready to provide the verification document.

Importantly, the document also helps the buyer and seller to track the goods of the shipment.

· Checking and Cross-checking

Timely delivery and correct order are fundamental in order fulfillment, especially in the ecommerce business.

A shipping list thus ensures the seller has included all the orders you mentioned in the shipment package.

Through this document, it becomes easy for both parties to count, check, and counter-check each product against mentioned quantities.

· Identification of Lost or Damaged Goods

This document helps determine any lost or damaged products.

In general, goods-in-transit are usually covered by insurance costs.

Hence with the aid of a packing list, it becomes easy to initiate and actualize the compensation process.

In refund cases, the packing list acts as evidence of the product being in-transit during such instances.

· Enhances Business Relations

The objective of most business entities is always to enjoy a straightforward and organized working culture.

Use of a shipping list helps in all the parties involved in order fulfilling the process.

It improves organization of the process hence making the business relations to become clearer and relatively strong.

· Allows Customs to Estimate Shipment Value

If you are shipping the products across borders, the customs department often uses this document to estimate the shipment value.

Moreover, it is also one of the requirements needed for facilitating the customs clearance process.

· Shipment Freight Booking

In many instances, a packing list is used for creating booking with international carriers.

Consequently, it makes it easy to issue the International Bill of Lading, which is equally a binding document in shipping.

What should the Packing List Contain?

In principle, a packing list should be precise and as thorough as possible.

The exact details included in this document may vary depending on the business and the items.

Even so, there are specific, consistent elements you will always find on almost any packing slip.

The details include the following;

1) Shipping Address, Order Date, and Contact Info

Similar to an invoice, a packing list also contains these basic information useful for filing purposes.

These details are essential, especially if any issues arise in-transit since the document comes in handy as a backup option.

2) Product Quantity

A quantity column on the packing slip helps to shorten the list to prevent it from coming out in several pages for the same item.

3) Itemized List of Shipped Items

Most buyers often check the products they receive against the list of ordered items.

The essence is to ensure you obtain the same commodities you had ordered and paid for.

Other common contents of the packing list include;

4) Itemized List of Stock-outs

With the invoice, most packing slip also includes the goods that were ordered but were out of stock.

This makes it easy for the customer to reorder if need be.

• Packing list number
• Company information – Name and logo
• Shipper or carrier method
• Product description
• Weight of items
• Order date and time
• Name and address of the consignee
• Name and address of the shipper
• Any special instructions or note

Who Prepares Packing List?

https://youtu.be/eeHacMwsaVg

The seller, supplier, or manufacturer creates the packing list.

It is usually compiled during picking and packaging the goods and sent to the good’s location for an accurate tally of items.

After the items are tallied and packed, the list is forwarded to their respective destination.

What is the Difference between Packing List and a Commercial Invoice?

A packing list and commercial invoice are more or less similar in nature.

However, they serve different purposes for purchase orders.

Some of the grounds on which these two documents vary include the following;

· Purpose

The purpose of a packing list is to mention and documenting every product purchased.

It also helps in tracking different shipments in case there is a huge number of orders.

On the other hand, the commercial invoice’s purpose is to mention and document financials or payments of the products.

It makes it easy for entities to be aware of their due payments where applicable for companies operating monthly payment clearance.

Primarily, an invoice consists of products sold within a specific timeframe with the respective payable amount for each item.

· Target Party

Packing list is primarily used by the shipment and warehouse teams. This is to ensure all the enlisted goods are received.

The shipping and warehouse teams also use this document to ascertain goods received or shipped are accurate.

However, a commercial invoice is mainly designed for company owners or the accounting department.

They go through the finance department, where they are subsequently cleared after confirmation.

· Mode of Sending

A packing slip is often sent during shipment of the items or goods-in-transit.

This allows the shipping team to know the specific items they are transporting.

On the other hand, a commercial invoice is sent directly to the customer or purchasing entity.

The shipping company does not necessarily get hold of this document, thus dispatched directly to the buyer.

Another fundamental difference is the commercial invoice is typically triggered by the payment platform.

A packing list, on the other hand, is prompted by the fulfillment or shipping technology.

Moreover, it is important to note that all businesses use invoices.

However, not all businesses use a packing slip.

In other words, a commercial invoice is a binding document in any business transaction.

A packing list, however, is essential but not necessarily mandatory in all business transactions.

Is it Legally Compulsory to have Packing List in International Shipping?

Different countries have various policies surrounding the need for the order slip for imports.

In some countries, a packing list is a mandatory requirement for any type of imported product.

Essentially, the customs department in such countries always requires this document to clear the shipment.

On the other hand, there are countries, which only require a packing list for certain imports.

In simple terms, there are some specific products, which must be only be cleared at customs upon submitting the packing slip.

In a nutshell, this document’s legality is based on whether it is compulsory depends on specific countries.

How do you Determine whether your Shipment needs Packing List?

You can use several ways to determine whether your consignment requires a packing list.

Some of these means include the following;

· Inquiring from the Consignee

After packing the goods accordingly, you may need to confirm with the recipient whether they need the order list.

In essence, some would not necessarily need it, whereas others would insist that it is forwarded to them.

Therefore, find out from the buyer to know whether or not you’ll need to send it over.

· Search Online

You may also need to find out from various online tools regarding the specific destination you’re shipping to.

For instance, you can check on the European Commission’s website to determine if this document is required in the region or country.

· Inquiring from the Freight Agent/Carrier

Most carriers and freight forwarders often deal with shipments for different customers.

Thus, they know the specific destinations where the packing list is a mandatory or necessary requirement.

You can, therefore, inquire from either party to determine if there is a need for the specific shipment to have a packing slip along.

· Inquire from the Local Chamber of Commerce

If need be, you can also find out from your local chamber of commerce.

They understand the requirements of different shipments in varying destinations.

Therefore, it becomes easy for you to get the correct position of including a packing list for the respective shipment.

Can you use Packing List as a Shipping Label?

Yes.

A packing list ordinarily contains all the vital information surrounding the shipment, which you may need.

Therefore, you can as well choose to use it as a shipping label.

All you need it processing the product through your preferred shipping carrier and generate a shipping label.

However, you’ll need to stick the shipping label on its respective cartons.

This makes it possible for the shipping label to identify the content of every box.

However, this approach would do you a disservice, particularly if you’re seeking the best shipping rates.

How to Create a Packing List?

Various business entities use different types of pre-built computer programs to generate a packing list.

However, a template is often assigned to default as your packing slip for both local and international shipments.

In other words, you need to get pre-programmed computer software and integrate it with your systems.

Depending on the software you are using, you’ll create and generate the packing list accordingly.

Most of these software usually come with a manual, making it easy for you to create and print the list.

Moreover, you can choose to customize the order list depending on what suits your needs.

What is the Difference Between Packing List and Purchase Order Slip?

The purchase order slip is the first document the seller generates to document the projected transaction with the customer.

Manufacturers and suppliers commonly use it.

It typically lists all the ordered products, quantity, unit cost as well as the terms of payment.

Ideally, the purchase order slip is rarely used by direct-to-consumer sellers.

However, those involved in business-to-business are often familiar with it.

The purchase order slip only becomes a legally binding document for both parties once the customer agrees to purchase the order.

On the other hand, a packing list entails all the relevant information pertaining to the respective order shipped.

How do Packing List and Delivery Note Compare?

Delivery note refers to a document the consignee signs upon delivery or receipt of the shipment.

The carrier provides the delivery note to the consignee, who signs it as evidence of delivery.

Primarily, the delivery note lists the specific items and respective quantities delivered.

Even so, the delivery note is comparatively less detailed than a packing list.

The latter does not include price of the commodity and billing address.

Delivery note mainly focuses on listing the goods to allow carriers and buyers to cross-check actual shipment with a delivery note.

Are there Charges for Issuance of Packing List?

Not at all.

It is the responsibility of the seller to issue a packing list upon the buyer’s request.

The customer should never pay any amount of money to obtain a packing list.

How does Packing Fist fit in Warehouse’s Shipping Process?

Warehouse’s shipping process ensures the commodities get to the respective customers on time and accurately.

You must have a unique value proposition with a streamlined shipping process, and best practices hardwired into it.

You, therefore, need to address all the issues throughout the shipping process.

The critical elements to look into in this case include;

• The packing process
• Kitting and bundling
• Picking list
• Packaging

What is the Best way of Improving Packing List Template?

You can use a packing list as a marketing element for your business.

Therefore, you need to find better ways of enhancing the template and improving the customer experience.

Some of the ways you can use to improve the template of this document include the following;

• Incorporating your branding – You can liven up your packing list by adding anything, such as your logo, to the entire paper.

Alternatively, you can also choose to add a watermark or change the copy depending on the season, such as Christmas.

• Upsell and cross-sell – Include a coupon or promotional code in the available whitespace of your packing slip or checklist.
• Express gratitude – You may decide to use the packing slip to thank the customers for doing business with your company.

You can be confident they’ll get the message since they have to use the document to confirm the shipment.

• Enhance social interaction – In the modern digital age, social media has become a fundamental channel for interacting and communicating.

You can share your social media platforms on the packing list to connect further with customers.

What are the Considerations of a Packing List?

Of course, packing list should not necessarily be complicated.

However, there are a few elements you need to consider when fulfilling orders, such as the following;

· Environmental Impact

It is debatable from several quarters as to whether the packing list serves a purpose.

Some consider it as a point of reference for customers, whereas others see it as a wasted piece of paper.

Nevertheless, relying on an electronic version is ideally a more eco-friendly approach.

Therefore, where necessary, you may consider using an electronic version of order slip.

· An Integrated Process

This document serves as one of the multiple check marks in pick, pack, and ship process.

You need to integrate the process to prevent risk of more errors, particularly when generating the document manually.

Thus you need to utilize an automated tool, which makes the operations convenient and efficient.

You need to integrate the system you use to scan and confirm all goods throughout the fulfillment process.

· A Distinctive Customer Experience

You can always utilize the unboxing opportunity to create a lasting impression among your customers.

Packing slips are some of the elements you can use to market your brand.

Nonetheless, you need to find a better approach to using this document to make an impact without overwhelming the recipient.

While at it, the details you include should never distract the recipient from the important information.

Can you Amend a Packing List?

Yes.

It is always possible to edit a packing list even after you have created one.

Most software programs used for generating this document have the provision, which allows you to amend it accordingly.

All you need is to determine the specific changes you want to make and alter them from the system for that reason.

However, it is recommended that you should always be meticulous when generating a shipping slip.

It becomes difficult to amend it once it gets to the customers.

And whether the mistake was accidental or deliberate, such incidents tend to compromise the integrity of your business.

Is Packing List Template same for all Businesses?

No.

Packing list templates are different among businesses.

Different entities use various software and data systems to generate this document.

However, most of the content tends to be the same, perhaps with a different template design.

It, therefore, shows that the template will be different depending on the system and the needs of the specific business.

How does Export Packing List Work with the Type of Shipment?

In many instances, packing lists often vary depending on the specific type of shipment.

This can be in the form of Full Container Load (FCL), Less Container Load (LCL), or air freight shipment.

Mostly, FCL requires more containers; thus, you must provide details on shipped products based in a container along with total containers.

Typically, an FCL may not be fully loaded, but it counts as one as long as one shipper books it.

By contrast, if you export LCL, the packing slip often consists of product-wise details, given there is a single container.

The order list on air freight shipment at times may omit various items of an ordinary packing list.

Most air freight carriers use dimensions as a reference point for assessing the weight and volume of the shipment.

This makes it easy for the carriers to determine the airfare payable.

At Tj chinafreight, we help you in all custom clearance and shipping documentation needs.

Contact us now for freight forwarding services from China.

Often, shipping containers can be complex, particularly where different container sizes are used.

In most instances, such containers require towing vehicles and trailers owing to their dimensions regarding length and width.

In this article, we’ll discuss all fundamental elements regarding container chassis.

This will enable you to understand its significance and essence in the shipping industry.

Meaning of Chassis in Shipping?

A chassis refers to a special trailer or undercarriage used for transporting different types of ocean container over the road.

You can also describe it as a wheeled structure designed to carry various types of marine containers.

The essence here is to truck movement between terminals, warehouses and shipping facilities.

A chassis is majorly composed of a simple electromechanical device that features a steel frame, tires, lighting system, suspension and brakes.

Modern chassis come with additional features such as ABS, weight sensors, GPS tracking systems and LED lights among others.

In most countries, such as the U.S container chassis are designed to fit specific container sizes.

Standard designs transport standard ISO containers, which are 20ft and 40ft.

This electromechanical device also has two axles, but this may vary from one country to another.

In general, chassis logistics tend to be a uniquely prominent issue at various ports in different countries.

Nevertheless, it is also necessary to note that government laws on transportation sector regulate the use of container chassis.

Different Types of Container Chassis

Container chassis come in various types.

The varieties of this device are based on a wide range of variables, which include the following;

a) Fixed or Adjustable Chassis Length

Some of the common types of chassis in respect to length include the following;

• 20ft container chassis
• 40ft-45ft container chassis
• 48ft-53ft container chassis

b) Number of Axles

Here are the types of container chassis based on the number of axles

• 2-axles container chassis
• 3-axle container chassis
• 4- axles container chassis
• 5- axle container chassis

c) Ability to Accommodate Multiple Container Configurations

In terms of design and configuration here are some of the common types you are likely to come across;

• Heavy-duty chassis
• Light-weight chassis
• Gooseneck chassis
• Combo chassis
• Straight frame chassis
• Flatbed container chassis
• Extendable chassis
• Straight frame chassis
• Canadian chassis

Generally, the marine container chassis are often built to have fixed sizes and support specific container sizes.

U.S container chassis is relatively lightweight compared to other countries.

It is as a result of standard national gross vehicle weight of 80,000 lbs on inter-state highways as ratified by the U.S government.

Basic Specifications of Container Chassis

Container chassis are available in a variety of shapes and sizes.

However, there are fundamental systems and components you’ll always find in each of these devices.

Such elements are vital when it comes to determining the specific trailer to buy or lease.

This is, nonetheless, dependent on your needs and regulations set by the responsible authorities.

Some of the basic defining specifications and characteristics of a container chassis include the following;

· Size

Container chassis come in a variety of sizes. Standard sizes accommodate 20ft and 40ft containers.

You can also find those designed to carry 45ft containers.

These could be the ideal fit if you need to take up more cargo, especially if the law in your country allows it.

· Axles

Axle configuration on container chassis come in different forms.

However, the most common ones are two and three axles.

The maximum weight of a standard 40f container is 25 tons, but a Two-axle can hold up to 30 tons.

Another possibility is customizing a three-axle container chassis to suit different demands.

All these and many more options are always available depending on your specific needs.

· Load Capacity

The load capacity for most container chassis often ranges between 20-40 tons.

If you have relatively heavy cargo, you may need to consider the 40-ton option.

Even so, the 20-ton chassis would still be sufficient for most containers you would want to transport.

Always consider this as an important aspect when choosing the most appropriate container chassis for your needs.

· Design

Generally, container chassis design construction features high strength material given its applications and usage.

The design construction is robust and built to enable you to obtain the services you require many challenges.

Moreover, the fabrication is done through approved quality welding methods to ensure the trailer meets the required quality standards.

Tires

You need to confirm the laws and regulations concerning the chassis tire-configuration permissible in your country.

Some countries allow the single tire option only.

In that aspect, it implies it requires reasonable distribution of tires for the trailer if at all, it is the only available option.

Models of Container Chassis

In principle, the designs for container chassis are based on various elements, including application.

Each design of this device is drawn from the desired transportation as where it shall specifically be used.

It thus guides you on the ideal container chassis you need to consider when buying or leasing.

Here are the common container chassis models you are likely to find in the industry today;

1) Common Trailer

It is a relatively simple fixed structure with less sophistication use for carrying and transporting containers.

The framework is designed from steel material.

It is the surface where the containers are loaded and unloaded using overhead cranes.

You can use to transport containers of varied sizes including 20ft, 40ft and 45ft.

Common chassis comes with well-marked positions indicating where you can place the container.

This also makes it easy to secure the container and consequently, getting it to its respective destination safely.

This model of container chassis is easy to use and relatively affordable.

Even so, you’ll require auxiliary equipment like overhead cranes to load and unload the containers from the chassis.

2) Tilt Container Chassis

An outstanding feature of tilt container chassis is its mechanism facilitating easy unloading of containers.

In essence, it comes with a different framework from the common and other types of container chassis.

Tilt container chassis features additional modifications to the conventional chassis trailer models.

Principally, this chassis model comprises of upper and lower frames attached by a mechanism of pivot device.

This arrangement hardly requires any external equipment for offloading cargo from the container.

Primarily, this chassis is fitted with a hydraulic system on the upper platform, which facilitates the offloading process.

The system essentially, makes the trailer to tilt upwards hence offloading the cargo.

Of course, these convenience features come at additional cost. But the expediency it offers is worth it.

Moreover, the tilt container chassis comes with a hydraulic lifting cylinder contracting longitudinally hence facilitating easy loading.

On the other hand, they extend in an outward technique to enhance the offloading process.

3) Extendable Container Chassis

This is a versatile container chassis hence can adapt to various container sizes.

Its function is similar to the load positioning chassis.

However, you can easily extend it at the back to take up a relatively big container compared to its contracted position.

In simple words, container chassis can either be short or long depending on prevailing operation demands.

It is an ideal choice to pick when your operations involve varying container lengths.

You can always adjust this chassis with already available mechanisms to facilitate platform creation of varied sizes for different containers.

Always have a greater chassis length than container or size load as you make adjustments to the container chassis.

The structure of this chassis is ideal for transporting sealed containers across different countries.

The reason is that it is easier to make adjustments, which meets the respective local standards set for it.

This type of chassis also provides adequate room for transporting containers safely.

When loading the frame must be positioned at the bed center. This helps in keeping the entire chassis in a balanced and stable position.

It is always easier to load containers covering almost the whole length of the bed than one which does not.

Thus it is necessary to have this factor in mind when making necessary adjustments to the chassis.

Differences Between Ocean Container Chassis and Domestic 53’ Intermodal Container Chassis

Domestic intermodal container is also known as a domestic container.

It is a type of container filled with freight moving between different terminals via railroad and not waterborne service.

Technically, domestic containers are comparatively longer than ocean containers. The standard length of the former is 53ft.

Moreover, the domestic container is designed to a lighter tare weight standard hence can accommodate more products.

In the U.S for instance, construction of domestic and ocean container chassis is ideally the same.

The notable difference in these two types of chassis is usually the length and weight.

Intermodal container chassis weighs between 500-700lbs more than the ocean container chassis, which weight about 6500 lbs.

The weight difference is ostensibly occasioned by the increased length of 53ft in the domestic container chassis.

Moreover, almost all 53ft domestic chassis have a “slider mechanism, which allows the axle bogie to shift forward and backwards.

This makes it possible to alter the overall weight distribution as well as turning radius when travelling on local roads.

Ocean and domestic container chassis are never interchangeable.

The standard 40ft ocean container chassis is shorter hence cannot support the 53ft domestic container.

Another notable difference between these two types of container chassis is the expected operating life.

If well maintained an ocean container chassis may last up to more than 20 years excluding any major refurbishment.

On the other hand, the 53ft domestic chassis has a life span of slight above 15 years.

Technically, domestic container chassis is designed to the lightest hence relatively less durable compared to ocean container chassis.

Ideally, this trade-off was deliberately created to enable domestic container chassis to compete directly with 53ft trucks for domestic commerce.

Importance of Container Chassis in Shipping

Container shipping has demonstrated outstanding significance in the overall shipping process.

Here are some of the reasons why this device is integral in shipping;

· Durability

Of course, the components of a chassis are designed from relatively lightweight but hardy materials.

The artistry, as well as the overall design construction and fabrication, are also top-notch.

All these factors guarantee unmatched durability.

The importance is it enables you to save on replacement and repair costs.

· Enhances Customer Satisfaction

Shipping of containers is a safe and swift process.

In essence, this helps in increasing reliability as well as enhancing the overall customer experience and satisfaction.

· Flexibility

Container chassis is available in different varieties depending on the specific needs.

This makes it easy for you to select from the various options based on your specific demands and preferences.

· Cost-effective

The solid construction of container chassis makes it possible to load several containers at a go.

This makes the process relatively quick and cost-effective since you’ll be consolidating the shipments.

Ultimately, this allows you to cut cost and preventing unnecessary extra charges.

· Smooth and Secure Shipping

Containers are often securely attached to the respective chassis.

This helps in preventing unnecessary container movements while in-transit.

This ensures safer and convenient transportation.

How to Select the Right Container Chassis

There are several elements to factor in when looking for a chassis, whether to buy or rent.

However, this depends on your business requirements.

Some of the critical factors to consider include the following;

· Number of Axles/Weight Threshold

The weight of your cargo plays a critical role in determining the number of axles in the chassis.

Technically, the more the axles, the heavier the load the chassis can hold effectively.

· Usage and Requirements

You must also factor in the industry-specific needs for the chassis you are buying or renting.

If your needs revolve around transporting containers only you should go chassis structured specifically for containers.

However, if your operations revolve around other types of shipment, you should consider going for a flatbed container trailer.

If most of your operations include frequent loading and unloading the best choice would be a tilt chassis.

· Cost Incurred

Typically, specialized chassis tend to be relatively expensive compared to regular ones.

Therefore, you need to factor in the specifications of your container and requirements before picking either specialized or regular chassis.

Buying or renting is also a cost factor you must have in mind. It also adds to the final shipping costs.

· Chassis Equipment Issues

It is always important for the driver to inspect the chassis’ condition once the container is mounted on it.

Nonetheless, some of the common elements to always look into in container chassis include the following;

Landing gear – Ensure the chassis landing gear is intact, straight and can easily crank up and down. There is a possibility of a landing gear bending or jamming.

Twist locks–All the four twist-locks, which secure the container corners of the chassis, must be operable. These are relatively robust assemblies but at times are usually damaged or jammed.

Brakes – Typically, chassis air brakes and must apply and release accordingly once hooked to the tractor. However, it is also advisable for the driver to carry simple tools for adjusting brake shoe on the spot.

Tires – Ordinarily, a 40ft chassis has eight tires all that must have enough inflation and thread depth.  A normal approach is to thump the tires using a heavy metal bar for a rough check.

Lights – Ensure the container chassis lights and lenses are all intact and operate correctly. In most cases, lenses are often set into the rear bumper for protection, but they are still exposed to damage.

The trailer connectors must also be in great condition.

Structure – The overall container chassis structure should be in perfect conditions without any damage, twisting or horizontal misalignment.

It is also possible for chassis structure to get damaged when stored or stacked in the terminals.

Mudflaps – Mud flaps must be present and in a perfect condition such that the driver won’t be cited on the road.

License, registration and inspection tags – for road services chassis needs to have a current license and registration stickers.

It is necessary to ensure all other relevant stickers are also up to date.

Chassis usage Charge

The container usage fee is one of the additional charges incurred while transporting cargo.

Before 2022, carriers owned and provided chassis alongside the containers.

However, the moment MAERSK exited the container chassis business; other players also followed suit.

The result forced many trucking companies to buy or lease their chassis and consequent additional charge.

The chassis usage fee varies depending on a wide range of prevailing factors.

Some of these factors include; consolidation fees, terminal handling fees and congestion surcharge, among others.

Nevertheless, the main charge of chassis is dependent on the demurrage and detention fees.

In many ports, it is quite difficult to get chassis since due to congestion.

It thus results in longer waiting time and subsequent higher demurrage and detention fees.

This also leads to increased overhead costs.

Renting this device often range between $15-30 per day, although it is not exclusive.

Ways of Mitigating Container Chassis Challenges

There are numerous approaches to reducing or preventing container chassis challenges. Some of these measures include the following;

a) Adoption of technology – In many instances, establishing suitable systems makes it easy to reduce the common problems notable with container chassis.

Adopting a practical use of technology is essential in streamlining the activities and other different aspects of container chassis.

For instance, digitizing thus element by developing a platform for tracking, reserving, allocating, and forecast chassis usage.

This enhances efficiency and accuracy when billing.

b) Trucker ownership of chassis–Another ideal measure is purchasing your container chassis. Owning chassis with high-quality elements such as LED lights and radial tires helps in ting many issues.

Technically, it makes it easy to ensure frequent maintenance schedule hence keeping the chassis in great condition always.

Moreover, ownership of this device also helps in cutting cost.

c) Greater investment in IEPs – Most of the Intermodal Equipment Providers (IEPs) are offering better and quality equipment.

Most of these IEPs provide premium programs in different degrees with either new or re-fabricated chassis.

An Ideal Place to get Container Chassis Services

In most cases, the freight forwarders offering containers also provide container chassis and related services.

Moreover, they provide such services at relatively affordable rates, which makes it easier to rent or buy depending on your needs.

And as always Tj chinafreight has got your back.

All you need is to type in your location. You’ll then need to choose a suitable container then get work done faster.

Tj chinafreight always offers these services at affordable rates, thus making it possible for you to save quite a significant amount.

How Ports are Enhancing availability of Chassis

In many ports, the demand for container chassis continues to grow.

This makes it difficult to find the types of chassis that suits your needs, whether for hire or purchasing.

However, most ports are putting measures in place to ensure there is a steady availability of container chassis.

One of the measures is encouraging private chassis business.

This makes it possible for any able entrepreneur to purchase and avail their container chassis to the ports.

To a great extent, this approach is quite efficient and has contributed significantly to increasing chassis availability at the ports.

The other measure is filing plans with relevant authorities seeking to create own chassis pools.

This approach makes it possible to ensure the ports hardly run out of container chassis.

As you can see from this guide container chassis is an integral element in accomplishing the shipping process.

And if you are involved in imports and exports it is quite apparent you’ll need to use a container chassis trailer.

You can always choose the ideal container chassis based on weight and cargo you are transporting.

The large variety of these devices in terms of design and size makes it easy for you to choose the perfect one for your goods.

In case you have any inquiries regarding container chassis, feel free to contact us.

We will assist you with the relevant information accordingly.

In this guide, you will find all information you’re looking for about shipping container size.

It will help you choose a suitable container size for your shipping needs.

Let’s dive right in.

20-foot General Purpose Shipping Container

It is the most popular container due to its lower weight and eases to maneuver.

You can make cabins out of it.

The 20- foot shipping container is cheaper when compared to other shipping containers.

For its external dimensions, it is 19 feet and 10 inches long.

It is 8- feet wide and 8- foot and 6 inches long.

For the internal measurements, it is 5.90 m long, 2.39 m high and 2.35 m wide.

It can carry a weight of 28,230 kilos grams maximum load.

The door opening measurements of this container is 2.99 m high and 2.34 m wide.

20-foot High Cube Shipping Container

This shipping container is similar to the 20 –foot general purpose but has an added room of an additional 12 inches of height.

You can use this shipping container to make a cabin home.

This will make it easy for you to include interior insulations as well as light fixtures while maintaining the normal ceiling height.

The higher ceilings will make your entire interior look and feel larger overall.

The external measurements of the 20-foot high cube shipping container are 6.05 meters long, its height is 2.89 meters and its width is 2.44 meters.

It can carry a maximum load of 28,180-kilograms and its tare is 2300 kilograms.

The internal measurements of this container are 2.35 meters wide, 2.70 meters high, and 5.90 meters long.

The measurements of the door opening are 2.34 meters wide and 2.59 meters high.

20-foot Refrigerated Container

Also referred to as a reefer container.

It is a regular 20-foot container with the added benefit of insulation.

This is the best option if you were planning to insulate your container.

Insulation is necessary if you are intending to use the container as a home and keep its temperature comfortable.

This container is the best deal if you work around tradeoffs as it saves money by eliminating insulation costs.

It is 6.05 meters long, 2.44 meters wide and 2.59 meters high externally.

Internal measurements for this container are 5.44 meters long, 2.66 meters high, and 2.28 meters wide.

The container has a tare of 2,905-kilograms and can carry a maximum load of 27, 575-kilo grams.

Its door opening measurements are 2.28 meters wide and 2.26 meters high.

20 ft. ISO Tank Shipping Container Dimensions

These tanks are the most effective intermodal for bulk transportation methods.

They are designed to transport liquids or gases.

Besides, the tanks can hold bulk cargo ranging from perishable goods to hazardous substances.

The exterior dimensions are 2.43 meters wide, 2.59 meters in height, and a length of 6.09 meters.

40-foot General Purpose Shipping Container

These are the most common containers you will find in the market.

These containers are big enough and you can split them up into multiple rooms.

Their low ceiling height is an issue if you want interior insulation and still have a reasonable ceiling height.

It is 2.44 meters wide, 2.59 meters high, and 12.19 meters long externally.

It also has a tare of 3,780-kilograms and can take a maximum load of 27,600-kilograms.

The internal measurements of 40- foot general-purpose shopping container are 2.39 meters high, length is 12.04 meters and width is 2.35 meters.

The door opening measurements are 2.29 meters high and 2.34 meters wide.

40-foot High Cube Shipping Container

This high cube shipping container offers an additional one foot of overhead room.

The additional overhead room will give you room for insulation, wiring, and fixtures and still give you an 8- foot interior ceiling height.

The added one foot makes the room look bigger and better hence capable of holding more of your belongings.

It has a tare of 3968-kilo grams and a maximum weight load of 26512-kilo grams.

Its door opening measurements are 2.59 meters high and width of 2.34 meters.

The internal measurements of 40 –foot are 12.04 meters long, a width of 2.35 meters, and a height of 2.70 meters.

It has an external measurement of 12.19 meters long, wideness of 2.44 meters, and height of 2.89 meters.

40-foot Refrigerated Container

This container comes within built insulation.

You will also get the benefits of a 40-foot shipping container when you use this one.

In most cases, it comes with an industrial refrigeration unit that you might want to get rid of.

Its tare weight is 4900-kilo grams while its maximum load weight is 25,645-kilograms.

The internal measurements of this container are, 2.28 meters wide, 2.26 meters high, and length of 11.58 meters.

The exterior measurements are 12.19 meters long, a width of 2.44 meters, and a height of 2.59 meters.

It has a door opening of size 2.28 meters’ width and 2.26 meters height.

40-foot Pallet Wide High Cube Container

These containers are a bit wide with around 2 inches when compared to regular containers.

But they are not as wide as the 48-foot and 53-foot containers.

If you are not planning to use the container to store pellets, then it gives you more space for insulation.

They have a tare weight of 3,917-kilograms and when with a maximum load weigh 28,583-kilograms.

The opening door size is 2.44 meters wide and 2.59 meters high.

The internal measurements of this container are; 2.70 meters high, 2.44 meters wide, and 12.04 meters high.

The container is 12.19 meters long, 2.89 meters high, and 2.49 meters wide externally.

45-Foot-High Cube Shipping Container

This container is quite different from the ones discussed above.

The container has normal corner castings of 40-foot apart but with two equal extensions of 2.5 feet on each ends.

The extensions also have corner castings on the actual corner extends of the container.

Due to multiple sets of corner castings, you can stack the 45-foot container with 40-foot containers.

With the additional 5 feet, the container allows you to have slightly bigger rooms.

The exterior measurements are 13.72 meters long, 2.44 meters wide, and 2.89 meters high.

The interior measurements are as follows; 13.56 meters in length, a width of 2.35 meters, and a height of 2.70 meters.

The container has a tare weight of 4800-kilo grams and when loaded maximally it will weigh 30,480-kilograms.

It has door measurements of 2.34 meters wide and 2.59 meters high.

48-Foot-High Cube Shipping Container

It has an additional 6 inches in width making it around 7% wider than the 40-foot and 45-foot containers.

These extra inches might not sound big but they give the container more room for insulation.

Also, it ensures that the room does not feel too narrow.

Most of these containers are high cubes, meaning they have an extra height of 12 inches.

Adding to the above information, these containers have multiple sets of corner castings.

One set is at the actual corners and another set 40-foot apart.

The tare weight of this container is 4953-kilo grams and the weight at maximum load is 25,527 kilograms.

Its external size is 2.59 meters wide, 2.89 meters high, and 14.63 meters long.

Its internal size is 14.48 meters in length, 2.49 meters wide, and 2.70 meters long.

The door opening measurements are 2.49 meters wide and 2.59 meters high.

53-Foot-High Cube Shipping Container –

This is the largest mass-produced container you will ever come across.

It has corner castings at 40-foot then followed by equal extensions that will bring the length to 53-foot.

All 53-foot containers are high cubes giving you extra foot for your interior clearance.

When let’s say you are building a house using this container, it will give you the larger possible space.

These containers were not built strong enough for ocean travel initially but this is not the case presently.

The container is 16.15 meters long, 2.9 meters high, and 2.60 meters wide externally.

It has a tare weight of 5020-kilo grams and when a loaded maximum of 25,460 kilograms.

Its door opening measurements are 2.59 meters high and 2.49 meters wide.

Its internal measurements are 16 meters long, 2.70 meters high and 2.49 meters wide.

Quad con Shipping Container

This is a mini container.

It is designed in that when four of such containers are joined they create one standard 20 feet container.

They are designed specifically for use in military forces.

Tricon Shipping Container

This is a shipping container a third the size of a 20- foot container.

The container dimensions are 8 feet long, 8 feet tall and 6 feet and 5.5 inches wide.

These containers are used widely in the transportation of military equipment.

You can transport these containers by sea, air, or ground.

Tricon shipping containers are extremely durable.

Bicon Shipping Container

This is a shipping container that is half the size of the normal 20-foot standard container.

It is used by the military forces to transport military equipment.

Its external size is 10-foot length by 8.6 feet tall by 8 feet in width.

Bonus: Why ISO Shipping Container Size Is Important

The ISO shipping container size is very important because they ensure the use of container space efficiently.

This is regardless of the method of transporting the containers.

Additional Resources:

Intermodal Container

ISO General Purpose Containers

Shipping Container Manufacturer

How To Custom Shipping Container

Shipping Container Sizes And Dimensions

Shipping Container Prices

If you have any questions or inquiries about shipping container sizes, feel free to contact Tj chinafreight now.

If you have any question about import duty from China to the USA, you’ll find the answer right.

This guide covers both basic and advanced concepts about the import duty.

Keep reading to learn more.

What is Import Duty?

When you import goods from China to the USA, you must pay some tax for the goods.

Import duty is the sum charged on imported goods.

The Central Border Program (CBP) customs collects the taxes and duties depending on the set regulations.

Most countries implement import duties as a way to raise revenue and safeguard young growing industries.

It is also used to penalize other exporting countries by charging high import duties.

What is the Difference Between US Import Duty and Customs Duty?

Customs duty is a general term that includes all the taxes collected on goods either brought into the country or those moving out of the country.

Import duty, on the other hand, is specific on goods moving into the country.

It is the revenue generated by the government on imports.

The similarity here is that while import duty is specific on incoming goods, customs duty refers to import duty and export duty.

What Products can you Import from China to the USA?

China is an increasing economic hub that offers world consumers an array of product choices.

The following are some profitable products you can import from china.

· Clothing

Clothing is one of the basic human needs required in day-to-day life.

China produces quality, original and cheap clothes.

With the high population in the US, importing clothes would be profitable due to the high demand.

· Motor Vehicles

Vehicles’ global demand increases with each rising day.

With many assembling companies located in china, importing quality vehicles will be cheap and convenient.

Consequently, humans have different choices and tastes when it comes to the type of car they use.

China offers sleek tastes that can supplement vehicles produced in the US.

· Electronics

The demand for electronics in the US is high.

You can make good profits by importing both cheap and expensive electronic products from china.

· Pharmaceutical Products

We all get sick at some point.

Importing drugs and associated products is profitable due to the high demand.

China excels in producing quality and affordable pharmaceutical products; importing these products will surely earn you a fortune.

Other products that are profitable and which you can import from china to the US include;

• Foods and foodstuff
• Agrochemicals
• Machinery
• Industrial parts
• Toys
• Cosmetics and nutraceuticals

How do you know if you have to Pay Import Duty from China to the US?

If you are importing goods from China, you are eligible to pay import duty.

However, some exempted goods do not qualify for import duty.

Goods that are donations from china to the US do not pay import duty.

You also don’t need to pay duty for goods whose value less than $2500.

Needless to say, you can always inquire from the Central Border Patrol if the goods you want to import are dutiable.

What are the Types of US Import Duties from China?

The following types of import duties apply when you import goods from China to the USA;

· Basic Duty

This is the basic duty rate which is applicable for all imports from China to the US.

The rates vary depending on the type and value of the product that you’re importing.

· Antidumping Duty

Antidumping duty is an extra charge that countries place on imported goods that are similar to those produced locally.

The US charges antidumping duty on products from china to avoid unfair competition for local producers.

Note that this duty charge is applicable only when the price of the goods is below the local market price.

· Countervailing Duty

When your imports from China are similar to those made locally, customs will charge you countervailing duty.

This is different from antidumping duty.

The latter is applicable only when the goods you import are similar and lower priced.

Apart from the above duties, you may also need to pay a federal exercise for specific products such as tobacco and alcohol.

Other charges such as the merchandise processing fee and harbor maintenance fees may also apply.

How much is Import Duty from China to the USA?

The total duty that you’ll pay for imports from China to the USA depends on the value of the products you’re importing.

Generally, goods below $800 are exempt from duty by the customs border protection.

Meaning, you won’t be paying any money to CBP if you import any commodities whose value is $800 and below.

These are considered duty free.

For goods above $800, you will pay the applicable duty rate.

In this case, the rates will depend on the product category according to the Harmonized system tariff (HS) code.

CBP uses the HS code to determine how much importers pay for imports from China.

You can check the applicable duty rates for your product on the official website for the CBP.

Please note that import duties in the US will also depend on the number of products you’re importing.

This is in the case of formal and informal entry goods.

Generally, the basic US import duty rate was at 10% before 2019.

The rate currently used after 2019 is 25% on the value of the imported goods.

These rates are, however, subject to change depending on the CBP.

It would be perfect to check the rates in play before importing any particular product.

What is HS Code?

HS is an abbreviation that stands for Harmonized System.

It is a six-digit international identification code that is used to identify and group goods.

The code is such that the first 2-digits aid identifies the chapter where goods are classified.

The next two digits (HS-4) are used to determine the groups within the chapter.

The last two digits (HS-6) are even more specific.

The six HS code system is used internationally by most countries except few countries that still use older HS code systems.

How do you Check the HS Code for Import Duty from China to the US?

The process is pretty simple.

Simply head over to the official Harmonized Tariff Website.

In the dialogue box indicated ‘enter your search query,’ type a keyword that you want to search.

The keyword can be the name of the product or random numbers that you wish to search.

After that, click on search.

If your inquiry is correct and there are products for the search, you will see a list of probable products and their rates.

If the search is not valid, the website will indicate no rates found for the search.

Alternatively, you can search for the commodity using a random number.

Each number will indicate possible products and applicable rates.

How do you Calculate Import duty for the US from China?

Different products from China pay different amounts of import duty in the US.

The process is direct and involves minimal computation.

First, locate the HS code associated with your product.

Ensure the code is specific to the product you are importing.

Secondly, choose the appropriate category and subcategory of the product.

Locate the duty applicable to the product, and finally, multiply the rate by the value of the item.

If you import products of different categories, you will have to calculate each product’s import duty separately.

It is worth noting that goods confined in the same container can attract different import duty amounts depending on their HS code.

What is the US Import Duty Calculator?

The US duty calculator is a useful tool for importers.

Also, the tool provides rough estimates to be paid on particular units imported.

The interface provides details on the importing country, the exporting country, and the product you’re importing.

You simply need to select the importing country and choose the product and the value to be imported.

This will give you a clear estimate of the duty to pay for your imports.

How do you Estimate the US Import Duty from China using an Online Calculator?

Lucky for you, the process is pretty simple. Just find a reliable online duty rate calculator and follow the below procedure.

• From the drop-down list, select your country of import.
• The next part is where you are importing to. This is simple as the calculator currently only allows imports to the US. You just use the default selection.
• The next step is the commodity you are importing field. Here, type initials of the commodity you are importing, a list of related codes will appear. Simply choose the product you are importing.
• Alternatively, from the system, click on the browse code link and choose your category.

After doing everything right, the system will either calculate the applicable duty rate per unit or prompt “estimated to be exempt from duty.”

If your goods qualify for import duty, a dialogue box will appear where you input the shipment value.

On inputting the value, the import duty calculator will provide an estimated value to pay.

However, you should know that these are only estimates.

The US customs office provides the actual duty that importers should pay.

What is the Difference Between Formal and Informal Entry Shipments from China to the US?

Before importing your products, you must first determine the type of entry filled by Customs and Border Protection.

Formal entry applies when the total cost of goods you import to the US is above $2500.

However, if your business is old enough in operation, you can adopt an annual import duty subscription.

This is economical as they receive their goods before paying duties and bonds.

You accumulate the bonds and pay later as a lump sum.

On the other hand, informal entry is applicable for imports less than $2500.

It is cheaper and economical for your business.

However, the bottom line is, you should always remain on the good books with the law.

You can avoid wasting valuable time explaining your mistakes to the authorities.

Finally, you should note that customs can enforce custom duties whenever necessary.

Are there Custom Duty Charges when Buying from Aliexpress and Alibaba in the USA?

Yes, there are.

Buying from Aliexpress and Alibaba is convenient as it provides an array of product choices.

However, just like importing from other suppliers in China, importing products from Alibaba and Aliexpress attracts specific customs duty.

The chargeable custom duty is dependent on the classification of the product.

Each product should have an applicable rate of duty chargeable.

Note that the applicable duty is dependent on the products you’re country and quantity.

If you’re importing a small quantity, these online suppliers will opt for express shipping.

In this case, customs won’t charge you.

For large quantity orders, get a reliable customs broker to help you calculate all import costs, including duties from china to your destination in the US.

Remember, no matter where you’re importing from, the product will always affect the custom duty rates.

Different products attract different duties in the US.

How Long Does Customs Clearance take for Shipments from China to the USA?

This depends on several factors.

Nonetheless, customs can hold your goods as long as they deem fit.

There is no specific duration that customs can take before clearing your shipment.

The whole process depends on the aspects that surround the package.

For example, when customs are awaiting confirmation from the importer, the shipment can wait until customs receives the right confirmation.

Another instance would be where there are issues surrounding payments and paperwork to the customs.

Finally, if the goods have quality issues, customs can take longer verifying the goods before clearing them.

To speed up the clearing process, it is your sole obligation to ensure you comply with all customs regulations.

This way, you will save on time and costs.

What is the US Customs Clearance Process from China?

Once the cargo has arrived in the US from China, the goods are unloaded by the carrier.

After that, necessary procedures are followed to take the goods out of the customs import area.

The customs clearance process is inevitable, tiresome, and overwhelming.

The following procedure is applicable for shipment clearance.

• Unloading packing lists and commercial invoice
• The customs brokerage partner will confirm if the details match the consignment.
• Customs will receive HTS classification of goods.
• Customs brokerage partner will file entry summary.
• Forward duties owed

Other than the process, you should present the right documents to customs.

After that, the shipment will undergo a series of examinations to prove their credibility and conformity to CBP standards.

The examinations include;

• X-ray exams to check the contents of the container.
• Tail gate exams that involve opening the tail end of the container to inspect the content physically.
• Partial Exams involves the CBP selecting random cartons for inspection.
• Intensive exam- this is the most comprehensive exam and takes at least 7 days. It involves CBP moving the container to a select warehouse and physically examining every product in the container.
• United States department of agriculture exam- applicable for food staff and agricultural products. The CBP will take a sample and take to the lab. In this exam, they will place a hold on the product to check for pests or even diseases.
• The food and drug administration exam is the final exam that ensures all foods transported to the US are safe for consumption.

Which Documents do you need to Clear US Import Duty and Taxes from China?

For a seamless customs clearance process when importing from china to the USA, ensure you provide all the necessary import documents.

The documents include;

· Packaging List

This is a list showing the weights of the package or container and the contents inside.

· Arrival Notice

An arrival notice provided details about the arrival and is issued by the carrier’s agent to the consignee.

It hastens the process of clearance.

· Commercial Invoice

A commercial invoice contains details about the shipment.

These include the country of import, the buying price, clearance number, and the product description.

· Bill of Lading

The bill of lading shows the goods in the form of a list with their description.

You may also need an insurance certificate, hazardous goods certificate, import license as well as an inspection certificate.

Will you Pay Import Duty for Door to Door Shipping from China to the USA?

Well, it depends on the incoterms agreement.

Door to door delivery is usually covered by two incoterms.

These are delivery at place (DAP) and delivery duty paid (DDP).

For Delivery at the place, you will not pay for the door to door shipping.

Instead, the seller would take charge of transportation costs until the goods reach your preferred delivery place.

On the other hand, you will pay for the door to door shipping on a delivery duty paid terms.

Here, your seller is not liable for the transportation cost.

It is crucial to agree on the incoterms with your seller to be sure of what is required of you before deciding to import.

This way, you will avoid delays and huge penalties.

How do you Clear Customs after Importing from China to the US via the Internet?

The biggest challenge for importers is the paperwork process needed during clearance.

With the widespread use of the internet, it is common to place orders online and deliver without necessarily signing any agreement.

Unfortunately, when dealing with customs, you can only clear your imported goods by manually filling forms.

This, therefore, implies that you cannot clear with customs online.

In cases where you cannot be physically present to clear with CBP, you need not worry.

You can hire a reliable customs broker to take care of the paperwork.

The broker, however, will charge you a fee for the service offered.

Can you Avoid Import Duty when Importing to the USA?

Most certainly!

However, this will depend on the specific type of commodity you are importing.

In the US, some specific products are exempted from import duty.

Depending on the customs policies, products such as donations and other foodstuffs can be exempted from paying import duty.

Also, importing products less than $800 can exempt you from paying duty.

Before importing, it is vital to verify with customs before importing such goods.

How do you Pay US Import Duty from China?

First things first, you can pay import duty in two ways.

You can either pay before Delivery or on Delivery.

If you’ve decided to pay your duty on Delivery, US customs will inform you or your courier.

They will contact you and let you know how much you need to pay and when it’s due.

This way, there won’t be any need to calculate unless you feel a mistake has been made.

Conversely, you can pay for your goods before they arrive in the US.

In this case, you can ask for your invoice from the supplier and inform CBP of the same.

Several payment options are available for this.

Mostly, you can pay your duties via PayPal, cash, or bank transfer.

What is a US Customs Bond?

A bond is a form of a binding agreement between two or more parties.

It serves as a security for a specific agreement.

Us customs bond is always between the importer, Central Border Protection, and the surety company.

The purpose of the customs bond is to ensure that CBP is paid the agreed amount and that the importer follows the stipulated importation rules and regulations.

In cases where you, as an importer, fail to pay CBP, the surety company will pay the deficit amounts.

To get a customs bond, simply find a trusted broker and agree on terms.

How does an Annual Bond Compare to a Single Entry Bond?

If your business has been in operation long enough, you will benefit significantly from an annual bond.

An annual bond is charged once and allows you to import into the US using multiple importation ports.

The yearly bond is renewable and can only seize to be in use if the importer cancels it.

The annual bond covers up to $50,000.00 and is charged at the cost of $450.00.

Moreover, companies can purchase larger bonds and apply for an extension.

Single bond, on the other hand, is applicable where you import once or twice.

You can use it to import firearms and other regulated commodities or import one-time end value products.

Not all businesses need bonds to import.

Personal businesses can import without necessarily using custom bonds.

What are the Things to Keep in Mind when Importing from China to the US?

The phrase ‘all goods are made in china’ is accurate.

China is a production superpower and manufactures the majority of world consumables.

If you are a newbie in the importation market, you are probably worried about what to do and know.

Lucky for you, here is a list of things you should keep in mind when you import from china;

· Identify the Goods you want to Import

The process of importation all starts with identifying the correct type of good.

You are in the business to make profits.

Therefore, you should choose a fast-moving product that will save time and yield maximum profits.

The rule of thumb is, always invest in a product that you can buy.

Besides, you should be passionate and knowledgeable about the product to import.

As if that’s all, your product should allow the importation of large quantities to reduce importation duty through economies of scale.

· Identify your Import Rights

When you buy in small quantities, you can use employee couriers to import on your behalf.

However, if you are importing commercially, you should keep in mind the following rights;

• If you are from the US, your company’s internal revenue service number or social security number will be enough.

– Ensure that the Goods you Want to Import are allowed in the US

Check on regulations on allowable products for importation.

You should avoid venturing into the importation of products such as milk, fruits, and seeds.

Also, ensure that your imports are of the right quality standards and meet health code requirements.

Such goods can be detained, destroyed, or even attract hefty penalties that may cost your business.

What Happens when you Fail to Pick your US Shipment from China On Time?

Usually, after finishing up with the customs clearance, you are eligible to pick your shipment.

But for one reason or another, you may fail to pick your package after arrival in the US.

In this case, this is what will happen:

First, containers transported by sea take 1-3 days to be offloaded from the vessels.

In cases where your container is a Full Container load, you can pick it as soon as it’s offloaded.

You will need to track your shipment to the container freight station for less than the container load that takes another 1-2 days.

The consignment is demonetarized for another 2-3 days.

If the allowed time passes and you don’t pick your shipment, you attract demurrage charges.

These charges vary depending on the port.

The applicable free storage period is always 5 days, after which you start paying for demurrage charges.

What are the US Customs Fines?

The US does not tolerate illicit, illegal, or unsafe trade.

US custom fines are a remedy to minimize instances of illicit trade.

Custom fines are a monetary penalty fined on illegal business transactions by the Central Border Patrol.

It is applicable in all the 326 ports of entry.

When you travel from a foreign country to the US, you must register any foreign possession you have with customs.

Failure to do so can lead to legal actions such as fines or even alienation of the property.

It is paramount to have the necessary information regarding customs rates.

You should also be aware of trading rules within the US. Some goods are not allowed.

Do you need a China to US Import Duty Agent?

Yes, you need an import duty agent when importing from China to the US.

The process of dealing with customs and tracking your goods from China is tiresome, expensive, and complicated.

Learning regulations involved in trading can be stressful and tedious.

With the right import duty agent, you can concentrate on the core business activities and let the agent handle your shipment.

China to US imports duty agents has proven influential, given their vast reputation.

They can serve as translators and communicate with customs and governments to ensure a streamlined shipping process.

How can you Reduce the US Import Duty from China?

The sole purpose of your business should be to maximize profits.

When you import, you can incur excess import duties that you could have avoided if you made shipping easy.

It all starts with controlling the various factors that affect importation.

The whole process relies on hefty paperwork; keeping an accurate record of every transaction can reduce importation delays.

You can employ the following ways to reduce the import duty charged on goods you import from china.

– Checking the Value of Goods you Import

Undervaluing is a tactic adopted by numerous businesses importing products.

Here, you use lower values than your imported products’ actual values to claim a lower-income duty.

If you succeed and customs don’t realize, you will profit from paying low custom duties.

However, the government has raised the alarm over this issue.

If you are caught undervaluing your product, hefty charges can apply, and you risk experiencing custom delays in processing your imports.

– Using Tariff Codes

The tariff codes show details of the commodity you are importing and the applicable tariff.

The last digits in the tariff code are assigned to a specific country.

The first digit is international.

You should be careful to ensure you have the right tariff code.

Having a wrong code can lead to extra charges.

– Verifying Information

Obviously, there is a lot of paperwork involved in importation.

New rates and tariffs are formulated with time.

It is essential to ensure that you are aware of the trends in importation.

Changes in currency and drops in prices of a particular commodity can force the government to deploy new rates.

Rates that were accepted last year may not necessarily apply to current years.

To avoid freight delays and customs delays in clearance, ensure the rates you use are updated as per the government rates.

– Responsibility of the Supply Chain

Most often, you can assign a broker to take care of your importation and transportation.

These brokers can assure you that they can classify the products and calculate the applicable duty rates.

However, this might not be the case.

These brokers are not obliged to be accurate in everything.

They can make mistakes.

If this happens, be sure to take full responsibility for the full cost.

In a nutshell, reducing the cost of importation from china entirely depends on the information you store.

Accuracy is paramount, it might require a lot, but sure it does pay.

What are the Factors that Influence US Import Duty from China?

To begin with, many products that dock in the US borders originate from China.

Most of these products are taxed based on prescribed tariffs.

The first aspect that influences US import duty from china is the type of commodity.

Those in the alcohol and tobacco importation pay a higher rate than those in the foodstuff industry.

Secondly, the quantity imported also affects the duty paid.

In terms of economies of scale, if you import more, you will pay less per unit.

Quantity also influences the duty payable because few goods worth less than $800 are imported free.

At the same time, those above the amount have to pay import duty.

The last aspect is the method of importation.

Those goods that are imported by sea must pay harbor to maintain ace costs unlike those imported by air transport or railways.

Why should you Consider Tj chinafreight to help you Import from China to the US?

At Tj chinafreight, we have an impeccable reputation in the importation of goods from China to the US.

We make our shipments by air, sea or railway.

With an excellent competitive rate comes a reduction in importation cost.

The process is simple; you just have to ask for a quote, and our ever dedicated team will be in touch to negotiate the terms.

Additionally, we offer free 20-30 days of warehousing for your products.

We do all customs clearance and product classification for you.

In a nutshell, we provide the following competitive services to you;

• Competitive rates
• 12 years’ professional freight forwarding experience
• Ability to handle all types of containers
• 24/7 customer support and free quotes
• Warehousing
• Professional clearance

Don’t worry about the custom clearance process for your imports from China to the USA; contact us with your request, sit back, and let us handle all the complications for you.

International shipping from China is a complex process that comes with a large amount of red tape.

You must adequately file your shipping paperwork with the proper authorities before your shipment can reach its destination.

Your freight forwarding agent can help you with the necessary paperwork.

However, it is best to know what’s needed, when, and where to ensure that things run smoothly.

By keeping track of your freight forwarding documentation, you will less likely encounter problems along the way.

Learn more about the documents you need in international shipping from china.

What is Freight Forwarding?

Importing and exporting creates profitable opportunities for businesses involved.

Freight forwarding refers to the logistics of organizing and scheduling the international movement of goods.

It is where you, as an importer/exporter, hire the service of a forwarder to perform the following activities on your behalf.

• Container attracting
• Freight rate negotiation
• Documentation
• Warehousing
• Cargo insurance

Freight forwarding is a difficult phase in the shipping process that requires expert knowledge regarding custom standards.

You should choose a professional and reliable freight forwarder with rich industry experience.

This will help ensure convenience and minimal time and cost spent on shipping from china.

The Purpose of Freight Forwarding Documentation when Shipping from China

Proper documentation facilitates a swift clearance process with customs.

The freight forwarding documents serve the following purposes;

· Identifies the Goods you want to Ship

Freight forwarding documents often details your shipment.

The documents detail the shipment number, size, and contents inside.

This way, customs can easily identify what you’re shipping, making inspection and clearance easy.

· Act as Proof of Ownership of Goods

Freight forwarding documents show the person or business entity that is authorized to receive the products from customs.

This document allows for the change of ownership of products, allowing the importer/exporter of the products to transfer the privilege to someone else.

· Allows you to Prepare Accordingly

These documents put you in the know of your shipment details such as consignment number, the carrier name, and estimated arrival date.

This way, you can easily make delivery preparations such as handling, transport, storage, etc.

· Documentary Evidence for Claiming Compensation

Without the necessary freight forwarding documents, it’s difficult to claim and get insurance compensation.

If your goods get damaged or stolen, you must provide the right paperwork to process your claim.

· Confirms the Delivery of Goods in a Perfect Condition

Your freight forwarding documentation should help you confirm if the goods shipped are the right ones you ordered.

· Represents the Contract of Carriage

Freight forwarding documents contain the conditions that relate to the shipment.

Moreover, the document contains important details about the cargo, such as the value, weight, destination, and conditions that the transport operation will follow.

Main Elements of Freight Forwarding Documents

Freight forwarding documents play a crucial part in ensuring the easy transfer of goods from customs to the owner.

It is easy to facilitate faster transfer in cases where freight forwarding documents are elaborate and accurate.

The following are essential details that freight forwarding documents contain.

· Date of Issue

One of the most critical dates in the freight forwarding document is the date of boarding.

These dates help in the sales agreement and means of payment.

· Description of the Merchandise

You cannot ship your goods without the necessary document that describes your products.

The description of the merchandise should be specific and accurate.

It should match the invoice, packing list, and certificate of origin.

· Volume and Weight of the Cargo

The cargo’s weight and volume should be precise and accurate to avoid delays in the customs clearance process.

Practically, the freight volume and weight should be the same at the arrival time for shipment.

However, it should not coincide with the amount indicated in the shipping document.

· Payment Terms

Your shipping document should indicate the freight payment terms.

Whether the payment is to be made at the shipment destination or in advance before embarking on shipping.

· Corresponding Signatures

The carrier or the agent must sign the freight forwarding document.

They should be responsible for the cargo during the entire shipping process.

· Notices

The shipping process takes time.

The document should provide a receiver’s contact details once the shipment arrives.

This person to be notified can either be the owner of the container or an assigned third party.

Documents Required for International Shipping from China

These are the different forms of freight forwarding documents for international shipping from china.

1) Bills of Lading

Lading is the process of loading a good or product to a vessel for transportation.

The bill of lading document ensures that the carrier gets paid and delivers your goods in perfect condition.

There are three main types of lading documents.

These are the inland bill of lading, airway bill, and an ocean bill of lading.

Let’s take a look at each of them.

· Inland Bill of Lading

An inland bill of lading is a crucial document enforcing an agreement between a carrier and a shipper to transport goods by land.

In most cases, an inland bill of lading is the first document issued for international transportation of goods.

Additionally, the inland bill of lading states the value of the goods, the origin, destination of the goods, the description of the goods, and the shipping terms.

The carrier, the exporter, and the freight forwarder signs the inland bill of lading.

An inland bill of lading plays the following roles in the transportation of goods or products.

• If your goods are damaged while on transit, it offers insurance.
• Inland bill of lading ensures prompt delivery of your products for shipments.
• The bill of lading ensures you get paid for your goods

– Ocean Bill of Lading

Just as the name suggests, an ocean bill of lading is necessary for the international transportation of goods by sea.

The bill is an obligation signed between the shipper and carrier.

It provides details on the type of goods, the quantity, and the destination of the goods.

Besides, the ocean bill of lading also shows the type of packaging used in the product.

This lading document becomes binding when the goods are delivered at the port for shipping.

Once the goods are delivered, the receiver signs and retains the document.

An ocean bill of lading can be of two types.

The first one is referred to as a straight bill of lading and is used where the consignee and nobody else directly receives the shipment.

The other one is where a third party can receive imported goods on behalf of the consignee.

– Air Waybill of Lading

If you want to receive your goods faster, you can always opt for air delivery.

The process might be expensive but takes a shorter time compared to ocean transport.

If you are to deliver your goods by air, you have to obtain an airway bill of lading.

The airline company only issues the airway bill of lading.

The airway bill of lading serves the following purposes;

• Acts as evidence of the receipt of goods in good condition.
• It is an insurance claim offered to the importer on goods transported.
• Shows the freight bill to be paid and the terms of the payments.
• It is one of the critical documents used at customs clearance.

2) Certificate of Origin (C/O)

A C/O is a document used to certify that imported goods are entirely produced and manufactured in a specific country.

This document proves to customs that the goods are obtained from a given country and conform to set requirements.

You need to provide it whenever necessary.

Circumstances where you may need this document include;

• Where a customer or an importer requires it
• Where customs orders for the document in the course of the shipping process
• To meet a country’s stipulated requirements

A certificate of origin document must outline the following information;

• Means of transport and route; the certificate provides for the port of destination and shipment. Besides, it should also spell out the terms of the shipment.
• HS code; this part should be about the customs declaration. The HS code shows the category in which the goods fall and the applicable customs duty to pay.
• Exporter; the exporter is the beneficiary of the shipment. Here, the exporter’s address, including city and country, is written.
• Quantity, number, and type of packages; the certificate of origin clearly shows the number of packages in transit.

Other important information to include in the certificate of origin is;

• Certificate number
• Date and number of invoice

A C/O applies to all products that meet the regulations of place of origin in China.

Your supplier fills the application, and they should have an export license to be eligible.

Suppose you are planning to import from China.

In that case, you should apply for the certificate of origin at least five days earlier before your shipment departs from China.

The certificate is issued after 1-2 days of use. However, you should note that there is no online receipt of the C/O.

3) Commercial Invoice

A commercial invoice is a legal document that states the value of the goods in transit and the amount the customer owes the supplier.

Besides, the commercial invoice provides the condition of trade agreed upon by both the seller and the buyer.

It is necessary to fill out the commercial invoice as accurately as possible to avoid delays and speed up the customs clearance process.

The commercial invoice has the following information;

• Seller information and tax identification number
• Buyer information and identification number
• HS code
• Description of goods
• Currency
• Payment instructions
• Bill of lading number
• Date of exportation
• Final destination
• Delivery terms as per incoterms 2010

4) ertificate of Manufacture

A certificate of manufacture is a statement in which the producer of goods communicates to the buyer that the goods are ready for ordering.

It also certifies that goods produced are of the right quality and conform to stipulated standards.

This document needs to have the manufacturer letterhead and has the following information;

• The date on which the manufacturer got the product
• Name of the product
• Batch number
• Quality control inspector’s name and signature
• The number and the quality of the goods
• The name of the beneficiary of the drawback goods
• Applicable duty amount charged on the product
• Quantity and value of the waste
• Number of outputs
• Date of signing

5) Packing List

A packing list is a vital freight forwarding document which provides details about your shipment.

Other names that can describe a packing list are; delivery docket, unpacking note, and customer receipt.

The packing list serves the exporter, consignee, and freight forwarder with essential details about the shipment.

The list includes information relating to the number of products and boxes packed.

A packing list is essential for international shipping because:

• It serves as a guide for the buyer when confirming goods received
• They are used to book shipping space with international carriers
• The list provides the necessary details required to file a certificate of origin
• It provides an accurate count of the goods you’re importing
• The document serves as proof of the inland bill of lading.

A packing is prepared by the seller and sent to the importer on location to verify goods.

The list must be as detailed as possible about the shipment. It must include the following information:

• Quantity of each package.
• Commercial invoice number.
• Description of each package.
• Destination address.
• Consignee contact address.
• Shipper contact details.

6) Inspection Certificate

If you are shipping high-value products, you are required to present an inspection certificate.

This certificate provides proof that your product is of good quality and as per the order you placed.

An independent inspection company usually issues the certificate.

This is after they’ve conducted a thorough inspection of whether the goods meet the specifications outlined on the sales contract.

You can classify an inspection certificate as either an official inspection certificate or a commercial inspection certificate.

Suppose you do not trust your suppliers’ production quality; you can opt to involve a trusted company to inspect your behalf.

The inspection company you choose should be trustable by both you and the seller.

After conducting the assessment, the company should provide you with a detailed inspection report.

The inspection certificate is issued immediately after completing the independent assessment.

This is only after the goods have passed the quality test.

Otherwise, you cannot be issued with this certificate.

Here are some of the benefits that both buyers and sellers get from the inspection certificate;

• It clears doubts regarding the quality of products.
• The certificate provides evidence through the third party. If at all, after a positive recommendation by the inspection company, you witness low-quality products, you can always claim compensation.
• Acts as documentary evidence under the letter of the credit transaction

Please note that an inspection certificate is only valid for 5 years.

After this period, you will have to file for a new one.

7) Goods Insurance Certificate

Goods insurance certificate is a document that shows the type of goods insured.

It also shows the amount of insurance coverage issued on specific goods in transit.

The shipping process faces numerous impediments that, in the long run, lead to delays in delivery, loss of goods, and high risks.

As such, it is prudent to ensure your products against such risks.

Insurance coverage assures the consignee that you can file claims and get paid if you incur a loss or damage.

Shipping insurance is affordable and costs from $50-$100.

Your chosen insurance company or broker will provide you with this certificate.

Check to contain that the insurance certificate has the following information:

• Shipment information
• Policy number
• Details of the policyholder
• Shipping information
• Coverage limit
• Circumstances for compensation
• Procedure to follow in the event of a loss
• The liability of the carrier or third parties
• The settlement agent’s contact information
• Premium amounts
• Validity period

It is essential to accurately manage the goods insurance certificate to speed up the insurance claim process in the event of a risk.

Note also that every insurance certificate covers specific types of products at particular times.

Meaning, you cannot use the same certificate for different products at different times.

In the event where you need to use the same cover over and over again, your insurance broker or provider can arrange a comprehensive insurance certificate.

Remember, once goods leave the manufacturer’s warehouse, they are susceptible to different types of risks.

In this case, apply for one immediately after the supplier dispatches your goods.

8) Import License

For a business to be legally in operation, it must acquire the necessary licenses from the government.

An import license is a document issued by a particular government, allowing you to import different goods.

The primary purpose of these licenses is to regulate the importation and exportation of Particular goods.

Consequently, it helps protect the domestic industry.

A government imposes quotas by providing licenses to traders allowing them to deal in specific volumes of products.

Importing and exporting can help you expand your business either locally or internationally.

It is prudent to check the applicable requirements before embarking on your business.

The following checklist provides guidelines that you should follow when shipping from China;

• Check the requirements of the customs border protection regarding items that may require a license.
• Verify with the port of entry of your goods. Find out any information regarding the process of importation or exportation.
• Note that, regardless if you qualify for a license, you must complete a customs entry form. After receiving your shipment, you have 15 days to fill the form.

Not all items you import or export will require a license.

You only need to be aware of the exporting/importing laws and regulations.

The best way to proceed is to check with your customs for which goods require an import license.

9) Shipper’s Letter of Instruction

Shipper’s Letter of Instruction (SLI) is a document directing a shipping agent on how and where to handle cargo.

In most countries, all shipments must have an SLI.

It permits the freight forwarder to handle all transactions that relate to custom and export schedules.

This document is vital for sea freight merchandise.

This is because shipping vessels often stop at multiple ports making an SLI critical.

It helps in ensuring the safety and proper handling of sea shipments at all times.

A shipper’s letter of instruction aids in the following:

• Issuing an export document; in cases where you are not familiar with importing/exporting requirements, giving an SLI to your forwarding agent is the best way to ensure efficiency and swift shipping.
• Proving all information in one place, the SLI provides all information about the shipment in a single document. This way, the use of voluminous documents is reduced.
• Delegate duties to the freight forwarder; providing a written power of attorney and an SLI document to the freight forwarder allows them to oversee cargo on the shipper’s behalf.

Filing out an SLI is an easy process, and you can even use an online template.

These templates are easy to follow, and they guide you through the process of issuing an SLI.

These templates require the following information;

• The person paying for the freight
• Freight forwarder details
• Shippers information
• Quantities and weights of products.
• Type of freight.
• Name and contact of the exported.
• Insurance information.
• Type of packaging used.
• Special handling requirements.

10) Dangerous Goods Certificate

Dangerous Goods (DG) are products that pose health, safety, or environmental risks when handled and shipped improperly.

People with special training and expertise should handle such goods.

The use of diamond-shaped signage denotes dangerous goods.

IATA and the International Maritime Organization (IMO) regulate dangerous goods and HAZMAT shipping.

If your shipment contains hazardous or dangerous goods, you must provide a certificate of dangerous goods.

The DGC requires that a company has a team that is well trained in the documentation, packing, and labeling of the consignments.

Forms for dangerous goods shipping must be completed and signed by trained personnel.

This way, you can avoid instances of accidents that result from shipping such goods.

11) Gift Certificate/Letter of Donation

Sometimes, your intention to import or export is not to sell but rather for relief.

In such a case, you are supposed to obtain a gift certificate that indicates that your shipment is not meant for resale.

Donations and gifts are exempted from paying import duties.

Therefore, with this document, you can import at will as long as the goods are safe and conform to the stipulated rules and regulations.

12) Phytosanitary Certificate

A phytosanitary certificate is an important document when shipping certain regulated agricultural products like plants.

It is generated from the exporting country’s ministry of agriculture, water, or food resources.

Only certified personnel authorized by the National Plant Protection Agency (NPPO) can issue the document.

The document aids in preventing the entry of pests, diseases, and other contagious pathogens into the country of importation.

The document is essential when shipping the following products:

• Seeds for propagation
• Fruits and vegetables
• Grains
• Specified plants

If you are shipping the following products, you must first register with NPPO after applying with your country’s department.

Besides, you can either apply online or through hard documents to qualify for the certificate.

In most cases, qualified personnel will have to inspect your storage facility to ensure it conforms to the set health standards.

You have to include the following documents in a phytosanitary certificate:

• Country of origin
• Country of delivery
• Import license number
• Declared point of entry
• Details of the product
• Means of conveyance
• Shippers and consignee details
• Treatment details
• Company statement that declares the safety of the consignment
• An official signature from the inspection officer

13) Fumigation Certificate

A fumigation certificate confirms the shipment has been fumigated and is safe.

It is also known as a pest control certificate.

The document contains information on the type of fumigant used, the temperature, and the treatment tenacity.

Fumigation of the materials used is a must for international transport.

However, you do not need to fumigate wood-derived products.

This way, it is better to use plastic as the sole packing materials to avoid fumigation.

How to Process Documentation for International Shipping from china

In your international shipping course, you will need well-documented data to facilitate faster customs clearance and delivery of your merchandise.

You will need documents at two crucial points in the course of your shipping.

The first part will be at the loading country where your goods originate.

And the last part will be at the off-loading dock in the destination country.

To make the whole process swift, you should keep track of your documents and ensure they are updated regularly.

The following documents we have mentioned in the previous section will come in handy in international shipping.

For some of these documents, you need to process them at the origin country before shipping goods.

Others require that you process paperwork at the destination country, as per customs rules and regulations.

You must provide the necessary documents at the origin country to allow your goods to be shipped.

In many cases, if you are shipping under FOB, your supplier will handle the documentation process.

At the destination country, customs will not release your goods.

This is until you provide requisite documents, fill out the necessary paperwork, and pay customs duties.

The required paperwork will depend on the products you are shipping and customs regulations.

Note also that there are those documents that you can process and send online, while some require you to do it manually.

There are usually so many templates available for online processing that you can fill out your details and process.

You can hire a freight forwarder to handle the documentation as well as the shipping process.

A reliable freight forwarder will help ease the process of shipping from china.

Why you Should Keep Records of your Freight Forwarding Documentation

The whole process of shipping goods is document centered.

The documents offer the necessary details regarding the shipment.

They provide needed information regarding the origin, destination, quantity, conditions of the product, and how they are handled.

These records are always important at the customs clearance to facilitate swift handling of the consignment to the owner.

Besides, proper records help in cases where there are complaints from the customer regarding the shipment.

In a nutshell, it is essential to keep proper records of the documentation because they help:

• Identify a specific shipment and match it with its contents.
• Plan the requirements for the transport, storage, handling, and delivery of the shipment to the final terminus.
• To confirm products received against those ordered and shipped.
• To initiate insurance claims in cases where there are losses incurred in the course of transportation.
• Act as evidence in case of disputes.

Who Handles Customs Clearance when Importing from China

Whether shipping through the sea, air, or land, every shipment must pass through customs.

The whole process can be tedious and tiresome, and sometimes even frustrating.

You can handle customs clearance on your own or hire a third party to do it for you.

However, you should consider the following factors before deciding on handling the whole process or outsourcing a third party to help.

– The Number of Import/Export Declarations

The more number of declarations you have, the higher customs clearance will charge you.

It is economical to handle customs clearance on your own if you have a higher number of declarations.

– Costs of Handling Clearance Yourself vs. Outsourcing

You can calculate the cost of having a functional clearance system, fixed costs, and the total amount of time employees must spend doing the clearance.

Then, you can compare your expected costs with that of outsourcing and choose the least cost.

– Keep track of Performance

It can be cheap to outsource than to handle customs clearance yourself.

However, you should keep track of the courier clearance to ensure they handle it accurately.

This is because, in a situation where mistakes are made, customs will hold you liable to pay for the errors.

Combining the Two Options

You can decide to adopt both methods of customs clearance depending on your business’s nature.

If you are exporting and importing, it can be profitable to have a freight forwarder handle your importation’s clearance as you handle the clearance on exportation.

If you handle customs clearance yourself, you can enjoy the following benefits.

• The faster custom clearance lowers delivery delays
• Reduced costs as you are in total control of the customs fees
• Minimize costly mistakes that can be made by freight agents
• the secure and well maintained in-house customs clearance process

On the other hand, having a freight forwarder handling your customs clearance has the following benefits;

• Relieve you of the hectic time spent on handling customs clearance allowing you to concentrate on other essential aspects of the business.
• You do not have to be accustomed to the latest trends in freight forwarding since your agent handles it for you.
• Using a freight forwarding agent only crushes you economically and not administratively if the quantity of declarations increases.
• Enjoy quality handling of the process as these agents have enough experience and connections in this field.

Let Tj chinafreight help with your shipping documentation process.

The whole process of shipping and handling customs clearance is tiresome, intricate, and perplexing.

You spend much time that would instead spend on management.

Besides, the complex nature of customs clearance requires competency and knowledge about freight clearing rules and regulations.

You can, however, reduce this anxiety by hiring the services of a reputable freight forwarder.

At Tj chinafreight, we assure you of stress-free shipping at a relatively cheap cost.

We are a premier freight forwarder that offers air, sea, and land transport.

Besides, we do product inspection and customs clearance.

If you consider importing, you can always trust us to handle your freight procedures and processes gladly.

With our services, you get the following;

• A reputation of over ten years in the business. This means we understand the rules and regulations, and we guarantee you quality customs clearance.
• Competitive shipping rates. Our pricing matches your economic needs. Believing in us and using our services gives you the freedom to undertake other endeavors without worrying about your freight losses.
• A one-stop-shop for all your shipping needs. We provide various services that include collecting products from your supplier, filling documents, customs clearance, and delivering the goods to your doorstep.
• Get reliable and fast freight forwarding to your desired destination.
• Free warehousing at pick freight moments of 20-30 days.

At Tj chinafreight, we have an ever dedicated team that values your cargo, listens to your requests, and updates you on your shipping progress.

Furthermore, we allow you to use containers for free for up to 28 days.

Trust us and let us deliver your shipments, handle your documentation and customs clearance process.

Contact us now and just sit, relax, and take care of other essential developments in your business while we do the rest.

Project management is a critical process when importing from China or any supply chain.

That’s why I will answer all questions about product management today.

Let’s dive right in.

What is Product Management?

You are planning to venture into a local or international business, and you are wondering how to proceed.

At this point, you need the right product that assures your business profits and success in the long run.

However, you lack the necessary knowledge concerning the product you’ve chosen.

This is where product management becomes useful.

Product management is a broad concept that varies from one business to the other.

To define product management, we first must consider the size of your business, target market, that is, either direct consumers or other businesses.

In essence, product management refers to developing a product strategy, deciding on what product to build, and finally working out how to market and sell the product.

What is the Role of Product Management in International Shipping?

International shipping presents your business with a lucrative market that enhances your profits and your customer base.

However, to be able to excel in international shipping, you must have the right product.

If you are a foreigner, you should not think that entering the international market is easy-peasy.

Failure has a higher probability than success in this venture.

Product management serves your business right when it comes to international shipping by:

· Understanding the Customers

Different customers from different geographic regions have varied tastes and preferences.

Product management comes in handy as it helps your business determine these diverse needs.

Also, PM assesses the various competitors and impediments in international shipping.

Product management will help your business assess your market.

You will understand the different cultural variations, language, and purchasing power regarding customer variation.

Ultimately, product management serves to help you source and ship the right products for your customers.

· Recruitment and Hiring the Right Talent

When it comes to international shipping, every aspect of your business is crucial.

Product management helps you hire the right employees with the drive and enthusiasm for success.

After knowing what your customers want, you can match the available talents and align them to ensure minimal supervision with high output.

Here, you can recruit and train your employees to help achieve your customer’s demands.

· Date, Currency, and Measurement

You will witness different time zones, currency, and measurements depending on where your company ships.

With a robust product management strategy, you can analyze all these factors and define how to handle each of them.

· Rules and Regulations

Rules and regulations greatly influence international shipping.

For your company to import/export, your product must conform to the local government’s legal, environmental, and health standards.

Effective product management goes a long way to understand the intricacies involved in given importation/exportation.

Your product must conform to the laid down rules and regulations.

How does Product Management Work?

Product management is multifaceted and a never-ending process.

It starts where a product idea is generated and implemented.

The product should be such that it serves; the customers, the business owner, and other stakeholders.

You should have the initial idea of developing a product.

Next, match the idea based on your prospective customer’s desire.

Finally, align your workforce to these needs before implementing the whole idea.

Successful product management can follow a set outline that includes;

• Idea generation
• Analysis and specification of the idea
• Communicating a roadmap that aligns with customer needs and the idea objectives
• Setting priorities on what will bring value to your company
• Delivering a high-quality product to the customers
• Constant analytics and quality improvements on the product
• Continuous monitoring and acting on customer feedback

Communicate your product objectives to your project teams clearly.

Let them understand that at every stage of product development, the customer needs come first.

What are the Three Models of Product Management?

These are the three models of product management.

· Business-first Model

In this model, product management pushes for more profits and growth of the business.

They do so by striving to be competitive and staying on top of the game.

· Consumer-first Model

Here, product management relies on feedbacks, past data, and requests to develop a product and sell it to the market.

· Technology-first Model

In the technology-first model, the concern is on efficiency, minimizing absolute work, and extensibility.

It works best when information is available, proven, and the whole process of product development simple.

Product management changes daily and no single model can work all the time.

Continuous research can give you the best model to adopt, depending on your business’s needs.

What are the Characteristics of Ideal Product Management?

Ideal product management features assure your business success and profits in the long run.

This is because your product management strategy identifies with your target customers and endeavors to meet their needs.

Product management should:

• Have excellent marketing and selling ability
• Be able to develop a unique product fit for consumption
• Be time conscious and able to meet deadlines
• Have the ability to communicate and organize project teams
• Prompt reporting and proper documentation
• Be able to measure progress, reward efforts, and motivate
• Ability to foresee risks and manage them

Most of the mentioned attributes are easier said than done.

You should closely monitor your organization’s product and management aspects to increase the chances of succeeding.

What is the Difference Between Product Management and Product Development?

In a company, you will have product development and product management, all of which play different roles but are essential.

Product development is narrow and only focuses on the new product’s research, design, and engineering.

On the other hand, product management is broader.

It encompasses the research, management, development, and selling of a new product.

It also involves recognizing customer needs and hindrances that the product can face in the market.

What are the Challenges you Face in Product Management?

Product management is a complex process that involves numerous players in the implementation, execution, and monitoring.

Depending on your environment, dealing with international products can prove risky and challenging to you.

In the course of your operations, you can face the following challenges:

· Understanding the Consumer

Consumer needs form the core concentration in developing your product.

Your company should first carry out research and determine the needs of the target market.

After that, you should dwell on designing a product that addresses these needs.

However, the nature of consumer needs is dynamic from one geographic location to the other.

Striving to meet these distinct needs is challenging and often time-consuming.

Your company, in the long run, will face challenges relating to consumer needs.

To address this issue, you should have a flexible strategic product management team that can change and adapt to new customer needs.

· Adapting to New Technologies

Technology changes with each rising day, and you cannot predict tomorrow’s requirement.

Your business can address this through flexibility in research, mapping, and design of new technology.

Bots and other automated services make it easy to handle your organization’s customer feedback and response rate.

However, these bots’ expensive nature and the fact that they may not be accurate can pose a challenge to your company.

· Creating a Consistent Brand Experience

With new competitors in play, better and cheap products reach consumers each rising day.

As such, getting consumers a seamless and perfect product experience can be a bit problematic.

Consumers will opt to shift towards products that favor their needs.

Eventually, you will lose customers, run a loss, and even risk closure.

However, you need not panic.

With adequate investment in product research and development, you can ensure the right products reach your consumers at the right time.

This way, you are assured of maintaining a competitive market share of the customers.

Most of these challenges are inevitable.

You cannot deviate from experiencing them.

You only need to prepare and strive to avert them as much as you can.

How do you choose the Best Product Management Strategy?

Your product management strategy should not be one that concentrates on many efforts, costs, and time.

It should be simple with a clear roadmap that shows what to do, by whom, and at what time.

Developing a product management strategy is not simple.

You should treat each product differently and design a perfect fit design that meets the ultimate objective of developing the product.

Here are some tips to help you choose the best product management strategy:

· Customer Needs First

Your product management strategy should put the needs of your target customers first.

In doing this, you should do proper research through surveys and conducting questionnaires to determine what customers need.

· Understanding the Problems

Your strategy should address customers’ needs and provide them an immediate solution.

From the onset, you need to understand the particular problem your customers face.

After that, your customers must be willing to pay for a solution to their problem.

· Define your Product Vision

Before embarking on product development, you need to have a clear vision of where you want the product to be in a particular period.

A vision motivates you to keep going, while a strategy is a roadmap to achieving the vision.

All your employees should understand the company’s vision and the strategy in place to achieve them.

· Define Success Metrics

Your product management strategy cannot be complete if it lacks the means to measure success.

You can measure success based on achieved objectives and goals.

Success helps your company track progress and determines if you need to keep going or realign your strategies.

A good product management strategy makes you focus on the final goal.

his is delivering the right product with the right features to the right consumer.

What Comprises a Great Product Management Team?

A product management team forms the brain-work behind the strategy’s implementation.

It creates a roadmap and defines the product features.

Great teams build great products, and in doing so, your company’s overall morale can improve significantly, leading to success.

It is not easy to have the dream team every employee would desire.

However, with coordination, trust, and training, you can have one of your perfect dedicated and focused teams to ensure your business’s prosperity.

Such a great team should:

· Have a Shared Vision

In the beginning, you should be able to communicate the company’s vision to the team.

This team should master, understand, and strive towards meeting this vision.

In the long run, all team members should identify themselves to the vision and work harmoniously to achieve its objectives.

· Proper Communication

Your company should have a precise communication method informing the team members of what you expect of them at all times.

Proper communication allows you to discover hidden talents and contributions that your team members can bring on board.

· Trust

Your team members should value the contribution of others and not belittle them in any manner.

Trust in a project management team ensures harmony and improved outputs.

· Problem-solving

In the course of working together, your team can face numerous problems.

They should understand that unity is key to solving problems and minimize risk in times of distress.

Problem-solving in a team involves putting personal differences aside and working in unison.

· Empathy

Your project management team consists of humans.

The team should understand that at one particular time, one of them may need help.

Your team members should rise beyond their employment mandate to help each other, customers, or the society the business operates in.

How do you Organize your Product Management Team?

Organizing your product management team entails informing them of what role they are to play and what you expect from them.

It begins with deciding the number of team members you want depending on the project’s size, recruiting costs, and timelines.

You can organize your product management team through:

• Encouraging your team to be entrepreneurs
• Focusing on the right skills and not the right
• Setting the right chain of information reporting
• Hire product managers, not owners

Your product management team must be dedicated, goal-oriented, and, most of all, conscious of your vision.

What is Enterprise Transformation?

Enterprise transformation refers to the radical changes that your organization has to make to meet the ever-changing customer needs.

The transformation goes beyond implementing new ideas.

It involves rethinking how you can serve customers better by being closer to them in every aspect.

What are the Three Components of Enterprise Transformation?

The need to meet customer’s expectations and retain your business’s existence will drive the process of enterprise transformation.

These components determine the direction in which your business will take during transformation.

· Digital Transformation

Your business will invest in having proper technology and processes to facilitate customers’ requirements.

· Data Transformation

Data is critical when it comes to analysis and problem-solving.

Enterprise transformation relies heavily on available information.

· Solutions Transformation

You should be able to provide the ultimate options for your customers when a new problem arises.

This will include your distribution, pricing, and feedback assessments to help address your customers’ needs.

How does Enterprise Transformation Benefit your Business?

Competition is a common phenomenon, and eluding it means quitting.

Nevertheless, there is no business entirely composed to handle these changes.

All you need to do is adapt to each change, roll your sleeves, and keep going no matter what happens.

Enterprise transformation helps you reinvent your business objectives and work together with your product management team to meet customers’ needs.

Enterprise transformation also offers your business an opportunity to exist in the future.

By adopting new technologies, you become relevant in the global competition and assure your customers continued supply.

What is the Role of Product Management in Enterprise Transformation?

When it comes to enterprise transformation, product management helps you assess customer needs, market trends, and costs incurred.

Product management focuses on the long-term needs of the customers.

This way, your enterprise can transform strategically, having customers’ needs incorporated into the bigger picture.

With this in mind, product management advises on an appropriate enterprise transformation strategy to ensure minimum costs and maximum sales.

What is Product Positioning?

The primary purpose of your business is to deliver goods to the final consumers where they need it.

To achieve this, you should adequately communicate your product’s values and solve the customer’s needs.

Product positioning is a marketing strategy that presents the benefits of your product to specific target customers.

It clearly defines what makes your product superior to other comparable options on the market.

How should you price your products?

When it comes to pricing a new product, nobody can claim to be a pro.

We all get stuck at some point. You should note that the pricing of your product determines nearly every operation in your business.

So don’t be in a hurry or worried because pricing is not a one-time thing.

You can change your prices at any time.

If you want to set a price for your product, you can follow the steps below:

· Add Up Individual Product’s Variable Costs

Start by knowing the exact costs you incur in producing or buying your product.

Buying for reselling is straightforward since the cost will be the purchase price plus transportation costs.

However, suppose you are manufacturing the product.

In that case, your variable costs will include costs of raw materials per product, costs of shipping, packaging, promotion, among others.

· Add a Profit Margin

After adding all the variable costs, it is now time to add the profit you expect.

You can decide to add profits based on time spent or profits in a given production period.

Beware not to add too much profit as you want your products to maintain a competitive market price.

· Fixed Costs

In pricing your products, you should not forget to include other fixed costs that you must incur regardless of the number of units you sell.

You can price after calculating the fixed costs and determining the number of commodities you have to sell to offset these costs.

What is the Difference Between Inbound and Outbound Product Management?

Inbound product management focuses on understanding what the product needs to be.

It involves understanding market needs and your business position to meet them.

Also, it defines the product strategy to meet the needs and documentation requirements.

Outbound product management, on the other hand, ensures that the product reaches the market and succeeds.

It involves familiarizing your marketing team with the product and supporting the team by focusing on multi-customer activities.

How does Product Positioning Benefit your Business?

With proper product positioning, your business can benefit in the following ways.

· The Successful Introduction of a New Product

By pointing out your product’s strengths and benefits, you can quickly gain entry into the market.

· Win Interest and Attention of Consumers

Product positioning can capture potential consumers’ attention.

It helps pin issues that affect the consumers and how the product will attend to them.

· Communicating New Product Features Added Later on

Product development arises from research and changes every day.

Product positioning can help you communicate these new features to your customers.

· Match Competition

The truth is business competition is inevitable.

However, the competition should be healthy for your business as it keeps you on your toes.

Proper product positioning gives you the upper hand ahead of your competitors.

What are the Different Types of International Product Positioning?

There are different strategies that you employ to position your products in the international market.

You can base your strategies on the following elements.

· Competitors

You can position your products in contrast with those of other producers.

This way, consumers can decide to settle on buying a superior product based on the comparison.

International product positioning can be challenging due to perception from consumers based on the country of origin.

· Application and Use

The use of a product can differ from country to country.

A product can have completely different uses in one country compared to another country.

This strategy enables you to communicate to users why they should choose your product for particular applications.

· Price-quality Comparison

You can also base your product positioning on the price-quantity comparison.

Here, highly-priced products can be said to have higher quality and value than other alternatives.

This strategy can be beneficial if you deal in high-end goods.

However, this may not work in the international market, given some countries’ association with high-end products.

· Product User

This is another approach to take when positioning products.

You can base your strategy on the specific or representative consumer.

This way, you make customers understand the particular benefits they can enjoy if they use/consume your products.

Whatever approach you choose to take, ensure that it communicates your message to the market clearly.

You can even combine two or more of the strategies above when positioning your products.

In this case, be careful not to deviate from the mission. Combining positioning strategies should be done carefully to avoid confusion.

Does Product Management Assist in Global Product Positioning?

Global positioning is complex and requires exemplary skills relating to the needs of the ultimate consumers.

So yes, product management is crucial when it comes to global product positioning.

You must understand your customer problems and offer them solutions.

This way, they will buy the product that you are offering.

What are the International Product Management Best Practices?

The following best practices can make your product management effective in the international marketplace.

· Understanding Customers Need

The happiness of your customers is essential.

You need to find out their needs and expectations and provide a product solution that can satisfy them in the best ways possible.

· Market Analysis

You need to determine whether your product will succeed or fail.

This involves doing a weakness-risk analysis to determine what probability you have of succeeding and failing.

· Form a Strategy

Your chances of thriving in the market entirely depend on useful frameworks.

These should focus on both the long-term and short-term objectives of your business.

· Grasping your Company’s Objectives

Your company aims at achieving some goals after a specific period.

The objectives define what success means, allowing you to focus on customers’ needs in conjunction with your own business needs.

· Run Short Feedback Surveys

Learning from peers, customers, and employees within the business provide you with the necessary knowledge on market demands.

Other practices that can ensure the success of product management are;

• Not being afraid to make changes
• Speed in evaluating and implementing ideas
• Commitment to the product vision and mission
• Hiring the right team

Who is a Product Manager?

A product manager is a leader in the product management process.

The product manager analyses customer requirements to decide what product to produce assembles a team and defines the scope of success.

Do you need a Product Manager for your International Trade Business?

Yes, you do.

A product manager knows the needs of customers and represents their interests during product development.

Moreover, a product manager generates product ideas, implements them, launches the products, and presents them to customers.

A product manager has the following roles:

• Strategy formulation
• Execution of the strategy
• Market analysis
• Lead the product management team

How do you Find a Reliable Product Manager?

When it comes to recruiting and hiring a product manager, you should only consider the best.

Here are some insights to help you decide on the best product manager.

· Ability to Solve Problems

A good manager goes out of his comfort zone to propose a solution when a problem arises.

In determining the ability to solve problems, you can allow prospective candidates to sell themselves instead of proposing technical questions.

· Great Communication Skills

Even if your prospective candidate ticks all other qualifications, drop them if they cannot communicate effectively.

A product manager should assign tasks, file reports, and communicate appropriately with product team members.

· Leadership Skills

Natural leadership is vital when choosing a product manager.

In many cases, other members of the team may be highly qualified than the product manager.

The product manager must handle all the other members without fear of education or experience to coordinate and deliver.

Other essential traits that define a reliable product manager include;

• Curiosity
• Empathy
• Passion

In many cases, your product manager will communicate the values of the product to interested parties.

As such, you should have a product manager fixated on delivering customers’ demands while keeping the company’s objectives in mind.

At Tj chinafreight, we can help you with all your product management strategies.

Contact us now for any inquiries or questions on product management.

If you have plans to ship from China to the West Coast, it is important to know about Traffic Mitigation Fee.

This fee is an integral element in enhancing the overall efficiency of cargo movement from terminals.

In this guide, I will take you through various aspects of the Traffic Mitigation Fee.

This will make it easy for you to know its essence and other related aspects.

What is a Traffic Mitigation Fee?

A traffic mitigation fee (TMF) refers to a levy paid at the terminal when congested.

When there is congestion at the terminals, operations have to take place beyond the stipulated regular working hours.

The work involves using human labor, mostly tasked with handling various types of operations within the terminal.

To compensate the workers, there is a need to pay some fee to cater for their overtime wages and other benefits.

Therefore, Traffic Mitigation Fee simply covers the additional cost of workers forced to operate outside normal hours.

In essence, this reduces any projected congestion, thus ideal for avoiding delays and business losses.

Why is Traffic Mitigation Paid?

Often, terminals across the U.S, especially on the West Coast, tend to Congest due to the high traffic of container shipments.

This congestion usually affects the berthing of ships, thus leading to unprecedented massive delays for customers.

Also, the delays lead to the loss of businesses and production, among others.

Therefore, to alleviate such congestions, the terminal gates tend to operate at night or during weekends to prevent daytime traffic.

Of course, adding night shifts and weekends to any operation implies increased costs.

This is particular for terminal operators since the labor rates for night time and weekends are higher than regular times.

And the increased operators’ cost is passed directly to the trade hence inflating the price of each commodity.

In general, TMF is paid to cater for the extra costs for night shift and weekend operations in a bid of congesting the terminal.

In the long run, the traffic mitigation fee helps enhance overall efficiency by facilitating congestion prevention in terminals.

What are the Charges for Traffic Mitigation Fee?

Traffic mitigation fees vary depending on a wide range of prevailing factors.

One of the factors is the specific container terminal.

Various terminals have different rates for their respective TMF.

The other defining element of TMF is the specific type of container.

Typically, there are two types of standard containers often used in shipping; 20ft and 40ft container.

Of course, the TMF for a 20ft container will undoubtedly be lower than that of a 40ft container.

Also, the government, through the responsible agency, always revise the charge for traffic mitigation fee.

And the trend has been in effect ever since the introduction of this particular fee.

In recent time, TMF at the West Coast were revised and increased by 4.2%

Therefore, since August 1, 2020, the traffic mitigation fee for a twenty-foot equivalent unit (TEU) was revised to $33.47.

The TMF for any other shipping container apart from TEU is $66.94.

However, the traffic mitigation fee for non-exempt containers.

Some of the containers exempted from TMF include;

• Empty containers
• Transshipment cargo
• Empty chassis and
• Bobtail trucks

How does Traffic Mitigation Fee Work?

Ideally, the terminal operators levy the TMF charge directly to the customers or cargo owners.

This traffic mitigation fee is designed to cater to the night and Saturday shifts.

In essence, it aims at compensating mainly for daytime congestion in and around these terminals.

Primarily, TMF is charged for different types of containers moving during peak hours.

And these peak hours are usually between 0300hrs and 1800hrs.

Do Marine Terminal Operators make Money from Traffic Mitigation Fee?

Not at all.

Since the inception of this program is 2005, the terminals have always operated the off-peak gates at a loss.

As of 2014, the MTOs at the ports had made up the shortfall in TMR revenue.

This was to ensure that traffic mitigation and as well as air quality benefits of the program continue to become a realization.

Technically, the revenue generated from TMF does not cover any added costs for operating the night and weekend shifts.

Moreover, in the recent past, TMF never fully paid for the OffPeak program.

In the recent past, the TMF charges have been increasing but still does not generate any meaningful revenue for MTOs.

Therefore, it is easy to say the terminals hardly generate enough revenue for the traffic mitigation fee.

What is Pier Pass?

Pier Pass refers to a system for collecting fees on a relatively large scale from cargo owners for paying terminal operators directly.

It is a non-profit organization formed by Maritime Terminal Operators (MTOs) at Ports of Los Angeles and Long Beach.

It was formed in 2005 to address a wide range of multi-terminal issues.

Some of these issues include congestion, security, as well as air quality, among others.

To fulfill the mission, the organization initiated the OffPeak program hence imposing TMF on cargo moved out of ports during the day.

In principle, this discouraged the truckers from moving out their cargo in peak weekday time.

However, the initial shift-based program failed to evolve with the growth of the industry and technological advancement.

Thus Pier Pass chose to launch OffPeak 2.0 in late 2018.

This organization charges a traffic mitigation fee on daytime traffic.

The revenues it collects from the cargo owners are used for paying terminal operators directly.

How Often does Traffic Mitigation Fee Increase?

Since the inception of Pier Pass in 2005, the TMF rates remained the same until August 2011.

This is after the realization that the revenue generated is not enough to cater for all the required compensation needs.

Moreover, it was also affected because hourly labor costs had increased by 31% for the same period.

Since 2012 West Coast MTO Agreement (WCMTOA) has been revising the TMF rates every year.

The announcement for new revises rates is usually effected from the 1^st day of August every year.

In essence, this is to help address the increasing labor cost.

For instance, on August 1, 2019, the TMF rates were increased by 1.9%.

This means cargo owner paid TMF of $32.12 per TEU and $64.24 for all other containers for the entire year.

From August 1, 2020, the rates were reviewed upwards by 4.2%.

It thus shows that cargo owners are currently paying $33.47 per TEU and $66.94 for other containers.

How are Net Profits from Traffic Mitigation Fee Distributed among Terminal Operators?

In most instances, the net profit is usually distributed based on the container volume at each terminal.

Pier Pass has invested in a practical system, which determines the container volume for every terminal.

This makes it easy to distribute the net profits equitably to each terminal.

As you can see from this guide, traffic mitigation fee is a fundamental element in the overall management of marine terminals.

It is essential in enhancing the efficiency of cargo movement hence mitigating unnecessary delays.

TMF is also vital in shipping since it helps in fair compensation of the workers working beyond the stipulated regular hours.

Moreover, it helps to carry out maintenance programs within the terminals, enhancing flexibility and mitigating impacts on local communities.

In case you have any questions or inquiries, contact Tj chinafreight Now.