Negotiated Rate Arrangement: The Ultimate FAQ Guide

If you’re wondering what negotiated rate arrangement is, you will find the answer right here.

So, keep reading to learn more.

What Is A Negotiated Rate Arrangement?

A Negotiated Rate Arrangement is a written and binding arrangement between a licensed Non-Vessel-Operating Common Carrier (NVOCCs) and a shipper. The arrangement offers shipping services for stated cargo quantity from its origin to destination.

The NRA covers the cargo within a specific duration and on and after a stated date.

What Is FMC, And Why Is It Important In Negotiated Rate Arrangements?

FMC stands for the Federal Maritime Commission.

It is a regulatory body that ensures a reliable and competitive international ocean transportation supply system supporting the U.S economy.

The FMC also protects the public from deceptive and unfair practices from shipping services.

For all shipments made to the U.S., the FMC’s only bill of lading approves are allowed in the country. A bill of lading list has all the ship’s cargo in receipt form.

Concerning freight rates, the federal maritime commission regulates negotiated rate arrangements in shipping. The body ensures that NVOCCs use acceptable freight rates and, where necessary, documents them before cargo is loaded onto the shipping vessel.

What Does A Negotiated Rate Arrangement Document Entail?

The Negotiated Rate Document Arrangement has the following basics for your shipment:

  • Where: Origin of the shipment, POL, POD, and Destination
  • Dates:  Negotiated rate Arrangement offer date, Effective Date and Expiration Date
  • Who: Client information and NVOCC
  • Rate:  The service type, cargo quantity. Rate amount and rate basis

What Is Negotiated Rate Arrangement Authorization Letter?

A Negotiated Rate Arrangement Authorization letter is offered when you frequently use shipping services. It aims to reduce the workload of accepting different NRAs every time.

The Negotiated Rate Arrangement authorization letter helps relieve you of the repetitive work of approving NRAs. It also helps the workers at the shipping service expedite shipment on your behalf.

It is essential, especially when the shipment is ready at the origin, but the NRA has not been approved.

An NRA authorization letter helps save time that can easily be lost when dealing with the red tape surrounding shipping your cargo. It allows the shipping service to move your cargo while waiting for the NRA to get approved.

The shipping service will only book a shipment upon authorization by the client. In most cases, it is done through a phone call or an email.

What Is A Negotiated Rate Arrangement Shipper?

A negotiated Rate Arrangement Shipper is the person who owns the cargo. It is the person who has opened an account with the ocean transportation services.

The NRA shipper is the person the delivery is being made to. They accept all the payment charges applicable under the NRA.

Why Do NVOCCs Issue Multiple Negotiated Rate Arrangements For The Same Shipment?

Ocean transportation companies may change the NRA from time to time if any changes are made to your shipment.

You will be issued with a new NRA amended from the first NRA in case of any change. The amended NRA will also be sent to you (Shipper) for approval.

The NVOCCs put this rule to help protect the public from unfair service providers but not create more paperwork.

Here are some of the most common scenarios in which a shipping company will be required to cancel the initial NRA and issue a new one:

  • Suppose your vendor wants to ship from another port that is not on the initial NRA. This is most common when the vendor factory is located in a different area than their main offices.
  • Change in the rates from the time of quote to the actual movement of cargo. There are cases where there are the market has volatile freight charges.
  • If your shipment arrives after the NRA expiration date. The NRA date has to be valid when your shipment is arriving at its destination.

If this happens, you will be issued with a new NRA.

However, if you have signed an NRA authorization letter, your NVOCC will make the desired changes as fast as possible. It will help avoid clearance and shipping delays.

What Is The Advantage Of NVOCCs Using A Negotiated Rate Arrangement Instead Of The Public Tariff Database?

The Negotiated Rate Arrangements are private between the NRA shipper and the company offering shipping services.

Without the Negotiated Rate Arrangement, NVOCCs will be required to file their client’s rates on the Public Tariff Database. Here, their competitors may gain insight into their business practices.

How Do NVOCCs Issue Negotiated Rate Arrangements?

Many NVOCCs issue auto-generated NRAs when you book a shipment via their website or app. You will be required to confirm your booking once on the app or website.

Once you are done with the booking, you will receive and sign the NRA electronically. You can download the NRA as a PDF.

A PDF copy of the NRA is always sent to you electronically every time you book a shipment.

Most NVOCCs will always have the NRA available on the app or website, so you will not need to keep printing it.

What Conditions Must NVOCCs Meet To Use Negotiated Rate Arrangements?

Here are the five steps to follow to ensure that the NRAs comply with the FMC rules:

  • The Negotiated Rate Arrangements only applies to NVOCCs only
  • When an NVOCC wants to use Negotiate Rate Arrangement, they must post a prominent notice on its tariff.
  • If an NVOCC wishes to use NRAs, it must provide the public with free electronic access to its tariff. These tariffs should feature the rules governing shipments.
    All commission rules for tariffs, including historical data, current tariff location, and access date capability, must apply unless specifically exempted.
  • Agree to an NRA before receiving the shipment. The NVOCC and their shipper have to agree on an NRA and have it in writing before the NVOCC.
    The arrangement should also include the agent that receives the cargo.
    This arrangement is acceptable in either email or any other electronic form of communication. It is acceptable if it shows assent between the shipper and the NVOCC.
  • Keep the NRA documentation for five years. An NVOCC has to keep the NRA documentation files for five years and present the documentation to the commission upon request.
    If an NVOCC fails to keep time producing NRAs and some associated records, they might violate the Shipping Act.

How Are Negotiated Rates Determined?

Negotiated Rate arrangements are stated in terms of the local currency of U.S dollars. They apply per 1 Cubic Meter written as (M) and 1000 kilos, indicated as (W).

The word “Weight” or “W” appears next to a commodity or article’s applicable weight rates.

Weight applies without regard to the measurements of the cargo.

The word “Measurement” or “M” appears next to a commodity or article where applicable measurement rates.

Measurements apply without regard to the weight of the cargo.

Negotiated Rate Arrangements are only applicable from Inland points that are within post terminal areas.

Negotiated Rate Arrangements are inclusive of all charges on transportation of the cargo. They do not include forwarding charges and customs clearance assessments except when provided.

Do Negotiated Rate Arrangements Include Marine Insurance And Consular Fees?

No.

Negotiated Rate Arrangements include all the transportation charges of the shipper’s cargo. They do not cover consular fees or marine cargo insurance unless stated otherwise on the terms and conditions.

Do Negotiated Rate Arrangements Apply To Analogous Articles?

No.

Negotiated Rate Arrangements only apply to the specific commodity that has been named and do not apply to analogous articles.

NRA only applies when items are of lower values or on an ad valorem basis. The articles are subject to the lading limit of value.

What Is A ‘Force Majeure Clause’ Regarding Negotiated Rate Arrangements?

The Force Majeure Clause states the carrier services have the right to cancel any outstanding contract or booking. Cancellation is made in conformity with FMC’s regulation and the event of hostilities such as:

  • Wars
  • natural disasters
  • blockades
  • warlike operations
  • strikes
  • port congestions,
  • labor disturbances,
  • governmental authority interferences

What Are The Requirements For NVOCC Negotiated Rate Arrangements?

For an NVOCC to qualify for the general rate publication rate, the Negotiated Rate Arrangement must meet these rules:

  • The NRA has to be in writing
  • The NRA has to have the names of both parties and the names of their representatives.
  • Both the shipper and NVOCC have to agree to the NRA terms before the NVOCC can receive cargo for shipping.

The shipper is said to have agreed to the terms of the NRA when:

  • When the shipper has provided the NVOCC with a signed NRA
  • When the shipper sends the NVOCC a written communication either in email or any other form of electronic messaging. It should indicate that they have agreed to the shipper’s terms.
  • When the shipper books a shipment after receiving the NRA terms from the NVOCC.
  • The NRA has to have clear rates and terms, the shipment, and which specific rates apply.

It should have clear terms regarding the GRIs, Surcharges, and Assessorial charges as stated below:

  • If the stated rate is not an “all-in rate,” the NRA must state the additional assessorial charges and surcharges. It should also include the ocean common carrier GRIs (General Rate Increases) will apply.
  • The NRA must list any additional assessorial charges, including pass-through charges or specific surcharges in the NVOCCs tariff rules.
  • If a pass-through charge is not included in the NRA, the NVOCC can invoice the shipper but with no markup.
  • The NRA can be amended when the NVOCC receives the initial shipment. However, the changes only apply to shipments that the NVOCC is yet to receive.

What Is The Difference Between (NVOCC) Service Arrangements (NSA) And NVOCC Negotiated Rate Arrangements (NRA)?

NVOCC Service Arrangement (NSA) is a written contract between one NSA shipper and NVOCC or more affiliated NVOCCs.

The NSA shipper commits to provide a certain portion or quantity of its cargo or freight revenue over a specific amount of time. In this, the NVOCC commits to a particular rate schedule with a defined service level.

It is important to note that the NSA is different from a receipt and a bill of lading.

On the other hand, an NRA is a written and binding arrangement between the eligible NVOCC and the NRA shipper. It is an arrangement to provide transportation service for a specific amount of cargo from the origin to the destination.

There is no volume commitment by the shipper on the NRA. However, it (NRA) can include a potential rate decrease when the shipment volume increases.

When Does A Negotiated Rate Arrangement Become Binding?

A negotiated rate arrangement becomes binding in any of the following scenarios:

  • When the shipper provides the NVOCC with a duly signed NRA document
  • Immediately the shipper sends the NVOCC a written communication accepting the NRA terms
  • Once a shipper books shipment after receiving prominent notice in the NRA as to its acceptance

Are There Requirements For Filing/Publishing Negotiated Rate Arrangements?

Yes, and they include:

  • The NVOCC is required to continue publishing its standard tariffs with the terms and conditions that govern the shipments. These include surcharges and assessorial charges.
  • Make the NVOCC tariff rules available to shippers free of charge
  • The NRA rates should be mutually agreed upon and written by the date that NVOCC receives the cargo
  • NVOCCs that use NRAs must retain their documents for five years and present them to the commission upon request.

Can Negotiated Rate Arrangements Be Modified?

Yes, they can.

The FMC permits the NVOCC to amend NRAs at any given time. It also allows amendments to include non-rate economic terms.

How Long Are Negotiated Rate Arrangements Valid For?

The NRA is valid till the shipper receives their cargo

Do Negotiated Rate Arrangements Apply to All Shipments?

NRAs apply to all sea freight – from dry cargo to reefer and ro-ro.

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

Notify Party: The Ultimate FAQ Guide

If you’re wondering what notify party is all about, I will explain it right here.

So keep reading to learn more.

What Is A Notify Party?

Notify party is contact person or a party that carriers notify immediately with information regarding a shipment upon arrival at the destination.

A notify party can be a freight forwarder, customs broker, or intermediary.

The notify party also has an obligation of arranging all the customs clearance processes at the destination port.

What Is The Role Of Notify Party In An International Shipment?

A notify party is responsible for receiving notification on the arrival of a shipment from the carriers.

The notify party prepares all the formalities that will help fasten the clearance process of the cargo upon arrival at the port.

The carriers inform the notify party of the estimated time of arrival, location of shipment, and any other relevant details present.

If the cargo is under a letter of credit cover, the notify party will follow up with the bank to get the receipt of the documents in case the cargo delays.

Notify party also has a responsibility to follow up on the whereabouts of the cargo and not to rely on/wait for the carriers to inform them.

Note, the carrier always denies liability of any damages on the cargo even when the notify is or is not informed.

Is There A Relationship Between Consignee And A Notify Party In A Bill Of Lading?

A consignee is a person with the right to receive a cargo that is covered under the bill of lading.

While a notify party is someone who receives notification from the carrier upon arrival of the cargo at the destination port.

There may be some instances of the relationship between the consignee and the notify party whether is contractual or non-contractual.

Depending on how the bill of lading is consigned and combination, the following are some of the instances of known relationships.

Types of consignee relationship to the notify party include;

  • To order or to order of shipper
  • To order of XYZ bank
  • ABC company
  • Name of individual

Types of notify relationship to the consignee include;

  • DEF forwarder
  • ABC company
  • Same as consignee
  • Name of the individual

DEF forwarder: The notify party can act as a freight forwarder at the destination port which is under the authorization to receive, clear, and deliver to the recipient.

This is only after you receive the endorsed bill of lading.

ABC Company: A notify party can be the final receiver who receives the notification of impending arrival of shipment.

But normally pays the consignees bank the payments according to the contract once the notification is received.

This facilitates issuing of the endorsed bill of lading that allows the release of cargo.

Same as consignee: applies only when there is no specific notify and it’s only applicable on the consignee field.

Name of individual: a notify party can be the actual receiver but in case of cargo carries personal effects it will be the shipper.

Can Shipper And Notify Party Be The Same?

No, the shipper and notify party cannot be the same.

These are two separate entity/person with different responsibilities.

A shipper is an entity or party responsible for shipping goods.

The shipper is responsible for packaging and preparing goods for shipment as well as preparing all the paperwork and documents required.

A notify party is a person who receives notification from the carrier of the arrival of the cargo at the destination port.

The notify party is responsible for arranging all formalities that speed up the customs clearance of the cargo.

It’s the responsibility of the carrier or shipper to inform the notify party of the estimated time of arrival of the shipment and location.

What Happens When A Carrier Fails To Notify Party Of Shipment Arrival?

Accurate, clear, and steady information is a vital element while shipping any shipments.

Failure to provide/notify the notify party of the arrival of a shipment to have repercussions such as delays among others.

Below are some of the consequences/repercussions as a result of failure to notify a notify party;

Delay In The Arrangement Of Inland Haulage

The clearing agents or the notify party to have an obligation of preparing for the inland transport.

Failure to notify the notify party of the arrival and release of cargo results in poor planning.

Which results in to delay in transporting the shipment from the port to the client’s address location.

Delay In Clearance

Sometimes the notify party will be different from the consignee.

If this occurs and these parties fail to inform the notify party of the carrier’s estimated time of arrival, there are dire consequences.

The means the notify party will not be able to complete the custom clearance processes in time.

This results in delays in clearance.

Delays in clearance mean damages on the shipment and additional storage charges.

To curb this problem, you may engage pro-active clearing agents.

They follow up and make all necessary arrangements to fasten the clearance process.

Breakage In Supply Chain

It’s easier to calculate the storage and proper planning of the warehouse especially if the storage space is at a premium.

This factor is also dependent on how fast the cargo moves out of the warehouse.

Any delays in clearance of the shipment upon arrival greatly affect planning and calculations which adversely affects the supply chain.

Most immediate deliveries and lean supply chains are a result of delays in deliveries.

Overstock Situation

Failure to notify the notify party will result to slow clearance and delivery of cargo to the clients.

This results in the accumulation of goods in the warehouse hence overstocking.

Out Of Stock And Failure To Deliver On Time To Consumers

Failure to notify the notify party and clearance delays results out of stock situations.

This not only affects the clients but also sellers and distributors.

This delay immensely affects business if there is no robust solution to turn to.

Damage To The Cargo

There is a big difference when it comes to the shelf life of cargo.

Some have a shorter shelf-life while others have longer.

Failure to inform a notify party will result in delays which reduces the shelf-life of the cargo and sometimes leading to expiry.

It is therefore important for the notify party to be aware of the arrival time of such cargo with a shorter shelf-life.

This allows them to make necessary arrangements for storage and to fasten the clearance process.

Nowadays, there is the use of trackers on the cargo that allows the consignee to constantly check on the status of the cargo.

Are Carriers Liable For Failure To Inform The Shipper Of Goods On An Order-Notify Bill Of Lading?

Who is responsible for the failure of notifying the notify party is always a big question especially from the importer’s side?

The carrier is not responsible/liable for failure to inform the shipper of good on order notify.

This is because the carriers render the notification as a service.

Carriers have no obligation whatsoever to always informing the shipper.

The consignee has an obligation too of making a follow-up or tracking their shipment.

In most cases, the carriers will not accept the liability unless there are dire consequences if they fail to accept liability.

What Details Should Be Shown On The Field Of Notify Party On The Bill Of Lading?

Normally, the intention of having a notify party is to be informed of the arrival of a shipment at the port destination.

The field of the notify party on the bill of lading should contain;

  • Name
  • Address
  • Contact phone number of the notify party.
  • Email or fax information of the notify party.

What Is A Notifying Address In A BOL?

A notifying address is an address which you will find in a bill of lading where the carrier should give a notice of due dates of arrival of cargo.

Mostly this notify address is in form of a clause that you can insert in a bill of lading.

Agents of the company send notification at/of the arrival of the shipment.

However, neither the company nor agents have a responsibility to notify therefore, they are not reliable for information failure.

Normally, a bill of lading form contains an empty box slot named ‘’notify address’ ’

Failure of the shipper to include the name of the consignee, requires the shipper to transact, indorse, and deliver the bill of lading before delivery of the shipment.

In other cases, the shipper may not know who to deliver or notify on the arrival of the shipment. This occurs especially if there is no transfer of the bill of lading before the start of sailing or if the goods have not been sold.

Who Can Be Shown As A Notify Party In A Bill Of Lading?

There are several instances of who can be shown/one who you can consider as a notify party in a bill of lading.

They include;

Agent Of The Consignee

Cargo receipt can either nominate a clearing agent or freight forwarder.

Their main purpose is to arrange for clearance and delivery of the cargo to the recipient.

The Actual Receiver Of The Cargo

Where the billing of lading is consigned to order, an actual receiver of the cargo will be shown as a notify party.

This makes them aware of when to expect the arrival of the shipment at the port.

Trader Or Indenting Agent

This is normally the broker of the shipment who has the intention of keeping track of the progress status of the shipment.

  • Any other entity that may want to know the arrival and departure of the shipment.

Again, they will show directly indirect interest in the system.

Can Notify Party Make Payments?

Yes, notify party can make payments.

The notify party can make this payment in advance or during delivery of goods.

Furthermore, if there is an agreement between the buyer and shipper the payment can be made in installments.

While making these payments there is the involvement of financial institutions such as banks. Normally, there is the involvement of two banks, one acts as a guarantee for payment of the buyer to the other upon meeting certain conditions.

This is what we term as letters of credit.

There are other payment methods under the Incoterm that allows the notify party to be able to make payments.

Once all the formalities are successful, the buyer will receive the goods as agreed and ensure they are in the right condition.

What Are The Considerations When Filling Out Notify Party Field In A Shipping Document?

Below are some points of consideration when you are filling out a notify party field.

They include;

  • The payment method you select may affect notify party field completion.
  • The notify party has no connection whatsoever with the title of goods.
  • You must complete notify party field under the letters of credit payment methods according to the letters of credit terms and conditions.
  • The shipper can freely fill notify party field without any restrictions.

This only happens under an open account, cash in advance, or cash against documents payments methods.

Is Notify Party The Same As Booking Party In Shipping?

No, a notify party and booking party in shipping are not the same.

As indicated earlier, a notify party is responsible for arranging the formalities which help in clearing and delivery of goods to the receiver.

A notify party receives notification from the carrier on the arrival of a shipment at the port, location, and the estimated time of arrival.

A booking party is an entity responsible for all handling and operations that the third party carries out under a booking number provided.

Can Notify Party Be Able To Order?

A notify party is an entity that receives notification from the carrier upon arrival of the shipment at the destination port.

A notified party can be a customs broker, freight forwarder, or the actual buyer of the goods. Therefore, the notify party can be able to order goods and still act as a notify party.

Can There Be Multiple Notify Party In A Bill Of Lading?

There is no exclusion on who a notify party should be.

A notify party can be forwarding or clearing agents, receivers, or senders of this cargo.

It’s a must notify party to be aware of the arrival of this cargo.

Normally, an entity that provides all shipping instructions to a shipping line also provides the details of the notify party.

So, yes there can be multiple notify party in a bill of lading unlike in consignee.

This means the bill of lading has no restrictions on the number of notify party that can be in a bill of lading.

To include the multiple, notify party in a bill of lading document, you will find these entry fields where you will be able to enter the notify parties.

If there is less space on the bill of lading field, you can choose a different point on the same document and enter the notify parties.

What Is The Liability Of The Notify Party In The Bill Of Lading?

A notify party should not only wait for the shipping line or carriers to notify them.

They should take further steps in arranging for the clearance process and follow up on cargos that are under the letters of credit with banks.

This allows the notify party to obtain receipt documents of the cargo in case of any delays.

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

De Nederlandse Voedsel- En Warenautoriteit: The Ultimate FAQ Guide

Quality Control is an important aspect when importing from China or any other country.

Today’s guide will focus on everything you need to know about NVWA | De Nederlandse Voedsel- En Warenautoriteit.

So, keep reading to learn more.

What Is NVWA – De Nederlandse Voedsel- En Warenautoriteit?

In English, the Nederlandse Voedsel- en Warenautoriteiten (NVWA) is also known as the Dutch Food and Consumer Product Safety Authority. It is a government organization in the Netherlands that deals in several public-centric issues.

The NVWA is among the many departments in the Ministry of Agriculture, Nature, and Food Quality in the Netherlands.

It is also an agency utilized by the Ministry of Health, Welfare, and Sport to run some of its programs.

These issues include:

  • Protecting and advancing animal health.
  • Protection and advancing issues related to plants.
  • NVWA also deals with issues concerning the security of food products.
  • They also ensure consumer protection through regulations on consumer products.
  • Overall, NVWA also enforces Dutch nature laws.

It is important to note that the NVWA is a recent organization born out of merging different organizations.

This was necessitated to run the various activities of the NVWA under one roof. The different organizations that were merged to form NVWA include:

  • General inspection body (algemene inspectiedienst, aid)
  • The plant protection service (plantenziektenkundigedienst, pd)
  • Inspection and qualification service for goods (keuringdienst van waren, kvw)

What Are The Main Functions Of NVWA?

The NVWA undertakes a myriad of tasks and functions. The three basic types of tasks that  NVWA does  include:

Supervision

Supervision entails ensuring and regulation some aspects in the health and agricultural sector. The four main areas of NVWA regulation include animal health, plant health, product safety, and food safety.

Risk Assessment

Risk assessment includes finding out how certain products affect the health of the consumer.

This is achieved by regulating and monitoring substandard products from entering the market, among other responsibilities.

Risk Communication

The risk communication function of the NVWA involves communicating the risk assessment results to the various players and regulatory bodies.

For instance, it has the responsibility of communicating animal health assessments to the Ministry of Agriculture.

Other specific functions of the NVWA include:

  • Incidence and crisis management
  • Policy advice for the minister of Agriculture.
  • Nature and food quality management.
  • Liaising with other departments in the various ministries.
  • Maintaining European and international contacts.
  • Compliance with the various regulations is also a function of the NVWA.

Overall, NVWA carries out communication, inspection, and investigations to ensure that all players in its jurisdiction are compliant.

Who Heads The NVWA?

The Nederlandse Voedsel- en Warenautoriteiten (NVWA) also known as Netherlands Food and Consumer Product Authority.

It is a state agency under the Ministry of Agriculture, Nature, and Food Quality.

The NVWA is headed by the Head of Agency, deputed by four directorates who head various departments. The departments that are headed by directorates include:

  • Strategy
  • Enforcement
  • Inspection
  • Internal Organization

Other divisions below the directorate include the veterinary and import, design and services, and legal affairs divisions.

The organizational structure of NVWA is hierarchical, with departments and sub-departments at the bottom of the hierarchy.

It is made so that information and enforcement flow from the top to the bottom and vice versa. It is ensuring compliance and efficiency in carrying the NVWA mandates.

What Products Does The Netherlands Food And Consumer Product Safety Authority Regulate?

VVWA is mandated by law to regulate and ensure compliance with countless products.

These products include different types of food and consumer products.

These products can either be hazardous or non-hazardous substances. The main aim is to ensure that all hazardous substances do not enter the market for human consumption.

Some of the products that the NVWA handles  include but are not limited to:

  • Plants
  • Fisheries
  • Agricultural products
  • Livestock
  • Consumer products
  • Non-food consumer products
  • Animal products such as beef
  • Pesticides
  • Personal care products
  • Indoor and outdoor games products
  • Consumer products in and around the house
  • Tobacco products

The number of products that the NVWA regulates is in the thousands and in-exhaustible.

To get into the details of products regulated by the NVWA, you will visit their website or contact them.

Does NVWA Have Jurisdiction Over All Consumer Products?

Yes, the NVWA has jurisdiction over all consumer products in the Netherlands.

Not only in the Netherlands, but it also has jurisdiction over every product entering the Netherlands from other counties.

Due to the large amounts of consumer products entering the Netherlands, NVWA has jurisdiction over a wider consumer market that spans the European market.

How Does The Netherlands Food And Consumer Product Safety Authority Regulate Products?

The Netherlands Food and Consumer Product Safety Authority Regulate Products through:

Certification

NVWA requires that manufacturers and importers of regulated products certify that their products comply with mandatory rules.

After testing at third-party laboratories whose accreditation is accepted by the NVWA.

Compliance

NVWA also requires manufacturers and importers of some regulated products to certify that they comply with mandatory rules after testing. They establish a reasonable testing program.

Regulations

The NVWA outlines the prohibited actions that apply to anyone who sells, manufactures for sale, is distributed in commerce, or imports.

Any consumer product regulated by the NVWA. Failure to comply with these prohibited acts could subject you to civil and criminal penalties.

Does NVWA Test Or Certify Products For Safety Before They Can Be Sold To Consumers?

No, the NVWA does not test or certify products for safety before being sold to consumers.

The primary function of the MVWA is to supervise, assess the risks, and communicate.

Besides, the same risks to the relevant bodies mandated to regulate consumer products.

The function of certification and testing of products before they can be sold is left to the responsible companies to test their products.

NVWA only serves to ensure compliance. NVWA also sets standards that should be met by the various companies in their manufacturing and production processes of consumer goods.

What Are The Major Food And Consumer Product Hazards In The Netherlands?

There are various food and consumer product hazards in the Netherlands. Some of these food and consumer products include:

  • Improper storage and preparation of food.
  • Pathogens cause Food-borne infections.
  • Food fraud
  • Foods with a high level of salt, fat, or sugar
  • Food with chemical hazards such as antibiotics, hormones, mold toxins, pesticides residues, dioxins, and allergens
  • Consumer products with microbiological hazards. These hazards occur due to the presence of troublesome molds, parasites, bacteria, and viruses.
  • Other consumer and food product hazards include harmful forms of wood, glass, metal, and plastic.

How Does The NVWA Compare To The FDA?

The main difference between the NVWA and the FDA is that the FDA has a broad regulatory authority compared to NVWA.

Also, the FDA is an American regulatory body, while the NVWA is a Dutch food and consumer products regulatory body.

The U.S Food and Drug Administration, also known as the FDA, is an American agency that deals and are responsible for protecting public health.

It ensures the safety of different consumer product categories by assessing their risks, testing, and approving their efficacy.

The four basic functions of the FDA include:

  • Protecting the public from electronic product radiation
  • Assuring cosmetics and dietary supplements are safe and properly labeled
  • Regulating tobacco products
  • Advancing public health by helping to speed product innovations

FDA regulates a wide scope of consumer products.

This can sometimes result in consumers not understanding where to lodge complaints.

Some of the product categories that the FDA manage include but are not limited to:

  • Products that include food additives, dietary supplement, bottles water, infant formulas, and other food products.
  • Different types of drugs include non-prescription and prescription drugs.
  • Such as Biologists including tissue products, blood and blood products, allergenic, and all human vaccines.
  • Other items regulated also include all types of medical devices. These include but are not limited to heart pacemakers, prosthetics, surgical implants, tongue depressors, and dental devices, among others.
  • Electronic products that give off radiation are also among the products that the FDA highly regulates. These products include but are not limited to mercury vapor lamps, laser products, microwave ovens, and such products.
  • The FDA also regulates dermatological products that affect the human skin. These include nail polish and perfume, make-up and personal care products, cleansers, and skin moisturizers.
  • The FDA regulates veterinary products such as livestock feeds, pet foods, and veterinary devices and drugs.
  • Lastly, all types of tobacco products are also regulated by the FDA.

What Parties Should Conform To NVWA Regulations?

The NVWA regulations cover the whole of the Netherlands and any food or consumer products entering the Netherlands.

Because the Netherlands is a member of the European Union, some of the regulations of the NVWA also reach beyond Netherlands.

To put it in context, the specific parties required to comply with the NVWA regulations include:

  • All manufacturers
  • Retailers.
  • Importers
  • Distributors of food and consumer products
  • All exporters.

Does The Nvwa Conduct Inspections?

Yes, the NVWA is responsible for inspecting all the consumer products and food products. They should ensure that it meets the required standards as set by the NVWA.

Although the individual companies or manufacturers carry out the responsibility of testing, the NVWA conducts food controls and ensures that the manufacturers comply.

The NVWA also designates the different laboratories that should carry food and consumer products tests and analyses.

What Is The Correlation Between NVWA And FLEGT?

Forest Law Enforcement, Governance and Trade (FLEGT) is a European Union agency.

It is also known as the FLEGT action plan that aims at cubbing illegal logging among member states.

It achieves this through the number of actions that all member states must adhere to.

These include:

  • Reducing illegal logging through sustainable forest management.
  • Establishing legal forest management.
  • Improving governance on forest management.
  • Promoting trade in legally produced timber to reduce illegal logging.

One of the NVWA’s core functions is product safety and plant health. These are functions related to the core functions of the FLEGT.

All look into sustainability when it comes to environmental matters that include illegal logging and hazardous wastes that impact the environment negatively.

Are There Established NVWA Guidelines And Plans For The Netherlands Food Industry To Use?

Yes, there are established NVWA guidelines and plans for the Netherlands food industry to use. The guidelines are broad and cover different sectors that the NVWA oversees.

One of these guidelines is the first food safety statement. These guidelines are specific to the food industry, which the NVWA oversees.

NVWA guidelines and plans for the Netherlands food industry are under the regulation (EC) No 852/2004 of the European Parliament and of the Council of 29 April 2004 on the hygiene of foodstuffs.

The guidelines borrow from the seven basic principles of the HACCP system.

The HACCP system requires the food industry to, among other things, observe the following;

  • Analyze the hazards of raw materials
  • The preparation process of products
  • Taking adequate measures to prevent hazards
  • Enabling a safe production process.

Should Food And Consumer Products To The Netherlands Have A CE Marking?

Yes, selected food and consumer products to the Netherlands should have a CE marking. It is important to consider the product.

This is because you can only add the CE marking to an effect if it is required for the product group.

Some of the products that must have CE marking include:

  • Explosives for civil use
  • Pyrotechnic articles
  • Construction products
  • Toys
  • Personal protective equipment
  • Electrical, electronic, and energy-related products
  • Medical devices
  • Measuring and weighing equipment
  • Machinery and related products
  • Means of Transport

How Long Does NVWA Registration And Accreditation Take?

It is important to seek the accreditation of NVWA if you deal with the following;

  • Animal feeds
  • Raw foods of animal origin.
  • Live animals
  • Sprouting seeds
  • Animal by-products

Some of the basic things that NVWA looks for before giving your company accreditation includes:

  • The structural integrity of the factory
  • Technical capabilities
  • Hygiene requirements

The accreditation process for NVWA is pretty simple. It is not a complicated endeavor. You will need to follow these simple steps which include;

  • Log into the NVWA portal
  • Open the subjugate portal on the home page.
  • Click on the approvals, registration, and permits.
  • In the subsequent window, you will see an overview of forms for recognition, registrations, and permits.
  • Choose the service you want and proceed with filling the online form.
  • You will be guided on the process of how you get your registration certificate.

Does My Business Need To Tell NVWA About Potentially Unsafe Food And Animal Feed?

Yes, you should report to the NVWA about any potential or existing unsafe food or animal feed.

All the hazardous food and animal feed should be reported to the Netherlands Food and Consumer Product Safety Authority.

Consequences of not reporting unsafe food or feed include fines, written warning, or official report.

What Is Unsafe Animal Feed According To NVWA?

Unsafe animal feed, according to NVWA, include;

  • The animal feed contains harmful substances.
  • The animal feed contains extraneous matter.
  • The hazardous animal feed may affect animal health and people’s health.
  • Environmental degrading animal feed.

How Do You Notify NVWA About Unsafe Products?

You can report and notify the NVWA about unsafe products through their official website.

Just log into their “report the animal feed to the NVWA” portal, and you will be able to lodge your complaint.

Some of the businesses or people that can report to the NVWA include but are not limited to:

  • Laboratories
  • Feed businesses
  • Veterinarians
  • Transshipment companies
  • Livestock farmers
  • Storage operators
  • Feed transport companies

What Happens After You Report Unsafe Food And Animal Feed To NVWA?

After you report unsafe food and animal feed to the NVWA, they will take specific steps.

These steps include:

  • Assessing the risk level.
  • It measures the risks and the steps that have been taken to mitigate those risks.
  • After assessing the risks and measuring them, the ANVWA will guide on the correct course of action.
  • The course of action may include retrieving the unsafe food or recalling it from the market.

What Are The Consequences Of Failure To Notify The NVWA Of Unsafe Food Or Feed?

The consequences of failure to notify the NVWA of unsafe food or feed may include;

  • Fines
  • Written warnings.
  • Official reporting to the relevant authorities

How Do I Register My Business With The Netherlands Food And Consumer Product Safety Authority?

Process of registering business with the Netherlands Food and Consumer Product Safety Authority depends with type of product you are dealing with.

For instance, if you are dealing with food safety, product safety, animal health, you will have to seek accreditation from NVWA directly.

If you operate a veterinary laboratory, you will have to apply for your accreditation from the Dutch Accreditation Council.

You will also be necessitated to attend continuous monitoring by Wageningen Bio veterinary Research.

Because the veterinary laboratory is a sensitive business, you are also required to report the tests and reports from your laboratory.

These tests and reports are reported to the Netherlands Enterprise Agency.

Another registration method is a digital application with a message box.

This involves registering digitally with NVWA and also digitally application for your accreditation.

How Does The NVWA Evaluate Non-Conformities Related To Food And Consumer Products?

The NVWA evaluates non-conformity to food and consumer products through continuous assessment of the market’s various food and consumer products.

Another method of ensuring that there is no non-conformance is through inspection auditing and customer complaints.

How Often Do The NVWA Inspect Businesses In The Food And Consumer Product Industry?

How often the NVWA inspects your business in the food and consumer products industry depends on the compliance of your business.

If you comply with the NVWA regulations, you will be inspected less frequently.

Businesses that keep contravening NVWA rules and regulations tend to be inspected more frequently.

Is NVWA Certification Acceptable Under EU Food And Consumer Product Safety Legislation?

Although NVWA certification is widely recognizable, you must apply for a Hazard Analysis Critical Control Point (HACCP) EU certification.

This is if you want your food products to be sold to the rest of the European market outside the Netherlands.

Does NVWA Recommend Specific Brands Or Models Of Products That Are Safest For Consumers To Buy?

No, NVWA’s main task is to regulate the standards of consumer products in the market.

It ensures compliance to the safety standards and that harmful products do not enter the market.

NVWA does not recommend, endorse, or market any particular products. NVWA is unbiased and treats all the different consumer manufacturing companies equally.

It is worth noting that NVWA may recommend certain features or aspects that consumers must look for in a particular product category.

NVWA strives to describe a particular product using universal descriptions not to be seen to target a particular brand or product line.

Does The NVWA Have Food And Consumer Product Safety Materials In Other Languages Other Than Dutch?

Yes, the NVWA has food and consumer product safety materials in languages other than Dutch.

You will find material in Spanish, English, French, German, Chinese, among many other languages.

The NVWA has entered into a bilateral agreement with many other countries concerning food and consumer products safety.

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Origin Charge: The Ultimate FAQ Guide

In this guide, you will find all information you’re looking for about origin charge.

So, keep reading to learn more about this freight term.

What Is An Origin Charge In Shipping?

It refers to fees charged on the services and facilities provided at the port before a shipment leaves its port of origin.

In as much as origin charges are imposed on every shipment.

The incoterm being used will determine the person responsible for paying an origin charge.

Is Origin Charge The Same As Origin Receiving Charge?

Origin charge and Origin Receiving Charge are two different types of charges in shipping.

Origin receiving charge (ORC) is the fee that caters to container handling of your shipment at the port of origin.

This happens from the moment your container is received at the container freight station to when loading is carried out.

On the other hand, origin charge refers to fees charged on services provided before your shipment leaves the port of origin.

What Constitutes Of Origin Charges In Shipping?

Origin charges include all the fees on services and facilities that will be applied to your shipment before shipping.

Let’s have a look at them below;

  • AMS fee – Automated Manifest System is an electronic system used in the transmission of data.
    Its main purpose is to ensure the safety of the cargo of air and sea shipments.
    To facilitate this, you will be required to pay an AMS fee which is mostly imposed per BOL/AWB.
    The supplier or the client will be held responsible for paying the fee.
  • CFS fee – Container freight station fee caters to the operations surrounding the deconsolidation of the shipment.
  • Loading and Unloading fee -Once your shipment is received at the port, the truck transporting it has to be unloaded.
  • After completion of all the required processes, your shipment will be loaded to the ship.
  • Handling fee– There has to be labor involved when handling your shipment, and thus the origin charge is also meant to cover these services.
  • Customs inspection – All commercial shipments must pass through customs when being exported.
    While this is mostly the most challenging part of any shipping process, working with a freight forwarder should reduce your hassle.
    During this procedure, your shipments will be inspected and cleared by export custom clearance officials, and some fees will be charged.
    Not much needs to be said. This fee falls under origin charges.
  • Origin document fee – the origin document fee caters to the fees you will pay when obtaining and sending bills of lading.
  • Storage services – Shipping of goods doesn’t happen in one day.
    It might take up to a week or more for your goods to be cleared for shipping.
    Within this period, you will need storage space for your shipment, adding up to the origin charges.

Other services include; additional transportation charges (ATC), stairs, elevators, and excessive distance carriers, to mention some.

Who Pays The Origin Charge?

The main determinant of who will be responsible for paying the origin charges is the type of incoterm used on the shipment.

Different incoterms will have divergent rules in regards to the person responsible for making the payments.

For instance, when using EXW incoterms, the importer will be responsible for settling the costs involved.

It’s important to select your incoterm to avoid some shipping frustrations wisely.

How Do Origin Charges Affect International Shipping?

Origin charges can result in delays of the shipment, which happens due to late payment of fees.

Aside from that, delays can also be caused by;

  • Wrong documentation
  • Misplacement or loss of documents
  • Custom clearance
  • Lack of proper communication
  • Late receipt of documents

Delay of shipments affects other sectors along the supply chain, posing a great challenge to importers.

The longer the shipment stays at the port, the higher the costs accrued.

Thus adding up to the total origin charges and in turn making international shipping expensive.

Remember, the storage space needs to be paid for, not forgetting the deadline for container submission.

These are just some among a couple of other costs that will shoot up.

In case a delay is experienced at the port, thus affecting international shipping.

Do Origin Charges Apply To All Forms Of Shipping?

Origin charges apply to all forms of shipping.

When shipping goods, the shipment must go through some processes at the port of origin before loading them into the ship.

For this to be fast and successful, you need to pay for the services and facilities offered at the port.

Different incoterms will determine who is responsible for paying the origin charges.

Do Origin Charges Change?

Yes, they do.

Sometimes, there might be a General Rate Increase (GRI) which causes an increase in the costs.

Lack of awareness of your carrier’s GRI will have you incurring extra costs during the surcharge period.

You must enquire about this before shipping your cargo.

It’s also important to understand that the origin charges will be different for different types, dimensions, and sizes of the shipment.

Fluctuations of currency in international trade can also cause the origin charges to change.

How Do Shipping Companies Calculate Origin Charges?

Origin charges vary depending on various factors, which are not limited to;

  • Shipment dimensions – The dimensional weight of a shipment uses the size of the shipment to find out its shipping costs.
    The DIM weight, the length, width, and height of the shipment are multiplied then divided by the DIM divisor.
    Between the DIM weight and actual shipment weight, the higher value is what shall be charged.
  • The Volume of shipment – Large shipments will incur more charges as opposed to smaller ones.
  • Weight of shipment – The heavier the shipment, the higher the charges.
  • Value of shipment – It is always advisable to have your high-value goods insured. This offers protection when loss, theft, or damage happens.
    Note that the costs will go up as a result of the extra insurance fees required.

In most cases, major shipping companies use the dimensional weight to calculate the origin price using a price calculator.

If you are using sea freight, the origin charge will be presented in a freight quotation.

Are Origin Charges Included In The Shipping Quote?

Yes, a shipping quotation will include a breakdown of all costs, inclusive of the origin charges.

Besides the origin charge, other components you should expect to find in a quotation include;

Terms and conditions of payment, total costs, shipment details, point of pickup and delivery, and transportation methods, to mention some.

When Do You Have To Pay For Origin Charges?

Origin charges are paid before your shipment leaves the port of origin, whether a seaport or an airport.

Which Is Better Between FOB And CIF With Regards To Origin Charges In Shipping?

In regards to origin charges in shipping, FOB is better as compared to CIF.

Not only does the importer have fewer responsibilities during shipping, but also it is cheaper.

With CIF, the costs are higher as a result of the seller using their freight forwarder.

Who often charges more to gain more profits.

Additionally, extra fees such as docking and custom clearance fees might be charged at the port when using CIF.

With FOB, the buyer is free to negotiate prices with a freight forwarder of their choice.

What Factors Influence Origin Charges?

Some of the factors that affect origin charges are not limited to;

  • The type and Volume of shipment – High-value shipments will have a higher origin charge due to their extra care when handling.
  • Currency and Exchange rate – Currency fluctuations in international trade might raise or lower the origin charges.
    US dollar is the main currency recognized in international trade.
  • Port congestion -Port conditions such as bad weather, strike, and typhoon, among other factors, affect normal port operations.
    This, in turn, forces shipping companies to charge extra costs on the services and facilities offered.
  • The shipment’s size and weight – The bigger the shipment, the more costs you will incur and vice versa.
    The same applies to the weight.
    Heavy shipment tends to attract more costs as they also require additional labor or facilities.

Do ‘Free Time’ And ‘Free Days’ In Container Shipping Affect Origin Charges?

Yes, they do. Free time refers to when the container is allowed to be stored at the port for free.

You need to keep in mind that once the free time lapses.

Additional costs referred to as demurrage begin to accrue until you return the container.

These extra charges are normally updated every day, and, in some instances, they can exceed $100 per day.

Such costs affect the overall origin charges as they increase the charges.

Are Origin Charges In Ocean Shipping FMC (Federal Maritime Commission) Regulated?

Yes, they are.

The Federal Maritime Commission regulates the origin charges by keeping track of the charges.

To ensure that they are fair but also reasonable.

In addition to that, FMC ensures that the charges are automatically published using automated tariff systems and are accessible to the public.

Do Origin Charges Include Goods Liability Costs?

Yes, goods liability costs are included in the origin charges, and this includes insurance fees. Remember, it’s always advisable to secure insurance for your shipment, and such are some of the services offered at the port.

Since most if not all incoterms exempt insurance costs, the seller always becomes the one to get the insurance for the importer.

The insurance costs are part of the origin charges imposed on your shipment before it leaves the port of origin.

How Do Origin Charges Influence The Overall Cost Of Shipping Goods?

Origin charges might lower or increase the cost of shipping goods in international trade.

For instance, if the cost of any services or facilities offered at the port is raised.

The effect is felt all along the supply chain to the final buyer.

As much as the importer had budgeted to spend X amount of money for shipping, they will have to pay extra when shipping goods.

Can You Avoid An Origin Charge In International Shipping?

You cannot avoid origin charges in international shipping, but you can avoid extra costs and reduce the origin charges.

Are Origin Charges Negotiable?

Yes, origin charges are negotiable.

You can negotiate fees with your carrier or freight forwarder when shipping.

What Are The Benefits Of Hiring A Capable Freight Forwarder In Relation To Origin Charges?

If you are looking to have a smooth shipping process, hiring a capable freight forwarder is essential.

Working with a freight forwarder allows you to concentrate on other areas of your business as you await your shipment to arrive.

Here are some of the reasons why most importers prefer using freight forwarders;

  • Cost-effectiveness -Cost-effectiveness is one of the top benefits of working with freight forwarders.
    Capable freight forwarders are experienced in their line of duty and can effectively negotiate prices with the different networks they have established.
    This way, your overall origin charges are greatly reduced as compared to handling this solely.
  • Security -No matter how valuable your shipment is; you are assured of the security of your shipment without having to pay additional charges for such services.
    This lets you be at peace knowing that your shipment is being handled carefully by people you can rely on.
    Such all-inclusive services reduce the origin charges that could otherwise be higher if taken with different people.
  • Warehousing – Once you hire a freight forwarder, several services come all-inclusive of the price and storage, part of origin charges.
  • That way, you won’t need to hire additional people to handle storage services, which will save more on your shipping.
  • Efficient inventory management – Owing to their vast networks, freight forwarders provide an all-inclusive package, thus saving you from hiring different people for different services.
    Having different people take care of different services of your shipping process costs more and thus increases the origin charges.

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Origin Engineering: The Ultimate FAQ Guide

If you have any question about origin engineering, you will find the answer right here.

This is because this guide explores all information you’re looking about origin engineering.

So keep reading to learn more.

What Is Origin Engineering?

Origin engineering is the exercise of transferring some of the manufacturing procedure to a different country.

This is done in order to evade high tax rates or unfavorable requirements and restrictions.

How Does Origin Engineering Work?

After you are complete with your part of the manufacturing work, it is time to relocate the half-finished product.

This is done to the origin engineering company usually a different country.

Once the product arrives at the origin engineering company, the transfer is said to be successful and production works can now commence.

The owner of the product and the origin engineer work closely together.

This to ensure that the product is manufactured according to the owner’s preferences and standards.

Once the product is done, a quality assurance is conducted, samples tested, etc.

When everyone is satisfied about the job well done, the product can now be released to the market.

The company is at liberty to take and supply orders.

What Are The Benefits Of Origin Engineering?

  • Saves cost- this is the major advantage of origin engineering.
    You can choose to do your origin engineering in a country that has relatively low labor cost and lower duty rates.
  • Quality improvement- with origin engineering you are exposed to a variety of experts.
    This definitely means that your end product will meet the required quality standard.
  • Access to better infrastructure and technology- origin engineering companies have the latest technology, infrastructure and resources.
    This is to ensure that the manufacturing for your product is topnotch.
  • Time saving- hiring an origin engineer saves you time that you would have otherwise spent on producing the other components of your product.
  • Risk reduction- by hiring an origin engineering company, you reduce for yourself a significant number of risks.
  • Increased efficiency- origin engineering companies guarantee maximum productivity in a relatively shorter period of time and at reduced costs.
  • Origin engineering encourages growth of companies.
  • Enhances flexibility -origin engineering ensures that your product and company adopts to the dynamic production and trade conditions.
  • You can relax and have peace of mind since your product is being worked on by experts with efficient skills.

Is Origin Engineering For You?

The main aim of origin engineering is to save costs, avoid high tax rates and conditions that do not favor the manufacturing of our product in that particular country.

You should consider origin engineering under the following circumstances:

  • If cost saving is your goal
  • If you do not have the infrastructure or technology to meet the products requirements
  • If there are unfavorable restrictions on the products manufacturing.
  • If other countries offer lower duty rates
  • In case you do not have a team of experts to suit your product’s manufacturing needs.
  • If you cannot afford to train the people locally
  • Whether the origin engineering company understand your expectation and goals
  • Whether or not origin engineering is suitable for your company goals
  • Whether the origin engineering company guarantees you a quality end product as per your requirements.

What Types Of Products Do Origin Engineering Companies Typically Support?

Some of the products that origin engineering supports include:

  • Mobile phones
  • Computer devices
  • Motor vehicles
  • Kitchen appliances for instance; fridges, ovens
  • Electronics like televisions
  • Machinery
  • Planes
  • Ships and other water transport vessels.

Is Origin Engineering The Same As Outsourcing?

Basically, outsourcing refers to the act of allocating another firm projects and tasks that would have otherwise been done internally.

On the other hand, origin engineering refers to the process of transferring part of your manufacturing to a different country.

Outsourcing is mainly done for services unlike in origin engineering where tangible products are involved.

How Does Origin Engineering And Contract Manufacturing Compare?

Contract manufacturing is a type of outsourcing where a manufacturer gets into a contract with a company for products or parts.

On the other hand, origin engineering is relocating part of your production work to a different country.

What Are The Risks of Origin Engineering?

  • Hidden/ unexpected costs- with origin engineering you might incur extra costs that you did not anticipate
  • Language barrier- since you are moving your production to a different country, it is likely to encounter language barrier.
    This can lead to problems caused by miscommunication as vital information can be lost in translation.
  • Time and culture difference- time difference may interfere with the production work therefore delaying orders.
    Culture difference for instance holidays and working days might slow down the production.
  • Lack of confidentiality- there is a risk of the origin engineering company sharing confidential information to third parties or your competitors.
    To curb this risk, it is better to sign a Non-Disclosure Agreement.
  • Lack of oversight- due to the geographical distance between you and the origin engineering company.
    It may be difficult to oversee or inspect the production process.
  • Reduced quality control in some instances- there is a chance that the quality of your product might not be exactly what you hoped for.
  • Lack of control of the production process- your hands are tied in the manufacturing process and you just have to hope for the best.
  • Security risks- your product may encounter various risks that is why it is advisable to insure it against all possible risks.
  • Backlash from people- you may face backlash from people who feel like you are denying them work opportunities.
    This can be a result of relocating your manufacturing process to another country.

How Can You Maintain Control Over The New Product In Origin Engineering Contractual Agreements?

Agree beforehand- hold these discussions with your origin engineering company or sign a legal contract. It should state clearly that you want to maintain full control of the new product.

Ensure that the product is registered under you and is considered our property.

You can get a lawyer to draft such contracts to avoid legal problems once the product is finished.

Can Origin Engineering Help You Accelerate Your Product Launch?

Origin engineering can indeed help accelerate your product launch.

It can help reach out to more partners and the target consumers. Of course, this happens with your go ahead.

What Is The Customs Clearance Process for Origin Engineered Products?

After determining the country of origin for the product, the customs clearance procedure for origin engineered products is the same as others.

The customs clearance process for origin engineered products is as follows:

  • Check in with the relevant customs office and get registered.
    They might provide you with either an import or export number depending on which one you are doing.
  • They inspect your product and make sure it is not restricted both for import and export.
  • Find out the product’s HS code.
  • If it is a requirement, lodge in the export declaration.
  • Get the necessary licenses and permits.
  • Obtain the all the required documents and certification for your product.
    This includes packing lists, invoices, certificate of origin, bill of lading etc.
  • Identify which shipping mode suits you and your products specification.
  • Ahead of shipping, ensure that you submit the export declaration and any other documents that the customs might require.
  • Go ahead with the shipping of the product as per your agreement with the importer.
  • Issue the importer or their agent with the certificate of origin.

What Are Rules Of Origin In Relation To Origin Engineering?

Rules of origin are laws and regulations put in place to help in determining the nationality of a product.

Rules of origin in relation to origin engineering are:

The country of origin for origin engineered goods is decided as the last where there was a considerable amount of manufacturing to give the product.

It’s key components or character.

This means that if a product is origin engineered in a several countries, its country of origin will be listed as the one where the most substantial work took place.

For instance, a car manufacturing company makes the engine and the other parts are made by an origin engineer in another country.

The first country will be recognized as the country of origin since it makes the vital component of the product.

Of course, there are situations where more than one country gives the product ‘substantial character’. In this case the last country where the manufacturing took place will be considered to be the country of origin.

Do Country Of Origin Labelling Requirements Differ For Origin Engineered Products?

Country of origin labelling requirements have no tangible difference for origin engineered products.

Some of these general requirements are:

  • The labeling should be done in the specified language. For example, goods entering the US from other countries should be labeled in English.
  • The label should be clearly written on the product
  • The marking should be visible.
  • The label should be permanent
  • The country of origin label should be written in plain, legible characters.

How Do You Choose The Right Origin Engineering Company For Your Critical Production Needs?

You need to consider the following factors while selecting the right origin engineering for your critical production needs:

  • Cost efficiency- the aim of origin engineering is to save you cost so it is advisable to go with an origin engineering company that aligns with your goals.
  • The infrastructure, resources and technology- when selecting an origin engineering partner
    It is best to go for one with the one with the latest technology and most advanced infrastructure.
  • Dedication and ability to observe the standard lead time- conduct research on the prospect companies.
    Find out their dedication to production works and their ability to meet deadlines.
  • Quality assurance- you obviously want to go with the company that ensures you get the best quality product.
  • Culture and time difference- when looking for an origin engineer, ensure that the time difference won’t interfere with the production process.
    The same goes for language and cultural differences.
  • Duty and tax rates- ensure that the country where the origin engineering company is located has favorable tax rates to suit your budget.

How Do You Ensure Quality Control In Origin Engineering?

Some of the tips to ensure quality control in origin engineering include:

  • Carefully select the origin engineering firm to work with.
    This is the most crucial point in ensuring you get the best quality of your product.
    Do your due diligence and settle for a company with a good reputation.
  • Discuss your expectations with your origin engineering company beforehand.
    It is advisable to let the company you are working with know exactly what your expectations about the product.
    This includes the quality and deadlines.
  • Develop a good relationship with your origin engineering team- you should aim to work amicably with your team for better results.
  • Invest in your origin engineering team in terms of resources.
    For quality to be ensured there is need for sufficient funds, resources and infrastructure.

How Do You Address A Product That Has Failed Quality Assurance Testing In Origin Engineering?

Depending on the kind of agreement you have with your partner, the product can be redone at the company’s cost or your own.

If the damage is beyond repair the product should be discarded. Under no circumstance, should it be availed in the market.

You should be keen what went wrong so that they can be avoided in the future.

What Costs Should You Expect When Relocating Part Of Your Product’s Manufacturing From One Country to Another?

Some of the costs that you should expect when relocating part of your product’s manufacturing from one country to another are:

  • Logistics and freight costs- you will obviously encounter transportation costs.
    From shipping from your home country to transporting your product when they land in the other country.
  • Costs related with tax- you will need to settle customs cost taking your product out of the country.
    Also, while bringing into the other country.
  • Legal costs- you will need to pay for the drafting of legal contracts such as the Non-Disclosure Agreement
  • Insurance cost- you might want to take an insurance cover for your product.
    This is to insure it of any risks that might it may face before it reaches the other country.
  • Cost of unexpected risks- you might come across unforeseen circumstances that might incur you some extra cost.

What Is The Role Of A Non-Disclosure Agreement In Origin Engineering And What Does It Cover?

A Non-Disclosure Agreement (NDA), is contract between two or more parties where they agree not leak any private information.

The Role Of A Non-Disclosure Agreement;

The most crucial role of the Non-Disclosure Agreement (NDA) is confidentiality and privacy. Your origin engineering company should sign an NDA.

This is to avoid leaking or sharing private information with your competitors or just third-parties in general.

A Non-Disclosure Agreement ensures that confidential information about your company and product is kept 100% private by the origin engineering company.

You may want to get an NDA under the following circumstances:

  • When presenting to your origin engineer the product design.
  • Sharing financial related information.
  • When familiarizing the origin engineering company with your marketing strategies and customer information.

By no means should the origin engineering company violate the terms of the NDA.

What Is The Standard Lead Time For Origin Engineering?

To run a successful origin engineering operation lead time dedication is very crucial.

There is a set lead time that your manufacture should be able to adhere to and should also track orders.

In event an order is delayed, the manufacturer and team should follow up on the reasons why so as to avoid them in the future.

You should aim for at least 90% punctual delivery rates for orders in origin engineering works.

What Are Some Of The Pitfalls Of Origin Engineering And How Do You Avoid Them?

  • Miscommunication- it is common for some parties to stop or reduce communication once they sign the contract.
    This should not be the case.
    Both parties should stay in constant communication in order to align expectations, follow up on the progress and for transparency purposes.
  • Lack of oversight- You should follow up regularly on how the manufacturing process is going. Also give and ask for feedback on a regular basis.
  • Failure to discuss important expectations, e.g., deadlines and quality expectations- you should avoid this at all costs.
    You should communicate clearly to your origin engineering partner the standards you expect them to meet to avoid future mistakes.
  • Settling too quickly- you should understand what your needs are and you should prioritize them when selecting an origin engineering company.
  • Hidden/ unexpected costs- the main reason for seeking origin engineering services is always to reduce costs.
    Make sure to cover all discussions concerning costs; expected and unexpected with your origin engineering company.
  • Overlooking risks- ensure that you are aware and well informed on risks you are likely to encounter and how to solve them.

What Is The Future of Origin Engineering?

As a strategy to reduce costs and increase efficiency, there is no doubt that companies are going the origin engineering way.

Top manufacturing companies know that origin engineering puts them at an advantage over their competition.

This is because they have access to the best infrastructure, latest technology and skilled labor that might not be available locally.

Origin engineering provides the manufacturer with increased productivity, flexibility and cost efficiency.

In case you’re looking for any manufacturer from China, Tj chinafreight has a database that will link you with the right factory.

For any questions or inquiry, contact us now.

Import Entry Acceptance Advice: The Ultimate FAQ Guide

Let’s look at yet another important form in export-import business.

If you have any questions about import entry acceptance advice, you will find the answer right here.

What Is An Import Entry Acceptance Advice?

An import entry acceptance advice otherwise known as E2 Form refers to a form that indicates each time there is a successful import entry.

What Information Does An Import Entry Acceptance Advice Contain?

Some of the details you should expect to find in an import entry acceptance advice are not limited to;

  • Time and date for clearance
  • Customs entry number
  • Details of each item
  • Consignee
  • Summary of freight
  • Value of customs
  • Freight summary
  • Country of origin
  • Price of items
  • Insurance and VAT charges

Who Issues An Import Entry Advice?

An import entry advice is issued by customs officials of the country you are importing from.

How Do You Get An Import Entry Acceptance Advice?

When importing goods from a country, you can either choose to use a broker or do it by yourself.

When using a broker, he or she will acquire the import entry acceptance advice for you and fill the requirements.

You can get import entry advice from customs officials when passing your goods through customs clearance.

What Are The Requirements For Import Entry Acceptance?

For goods to legally enter any country, they must adhere to all the requirements.

To have a successful import entry, you will need to ensure that you have proper documentation.

In addition to that, be sure to consider if the type of goods you are importing are restricted or prohibited.

This way, you will know the appropriate actions to take early enough.

What Is The Significance Of An EORI Number To Import Entry Acceptance Advice?

An EORI (Economic Operators Registration and Identification Number) is a number that helps in identification.

This is when passing goods through customs and communicating with customs officials.

An EORI number ensures efficiency in security as well as aiding in statistical matters regarding customs.

What Is The Difference Between An Import Entry Advice And A Supplementary Declaration Acceptance Advice?

An import entry acceptance advice confirms a successfully committed import entry.

On the other hand, supplementary declaration acceptance advice applies to exports that don’t pass through the EU.

Supplementary declarations provide traders with detailed information about the customs.

This is done to facilitate a smooth customs procedure on goods that are to be shipped outside the European Union.

What Is The Difference Between C88 And E2 (Import Entry Acceptance Advice)?

The C88 otherwise known as a Single Administrative Document (SAD) refers to a form that is used to prove permission.

This is  to import or export for the destination country.

On the other hand, an E2 (Import Entry Acceptance Advice) displays every successful submission of an import entry.

The duties and VAT calculations are also included in the E2 which is normally issued once the C88 is electronically sent to Customs.

Is An E2 (import Entry Acceptance Advice) Proof Of Import?

Yes, an E2 can serve as proof of import as it indicates each time there is a successful import entry.

What Does VAT Value Adjustment Mean On An Import Entry Acceptance Advice?

When goods are shipped through Europe, there is an amount that VAT is calculated on.

This amount is obtained from the value of goods together with any other extra costs and is referred to as VAT Value Adjustment.

Some of the circumstances under which VAT value may be adjusted include;

  • When there is a similar commercial level but varying quantity
  • When there is different commercial level but similar quantity
  • When the commercial level and quantity are different.

What Happens After HMRC Issues An Import Entry Acceptance Advice?

Once an import entry acceptance advice is issued, the National Clearance Hub will process the entrance of your goods into the UK.

To do this, there are a couple of documents required by NCH including;

  • Proof of the value of goods
  • E2
  • License or certification
  • Packing list
  • A copy of the C88 form

Your goods will pass through NHC routes and procedures and later be cleared through customs.

What Is Direct Trader Input (DTI) In Relation To HRMCs Entry Acceptance Advice (E2)?

Direct Trader Input (DTI) refers to a system in which importers or traders use to electronically make declarations.

To the Automated Entry processing System (AEP).

To communicate with the AEP system, users of DTI make use of Revenue Online Service (ROS).

How Does Simplified Declarations Help With Import Entry Acceptance Advice?

With a simplified declaration, an importer doesn’t have to fully declare goods to the customs procedure at the place of release.

In addition to that, a simplified declaration abolishes the need for a supplementary declaration when entering cargo to OSR or low-value imports.

How Do You Submit Import Declarations For Entry Acceptance Advice?

Any goods that are being shipped from a country that is outside the EU must submit an import declaration.

A freight forwarder will be responsible for submitting the import declaration to the HMRC and should send a copy of the import entry to the importer.

These import entries include C88/SAD and the E2 (entry acceptance).

Take into account that your declaration needs to be done within 90days from the time your goods are presented to customs.

Nevertheless, you also have up to 30 days to make a declaration of your goods before they arrive.

They then will be officially accepted once the goods physically arrive.

Your declaration submission should include;

  • Commodity code
  • Customs procedure code
  • Reference number

Other additional information that you will need to provide are not limited to;

  • Consignor and consignee
  • Licenses and certificates
  • Goods details e.g., type, packaging, and amount.
  • Costs and method of transport
  • Methods of valuation and currencies
  • Destination and point of departure
  • Declaration Unique Consignment Reference (DUCR)

Once your declaration is approved, you will pay for duty after which your goods will be released.

If a deferment account is being used for payment, the payment will be deducted from your account on the 15th day of the next month.

Does An Import Entry Acceptance Advice Exclude Shipments For Customs Clearance?

No, it doesn’t. All shipments including shipments for customs clearance must first be cleared at the point of entry before they are approved for entry.

Does An Import Entry Acceptance Advice Exclude Shipments For Customs Holds And Examinations?

An import acceptance advice doesn’t exclude shipment for customs holds and examinations. All goods being held at customs will have to undergo some examination after which they will or not be approved for entry into the country.

The import entry acceptance advice will indicate each time there is a successful import entry.

Can A Freight Broker Take Care Of The Import Entry Acceptance Advice?

Yes, a freight broker can take care of all your import procedures including the import Entry Acceptance Advice.

Once you send the required documents before your goods arrive (packing list and commercial invoice among others);

Your freight broker will not only take care of your E2 but also C88.

A freight broker will be responsible for ensuring that your goods are in line with the set laws and regulations.

Additionally, they will as also handle the taxes, documentation, fees, and other requirements on your behalf.

If you are still an amateur in this field;

It’s always recommended to work with freight brokers to understand the procedures as well as prevent first-time frustrations.

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

Power Of Attorney: The Ultimate FAQ Guide

If you have any question about power of attorney, you will find the answer right here.

So, keep reading to learn more.

What Is Power Of Attorney (POA) In Freight Forwarding?

Power of Attorney is a legal document which assigns/transfers legal power from one person to another.

In Freight forwarding, Power of attorney is a grant of authority, where the importer/exporter appoints an agent called freight forwarder.

POA enables the freight forwarder to handle various or all aspects of shipment on behalf of the importer or exporter.

When Do You Need A Power Of Attorney?

When you are assigning responsibility to another entity, then a validated POA is obligatory.

With the aid of this document, the forwarder or customs broker has the capacity to perform customs clearance for your shipment.

Your appointed organization will need a signed POA to clear your cargo with the respective customs authority. The involved entities must finish all the power of attorney formalities before the cargo is shipped.

Is It Mandatory To Get Power Of Attorney?

No.  You only require Power of Attorney if you are delegating power to another party to act on your behalf during a shipment process.

How Does The Power Of Attorney Work?

At times referred to as “letter of empowerment”, POA grants the custom broker or forwarding agent management of the shipment so they can:

  • Draw up, sign and file applicable shipping documents on your behalf
  • Serve as a middleman between you and the supplier of the goods.
  • Handle the cargo
  • Obtain customs clearance for the cargo

You will need to draft POA if you intend to grant authority to freight forwarder to process customs clearance documentations on your behalf.

The document must specify the powers you are granting and must accompany the freight for customs inspections at the destination port.

The power of attorney must be prepared prior to shipment of the cargo.

The documentation makes sure that all communications relating to the freight are done through the appointed agent rather than yourself.

This is especially crucial if working with a forwarding agent to ensure no details missed during the customs filing process.

Similar to all shipping documentations, you should word the POA content precisely so that the terms of power transfer are clear.

Of course, the agent you are giving the power of attorney should be trustworthy.

What Is Information Should A Power Of Attorney Include?

There are certain important information which you must provide fully when you are completing the power of attorney:

  • Type of business you operate
  • Sole Proprietorship
  • Partnership
  • Limited Liability Company.
  • Corporation
  • Full legal name of business
  • Where the business is registered
  • Place of business of the entity
  • Designation of the forwarder or broker who will be managing the customs process on your behalf
  • Date Signature, designation of the signor

In case of a foreign importer, person signing the POA must give supporting documents authorizing them to transact on behalf of the business.

The provided documentation needs to be wholly accepted by the regulations of the country where the business is registered.

However, remember that power of attorney doesn’t serve as an agreement between an importer, exporter or freight forwarding agent.

Basically, it is an allocation of legal capacity from one organization to another.

Who Is Allowed To Sign The Power Of Attorney?

The owner of the business/company doing the shipment must sign the Power of attorney. It is also possible for someone from the company sign the POA.

Authority to sign sometimes depends on the structure of the company/business (individual, corporation, etc.). Moreover, some authorities require a secondary witness signature from another officer of the company/business making the shipment is very important.

How Do You Acquire A Power Of Attorney?

Your freight forwarding agent or customs broker will take you through the process of obtaining the power of attorney.

Furthermore, they will assist you in procuring the necessary documentation.

Nonetheless, when shipping without the aid of forwarder or broker, you can download POA templates from the internet.

What Is The Cost Of Getting Power Of Attorney?

This is subject to your freight forwarder or customs broker, but in most cases the fee is not more than $200.

How Many Types Of Power Of Attorney Are There?

There are four types of Power of Attorney namely:-

Export Power Of Attorney

This POA is signed by the exporter. The exporter authorizes the freight forwarder to manage the shipment and deal with customs clearance documentation.

Import Power Of Attorney

The buyer or seller of a consignment will appoint an agent and permit them to handle their consignment. The permitted agent/freight forwarder will handle customs and other entry requirements on behalf of his client.

Customs laws in some countries require that an import POA be signed by the freight forwarder or customs broker.

General Power Of Attorney

This is an authorization from a merchant giving their forwarder or agent authority to handle all issues relating to the shipment on their behalf.

Durable Power Of Attorney

This is an authorization from a shipper giving their forwarder or agent authority to handle specific issues relating to the shipment on their behalf.

The Power of attorney document must clearly and explicitly state the issues concerned.

When Does The Power Of Attorney Expire?

The Power of attorney document is valid until the specified date at which the POA ends. In most cases, this is when the shipment is completed.

Often the Power of attorney is labeled ‘UNTIL REVOKED’. This means that the business/company and their appointed agent/forwarder can revoke the power of the Power of Attorney at any time.

How Does The Power Of Attorney Benefit You When Shipping From China?

Power of attorney helps businesses/companies/individuals shipping from China to avoid unnecessary delays that may affect shipment.

The power of attorney also ensures that customs, rule and regulations are adhered to.

The Power of Attorney document legalizes the transfer of responsibilities for consignment handling from the importer/exporter to their freight forwarder.

This enables authorized forwarder to manage customs clearance complexities at the port of China and other issues that may arise.

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

External Transit: The Ultimate FAQ Guide

If you have any question about external transit, you will find the answer right here.

So, keep reading to learn more.

What Is External Transit in Customs?

External transit is a term used to describe the transportation of non- Union goods.

Under What Circumstances Does The External Union Transit Procedure Apply?

It concerns the following:

  1. Non-Union goods with excellent import levies
  2. Union goods which:

Are being exported to common transit country through the union or being transported beyond the territory of a common transit country during export but:

  • Are entitled to the repayment of import duties as long as they are transported from the area of the Union, or
  • Have gone through customs export formalities to allow compensation on export to non-Eu countries under the CAP, or
  • Are stocks detained by the national intervention agencies in the EU and have gone through export regulations on export to third countries under the CAP

What Are The Modes Of External Transit?

In the world of trade, external transit movement occurs by:

  1. By post
  2. Under the EU transit procedure
  3. Under the cover of ATA using a transit document
  4. Under a TIR carnet as long as that journey starts or end outside the EU.
    It’s attained between two positions in the EU to the third-country territory, or concerns the shipment that must be unloaded with customs territory of EU.
    Which are transported with shipment that must be to be unpacked in the third country.

How Does External Transit Differ From Internal Union Transit?

The main difference between these two terms is;

External transit deals with the transportation of non-Union goods whereas internal transit concerns the transportation of Union goods.

It’s pretty clear; external is outside the Union, internal is in the Union.

What Is The Difference Between TIR (Transports Internationaux Routiers) And External Transit?

Both of them are types of transit. However, they are different in terms of:

TIR- Here goods are transported internationally via one or more borders. Road operation is involved in between the journey.

External transit on the other hand is classified under Union Transit, where goods are transported within the region of the union.

What Are The Principal Regulations Governing External Union Transit In The EU?

The principals and laws of custom transit procedure are below:

  • Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015,
  • Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015
  • Commission Delegated Regulation (EU) 2016/341 of 17 December 2015.

Does The External Transit System Apply When Goods Are Being Transported Under Another Internationally Agreed System?

No, it doesn’t.

This includes:

  • The carriage of goods by post
  • Conveyance of goods outlined in TIR carnet, or
  • Transportation of cargo is covered by an ATA carnet that works as a transit document.

What Are The Controls On External Transit Goods?

Control measures are kept in place due to risks of fraud. Here are control measures of transit goods:

  1. Shipments with incorrect information don’t qualify for external transit procedures.
    This includes all goods whose documents don’t match the shipment
  2. EU external transit system formulates the process of customs formalities and payment of duties and declarations.

When Is The External Transit Procedure Applicable To Movements Via A Third Country?

It is only applicable in the following circumstances:

  1. When supply is made as a result of an international agreement
  2. The freight through that region or country is symbolized by a single transport document prepared by the Union

Does The External Transit System Relieve Goods Of Prohibitions And Restrictions?

No, it doesn’t.

In fact, all goods transported under transit must have licenses and comply with any prohibition and restrictions available.

Who Is Responsible For An External Transit Operation?

Transit Operation is executed by the Holder of Procedure; s/he acquires transit duties.

This individual issues a transit declaration through NCTS indicating interest perform a transit operation.

The Holder of Procedures is responsible for:

  • Presenting intact shipment with transit declaration to the customs office at a given time frame.
  • Also pays duties and any arising charges.

Additionally, an Authorized Representative appointed by the holder may act in his/her place.

The carrier or recipient of goods should produce intact goods if s/he receives goods knowing they were transported under a transit procedure.

What Is The Purpose Of Guarantees For Goods Moving Under External Transit?

It’s used for transit operation and also ensures any arising custom debts can be recovered in case of any deformity.

What Types Of Guarantees Are Available For External Transit Operations?

They include:

  • Exception from Union transit guarantee
  • Individual guarantee
  • Comprehensive guarantee

How Do You Apply Guarantee For External Transit Procedure?

It’s simple than it sounds.

All applications are done electronically. Submit an application for a comprehensive guarantee using the EU trader portal.

You will receive a certificate for comprehensive guarantees through a guarantee office, a receipt that is can be used throughout the Union.

What Are The Requirements For Guarantor For External Transit Procedures?

Guarantor’s conditions include:

  1. Must be a reliable person or third parties like a bank
  2. Should be accepted by customs authorities
  3. Should pay for duties and other arising charges

Are There Exemptions From External Union Transit Guarantee?

Yes. In the following scenarios:

It’s not required for transportation by air or sea especially where the airline or shipping company as the holder of the procedure.

Allowed to use the paper-based Manifest or an electronic Transport Document in place of the transit declaration.

How Do You Submit External Transit Declarations?

The documents can be issued online by the trade declarant. Also, the customs transit declaration service on the customs website can be used.

Can An Unauthorized Trader Initiate An External Transit Procedure?

Yes.

The trader should initiate export transit procedure by keying in the required information into NCTS.

This is to include Guarantee Reference Number (GRM) access code and transported shipment.

Transit Accompanying Document (TAD) will be released once the information is correct. Master Reference Number MRN may also be generated.

Shipments are submitted for a checkup in the customs office.

After the examination, transit is released in NCTS and TAD which MRN are produced and issued to the dealer.

Can You Use Simplified Transit Procedures For Goods Moving Under External Transit?

Yes, this depends on the subject of shipment and the circumstance.

Traders that have been accepted by the customs as authorized consignors/consignees have the benefits of having transit formalities completed at their place.

When Does An External Transit Procedure End?

External transit ends when the holder meets all his responsibilities and submits all the required documents to the customs office of destination.

Customs clearance authorities are responsible for releasing procedure.

This is when established on basis of comparison with available information in the office of departure and destination.

Goods should be presented flawlessly at a specified time and all terms and conditions must be met.

Customs authorities at the office of destination should examine goods to ensure any delays in completing transit are accounted for.

What Are The Customs Obligations In Relation To External Transit Goods?

Customs obligation applies to:

  1. The driver/carrier should clear goods whether known or not
  2. Exporter/importer- the receiver of goods who accepts them bearing in mind they are from community transit.

They should present intact goods to customs at the specified time.

Here are some useful links for you:

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

Is AliExpress Safe and Legit to Buy Goods from China – The Ultimate FAQ Guide

Whether AliExpress is safe and legit is a question people ask me every day.

That’s why today, I will answer all your questions on safety, avoiding scams, verifying suppliers, buyer protection and return policy, amongst others.

By the end if this guide, you will have skills and knowledge on how to buy safely from AliExpress.

Let’s dive right in.

How Do You Avoid Scams On AliExpress?

The following are tips on how to avoid scams on AliExpress:

  • Ensure you purchase from sellers with good reputation– Always ensure you go through the seller’s reviews and ratings to find out how good or trustworthy a seller is. Buy from sellers with good reviews and high ratings of at least 4 or higher.
  • Buy from sellers with a good number of successfully shipped orders– When buying from AliExpress it is advisable to seek sellers that have successfully shipped lots of orders.
    You are likely to encounter less or no problems from sellers with many successful sales.
  • Always pay through AliExpress: – At no given time should you pay money directly to the seller.
    Instead, always use the AliExpress platform to avoid fraud and maintain legibility for the buyer protection policies.
  • Never be in a hurry to confirm delivery– You should not confirm delivery before actually receiving your shipment and making sure it is alright.
  • After you are satisfied with the product you can go ahead and confirm the receipt.
  • Avoid ‘too good to be true deals’– Although AliExpress is known for its affordable prices, it is better to keep away from those really irresistible deals.
    Items with unbelievably low prices are likely to be counterfeit or of really low quality.
  • Make sure to check the seller’s guarantees– check what offers and guarantees the seller offers.
    For instance; returns and refunds, shipping and delivery timelines and quality assurance.
  • Get in touch with the seller before making your order– The AliExpress platform has a ‘contact the seller’ option.
    You ask all the necessary questions like their refund policy, quality of the product, discounts, warranty, etc.
  • Check how long the seller has been on the platform– The longer they have been open, the more credible they are likely to be.
    It is best to avoid stores that have been open for less than a year.
  • Confirm the store has a buyer protection policy – The seller should guarantee you a refund if the item you purchase does not arrive it has other issues.
  • Stay away from free shipping when buying expensive items– most scammers will indicate free shipping on expensive items in order to lure buyers.
  • Mark the logos/hallmarks on real brands so that you can identify knockoff or counterfeits. This way you can avoid being scammed to buying a fake item being sold as the original.

How Can You Tell If Sellers On AliExpress Are Genuine Or Not?

The following are ways to determine if sellers on AliExpress are genuine or not:

  • Check the seller’s credits– AliExpress has a credits system which allows you to evaluate the credits of the seller.
  • Customer reviews and rating– genuine sellers will obviously have positive reviews from satisfied customers. Their ratings also are high; 4 stars and above.
  • The sales– Sellers with lots successful sales are most likely to be genuine. You should think twice about sellers with really low sales.
  • Return rates– if a seller has a high rate of returns, it is apparent that they are either selling counterfeit or low-quality goods. The lower the seller’s return rate the better.
  • The time their store has been open for– Not to say that new stores are not genuine, but buying from a store that has been there for longer guarantees an experienced seller.
  • The number of followers they have– Stores with a huge following are most likely to be genuine. This is not to discredit stores with few followers but if many people follow a certain store, it’s because they’re reputable and trustworthy.
  • How the handle inquiries or complaints– before making a purchase, contact the seller for any question about the product, their buyer protection or any other questions you might have. How the seller engages and responds will communicate whether they are trustworthy or not.
  • Store’s buyer protection policy– sellers that are willing to give refunds, take returns and make replace are most likely to be genuine and vice versa.

It is always advisable to do your due diligence before making a purchase from any seller.

How Can You Verify Sellers On AliExpress?

  • Make use of the AliExpress Sellers Checker– This feature allows you view the ratings, reviews and feedback about the seller.
  • Check the seller’s history– check for how long they have been in business, how many successful orders they have shipped, the amount of returns they have etc.
  • Check for actual pictures of the product– You can find this in the customer’s reviews. This will help you know if the product is exactly as advertised by the seller or not.
  • Contact the seller– this will allow you to know if the seller is keen to the customer’s complaints or enquiries.

Is There Way Of Evaluating Quality of Good on AliExpress?

The following are ways to evaluate the quality of goods on AliExpress:

  • Do not rush to purchase the cheapest product– Different sellers always have different prices for the same item. The cheapest might mean it that it is of a lower quality.
    This is not always the case but it is best to avoid the goods with suspiciously low prices.
    Check the customer’s reviews, both positive and critical– This will help you determine the quality of the product before purchasing it.
  • Check if the product is copyrighted and trademarked– this is essential in ensuring you buy the legit product and not a knockoff or low quality.
  • If you are buying in bulk, you can order a few samples and inspect the quality of the product yourself.
  • Check the description and pictures of the product– sometimes though the pictures provided by the seller could not show clearly the quality.
    You can find actual pictures on reviews left by buyers and they can help you determine the quality of the item.

Is It Safe To Use AliExpress Mobile App?

The AliExpress mobile app is not only safe and reliable to use, but also has some cool features. It has features like a message center which allows you to contact the seller directly for inquiries or complaints.

It also allows you to know the status of your order, search and sort products by category and also add products to your Wishlist. It has a section which shows the deals of the day.

Lastly, it allows you to share products to your friends and family through social networks like Facebook, twitter, email etc.

Always make sure to download the verified AliExpress app.

Is Everything Sold On AliExpress Legit?

AliExpress does its best to ensure they keep their platform legit and free of scams.

There is however no guarantee that everything sold on AliExpress is legit. There are thousands of merchants and it may be hard to track all their activities.

You are likely to encounter counterfeit items and low-quality items. Sellers can disguise counterfeit products and pass them as real.

In other cases, they can use false pictures and write catchy descriptions for an item that does not match those standards.

That is why it is important to do your due diligence.

Check the product’s reviews and ensure you are buying from a reputable seller.

How Can You Avoid Buying Counterfeit Goods From AliExpress?

Tips on how to avoid buying counterfeit goods from AliExpress are:

  • Detect the fake reviews– Mostly, people rely on customer reviews to determine if a product is fake.
    It is important to scan through the reviews and ensure they are genuine as some sellers put up fake positive reviews for their counterfeit products.
  • Be aware of the original brand’s hallmark– This way you can be able to identify the real product from the counterfeit.
  • Inspect the packaging– Mostly brands put their logos not only on the product but also on the product itself. If a product or the packaging do not have the logo, then it is most likely counterfeit.
  • Keep of impractical deals and offers– Always shy away from unrealistic pricing. For instance, if a seller is selling say a Gucci bag for a ridiculously low price of 10$ its most likely counterfeit. In this case it best to avoid buying it.

Do Low Prices On AliExpress Imply Low Quality Items?

AliExpress is best known for lower prices compared to other platforms. This means that the lower prices do not necessarily mean the items are of low quality.

Most of the sellers on AliExpress are from China and source their products from Chinese manufacturers.

Therefore, this allows to maintain low prices and that is why some sellers are able to offer very affordable or free shipping.

However, in a case where several sellers are selling the same product but the prices are very different.

The one with the lowest price could be of low quality as well. Also extremely discounted items could mean that they are not of good quality.

Does AliExpress Provide Ways Of Solving Buyer Seller Disputes?

AliExpress has Buyer Protection which is a way of settling disputes between buyers and seller.

A buyer has to be an eligible member of the Buyer Protection to benefit from it.

Normally, when the buyer does not receive their product/service or receives a substandard product they open a dispute to report the incident to AliExpress.

In the time of the dispute procedure, some of the factors that AliExpress will look into are as follows:

  • If the product or service that the buyer received is substandard, faulty damaged or essentially not what they ordered.
  • Whether the conditions leading to the goods/services not being delivered are within or beyond its control.
  • If the non-arrival of the goods/services is the fault of the buyer. For instance; whether they provided the wrong address or other shipping details.
  • If the reason for returning the goods to the seller is because customs would not clear it.

During the dispute procedure the seller will be required to provide any relevant documents or evidence to support their claims.

After evaluating both the seller’s and buyer’s claim, AliExpress will make a final resolution which is not subject to appeal.

If the final decision is made in favor of the buyer, they will be entitled to a refund 15 days after finishing the dispute procedures.

Is It Safe To Use Credit Card When Buying From AliExpress?

It is absolutely safe to use a credit card on AliExpress. When you enter your credit card details, that information does not go directly to the seller.

Instead, it stays with AliExpress who make payments to the seller after you successfully receive your order.

You should never disclose your credit card details to a seller. You should not also make payments directly to the seller using your credit card.

This is to avoid any type of fraud and scams that can arise.

Also, if you use your credit card to pay a seller directly, then you do not qualify for AliExpress’ Buyer Protection.

Are Other Modes of Paying Sellers on AliExpress Safe?

It is perfectly safe to use other modes of payments on AliExpress.

It is however important to note that you should not pay the sellers directly.

This is ideal for you to avoid being scammed or your cards hacked. Always pay via the AliExpress platform.

Some of the common safe payment modes that are safe to use on AliExpress include:

  • PayPal
  • Payoneer
  • Debit cards
  • Western union
  • Bank transfers
  • Other less common modes of payment include: Webmoney, iDeal, Ticket, tefPAY, DOKU etc.

Does AliExpress Have Buyer Protection?

AliExpress has a Buyer Protection system for every payment made on its platform.

For a payment to be protected by Buyer Protection system, it must not bypass AliExpress.

This means that all payment must be made though the AliExpress platform

This is why it is advisable never to pay sellers directly in to their accounts. If a seller asks you do so, you should report them immediately.

The Buyer Protection comes in handy in situations like:

  • When you receive products/services that are not exactly as they were described; and your claim to get a refund from the seller was unsuccessful.
  • If your order does not arrive within the agreed delivery date and time.
  • When you receive knockoff or counterfeit version of the item you had ordered. In this case if you open a dispute, you can get up to 3 times the money you paid as compensation.

Is Everyone Eligible For Buyer Protection?

Not everyone is eligible for Buyer Protection.

To be an eligible member for Buyer Protection, you must have a valid AliExpress account and also a registered member.

You must have also successfully bought either goods or services from AliExpress.

Can AliExpress Sellers Refund Money After Failing To Deliver Product?

If you do not receive your product within the stated delivery dates then you can claim a refund from the seller.

The delivery period set by sellers is mostly a maximum of 60 days and if your delivery has not arrived, they should give a full refund.

The steps on how to request a refund are:

  • Open and sign into ‘My AliExpress’. Click on the ‘open dispute’ button after selecting the transaction.
    In order to begin the process for your full refund, complete the required steps as per the instructions.
    After completion, you can start negotiations with the seller.
  • Some times when the system automatically files a claim or even when a buyer files a claim before the delivery time/
    The AliExpress Case Management Team will deal with the case based on the stated delivery times.

Does AliExpress Have Product Return Or Replacement Policy?

The sellers on AliExpress set their own return, refund and replacement policies.

If you wish to return an item or have it replaced, you will have to deal directly with the seller.

However, if you- the buyer and the seller cannot reach an agreement, you can request for AliExpress to intervene.

They will then make a determination according to the available evidence.

Circumstances under which an item can qualify for return or replacement include:

  • Item that got delivered is not the right one
  • Product does not function properly or as it should.
  • Item is missing some parts
  • Product is defective
  • Product is fake/counterfeit.
  • Item took too long to arrive and the buyer has no use for it anymore.
  • Item is not what the buyer was anticipating or it does not match the description.
  • Product was the wrong size.

Are Sellers On AliExpress Registered Business Or Individuals?

AliExpress permits individual sellers as well as registered companies/businesses.

That being the case, AliExpress can register you as a seller as long as you have the following:

  • VAT number
  • Updated contact information- this includes a valid email and telephone number.
  • Your company’s operating license
  • The ID of your legal representative.

Can You Trust Sellers Feedback On AliExpress?

AliExpress has thousands of sellers selling the same merchandise.

This means that the competition is very high and some sellers may have false feedback for obvious reasons. This does not mean that there are no trustworthy sellers.

That is why it is advisable to do your due diligence and scan through the sellers’ feedback and try and weed out the real from the fake.

Sellers also try to support each other’s business by leaving positive reviews and feedback that is not necessarily true. So, it is best to watch out for such scenarios too.

Is Shipping From AliExpress Safe?

Shipping from AliExpress is perfectly safe and secure.

After making a purchase, the seller provides all the shipping details to help you with tracking your order.

AliExpress has the AliExpress Standard Shipping which is the most affordable and usually takes 15 to 45 days from the time your package is sent.

They have also the AliExpress premium Shipping which takes a shorter time of 7 to 15 days from the time the parcel is shipped.

AliExpress also partners with other private couriers like FedEx and DHL. These are not only safe and reliable but also offer relatively fast shipping.

Does AliExpress Verify All Sellers On Its Platform?

To be accepted as a seller on AliExpress, they need to verify your contact and legal details. These include your:

  • Name
  • Email address
  • Telephone number
  • Company details
  • VAT number
  • Business license
  • Legal representatives ID

Before a seller can set up an account with AliExpress, they verify the above details and only if they are correct do, they proceed.

After reviewing the information and the application the seller can then be allowed on the AliExpress platform.

Verifying sellers ensures that only legitimate sellers are on the platform.

Are Coupons AliExpress Sellers Offer Legit?

All coupons on AliExpress; (AliExpress Coupons, Store Coupons and Select Coupons) are legit and safe to use.

Sellers give out store coupons that can only be used in their stores only. Also, you only use one coupon per order.

Sellers give out store coupons for free on their pages or you can get them by exchanging your coins for coupons.

Select coupons are legit and safe to use. You can only use these in selected stores.

Check the items product detail page to find out if select coupons are accepted.

The number of coupons you can use per order depends on the store’s policies.

Just like store coupons you can get select coupons by exchanging your coins or by playing games.

Can I Trust Discounts On AliExpress?

There are quite a number of ways to enjoy discounts on AliExpress you can accept them without any doubt.

There are discount sales, coupons, promo codes, discounted shipping among others.  Discounts on AliExpress are trustworthy and a good way of saving our money.

However, you should always be on the look out for possible scams.

For instance, sellers that place irresistible discounting on their substandard items in order to attract gullible buyers.

It is also advisable to shop around for the same item as some sellers put up fake discounts to entice buyers.

But in real sense they have not reduced the price even a little.

Is AliExpress Standard Shipping Reliable?

AliExpress standard shipping not only reliable, but also safe and affordable.

Sometimes AliExpress offer buyers this method of shipping for free.

AliExpress standard shipping takes from 15 to 45 days for standard size packages to be delivered.

It is quite easy to track your order while using AliExpress Standard Shipping.

This way you can know the status of your package and its location while on transit.

AliExpress standard shipping works in partnership with other companies like Singapore Post, Posti Finland, Correos, etc.

How Long Will It Take to Solve Disputes on AliExpress?

After opening a dispute, the seller has up to 15 days to give a response and for them and the buyer to reach common ground.

If 15 days go by and still no agreement has been reached, the file now becomes a claim.

AliExpress has to intervene now. The AliExpress Case Team Management has to review and try to settle the claim. This could take 15 to 60 days.

Is Free Shipping On AliExpress Trustworthy?

Free shipping on AliExpress is actually safe, trustworthy and reliable.

However, it can be very slow taking from 30 to 60 days for your package to arrive.

Free shipping normally uses the National Post service and hence the longer the delivery time.

You should avoid free shipping for costly goods.

This is to avoid the risk of them being damaged or mishandled.

For expensive items it is best to use faster and private couriers like DHL or EMS. Free shipping is perfectly fine for inexpensive items.

It is advisable to track your package when using free shipping to ensure it reaches on time and does not get lost.

If you do not receive it on time, then you can open a dispute.

Are Buyers Review on AliExpress Genuine?

Buyers leave reviews according to their shopping experiences.

You have to be a buyer to be able to leave a review under a certain product or store.

It is good to go through all the reviews, old and new, positive and critical in order to get the most from them.

Buyer reviews can be of great help in determining if a seller or their items are genuine.

Although some people argue that some reviews could be fake, it is impossible to leave thousands and thousands of fake reviews.

I would say it is important to scan through the reviews and find out which are genuine and helpful and those which are not.

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Partner Government Agency: The Ultimate FAQ Guide

If you want to learn more about partner government agency, read this guide.

It provides an in-depth understanding of all information you’re looking for about partner government agency.

Keep reading.

What Is Partner Government Agency?

Partner Government Agency (PGA) is a government bureau that works in conjunction with

Customs and Border Protection (CBP) that controls certain products entry into the U.S.

What Are The Functions Of Partner Government Agency?

The function of Partners Government Agency include;

  • ensuring national safety by making sure that no person or commodity enters the US illegally
  • ensure all US guidelines are followed in trade, customs, and immigration
  • Ensure terrorist and dangerous weapons do not get into the US
  • Regulate the safety of food, its quality, and nutritional value.
  • Protect endangered species from extinction because of the value of parts of their bodies.
  • Ensure custom levies and taxes on imports are decided appropriately
  • Regulate manufacturing and importation of vehicles

What Are Partner Government Agency Regulated Commodities?

Some of the main product include:

  • Animal and plant products
  • Organisms and vectors
  • Veterinary services
  • Food and drug administration
  • Pesticides and devices
  • Ozone -Depleting substances
  • Chemical substances
  • Vehicles, engines, and fuels
  • Firearms
  • Alcohol and tobacco

Which Partner Government Agencies Are There?

Mention each partner agency followed by a brief explanation of about 15 words for each

Department Of Agriculture

It controls the imports and exports related to animal and plant health.

These commodities should be free from pests and diseases.

Food and safety inspection service scrutinizes all imported consumable animal products are to ensure they are safe

Department Of Health And Human Services.

They are promotes good health and well-being of Americans.

This is in terms of medicine, public health and social services, and dangerous chemicals.

Department Of Commerce

The department protects American industries against unfair competition.

They ensure adherence to trade agreements.

They also prevent harmful trade practices such as overfishing

Department Of Justice

They ensure that the safety of the public against crime.

It is involved in the importation of firearms and curbs trafficking of drugs

Department Of Interior

They manage the Us natural resources and her cultural heritage

They provide scientific information on the resources.

It controls national parks, protects endangered animals such as elephants, whales, and tortoises.

Department Of The Treasury.

Promotes economic development and ensures the financial security of the US.

It collects taxes on imports entering the US.

Besides, it ensures the shipments are valued correctly

The Department Of Food And Drugs Administration

It controls how foods and drugs are manufactured, stored, transported, and customs clearance.

Department Of Transportation

Issues licenses to manufacturers of vehicles and importers of vehicles spare parts.

This ensures that vehicles in the US comply with mandatory safety standards.

The department restricts the uncontrolled importation of vehicle spare parts.

What Roles Does Partner Government Agency Play In Import-Export Business?

Partner Government Agencies in the US have a regulatory role in the import-export business.

CBP enforces these regulations on behalf of PGAs.

PGAs provide guidelines that help importers understand their duty.

The roles of PGAs can be identified through the various departments as follows:

US Department Of Agriculture (USDA)

Its main role is to promote production in agriculture.

They monitor the export of products from the US against unfair international trade

Restrictions.

They provide detailed information on exports and research reports.

USDA ensures that all agricultural products imported to the US are free from pests and diseases.

USDA provides guidelines on the labeling of products.

They also inspect and t grade imported products.

US Department Of Commerce

It provides the important information needed in commerce.

They help in the enforcement of international trade compliance laws

  • US food and drugs administration reviews all foods products, cosmetics, for compliance
  • Department of Commerce oversees several important compliances and implementing export administration regulations (EAR)
  • Department of treasury

It enforces trade sanctions on targeted countries, terrorists, and drug traffickers.

Besides, it collects shipment taxes entering the USA.

Also, it ensures proper valuing of shippers goods coming into the US.

US Customs And Border Protection Agency

It controls and promotes international commerce.

They collect import duties and fees.

They do border patrols to curb illegal immigration.

Department Of Interior

This department provides restrictions on wildlife entering into the USA.

They prohibit the entry of products from endangered species into the U.S

They issue permits to importers of endangered animals who have good reasons.

Department Of Justice

It deals with requirements for dangerous imports such as firearms explosive s, alcohol, and drugs.

Importation of alcohol and tobacco products must meet the requirement for commercial sale.

They also limit the sale of explosives and firearms

Department Of Transportation

It handles the following:

  • It ensures all vehicles imported into the US comply with safety standards and fuel laws.
  • Issues licenses to vehicle manufacturers and importers.
  • Prohibit the importation of uncontrolled vehicle spare parts.

Department Of Health And Human Health

It has a duty to protect consumers.

They ensure foods and drugs produced locally or abroad meet the required standards.

When the imported goods do not meet the standards of the FDA they are destroyed immediately.

They provide CDC import permits for those who want to import pets.

Does Partner Government Agency Work With Customs Border Protection?

Yes, PGA works with Customs Border Protection (CBP).

This is done in order to regulate the entry of products that are commercially imported into the US.

CBP enforces the PGAs regulations.

CBP is an agency that controls international travel and trade into the US.

They examine documents such as commercial invoices and lists of packing,

They also collect import duties and perform customs exams,

When a product is rejected by a PGA, CBP cannot allow it to enter the US.

What Is Partner Government Agency Clearance?

Is the process of PGA scrutinizing export and imports and ensure that they go through all the required procedures before being accepted in the US.

This is in an effort to ensure that goods entering the country meet acceptable standards.

It is a measure to ensure goods are safe for use, of acceptable standards, and custom levies are paid

What Is The Main Function Of Partner Government Agency In Customs?

The main function of Partner Government Agency is;

To regulate the entry of imports in the US and ensure these imports meet the required safety standards

What Documents Do You Need For Partner Government Agency Clearance?

Some of the documents you will need include:

The Notice Of Arrival:

This is an alert by the shipper to the recipient on the arrival of the cargo.

this document gives the details of the goods being exported, to the customs broker.

House Bill Of Lading;

This is a transportation contract of transportation between you (the shipper) and the forwarder.

This document contains information on the quality, type, and destination of the goods.

The HBL confirms receipt of the export goods by the forwarder.

The HBL document is important because it ensures the exporters get their money and the importer gets their cargo.

Packing List

This is a list used by CBP to verify the cargo being shipped.

The list shows the quantity, weight, and any additional information.

Commercial Invoice.

This is a legal document between the supplier and the importer.

This is a document that gives the cost of the goods being exported.

The document is used by the customs to determine the taxes and import duties on the commodities.

The Certificate Of Origin

It is a document that shows the country of origin of the goods.

The document helps the PGA decide if the goods are appropriate for importation.

The document helps in deciding if the product requires special levies or treatment.

What Are Partner Government Agency Acceptable Payment Methods?

Both the importer and exporter require acceptable methods of payment.

The methods of payment should be safe and have favorable terms.

These include:

Open Account

Here the commodities are shipped before payment is done.

It’s favorable to the importer and very risky for the exporter.

Document Collection

It’s done in two methods

  1. Document against payment – the shipper deposits with the bank ownership documents.
    The bank gives the documents to the importer after payment is made.
    Normally, the bank then sends the payment to the shipper’s bank and the shipper is paid.
  2. Documents against acceptance -the exporter’s bank asks the importer’s bank to release documents used in transacting to the importer.
    The importer makes payments and receives the documents and goods.
    Also, the exporter is paid after the importer’s bank makes payment to the exporter’s bank.

Cash In Advance

Payment is made through wire transfers or using a credit card and escrow services.

It is safe for the exporter because they paid before the commodities are shipped.

This method helps the exporter avoid the risk of non-payment by the importer

Importers do not like this method because of the risks of goods not being sent.

Letter Of Credit

This is a pledge by the bank to pay the shipper once goods are shipped.

It is most secure for both the importer and the exporter.

The letter of credit protects the importer from making any payments until the goods are shipped.

How Does Partner Government Agency Work?

PGAs are government agencies that regulate imports and exports business in the US.

Each agency has specific goals to achieve, depending on the commodities being imported.

An example is the Department of Transportation which deals with safety standards for a manufactured and imported vehicles,

On the other hand Department of Interior provides restrictions on wildlife entering the USA.

They prohibit the entry of products from endangered species into the U.S.

As a shipper, you are expected to comply with the requirements set by the concerned agency

Due to the complexity involved a shipper is advised to use the services of expert brokers.

Custom brokers understand all the required PGAs laws concerning your shipment.

This is because your commodities may have to meet standards set by more than one PGA.

Customs Border Protection (CBP) enforces the regulation set by PGAs on their behalf.

If a PGA has rejected import commodities CBP will not allow the commodities into the US.

Other Related Resources:

Partner Government Agency Import Guides

List Of Partner Government Agencies

Guide To Partner Government Agencies

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