Chargeable Weight: The Ultimate Guide

This guide explores everything you need to know about chargeable weight.

The information will help you estimate shipping costs.

So keep reading to learn more

What Is Chargeable Weight?

It is also referred to as the paying weight hence the amount charged on your invoice.

This chargeable weight is used when a freight company wants to charge you for your shipment.

This weight was created as a conversion factor for air freight majorly, to cub the difference between weight and volume.

This weight is greater than two weights, that is volumetric weight and gross weight.

How To Calculate Chargeable Weight

Chargeable weight is the difference between dimensional weight and gross weight.

The first step of calculating chargeable weight is finding the volume of the cargo in cubic inches.

This is done by employing the formula: volume = length multiplied by width multiplied by the height.

Then you divide the volume gotten by an appropriate constant to get its volumetric weight.

If it’s a domestic cargo you divide by 194 but if it is an international cargo you divide using a constant of 166, these are pounds.

Then you calculate the gross weight of your cargo, that is you weigh it on a scale.

You will use the greater volumetric weight or actual weight to create a fair chargeable weight.

When you talk about a fair chargeable weight we can compare the weight of feathers and steel plates.

The cotton actual weight of cotton will weigh less compared to steel plates.

But the cotton will need more room for the cargo to hold it than the steel plates.

This simply means that cotton utilizes space while steel utilizes weight.

By comparing the two, weight and space occupied, the chargeable weight helps the freight company bill the customers accordingly.

Types Of Weight You Should Know

Actual Weight;

This is the exact weight of your product.

The weight includes the product plus its packaging.

This weight is weighed and recorded on the scale.

Volumetric Weight/Dimensional Weight;

This is the volume weight of your cargo.

This volume is converted into a weight equivalent.

Here the length, width, and height of your shipment in inches are measured.

The results are entered in a computer which in turn multiplies the numbers and then divides the result by 194 if it’s a local cargo.

For international cargo, the volume of the cargo is divided by 166.

The result is found in our dimensional weight.

Chargeable Weight;

This is the greater weight of the actual and volumetric weights.

It is used to calculate the shipping rate of your cargo.

Benefits Of Knowing Chargeable Weight In Advance

Knowing the chargeable weight of your cargo in advance helps you know the amount you will be charged.

This saves you from getting stranded when you want to send your cargo to the freight company.

More Resources:

For all your shipping from China, contact Tj chinafreight now.

Tariff Quotas: The Ultimate FAQ Guide

Tariff quota allows a certain quantity of imported goods with duty-free or lower tariffs rate. However, claiming a quota can be very hard if you don’t have any knowledge regarding the process.

This guide provides you with the best option when you’re trying to make a claim for Tariff Quotas.

Keep reading:

What Are Tariff Quotas?

Tariff quotas can be defined as a total or limited waiver of the normal tariffs that have been granted temporarily by the government to some extent of imported goods.

Quotas can be claimed to reduce the import tariffs. Once the period of a quota is finished, then the goods will be imported with usual tariffs.

 Many association treaties and free trade arrangements like WTO agreements, the EU GSP can affect tariff quotas.

WTO tariff quotas can be used to import goods from all countries.

Tariff quotas also cover those countries that are in the list of agreements.

Tariff quotas cannot be applied in those countries where there is no agreement.

Many companies apply for tariff quotas the same way they apply for tariff suspensions for their goods.

How Does Tariff Quotas Work?

Tariff quota allows a certain quantity of imported goods with a duty-free or lower tariffs rate.

If the quantity reaches its limit, then quotas will not work and you have to pay a higher duty rate.

However, if you claim a tariff quota, then the duty rate of imported goods can be less.

 The government maintains and overlooks the system of licensing tariff quotas and importers. This is to maintain the difference between the higher domestic price and the foreign price.

Tariff quotas can also vary from one country to another.

The tariff laws are different in every country.

Who Benefits From Tariff Quotas?

 Everyone with a proper authorized license can claim Tariff Quotas.

Tariff quotas can be very beneficial for manufacturers and exporters, merchant exporters who are trying to support manufacturers and service providers.

What Is The Difference Between Tariff And Quotas?

Tariffs and Quotas are different factors in the trading world. There are key differences between these two factors.

  • Tariffs refer to the tax rates of imported goods. And a Quota refers to the limited quantity of imported goods defined by the government.
  • Tariffs generate revenue for the country and also increase the GDP. On the other hand, Quotas are imposed on the quality of goods, so it does not have any effect on the country’s GDP.
  •  Tariffs affect the supply chain by increasing consumer demand. However, quotas reduce the consumer surplus.
  • Tariff is a source of collecting revenue for the government. It increases the income of the traders, though. But quotas help to increase the income of traders.

What Is The Impact Of Tariff Quotas On The World Supply Chain?

Tariff Quotas have many impacts. Once the tariffs are higher, it can affect the business in one of these three ways:

  • Absorbing the higher cost
  • Increasing prices for the customers
  • Trying to rework the supply chain in order to avoid the higher tariffs

This can have both positive and negative impacts on the global supply chain.

Many businesses try to rework their supply chain to reduce import tariffs.

They may relocate their production to another country where import tariffs are less or can switch their suppliers.

 A Positive impact of this is that it can widen a company’s global reach and can provide a solid and reliable supply chain to avoid any future challenges.

It can also reduce the cost of importing goods.

However, there is also a downside.

Moving the supply chain from one country to another country can be very expensive. It can also delay shipments that can affect the business itself.

While switching to new suppliers can take so long and sometimes it can reduce the quality of your products.

What Is An Example Of Tariff Quotas?

It is a two-tiered tariff system consisting of import quotas and tariffs. Tariff quotas can be different based on their agreements.

For instance, as of 2021 UK allows companies to apply for 2,195,000kgs of poultry goods to import and the tariff rate is 25%. More good than this above amount will include extra tariff rate.

What Goods Are Covered In Tariff Quotas?

Tariff quotas can cover many products, but it all depends on different countries.

For instance, the US allows tariff quotas on poultry goods such as milk and cream, Canadian cheese, peanuts, sugar, cotton fabric, infant formula, blended syrups, and also on tobacco.

When Can You Claim Tariff Quotas?

Tariff Quotas can be claimed when you’re importing goods that are entering free circulation. The maximum time limit of making a claim is up to 3 years for your goods to import.

You can check the status and balances of the quota. You can also claim Quotas after they are exhausted or

How Can You Claim Tariff Quotas?

Claiming different Tariff Quotas varies from country to country. Different governments have different laws regarding how one can apply for tariff quotas.

You need to enter the tariff quota order number on the following import declaration:

  • If you want Customs Handling of Import and Export Freight (CHIEF), then in box 39
  • If you have the Customs Declaration Service in Data Element 8/1

You will need to attach documents of your imported goods that can support the available claim on your declaration.

If your claim is critical, then you have to pay the full rate of security duty fees.

Once your quota limit is over, then your claim will no longer be valid and you have to pay full tariffs.

Even if you have a license quota, you need to provide the tariff quota order number on your declaration.

How Can You Claim A Quota using Simplified Declarations For Imports?

You can make a claim for tariff quota while submitting your supplementary import declaration only if you have permission to use simplified declarations.

When you’re claiming quota using simplified declarations for imports, there are two different methods.

The Declarant’s Records Entry:

Here you need to enter the goods in your records, and then you need to give detailed information regarding your goods on a supplementary declaration.

Simplified Declaration Procedure:

You can give a simplified frontier declaration online where you don’t have to provide much info on your goods.

You only need to give full information on a supplementary declaration.

In case you have any questions of inquiry about tariff quotas, contact Tj chinafreight now.

What Is Bonded Zone – The Complete Guide

In this guide, you will find all information you’re looking for about bonded zone.

Whether you want to learn about bonded zones in China, benefits or limitations of bonded zones, you will find all information right here.

So, keep reading to learn more.

Meaning Of Bonded Zone

Bonded zone refers to a domestic area with certain boundaries and which has special terms of trade or policies.

For instance, any goods imported into the country can enter the area and be exempted from paying duties and being kept bonded.

Foreign cargo arriving in the zone under bonded status can be stored, processed, developed, redid, mixed, categorized, and re-exported.

Of course, this is without customs procedures or payment of duties.

Essentially, any form of trade and manufacturing being conducted within the bonded zone is exempted from sales taxes and value-added taxes.

So, how is this possible?

Bonded warehouses and Free Trade Zones have made it easier for companies to penetrate through different markets.

Free Trade Zones have been introduced in different cities globally and it is in these zones where bonded warehouses are situated.

Custom Bonded Warehouse Vs Free Trade Warehouse

First introduced in the 1800s, Custom bonded warehouses are used to store imported goods.

That is, goods, which are exempted from payment of duty up to 5 years from the day of importation.

The main purpose of bonded warehouses was to facilitate the competitiveness of small to medium-sized export producers.

Of course, by exempting them from payment of taxes and duties.

Bonded warehouses are often licensed by the commissioner of Customs.

Goods stored here will only be liable for duty payment once they are moved from the warehouse for distribution.

Some of the benefits of a customs bonded warehouse are not limited to;

  • Onsite storage of cargo
  • Goods stored in custom bonded warehouses can easily be moved between other bonded warehouses.
  • Deferred payment of duty and taxes
  • Gives importers greater control over their finances. This is because there is no collection of duties until the cargo is withdrawn for consumption.
  • Timely delivery for manufacture and general trade
  • Minimal cash tied up in taxes and duties.
  • Safety of goods is guaranteed
  • Bonded warehouses facilitate international trade transactions
  • Proximity to ports- Most bonded warehouses are located near major ports or airports thus reducing costs.

As compared to customs bonded warehouses, free trade warehouses goods can not only be destroyed or manufactured but also all non-restrained cargo can be admitted.

Not forgetting that a free trade warehouse lacks restrictions on the amount of time cargo can be stored from the day of importation.

Some of the benefits of storing goods in FTZ warehouse include;

  • Goods evade passing through official customs procedures when first stored in the warehouse.
  • In turn, payment of duty can either be delayed or reduced, or eliminated.
  • Rules and regulations in FTZ warehouses are less strict as compared to bonded warehouses.
  • Goods can be manufactured, destroyed, or manipulated. Bonded warehouse limits such activities to only selected classes of bonded warehouses.

Bonded Zones In China

Bonded zones have been in existence in China since 1990 and up to now, there are six customs supervision areas.

This also includes the free Trade Areas, Bonded ports, export processing zones, comprehensive bonded zones, and bonded logistics parks.

Currently, China has at least 11 FTZ each focusing on a specific industry with corresponding incentives to allure foreign investment.

Below are some of the cities with free trade zones in China;

  • Shanghai
  • Shaanxi
  • Guangdong
  • Zhejiang
  • Tianjin
  • Hubei
  • Hainan
  • Fujian
  • Sichuan
  • Liaoning
  • Chongqing

The bigger free trade zone areas are located in big cities such as Shanghai, Shenzhen, Chongqing, Guangzhou, and Tianjin.

Reasons Why Bonded Warehouse Is Right For Your Business

Bonded warehouses have proven to benefit not only importers but also businesses.

If you’re not sure if bonded warehousing is right for your business, below are some reasons why you should consider it;

  • Zero import duty when exporting goods – Storing your cargo in a bonded warehouse will save you both time and money when exporting goods.

If by chance you are importing to export to non-EU countries this would definitely be something to consider.

What this would mean is that your business will evade paying duty twice thus providing savings of around 25-30%.

  • Improved cash flow – Deferring payment of duty until your cargo has been purchased will positively affect the cash flow of your business.

How?

You may ask…

Well, once you decide to store your goods in a bonded warehouse, import duty will mostly be applicable once the goods enter the market.

This saves you from spending money on payment of taxes upfront even though there is no guarantee of sales of your goods to recoup the costs.

  • Port-centric Logistics – Most bonded warehouses are normally situated in close proximity to ports and airports.

This allows you to store your cargo at the port of entry until they are ready to be distributed.

What this results in are reduced costs which are brought about by the reduced lead times and minimized probability for damage.

Others include savings on transportation costs as well as carbon emissions.

Disadvantages Of Bonded Warehouse

In as much as bonded warehouses are quite beneficial in several ways, there are some drawbacks to them.

When thinking of using bonded warehouses, you’ll also want to consider such factors;

  • You will incur costs hiring a bonded warehouse as opposed to using a private warehouse.
  • In some cases, the importer might fail to pay customs duties.

In such instances, customs authorities are forced to put the bonded goods on auction in order to recover the duties.

  • If the importer happened to have paid the duty at once, he or she will pay a higher duty when moving goods from a bonded warehouse.

World Free Trade Zones

Currently, there are over 5400 FTZs globally, 1000 of them having been established in the past five years.

Below are some of the most important world’s free trade zones

  • European Union Single Market
  • Association of Southeast Asian Nations Free Trade Area
  • North America Free Trade Agreement
  • African Continental Free Trade Area
  • China Special Economic Zones

At Tj chinafreight, we will help you in all your shipping needs from China.

Contact us now for all freight forwarding services.

Pre Pull: The Ultimate FAQ Guide

This guide covers yet another important term in freight industry – pre pull.

So, if you have any questions about pre pull, you will find the answer right here.

Let’s dive right in:

What Is Pre Pull?

A pre pull is when a trucker picks up a container from the port and stored overnight at the trucker’s yard instead of immediately delivering it.

This is majorly facilitated by a shipper who organizes on how the cargo is taken to the warehouse for storage.

This is a service that is offered in order to avoid demurrage fees at the port after the free days.

Can Pre Pull Help You Avoid Paying For Demurrage Fees?

Yes.

A pre pull is necessary when you can’t accept the delivery before the last free day because your goods require a drop off appointment.

Demurrage fees is charged after the drop off appointment if a container is picked up two days late and the daily container late fee is $200 each.

The best way to avoid demurrage fee is by requesting the receiving warehouse if they can receive without appointments.

What Are The Benefits Of Pre Pull?

Some of the benefits of pre pull include:

  • A pre pull can help you avoid expensive demurrage fees if you cannot accept a delivery before the last free day.
  • Pre pull also helps you book appointments to the final delivery location.
  • For fair rates and fast service, you can get your containers moved and settled immediately.
  • During pre-pull, your cargo is guaranteed good security and handled by truckers who are highly experienced.
  • Pre pull helps reduce congestion at the port since the cargo is moved to the carrier’s warehouse for later transportation.
  • Pre pull helps avoid port duties and taxes which are incurred by storing your containers at the port.

Are There Pre Pull Fees?

Yes. Only if the trucker picks up a container from the port and does not get it loaded at the same day.

Pre pull fees falls under an ‘origin or destination charge from the trucker who is offering trucking services

The best way to avoid it is by ensuring that the receiving warehouse can receive the cargo without appointment.

During pre-pull chassis fee may be incurred if the container to be moved is not in the same location as the chassis, hence an additional cost to the pre pull service.

Why Is Pre Pull Necessary?

It is necessary when you cannot accept the delivery before the appointment day at the delivery location.

It will also be necessary if the receiver will require an early morning appointment hence the container will be picked up and be delivered in the morning.

It helps reduce the cost of demurrage fees which are charged within the agreed time for delivery.

How Can You Avoid Demurrage Fee and Pre Pull Fee?

Here are some of the ways to avoid some of these fees:

  • Demurrage fee is avoided by not extending the time when the container should be loaded on the ship or when the ship departs.
  • Demurrage is also avoided by ensuring that the appointment at the receiving location is not delayed as earlier planned.
  • Ensure you read and understand the chatter agreement.
  • Locate special requirements for the cargo import which is held by the port authorities or customs.
  • Make timely document release if the cargo is under letter of credit.
  • Distribute all the delivery documents to all the involved parties for easy loading and unloading process.
  • Interact consistently with the driver, loader, broker and port authorities.
  • Secure a copy of an original bill of lading to safe guard the shippers payment.
  • Negotiate with the port authorities for an increase in the number of free days if necessary.

Which Challenges Will You Face During Pre Pull?

Some of the challenges are:

  • Damage to cargo: a pre pulled shipment is likely to be damaged if not secured properly.
  • Incomplete paper work: having no proper documentation may affect the location and release of cargo, hence more delays.
  • Custom problems: the shipper provides strict regulations for any unanticipated delays and delay costs on the pulled cargo.
  • Weight limits: overweight trucks may lead to fines, additional costs, rehandling and load redistribution.
  • Residentials: there are extra charges even if the move your cargo from a public storage area, you will incur a pre pull charge for the residential move.
  • Delay costs: there are inevitable delay charges if the cargo is not delivered according to the appointment from the receiving location.

Does Pre Pull Apply To Cargo You Ship Through Air Freight And Ocean Freight?

In Air freight pre pull may vary depending on the nature of the cargo.

  • Non-perishable: flights are generally more frequent, less expensive and widely available, but require tight schedules which if not met there may be need for pre pull.
  • Perishable cargo: pre pull is not considered since the products require to reach the destinations while they still offer maximum appeal and shelf life.

Ocean freight is transporting of containerized cargo loaded onto vessels by sea.

  • A freight forwarder can consolidate the consignment to reduce cost when the cargo is pre pulled.
  • Pre pull is necessary for ocean routes and timetables are usually inflexible, hence need for storage of the delayed cargo.
  • Pre pull enable convenient tracking of cargo that is stored at the warehouse rather than having them stocked at a congested port.
  • Pre pull help reduce the cost of port duties and taxes.
  • Carriers guarantee safety of consignment when they are kept at their warehouse after pre pull.

Are Pre Pull Fee Lower Than Demurrage Fee?

Pre pull fee are lower than demurrage fee.

  • Pre pull: Your carrier charges you for storing all your cargo at its private yard which is less costly than paying for each container.
  • Demurrage: is a kind of late payment fee which is incurred after the last free day.

The fee is quite costly for they are charged by container and by day.

How Does Pre Pull Work?

Your carrier will pick up your cargo at the port just in time after the last free day.

Then, temporarily store it is its yard until you can deliver it to the final destination.

Is Pre Pull Legal?

Pre pull is legal:

It is necessary when you want your carrier to pick it up for you from the port then stored it up at the carrier’s yard when you don’t want it delivered immediately.

How Much Is Pre Pull Fee?

  • Trucking fees wait: most drivers will allow for 2 free hours of waiting while the cargo is being loaded.

After expiry they will charge on an hourly rate for trucking wait fees.

  • Drop fees: The trucker drops off the container at the warehouse, and then leaves.

The driver will charge extra for a drop, since it requires an extra trip.

  • Chassis fee: this is a flat fee which varies by trucker to transport the cargo to the warehouse.

Useful Resources:

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

Related Parties: The Ultimate FAQ Guide

This guide covers all information you’re looking for about related parties.

So if you have any question about related parties, read this guide.

What Is Related Parties?

Related parties are the relationships between the seller and the importer of record which affects the price or the financial statements on the customs entry to a related family.

A Related party is a close member or a person known that is related to the reporting entity hence is a member of its key managerial personnel.

Why Is Knowing Information About Related Parties Important?

It helps to adopt a risk-based approach to the audit of related party relationships and transactions through;

  • Discussion among the engagement team of related parties’ issues.
  • Inquiry of management about the identity of related parties.
  • Inquiry of management to understand the entity’s controls on related party,

How Do You Determine If Transaction Is Of Related Party?

Here is what you can do:

  • Higher risks: related party transactions may not pose a higher risk of material misstatement of the financial statements than similar transactions with unrelated parties.
  • ISA 550 approved: The auditing standard that deals with the auditor’s responsibilities relating to related party relationships and transactions.
  • Professional skepticism: the auditor is able to identify and respond to conditions that may indicate possible misstatement due to error or fraud.
  • Engagement team discussion: this is undertaken at the planning stage of the audit and suitably documented.
  • Identification of related party: management is likely to be aware of the relationships that have economic significance to the entity and to carry a risk of material misstatement.
  • Related parties’ controls: the in-house legal counsel have the authority to initiate, process or record significant transactions outside the normal course of business.

What Are Related Parties In Customs?

This is an importer of record that determines if and how the seller in an international transaction is related in customs transactions.

These are officers or directors of an organization in international trade who monitor the transactions between shareholders in custom relations.

A pension and profit-sharing trusts that are managed by or under the trusteeship of the entity’s management.

What Is Related Party Trade?

Related party trade is the transaction which takes place between a dominant shareholder company to other companies.

That is, who hold a pre-existing connection prior to the transaction.

It is a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest.

The Companies often seek business deals with parties with whom they are familiar or have a common interest.

The related-party trade is conflict-free and do not affect shareholders’ value or the corporation’s profits negatively.

The related party-trade carry the innate potential for conflicts of interest, so regulatory agencies scrutinize them carefully.

Are Related Party Transactions Taxable?

Related party transactions can have unexpected tax hence taxpayer is not allowed to deduct a loss.

There will be no tax paying if the property is still sold to the owner whose name is retained in the company unit or in the family.

This disallowance rule has been upheld by the U.S supreme court.

Never the less in every rule there is always an exception.

If the buyer sells the property to an unrelated party, the profit gain on the sale can pay tax of the loss disallowed in the previous sale.

Loans between related parties are also looked closely by IRS.

The loan is structured like any loan hence the rate is not lowered than the going market rate.

If the loan terms is favourable in that the interest rate is lower than the AFR, the IRS will accept the loan like a gift which has different tax deduction.

What Determines If Buyer And Seller Are Related?

There are many factors that influence the relationship between buyer and seller;

  • Social bonds hence members of the same family have social interactions.
  • Trust-It brings out confidence from both parties results to firm belief that the trustworthy is reliable and helpful.
  • Reputation-it signifies honesty from the company and how it is concerned about its customers.

Having a good reputation creates a great opportunity for a company to be chosen by the potential business partners.

  • Mutual goals-This is when partners share goals that can be accomplished through hardship and maintenance of the relationship.
  • Commitment-It is an emotional attachment of continuity between exchange parties hence members will tend to do development in the relationship.
  • Cooperation-It is of the greatest importance hence it creates strong relationship value and maintenance.
  • Adaptation-One party adapts its processes to accommodate the other party hence to create a positive influence value in a relationship.
  • Structural bond-This bond brings the members together and cause them to interact in a relationship.

Is There Anything Wrong With Related Party Transactions?

The auditor may face some practical difficulties when trying to obtain audit evidence in respect of all the various aspects of a related party transaction.

  • It is Difficult to confirm whether other terms and conditions are equivalent to those that would apply with an independent party.
  • The Material misstatement may occur when the editor is trying to evaluate related party disclosures in respect of the applicable financial reporting requirements.
  • There is suspected fraud when the auditor may point out to the director’s significant related party transactions not appropriately authorized and approved.
  • If the owner withholds disclosure of record for personal gain, the transactions could go undetected.
  • The transactions with related parties may be recorded among similar normal transactions, making them difficult to distinguish.
  • The International Revenue Service scrutinizes property sales between related parties and deductible payments between related parties.

More Resources:

Related Party Transaction

Importing From China

Shipping From China

Cost Of Shipping From China

For any questions or inquiry about shipping from China, contact us now.

Ship From Address (Amazon): The Ultimate FAQ Guide

This guide covers all information you’re looking for about ship from address.

So, if you want to learn more about ship from address, read this guide.

What Does Ship From Address Imply In Amazon?

Ship from the address in Amazon refers to the warehouse where goods are kept during shipment plan to await collection once you do the payment.

While goods are here, they undergo preparation which involves labelling, palletizing among others before you pick them up for delivery to Amazon.

Your supplier’s address should never be used as your ship from address.

Why Does Amazon Seller Central Require Ship From Address?

Ship from address is known to be one of Amazon seller central requirements.

The reason behind it is for the generation of a ship to address, which is usually the allocated FBA warehouse.

Which Information Should Be Your Ship From Address When Using Amazon?

What should you include on your ship from address information?

When shipping to Amazon, including all information related to the assigned FBA warehouse as your ship from address.

This information should not include the supplier’s address.

It is at these warehouses where preparation services are taken care of and delivery is done thereafter.

Can You Change Ship From Address In Amazon?

This is only possible in a state where the shipping process is yet to begin.

Once shipping is underway, it becomes difficult to proceed with changes and instead requires you to seek alternative measures.

This possibly means going for undeliverable packages.

It requires you to contact the third party to help you update the shipping address of the seller items that are yet to be shipped.

Thereafter, you can make a reorder after the cancellation of the older one.

Here, you can now make your order information changes by selecting the order details link where you are provided with details on change options.

With a set of guided instructions, you can now change information to your desired interests.

Is Billing Address Same As Shipping Address In Amazon?

Billing is only considered to be equal to shipping once you only have one address on your profile.

All Amazon invoices contain information on billing and shipping addresses.

Once the printing of these invoices is done, both details are printed on it separately regardless of the number of addresses on your profile.

Otherwise, they are known to be different from each other.

How Can You Delete Shipping Address On Amazon?

Deleting of order from an address is possible but on the condition that you not only have one shipping address.

You are provided with a set of instructions in the settings bar with which you have options you can select from based on changes you wish to make.

To delete a shipping address, select the general shipping settings.

Here you are provided with a shipping address section as your default setting.

Begin by clicking edit in this section.

Next, click delete right next to the address you are to delete.

Deleting only applies when you have more than one shipping address since you cannot delete your default address.

It is recommended you create a new address that has to act as your default address, from there you can delete other forms of address.

Only one default shipping address is allowed per seller account.

To set the default app, click general shipping address settings.

Go to the default shipping address and select edit.

You are provided a menu from which you have to select your default shipping address.

Next is to save your new changes by clicking on the save option.

It takes a minimum of 6 hours or more for you to see your results.

Finish by clicking yes to delete.

What Should You Consider When Choosing Amazon FBA Ship From Address?

Amazon FBA ship from address is made in such a way that they are not equal.

For this reason, you have to consider their specific needs before making your choice.

Factors to consider while making this choice include price, turnaround time, location, and warehouse capabilities.

Amazon FBA ship from address vary.

Price

Pricing is one of the highly ranked factors to be considered.

Price is quite easily the number one concern most sellers have when vetting FBA prep service centers.

It is natural to be concerned with the expense associated with outsourcing FBA prep.

However, it shouldn’t be the only consideration.

Charging rates vary from one company to another.

Some incur charges per item, ideal for non-regular retailers whereas others have monthly rates, all depending on your specific interest and ability.

Monthly rates work best for retailers doing impulse shipment.

Turnaround Time

Turnaround time for FBA ship from address vary.

It may range from days to months based on the goods ordered and requirements.

Ensure you inquire about turnaround time so that delays do not affect transactions with your customers or Amazon.

Usually, it takes 24-48 hours to do item prep work.

Location

Location is more fundamental since the closer the FBA the smoother the shipping.

When it is far, the inventory has to travel far which makes it expensive.

If you are shipping from overseas, make it close to the port to ease up the shipment.

Warehouse Capabilities

Warehousing condition requirements vary for different inventories.

Some FBA provides their retailers with specific requirements including the size of the storage facility. Enough space to accommodate massive items is guaranteed.

How Can You Manage Ship From Addresses On Amazon?

Yes, to manage ship from address, select general shipping settings.

Here you are provided with a default shipping address section, go to edit.

If provided an address entry, click edit, and if not add a new address.

Start editing by entering your address name

Key in your country of origin

Next, you provide your physical shipping address.

Your postal code about the shipping address.

Verify the process by clicking on the check postal code.

You will be asked to enter your city/town, state/county/region, phone number, and email address.

Save the information by clicking on save.

When Using Amazon, Are There Restrictions On Ship From Address You Can Use?

Yes, ship from address restrictions exist and require you to provide additional information for you to proceed with shipping. Some of the restriction requirements include;

Name of the recipient.

Name of site location to the recipient.

Drop number/ Department of the recipient.

Specific site address to the recipient.

Site address city, state, and zip to the recipient.

What Are The New Ship From Address For UK Amazon Sellers/Buyers?

With effect as from January 2021, all online marketplaces were set to be charged with VAT collection for sales made to the UK.

The new changes made by Amazon were to help trace the actual ship from the address upon confirmation of shipment.

Everyone has to comply with the new tax regulations whether you are a seller from overseas or UK. This is for as long as you are selling to customers in the UK on Amazon.

The new changes apply in three different areas as part of the shipment confirmation.

These are; Seller central, Shipping confirmation template, and MWS API.

For the seller central, the new amazon ship from address field appears on the shipment confirmation page once you confirm shipment.

It is therefore upon Amazon to pre-select the default ship from the address you created in settings.

Shipping from different addresses requires you to give the actual ship from the address.

This is opposed to you shipping severally from one address. Here you are only required to provide information detailing your previous shipment confirmation process.

Confirmation of shipment using Amazon can also be done with the help of shipping confirmation templates.

Usually, the new ship from the address field is added to the template.

Confirmation of shipment requires you to provide the actual ship from the address.

Failure to, Amazon uses the default ship from the address you created in your settings.

For MWS API, you are provided an additional ship from the address field with which you are supposed to confirm shipment.

Provision of the actual ship from the address is also mandatory.

The ship from the address you provide in settings is considered useful by Amazon in case you fail to provide these details.

Is Ship From Address Amazon Refers To My Suppliers Address?

No, your supplier’s address should not be used as the ship from address.

For this reason, a safe collection of items for final delivery to Amazon has been achieved.

Some preparation services are done before the delivery of the shipment to Amazon.

This involves labelling, palletizing, etc.

For all your shipping needs from China, contact us now.

Shippers Letter of Instruction: The Ultimate FAQ Guide

Let’s explore some of the fundamental aspects you need to know about shippers’ letter of instruction.

Of course we will explore what it is, why it is important, and why you need it among other fundamental aspects.

So, keep reading to learn more.

What Is Shipper’s Of Instruction (SLI)?

A shipper’s letter of instruction is usually a letter that comes from the exporter to freight forwarders. It instructs them on where and how to handle the shipment export.

The exporter generally permits the freight forwarder to take action on the authorized forwarding agent.

Who Are The Main Parties In Shipper’s Letter Of Instruction?

The main parties for the Shipper’s letter of instruction are;

  • The exporter
  • The freight forwarder
  • The recipient of Importer

How Do You Fill Out Shipper’s Letter Of Instruction?

Filling Shipper’s letter of instruction is not an easy task, but you might find online templates in which you will fill out the required information.

With the help of a template, you will be guided on filling in the following information;

  • What product is shipped
  • The name and telephone number of a freight forwarder
  • Name and phone number of the exporter
  • Qualities, weight, and dimensions
  • How a product is packed
  • How to handle the product
  • The exporting restrictions
  • Who will pay the freight forwarder
  • Type of freight used (rail, air, or road)
  • If goods should be shipped alone
  • Insurance details
  • Documents accompanying shipment

What Details Does Shipper’s Letter Instruction Contain?

Well, Shipper’s letter of instruction is an optional document used for shipping.

There are usually no original standards for it.

You can decide to create one SLI for your company.

But remember the following information is important and will have to be included in the Shipper’s letter of instruction;

  • Your business address and names
  • The recipient business address and names
  • The freight forwarder details
  • Where the pick-up and delivery of goods will be
  • Consignment detail (license number, weight, and value) of the goods
  • If the goods are hazardous
  • Shipper’s signature

What Are Some Benefits Of Completing Shipper’s Letter Of Instruction?

Completing Shipper’s letter of instructions have a lot of benefits which include;

  • You will be able to prevent delays of goods while shipping.
  • By giving forwarders clear instructions and understanding will avoid unnecessary mistakes.
  • It will reduce the risk of any damages of goods since the condition of the goods is indicated.
  • In case of any arising problems, it will be able to provide written evidence.

Who Is Responsible for Preparing Shipper’s Letter Of Instruction?

The person who is typically responsible for preparing the Shipper’s letter of instruction is the exporter.

They fill the Shipper’s letter of instruction in advance to provide precise details to the forwarders.

By filling the SLI, the exporter will be sure that goods are handled appropriately, loaded, and unloaded safely with better storage.

What Is The Importance Of Shipper’s Letter Instruction (SLI)?

Shipper’s letter of instruction has importance such as typically

  • The shipment information is always in one place. All details of contacts, collection, goods condition, and freight type are on one document, which makes everything easy.
  • Issuing the export documents will be the best way to ensure that the freight forwarders know how to handle the goods. It has all the information they will need during the shipping process.
  • Another importance is here is proof of instructions given to freight forwarders in case of hazardous goods or particular goods in advance.
  • SLI will always allow freight forwarders to act on the Shipper’s behalf.

For Which Products Will You Need To Fill The Shipper’s Letter Of Instruction?

Well, the exports from the U.S. usually require this document to be issued by the Shipper.

This will help the freight forwarders to access a standardized file with important details or information about a particular shipment.

Sea freight services will mainly be required with the Shipper’s letter of instructions.

This is due to the nature of sea freight, where cargo ship stops in multiple ports.

SLI will ensure the safety of the goods throughout the process.

What Guidelines Do You Need While Submitting Shipper’s Letter Of Instruction?

While submitting Shipper’s letter of instruction, there are specific guidelines you need to put in mind, which will also help speed the process of approval.

The guidelines are

  • To submit the Shipper’s letter of instruction on time
  • To ensure correct details
  • Find an SLI template that is suitable
  • I need help you request
  • Appoint a freight forwarder in advance

Is Shipper’s Letter Of Instruction Necessary?

This always depends on the country of delivery and collection, but usually, the SLI is not mandatory.

But for countries such as the U.S., it is a requirement to have a complete shipper’s letter of instruction.

 Can Shipper’s Letter Of Instruction Be Classify As A Legal Document?

Yes, Shipper’s letter of instruction is a legal contract and document created between the exporter and freight forwarders company, organizing the logistics and shipping of your goods.

Do I Need To Sign A Shipper’s Letter Of Instructions?

Yes, you need to sign the Shipper’s letter of instruction since it’s a part of the requirement to be complete.

 Is The Difference Between Shipper’s Exporter Declaration Form and Shipper’s Letter Of Instruction?

Many exporters use the Shipper’s exporter declaration in the U.S., but it does not contain the option to include all the details required.

This will mean that your freight forwarders will always contact you to get any additional information they may need along the way.

While for Shipper’s letter of instruction, it’s mandatory to give the details of all parties involved for it to be valid and makes it easy for freight forwarders to do their jobs.

For any questions or inquiry about freight forwarding services from China to any global destination – contact Tj chinafreight now.

Tail Gate Exam: The Ultimate FAQ Guide

If you have any question about tail gate exam, you will find the answer right here.

So, keep reading to learn more.

What Is Tail Gate Exam?

This is a type of custom exam in which a Customs officer will break the seal of the container at the ocean terminal, open the doors, and look inside the container.

Is There Tail Gate Exam Fee?

If your cargo is pulled for custom investigation, you will be charged the tailgate exam fee which is paid by the importer.

When Should You Consider Tail Gate Exam?

When you want to do an inspection at the tail part of the container without handling.

When you want to get clearance on customs random inspection on the imported goods.

To confirm that there are no contraband goods within the cargo.

How Much Is Tail Gate Exam Fee?

The fees: $150 to $350 per container Depending on the port and the size of the container.

How Does Tail Gate Exam Fee Occur?

Customs authorities impose charges if there is malpractice or contraband goods found within the imported goods.

Customs arrange a separate fund for all import holds and absorb such inspection expenses of private agencies who handle import exam holds.

What Are The Pros And Cons Of Tail Gate Exam?

The imported goods are likely to be snagged during the tailgate exam which may take long, hence interrupting the chain of custody.

Customs and boarder protection establish long term credibility after multiple tailgate exams.

How Long Does A Tail Gate Exam Take?

A tailgate exam may take up to 6days depending on the congestion at the port and the availability of imported and exported cargo to be investigated.

What Is Tail Gate Exam In Custom Clearance?

This is the inspection of imported and exported goods at the back side of the container without handling physically.

What Is Custom Tail Gate Exam Hold?

This means a shipment is held at customs due to incomplete paper work or unpaid fees or taxes for thorough investigations.

How Is Tail Gate Exam Different From Other Custom Exams?

Tail Gate exam involves the customs workers breaking the seal on the shipping container to physically examine the cargo.

What Triggers Customs To Flag Certain Shipments For Tail Gate Exam?

If the shipper is shipping through the custom for the first time.

If there is history of mislabeling of previous shipment.

Shipments from other parts of the world are considered more suspicious.

What Is The Difference Between VACIS Exam In Custom Clearance And Tail Gate Exam?

In VACIS exam the container is X-rayed without opening while in Tailgate the seal at back of the container is broken to observe the content.

How Can Tail Gate Exam Be Avoided?

Accurately Value your goods to ensure that the supplier provides accurate information on the value of the cargo being shipped.

Don’t work with suspicious partners in order to eliminate nasty history that may likely to put your shipment at hold.

Use the correct Harmonized Tariff Schedule (HTS) to help identify your shipment.

Get continuous customs bond since they will get used to your shipment.

How Is A Tail Gate Exam Carried Out?

The shipper is notified that their shipment has been selected for an examination.

Besides, the shipment is transported to the Centralized Examination Station (CES).

The Custom officers breaks the seal at the tail of the container as they inspect inside without entirely touching any goods.

If the shipment qualifies the exam, it is cleared to pass through the Customs Authority with no further action required.

If the shipment fails the inspection, it is sent back to the country of origin.

If the cargo is found to be illegal, it is crushed or incinerated at CES location.

Which Factors Should I Put In Consideration When Preparing For A Tail Gate Exam?

  • Prepare for the cargo to be inspected before it leaves the country of origin.
  • Invest in some cargo insurance that covers transit- and inspection-related damages.
  • Get a customs broker who can help you reduce the risk of your shipment getting selected for examination.
  • Be able to communicate with your broker to update you on the progress of the examination.

How Long Can A Tail Gate Exam Hold Take?

This can take up to a month when trying to investigate on the proper records of your shipment.

Which Types Of Cargo Holds Can Be Encountered In The Event Of A Tail Gate Exam Hold?

Manifest Hold: If your shipping documents, such as the manifest or bill of lading, are missing, incorrect, illegible, or need to be verified.

Commercial Enforcement Hold: This is any hold placed by Customs on your cargo if additional verification is required for copyright, trademark, safety standards, or licensing.

Statistical Validation Hold: If there are discrepancies between your shipping documents and the actual cargo, such as different weights, values, or commodity declarations.

More Resources:

Shipping From China

Importing From China

Cost Of Shipping From China

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

Trade Remedy: The Ultimate FAQ Guide

This guide answers all questions you have been asking about trade remedy.

So, if you want to learn more about this trade term, read this guide.

What Is Trade Remedy?

Trade remedies are tactics that the government (through organizations such as CBP, DOC, and USTR) can utilize to make it difficult for companies to import.

These remedies often respond to unfair trade practices by imposing additional duties or quotas on imports while also prohibiting these products.

Why Are Trade Remedies Important?

Trade remedies are crucial in the modern business world as it helps protect domestic industries from unfair trade practices.

These strategically occur when countries give their own companies an advantage.

What Measures Govern Trade Remedy?

Various measures govern trade remedies, and three of the most common types are:

Dumping Measures

It refers to selling a product at a price that is too low as compared to the price that the same product would command in the home market.

You can learn more about Anti-dumping duties.

Countervailing Measures

Contrary to what the term implies, Countervailing Measures refer to selling a product at a low price on an export market.

The government provides the manufacturer with subsidies and other incentives.

Safeguard Measures

Safeguard is the mechanism used to prevent injury or threat in an importing country’s market. The government can implement a temporary ban on goods from being imported if it would cause economic harm.

How Do Trade Remedies Work In Practice?

Trade remedies are used frequently when unfair trade practices occur.

Whether it is dumping goods too cheaply into the market or selling goods at a lower price because of subsidies.

Moreover, importing too much would harm the economy, so the main idea is to make trade remedies easily accessible to companies who need them.

Who Benefits From Trade Remedies?

Many companies find that trade remedies are beneficial to their businesses because they receive compensation for unfair market practices.

Who Should Pay For Trade Remedies?

When trade remedies take effect, the importing country typically compensates for it with increased tariffs or quotas.

Is It In A Company’s Best Interest To Abide By The Trade Remedy Policy?

Companies should abide by trade remedy policies because it helps protect the domestic market.

Furthermore, higher tariffs and quotas typically increase the prices of imported goods.

What Are Some Potential Effects Of Trade Remedy Tariffs On American Businesses, Consumers, And Foreign Countries?

The overall effect is a reduction in imports, increased domestic production, and higher consumer prices.

Foreign countries are also affected because it prohibits them from importing their products to the importing country.

How Does Trade Remedy Affect Businesses?

Trade remedies affect businesses in two ways:

The price of imported goods increases tariffs and quotas, which raise the prices of imported goods.

This can lead to a decrease in demand and fewer imported goods.

By imposing anti-dumping measures, making it difficult for companies to import the necessary goods.

How Can I Take Advantage Of The Benefits Of Trade Remedies?

For companies to take advantage of trade remedies, companies should be quick to identify unfair trade practices.

If they quickly file a petition, then it is likely that the country will impose trade remedies.

What Are The Differences Between Trade Remedies, And When Can They Be Used?

Trade remedies have a variety of differences, but the most important is that they operate in two different ways:

Temporary Measures

Temporary measures are the ones that usually apply when unfair trade practices occur.

These are often enacted through imposing tariffs or quotas.

Permanent Measures

Permanent measures usually apply to subsidized goods. It occurs when a company receives benefits from the government to sell its products.

Useful Resources:

Importing From China

Shipping From China

Cost Of Shipping From China

For all your freight forwarding needs from China, contact us now.

Rolled Cargo: The Ultimate FAQ Guide

I know you’re probably wondering what rolled cargo is.

That’s why this guide will answer all your questions about rolled cargo.

Let’s dive right in.

What Does Rolled Cargo Imply?

A rolled cargo implies to a cargo that is not loaded to the vessel by which it was meant to sail on according to the initial bookings due to lack of capacity.

Lack of capacity can be due to;

  • Documentation problems
  • Customs problems.
  • Mechanical problems.

Rolled cargo can be avoided with appropriate planning though some factors cannot be avoided.

Planning well ensures all your responsibilities are without errors hence by working with a good freight forwarder.

Ensure all documents are correct to avoid being fined.

Rolling of cargo usually happens at the big transhipment ports where shippers lose all visibility at times when needed the most.

Damages and loss of cargo are common during this process hence the shipper has to do some follow up to ensure the goods are safe.

Can My Cargo Be Rolled More Than Once?

Yes.

  • It is often due to unforeseen and uncontrollable circumstances on the part of the carrier which is never predictable each time it is being loaded.
  • Rolled cargo is never the fault of you or the forwarder.
  • It usually happens when they will require to be loaded onto different vessels many times.
  • It also tends to happen if your shipment requires a transshipment at lesser-known ports.
  • Your cargo can also be rolled more than once due to missing paperwork or failure to comply with some requirements.

Is Rolled Cargo Same As Container Rollover?

No.

A rolled cargo is due to insufficient capacity of the carrier vessel due to over booking of spots on vessels.

A container rollover is due to failure to load the container to its scheduled vessel and it’s accommodated in subsequent vessel for shipping.

Rollover container delays shipments hence makes the customers very unhappy.

Container rollover leads to extra expenses hence makes the shipment to be more expensive to the shipper.

What Are The Consequences Of Rolled Cargo?

Some of the consequences include:

  • An extra charge involved will be covered by the carrier, hence building additional expenses.
  • High storage charges for cargo that is not shipped if the cargo is rolled for a longer period of time.
  • Congestion at the port if the carrier vessels are not able to park all the rolled cargo as well as the booked cargo.
  • Delayed shipment since the rolled cargo may last longer period than the intended time.
  • Goods are likely to be damaged if the cargo placement is done carelessly by the carrier service provider.

In Case You Have A Rolled Cargo; What Should You Do?

Here are some of the considerations:

  • Find out why your cargo has been rolled in order to achieve the best possible remedies over it.
  • Inform your fellow supply chain partners about the delays as you work on possible shipment plans.
  • Have alternative shipment plan ready if the cargo rolling is caused by the freight forwarder.
  • Update your accounts to rectify any possible mistakes done while booking.
  • Speak to your freight forwarder for better advice on the possible shipment method.

Is There A Way Of Preventing Rolled Cargo?

  • Booking: Book shipment as early as possible in order to allow convenient time to prepare the documents required for cargo clearance.
  • Shipment plan: Obtain a flexible shipment plan to avoid possible delays in the supply chain and timely arrival of the cargo.
  • Time: Avoid shipment of cargo during the peak seasons and the major holidays between mid-August to mid-October.

Also periods prior to China’s Chinese New Year (in January/February) and Golden Week (October).

  • Freight Forwarder: Work with a trustworthy freight forwarder which has more experience on the best carrier services and reliable advice on the best shipment method.
  • Bill of Landings: separate your shipments into various bills of landings so that there’s a chance that some cargo may still get through even if one gets rolled.
  • Transshipment: Avoid routes that encourage cargo transshipment since the cargo may be rolled in case there is no sufficient space for cargo placement.

How Will Rolled Cargo Affect Import-Export Business?

They include the following:

  • General Rate Increase (GRI): if the cargo is rolled before the GRI, you may end up having to pay for the new increased price, which may sometimes be double as much.
  • Shipping High seasons: Shipping lines raise freight rates at the beginning of the high season in response to the increase in demand for their services.
  • Emergency Bunker Surcharge (EBS): EBS can be implemented as an emergency measure at the last minute, causing sudden cost imbalances in shippers’ logistics budgets.
  • Trucking Shortage: ocean freight prices increase as a natural market reaction since the capacity shipped decreases while the demand increases.
  • Extra Ocean freight costs: inadequate planning in advance for shipment may incur additional charges while the merchandise is rolled further.

What May Cause Increase In Rolled Cargo Rates?

Some of the main causes include:

  • Unprecedented Volumes: High cargo volumes are normal during the August-November peak season preceding the Christmas-New Year holidays.
  • Shortage in shipping containers: major container shortage is obtained from regions where a lot of cargo is being exported from.
  • Stretched shipping lines: shipping lines are fully deployed hence operate at maximum capacities and can’t contain more vessels.
  • Congestion at the ports: ports across the world are overwhelmed hence they are not be able to operate with full efficiency.
  • Outdated shipping contracts: a shipping line may rule out for new contract assignment if the cargo gets rolled beyond the agreed period of shipment.
  • Unreliable shipping: a rolled cargo may incur additional charges where a non-reliable shipping line may process additional charges.

At Tj chinafreight, we are here to make you shipping from China business hustle free.

Contact us today for all your shipping needs from China.