This is a fee which is assessed and calculated by truckers to cater for making the extra effort to deliver cargo at delivery sites.
It applies where a trucker goes inside the warehouse or in the designated location to deliver the cargo. Thus the trucker goes beyond the loading dock or front door of a warehouse or wherever the cargo is in order to make a delivery.
Truckers have a cost that covers this service and it is what is referred to as the Inside delivery fee.
What Are the Benefits of Inside Delivery?
Inside delivery creates convenience that is beneficial to clients in the following ways:
It is beneficial to clients as goods are assured to safely arrive to designated destination.
To business owners, inside delivery attracts and helps to retain customers.
Nowadays people are looking for convenience while shipping for cargo. As a result, agencies which offer inside delivery services to clients experience a high client turn over.
A successful inside delivery service further attracts more clients since the one client makes referrals to other clients. Increased sales of the service are thus experienced which later translates to more profits and success to the business.
Inside delivery is thus beneficial to both the service provider and client sorting for the service.
What Is the Difference Between Inside Delivery Fee and Threshold Fee?
Threshold delivery is a type of delivery that allows carriers to make deliveries up to your doorstep. The carriers do not mind the staircases and steep pathways.
Threshold fee thus caters for deliveries to the door stop of the residential places of clients. Inside delivery fee does not cater for deliveries up to the door step of clients.
Moreover, inside delivery fee does not account for delivery of cargo to destinations with staircases or steep pathways. Threshold fee does not mind these factors.
What Equipment Do Truckers Use for Inside Delivery?
They are help full in lifting heavy shipments into the desired location. This is majorly for cargo that is in pallets.
Lift Gates
It is a hydraulic or sometimes electric machine. It is usually embarked at the rear of trucks to help load or unload cargo from the ground or vice versa for heavy cargo.
Pallet Jacks
They are most suitable to transport cargo over short distances. A function that is highly practiced when making inside deliveries.
How Much Is Inside Delivery Fee?
Inside delivery fee is dependent on the location and in some cases circumstances that carriers have to face when making the delivery.
Less than Load (LTL Shipping) adds inside delivery services to the shipment services to facilitate delivery of cargo to designated destination for clients.
Therefore, inside delivery fee varies depending on the freight carrier rates. To accurately acquire these prices, consider making inquiries to the freight carrier you choose to work with.
If there are constraints to be expected at the delivery site, the freight carrier explains the additional charges applicable.
To avoid price disagreements that can emerge due to state of location, make sure to avail all the necessary information regarding the location.
Can I Avoid Inside Delivery Fee Charges?
Yes, inside delivery charges are avoidable.
The only way to evade inside delivery charges is to make inside delivery ventures yourself. For pick-ups at designated areas, ensure to avail the freight at end of the dork for loading.
This way you get to evade charges imposed on getting the cargo from inside the dork or the destination for pick up.
You can also decide to load up the freight on the truck. If you need help you can request family and friends to assist.
The same applies for delivery. With the help of freight carriers to point out your cargo, you can use friends and family to help unload and transport to the designated site.
Charges imposed on loading and transporting are avoided.
Is Inside Delivery Fee Standard?
No, Rates differ based on various factors. I.e. type of shipment, volume and weight of shipment, insider delivery distance, need to climb stairs, elevators etc., trucking company used among others.
As a result, it is key to make inquiries with your service provider to ascertain on the price to pay.
Can I Negotiate Inside Delivery Fee?
Yes, they are negotiable.
However, it depends with your service provider and the destination you want your cargo picked up or delivered.
However, some policies for service providers are rigid hence are non-negotiable. Nonetheless, it is good to make inquiries and settle for profitable negotiations.
What Added Fees Can I Incur On Top of the Inside Delivery Fee and Why?
Re-delivery fees
This is the fee charged upon making another delivery attempt due to failure of the previous arranged delivery.
Failure to make successful delivery is associated with an unavoidable circumstance that blocks delivery to designated sites. These circumstances include, finding the delivery destination closed, lack of a needed delivery appointment or the need for a lift gate service that lacked in quotation.
These scenarios prompt freight carriers to go back with the cargo. The client now experiences extra costs in ordering for another delivery to be conducted.
Delivery labor
This is the extra fee charged by trackers for providing unloading services at the client destination. The truckers assess the need for extra labour depending on the type of cargo.
If there needs help to unload, the truck drivers provide the labor. However, the help comes at a cost that is attached to the invoice as delivery labor.
Lift gate service fee
This is a service that is made available by inside delivery providers. The service thus allows truck drivers and freight carriers to use a tool known as lift gate in unloading cargo at delivery sites.
The need to use this lift gate service to unload cargo attracts extra costs to the client. This extra costs are what are referred to as lift gate service fee.
Deluxe Delivery fee
This is the fee charged by carriers that allows the driver to deliver the cargo at the place of your choice. Deluxe delivery incorporates professional couriers to specifically handle your cargo.
This assures your cargo of safety and timely delivery of your cargo. The cost is different and a little higher than other associated inside delivery fees.
Is There a Difference Between Inside Delivery Fee and Delivery Labor Fee?
Yes, inside delivery fee is the agreed upon fee that allows truckers and freight carriers to deliver your cargo at the agreed location. However, when a need arises at the location for extra help in unloading, there is extra fee charged.
Delivery labor fee is the extra fee charged by truckers and freight carriers for helping the client to unload cargo.
Can Freight Forwarder Help Cut Inside Delivery Fee?
Freight forwarders help to make freight shipment convenient and stress free especially for clients who have no knowledge on certain shipping logistics.
Freight forwarders can only help negotiate for fair prices. However, for inside delivery costs most of the services are standardized depending on the service provider.
Freight forwarders can help you choose the most price friendly inside delivery service provider.
At Tj chinafreight, we help you in all your shipping needs from China.
A shipping order is generally a document issued by the Carrier to confirm the shipment booking. It usually contains the location of the empty shipping container.
What Are Some Importance Of A Shipping Order?
Shipping order is essential since;
It will ensure goods safety until it is delivered to the warehouse.
The document usually permits the consigner to clear with the custom.
What Do You Include In Shipping Order?
On your shipping order, you need to include the following;
The address and the name of the receiver of the goods
Container of the description of the goods
Quantity of the goods
The delivery dates
The signature of both Carrier and recipient.
When Do You Issue The Shipping Order?
Okay, the shipping order is usually issued by the Carrier only when all the handling charges of the holder of the OS document have been cleared.
And the Bill of Landing contract has been carried out to the last detail.
Is It Mandatory To Issue A Shipping Order?
Yes, a shipping order is a mandatory document that must be available for goods to be shipped to their proper location and be traced easily.
Can Shipping Order Act As A Receipt For Your Goods?
No, they are entirely different.
A receipt is usually a bill that will show the full payment of the buyer. A receipt is sent along with the goods or after the dispatch of goods.
While OS is a document that does not have any bill but the description and quantity of the goods plus the location to deliver the cargo. The OS is issued typically realized before the cargo to consignee.
What Is The Process Of Shipping Order?
The shipping order process generally consists of the following steps;
Step One – Accepting the order
Step Two – Picking
Step Three – Packing
Step Four – Shipping the goods that are mentioned on the order
Step Five – Tracking the orders up to their delivery
What Will Be The Benefit Of A Shipping Order?
The benefit of a shipping order is that you will track your goods easily until the delivery is done.
Shipping order also has another benefit of securing your cargo.
Can I Change My Shipping Address On The Shipping Orders?
Yes, you can change your shipping address on the shipping order.
All you need to do is communicate to the person who will issue the OS at the right time, and all will be set.
Do You Have A Standard Shipping Options Available?
Yes, we do. We categories them into two is;
For the U.S, it will take 7-14 working days
While non-U. S orders will take between 8-23 working days.
How Do You Compare Shipping Order Over Delivery Order?
A shipping order is a document issued by a carrier to confirm the shipment is booked on a vessel.
On the other hand delivery order is a document issued by Carrier or his agent to realize cargo to another party or the owner.
Is The Shipping Order A Legal Requirement?
Shipping order has no legal obligation, but it has become a standard when shipping.
How Do You Differentiate Shipping Order And Shipping Bill?
Shipping order is usually sent along with the goods, which will help the person receiving them verify the document if they match the goods.
A shipping bill is generally a document that is required by the customs authorities for the goods clearance.
What Are The Documents Needed To Issue A Shipping Order?
The essential documents needed are.’
Bill of landing
Commercial invoice
Export custom declaration
Certificate of origin
Letter of credit
Packing list
Will Provision Of The Contract Of Carriage Be Included In Shipping Order?
No, it won’t be included.
Will I Need To Sign On The Shipping Order For My Package?
Yes, if the sender requests you.
Is Shipping Order Similar To Bill Of Landing?
No bill of landing is a legal document that is usually required to move a freight shipment. It typically works as a freight service receipt.
It’s a contract between the shipper and the freight carrier.
Before importing gummy making machine from China, read this guide.
It has all information that will help you choose reliable, efficient gummy machine.
So, keep reading to learn more.
Step 1: Know Why You Need Gummy Making Machine & Prepare URS
When purchasing a gummy making machine from China, it is essential to ensure it meets all the technical, quality, performance, and legal requirements.
An ideal way to determine all these aspects is by looking at the User Requirement Specification (URS).
Technically, URS is a list that contains all your requirements concerning the equipment you are planning to procure.
Some notable details included in a typical gummy making machine include the following;
Authors
This is a list of persons responsible for devising the URS.
It includes the names, job designation, date, and signature of every individual involved in creating the URS.
The document should have the signatures of responsible stakeholders as it affirms approval of the URS.
Introduction
It is often brief and usually contains details of the end user and justifications for the need of the URS.
In some instances, it captures basic background of your company and other relevant details.
Objective
It summarizes the project in non-technical terms and is often written in a descriptive style.
Some issues the objective sections need to address include things you are trying to achieve and problems the product will solve.
It should also look into how the equipment is likely to streamline or enhance an existing system.
Requirements
Arguably, it is the most fundamental section of URS.
Ensure the document accurately describes each requirement of the equipment.
This section should be written in narrative form, and the focus should be on what the equipment should do.
Supporting Documents
In some instances, you may require supporting documents for the equipment, such as images and user interfaces.
Glossary
If the document contains technical or non-technical jargon and acronyms, ensure they are clearly explained in this section.
Index
Often common in URS that is relatively lengthy.
Step 2: Have A Budget For Gummy Making Machine From China
Essentially, when planning to import gummy making machines from China, it is imperative to establish the cost.
In China, you can find different gummy making equipment at different prices depending on a wide range of factors.
For instance, the specific manufacturer you are purchasing from determines the actual cost of this equipment.
Some vendors are relatively costly, whereas others seem to sell their respective machines at affordable rates based on many factors.
Also, the size and production capacity of the gummy making machine you purchase is another cost-determinant factor.
In essence, a unit with higher production throughput is vitally more expensive than one with relatively lower production capacity.
Another factor is the specific technical features of this equipment also determine its overall cost.
Ideally, a gummy maker with superior technical specifications is relatively more expensive than one with basic features.
Furthermore, customization requirements of the machine also influence its actual cost.
Mostly, customized units are more expensive than ordinary gummy makers.
And importantly, you also need to check out the specific taxes and duties surrounding importing this equipment to your country.
Many countries have varied tax and duty rates when importing this equipment based on many factors.
Thus, it is vital to confirm with the customs department in your specific country to determine the exact duty payable.
Where applicable, use the tax calculator to establish the actual amount you need to pay
Step 3: Identify Gummy Making Machine Manufacturer In China
China has hundreds of gummy making machine manufacturers.
Thus, it can be quite challenging to find the best one, especially if you are a newbie in this industry.
Simply put, it is imperative to carry out due diligence when searching for an ideal gummy maker manufacturer in China.
You need to look into various elements of the manufacturer to find the most suitable one.
Some factors to consider include the following;
Knowledge And Experience
An ideal gummy maker manufacturer should demonstrate utmost knowledge and experience in making this equipment.
It is necessary because it makes it easy for the manufacturer to come up with highly innovative and reliable units.
Reliability
When choosing an ideal gummy making machine manufacturer in China, always consider one with reliable history.
A suitable way of determining this is by checking reviews of previous customers to find out whether the vendor is reliable.
Customer Service And Technical Support
An ideal gummy making machine manufacturer should provide exceptional customer services surrounding this unit.
Besides, the manufacturer should offer technical support regarding different aspects of operating and usability of this machine.
Production Capacity
Ideally, the ability of a company to produce high quality gummy making machines is a vital factor you should never overlook.
In essence, you need to determine whether they have a sufficient skilled workforce and relevant equipment.
Quality Assurance Interventions
It is a fundamental element to look into in an ideal gummy making machine manufacturer.
Essentially, the more quality assurance measures the manufacture takes, the lower the risk of finding a faulty unit.
Cost
Various manufacturers of this equipment usually price it differently depending on numerous prevailing factors.
However, it is important to ensure the specific manufacturer you are importing it from offers flexibility regarding cost.
In essence, it makes it easy for you to adjust your budget accordingly and ensure you get what you deserve.
The bottom line is that numerous aspects determine the best manufacturer to purchase this equipment from.
SaintyCo comes out as an ultimate choice to consider since it guarantees many such factors, including the abovementioned ones.
Thus, you need to visit our website to see a wide variety of gummy making machines to choose from when in need of one.
Step 4: Visit Factory For Gummy Machine Factory Acceptance Test (FAT)
Notably, importing a gummy making machine is a relatively significant investment.
Thus, you need to ensure you get the best one that guarantees reliability, performance, and efficiency.
One ideal way of finding such a gummy maker is by carrying out a factory acceptance test (FAT).
Ordinarily, FAT verifies newly manufactured equipment and ensures it meets its intended purpose.
Besides, it validates equipment operation and ensures your order specifications and other requirements have been met.
FAT is beneficial as it assures both parties the newly constructed equipment complies with all the required contractual specifications.
Furthermore, it becomes easy to address any functional concerns before the machine arrives at your installation site.
Essentially, to carry out an effective FAT, it would be necessary to visit the factory physically.
If you can’t make it to the factory physically, an ideal alternative would be to let your representative or agent do it on your behalf.
How Factory Acceptance Tests Helps You
It enables you to attain independent proof of integrity, quality, and functionality since it entails a comprehensive checking process.
FAT ensures the gummy making machine you are buying performs as anticipated under the testable range of likely conditions. Such circumstances include error and mishandling.
You can easily verify all the necessary documents, including manuals, instructions, and instrumentation diagrams.
A basic FAT checklist entails testing numerous vital components of this equipment and its functions.
Fundamentally, FAT is often tailored to your interests as the end-user.
Thus, here are the common items you’ll find in most FAT checklists for a typical gummy making machine;
Connections to guarantee they meet the required specifications for location, type, and size
Location and installation of a control panel
Size, type, and location of drain connections
General dimensions
Design construction
Verifications of welding and weld documentations
Materials and equipment of construction
Documentation – This entails certifications, drawings, datasheets, and supplier documentation among others
Pressure testing report
Verification of material type and finish
Quality control documentation review
Step 5: Confirm Technical Specifications Of Gummy Making Machine
Ordinarily, gummy making machines are available in a wide range of varieties with different technical specifications.
In essence, it is imperative to verify your preferred unit features all the necessary specifications for your application demands.
Some of the core technical specifications to always look into include the following;
Size – The dimension of this equipment should match the available space at your site
Power voltage – Knowing the exact power consumption of the machine to enable you to understand how to enhance efficiency and performance.
Production throughput – Establish whether the gummy making machine you purchase has a production volume within your projected output demands.
Projected downtime – Determine the possible amount of time the equipment is likely to take out of action due to different faults.
Compatibility – Establish the machine’s compatibility with the existing production line to enhance general efficiency.
Technology – Consider the choice of your machine depending on what suits your demands in terms of automation and other technology requirements.
Confirming the crucial technical specifications is vital in making sure you attain the right equipment for your needs.
Besides, it ensures you find the right unit that guarantees reliability, performance, and efficiency in gummy making process.
Step 6 Check If Gummy Making Machine Complied With Quality Standards
Many countries have put in place stringent measures to ensure all types of imported machines meet specific quality standards.
Of course, this is vital since it enhances human and environmental safety of the machine in the production process.
Thus, it is vital to ensure the unit you are importing from China complies with all the set quality requirements.
Confirm with the authorized quality enforcement agency in your country to know all the required quality standards the machine should meet.
Moreover, you can share the quality standard requirement checklist with your manufacturer to incorporate all details.
The essence of verifying quality standards is to prevent the customs from barring or holding up the equipment at port of entry.
Besides, it enhances efficiency and safety of using the equipment in making gummy.
Step 7: Check Availability Of Replacement Parts For Gummy Making Machine
One important aspect when buying gummy making machine is establishing whether its change parts are readily available.
In many instances, it can be quite inconvenient whenever the machine breaks down for different reasons, yet you can’t find the change parts.
It is the reason you need to confirm whether you can get the parts locally or you’ll have to import.
Ordinarily, reputable manufacturers of gummy making machines such as SaintyCo often make it easy to get change parts.
You only need to provide the specific part number you are replacing, and it will be shipped within shortest time possible.
Besides, a company like SaintyCo has authorized dealers in different countries or regions where you can easily access such parts.
Thus, it is vital only to import the equipment once you are certain you can easily get most of its crucial change parts.
Step 8: Confirm If Gummy Making Machine Manufacturer Offer Installation & Aftersales Services
Gummy making machines come in different sizes or dimensions ranging from small, medium, large, and customized.
As such, it means small, and a few medium-sized gummy making machines will only require assembling at the factory.
Therefore, you’ll get such equipment when fully assembled; hence you’ll only need to install accordingly.
On the other hand, relatively large equipment can be shipped in parts and later assembled on-site.
In such instances, it is necessary to get technical support from the manufacturer to assemble and install the unit.
Reputable manufacturers always offer such services to customers to enhance efficiency and reliability of the machine and manufacturing process.
It is the reason you need to verify whether the manufacturer offers installation and technical support when purchasing this equipment.
Reputable manufacturers will always provide a reasonable warranty on their respective machines.
Warranty is important because it gives you peace of mind, which is critical since you are confident the equipment is protected.
Nevertheless, it is beneficial in many other ways, such as the following;
Coverage For Crucial Parts Of The Equipment
Typically, gummy making machine has a relatively complex system.
Having a valid warranty protects the major components such as powertrain.
Replacing or refurbishing such critical components often reduces downtime and guarantees extended performance.
Coverage For Labor
Ordinarily, when you send the machine for repair, you will incur zero cost if the warranty is still valid.
Mostly, the manufacturer always organizes for collection and shipping of the equipment to a repair facility.
Saves You From Defective Equipment
When you invest in gummy making machine, you need absolute protection of a warranty to save you from getting faulty items.
For instance, a warranty protects you from getting a sub-standard or imitation machine.
However, you should note that terms and conditions of a machine warranty often vary from one company to another.
Therefore, it is imperative to ensure you read and understand the fine print to know your financial responsibility if it breaks down.
If you establish any worthwhile inconsistency in the warranty terms and conditions, make sure you raise and address it accordingly with manufacturer.
Step 10: Pay Gummy Making Machine Manufacturer
At this stage, all is set to make payment to the manufacturer for you to get the machine and initiation of other post-purchase interventions.
Different manufacturers prefer various payment methods and options.
For instance, some manufacturers allow for payment through digital money transfer platforms.
Others allow debit and credit cards, whereas others prefer cash.
Furthermore, some manufacturers accept payment facilities such as a letter of credit and documentary collections among others.
Irrespective of the mode of payment the manufacturer accepts, it is necessary to ensure all parties agree to it.
Besides, the manufacturer must issue a receipt or relevant payment document acknowledging payment receipt.
Mostly, manufacturers of this equipment often provide a commercial invoice, which contains all relevant details of the item and customer.
Commercial invoice is an important document when importing this machine since it is also used in customs clearance.
Step 11: Package And Label Gummy Making Machine Ready For Shipping
Upon confirmation of the payment and related details, the next step is packaging and labeling the machine in readiness for shipping.
This is also an important step because it facilitates convenient shipping from the factory to the importer’s site.
Labeling varies depending on the specific type of gummy making machine and other relevant details regarding destination.
SaintyCo offers labeling and packaging services, and you only need to provide the specific details to be incorporated.
Furthermore, we have hi-tech labeling devices making the entire task effortless but efficient.
Also, depending on whether the equipment is shipped as components or as a ready-assembled unit, we ensure the packaging befits it.
Of course, right packaging of this equipment is an important element because it determines its safety throughout shipping period.
Step 12: Get Freight Forwarder To Help Shipping Gummy Making Machine From China
Immediately the manufacturer confirms the machine is ready for shipping, the next step is contacting your freight agent to handle the logistic concerns.
Transporting a typical gummy making machine is quite an involving process due to the various projected technicalities.
Ideally, shipping it from China to your country of destination requires preparation of different paperwork and related procedures.
Thus, it becomes imperative to seek services of a reputable and professional freight forwarder to handle all these aspects.
Working with a freight forwarder enhances the overall efficiency due to their knowledge and experience in this industry.
Moreover, a reputable freight agent understands all the challenges and how to overcome them accordingly.
Besides, a freight forwarder has a broad network of different players involved in shipping from the factory to your site.
As such, this agent will organize for transportation of the consignment from the factory to the loading port.
They also look for a suitable shipper depending on your budget, urgency, and machine size to ensure you get the best shipping services.
Furthermore, a freight forwarder will handle all the customs clearance procedures at the port to ensure the equipment is loaded into the respective carrier.
Since this machine is somewhat delicate, the freight forwarder also ensures they supervise its careful loading to prevent any imminent damage.
Of course, this is an important aspect, especially if you have no experience or knowledge of how the process works.
In essence, choosing a reliable and professional freight forwarder will fast-track the shipping process conveniently.
When it comes to Gummy making machine, we recommend SaintyCo.
SaintyCo gummy machines are affordable, offer excellent services and guarantees value for your money.
If you have any question about rules of origin, you will find the answer right here.
So keep reading to learn more.
What Does Rules Of Origin Mean?
These are licit standards developed from principles established by national legislation.
Or international agreements put in place by a country to determine the origin of goods.
Different organizations, countries, and trade agreements have different rules and ways of establishing.
Which country they can claim as their country of origin for certain goods.
In simple terms, say a country for example has different criteria that goods not wholly produced in that country.
Must meet in order to claim that country as the country of origin.
Why Are Rules Of Origin Important In International Trade?
Rules of Origin have become very prominent in today’s trading system reason being, many products are made of several materials each from a different country.
Therefore, determining where the product comes from is not easy.
Rules of Origin helps to assign one country as the country of origin of a given product by determining the economic nationality of a product.
It also helps to dictate trade policy measures and preferences.
Are There Standard Rules Of Origin For International Trade?
The key criteria used to determine Rule of Origin include:
Goods wholly obtained-these are goods produced exclusively by raw materials from one country.
Substantial transformation- can be expressed in three different ways:
Change in tariff classification-
Goods are considered substantially transformed when goods categorized as heading and subheading are different from non-originating material used.
Value addition-
also called ad valorem percentage.
Goods here are considered substantially transformed when the value added to goods rises to a certain level expressed by ad valorem percentage.
Its normally expressed in two ways namely;
Maximum allowances for non-originating material
Minimal requirement of domestic content
Manufacturing or processing operation-
Goods are considered substantially transformed .
If it has undergone certain manufacturing processing operation in the process of production
Minimal operation-
This is the vice versa of manufacturing operations discussed above in that specifically identified manufacturing operation.
Or insufficient to give out to the origin example labelling
De minimis or tolerance rule-
This allows 10-15% of the total value of the end product to be considered non-originating without losing the origin status.
How Does Rules Of Origin Compare To Certificate Of Origin?
There is a similarity in these terms especially because of the term ‘origin’. However, they are very different;
Rule of Origin is a criteria used to determine where a product was manufactured from.
A product may not be wholly produced in a certain county however rule of origin helps attribute one country as the county of origin for the product.
Rule of origin should be declared to Customs at the point of import.
Certificate of Origin on the other hand is a document used to show the country where goods have come from.
it contains details of the product, its final destination, and the country of export.
This document is used to levy import tax on goods appropriately and to also determine goods that are eligible for import.
It can either be soft or hard copy.
A Certificate of Origin is issued after the Rule of Origin.
It’s issued to prove goods satisfies the rules of origin and the goods meet certain criteria to be considered originating from a particular country.
Where Can You Use Rules Of Origin?
Rules of Origin can be used under the following circumstance:
For trade statistics
For government procurement
When you are applying for labelling and marking requirements
To determine the kind of treatment your goods receive whether its Most-Favoured-Nation(MFN) treatment or preferential treatment
To apply commercial policy measures for example anti-dumping duties or safeguard.
Which Types Of Rules Of Origin Are There?
Generally speaking, we have two types of Rule of Origin Namely Preferential and Non-preferential.
Each is discussed below:
Preferential Rule of Origin- it’s similar to a trade agreement and it regulates preferential tariff according to the agreement.
The agreement contains sets of rules that goods must meet to be considered they come from a territory of the trade agreement.
The goods are counterchecked against the rules which are set according to the HS classification, specific to the product.
We have two types of preferential rule of origin:
Wholly obtained-
These goods are acquired with Free Trade Agreement party without any other addition. For example food crops grown and harvested within FTA or goods produced from wholly obtained raw materials.
Substantial transformation- here goods undergo a process to be considered as originating from a certain country.
Non-originating materials should change their HS code to obtain the status.
A given percentage of the total value of the end product must be added to the FTA territory in terms of maximum allowance for non-originating input or minimum requirement for local content.
Specific processing should take place at a certain stage of the production process
Non-preferential Rule of Origin-
Applies to goods traded between countries that are not linked by any preferential trade agreement.
Either because goods are not covered by an existing FTA or absence of preferential agreement.
Non-preferential rules are mostly agreed upon by each country and are according to the following rules:
Wholly obtained- are goods entirely produced in a country territory without materials from outside the territory
The last substantial transformation-
If goods have been produced in more than one country, the country where the last transformation was done is considered the country of origin.
Are There Specific Requirements For Rules Of Origin?
Yes.
For you to obtain a Rule of Origin needs direct consignment of goods.
Meaning your shipment should be directly transported from the production point straight to the stated destination so that country of origin can be identified.
Can A Product Have More Than One Country Of Origin?
Not really.
The reason being a product can be manufactured by different countries however multi-country of origin is not acceptable.
The country of origin is the last one with substantial transformation.
For example, Kenya is manufacturing products in China with raw materials from different counties say France and Italy.
China will be considered the country of origin because the last process which is manufacturing is taking place in that country.
In addition, blend claim is acceptable for instance Kenya and China coconut oil.
Where Can You Find Rules Of Origin?
You will find rules of Origin at the heart of the World Trade Organization (WTO). It is the committee on rules of origin.
How Does Free Trade Agreements Affect Rules Of Origin?
Different countries enter Free Trade Agreement to eliminate tariffs and non-tariff barriers among them.
However the rules of origin is the main reason why FTAs are underutilized.
FTA removes trade according to the product using rules of origin which appoints the actual origin of the product.
FTA rules are underutilized because rules of origin must be adhered to.
The rules become complex as the FTA increases sometimes tariff and rules vary according to the product origin.
Which International Organization Play Fundamental Role In Overseeing Implementations Of Rules Of Origin?
The International Convention on the Simplification and Harmonization of Customs Procedure also called Kyoto Convention ensures rules of Origin are implemented.
If you’re looking for any information about wharfage, you will find the answer right here.
So, keep reading to learn more.
What Is Wharfage?
Wharfage is the handling and stowing of goods on the quayside during loading and unloading of cargo.
What Does Wharfage Mean In Shipping?
The port duty levied by the terminal operators on the ocean carriers for the handling of cargo ;( loading and unloading) on the wharf.
What Is Wharfage Charge?
Wharfage charge is the sum received as the fee imposed to the ocean carriers by the terminal operators to cover the handling and stowing of goods on specifically a wharf.
How Much Does Wharfage Fee Cost?
Wharfage fee costs directly proportional to the weight/quantity level of revenue tonnes of a cargo/goods.
Where a ship loads or unloads at the wharf site on a specific time
Who Issues Wharfage Charge?
The terminal operator issues the wharfage charge to the shipper.
Is Wharfage Charged In Both Inbound And Outbound Movement?
Yes, wharfage is charged on both inbound and the outbound movement.
Exceptional on wharfage charges only applies in consideration to the type of items moving along the terminal;
Such as the stevedoring equipment is exempted from wharfage.
What Does Wharfage Tariff Rate Mean?
This is the existing set rates of the specific fixed charges that are set by the authority in charge of the port services revenues.
The charges are fixed as set and are used by the terminal operators in relation to the revenue tonnes of the cargo or the shipment.
Which is brought on board at the wharf site, for loading or unloading.
Is Wharfage The Same s Demurrage Compare?
No.
Demurrage is a cost imposed to the importer of a shipment for a delay on pick-up of cargo from the port in regard to the fixed agreed period.
While, wharfage is imposed for the handling and stowing of cargo on a wharf.
Demurrage increases as the shipment continues to delay at the port.
While, wharfage rates are fixed by the authorities to be levied on cargo handled at the wharf in relation to the revenue tonne of the cargo.
Demurrage is a form of compensation imposed as charges for the detention of delayed goods.
While, Wharfage is the wharfs duty collectively when handling cargo specifically on loading and unloading.
The claim for demurrage ceases immediately the ship clears out and gets ready for sailing.
While, wharfage duty is paid for the privilege of using a wharf for loading and unloading.
When Should You Consider Wharfage?
One should put wharfage into consideration when;-
-Expecting a shipment that requires a wharf for safe unloading of a cargo from the vessel.
-when one has a cargo that requires safe loading to the vessel at the wharf site.
-For safe embarkation of passengers moving along the ocean.
-For safe disembarkation of passengers travelling by water.
Why Does A Wharfage Charge Occur?
Wharfage charges occur to justify the imposed levies to the services offered on the wharf site by the terminal operators to the ocean carriers.
The charges also determine the revenue generated for a specified period of time from the services offered by the port.
Does Wharfage Charges Increase With Time?
Different ports of entry for different countries have a set of different wharfage charges.
Wharfage charges operate on a fixed rate set by the authority, here the (terminal operators), to function within a period of one year.
When setting new charge rates, wharfage charges may increase or decrease depending on the fluctuating currencies and other port services.
How Is Wharfage Calculated?
Wharfage is calculated in consideration to the quantity level of the revenue tonnes that a ship loads or unloads at the quayside site.
The (Revenue Tonne) is the greater of mass or volume when it is measured in units of tones, kilo litres or in cubic metres.
Can Wharfage Charges Be Avoided?
Whenever there is a usage of the wharf site for providence of handling services such as, loading and unloading, then the charges cannot be avoided.
What Is Wharfage And Dockage Compare?
Dockage is the charge that is the generally assessed when the vessel berths at a wharf.
While, wharfage is the charge that is solely imposed for the use of a wharf, it does not involve charges for other services.
Dockage is a duty imposed for the use of a dock by a vessel.
While, Wharfage is a duty imposed for using a wharf.
Both wharfage and dockage are basic necessities, they are both relevant terminus of all the voyage.
Do Wharfage Charges Apply In LCL shipments?
LCL Shipment is a win-win for both the exporters and the company responsible for shipping.
LCL applies when the cargo package size is significantly less than the maximum load size a container can carry.
Wharfage charges applies in LCL shipments as well as long as the cargo transported is docked at the wharf for handling.
Are Wharfage Charges Negotiable?
Wharfage charges are not negotiable.
The charges/rates are fixed by the authorities.
In case you have any questions or inquiry about shipping from China, Tj chinafreight is always here to help – contact us now.
When in need of small package shipping services, there are two basic options: pay by size/weight or pay a flat rate. In this case, flat rate shipping tends to be the go-to option for most shippers. It promises enormous savings on cost and time when shipping small packages.
Keep reading this guide to learn how flat rate shipping works, its benefits, prices, and available options. This guide will also enlighten you on when to consider flat rate shipping services for your business.
What Does Flat Rate Shipping Mean?
Flat rate shipping is exactly what it sounds like; a shipping service with a fixed or linear rate.
No matter the size or weight of the package, flat rate shipping prices remain the same. But the prices may differ based on the time zone or weight slab set by the shipping company. So any package that falls under that threshold will be charged the same fixed rate.
For example, shipper A wants to send books weighing under 50kgs, and shipper B also wants to send clothing items weighing under 50kgs. Suppose the flat rate is $30 for all packages under 50kgs. In that case, both shippers will pay $30 to send their packages to their respective destinations.
To put it simply, in the flat rate shipping method, the cost of shipping is not determined by the package’s dimensions, size, or weight. So no matter how big or small your shipment is, you will pay the fixed rate for your specific time zone or weight slab. Hence the term ‘flat rate.’
How Flat Rate Shipping Works
As we’ve already established, every package costs the same to ship under flat rate shipping, regardless of its weight. The effectiveness of this shipping plan pretty much depends on how much you can fit into the box.
Here is how the process works:
Get your flat-rate packaging
Most couriers that offer flat rate shipping have standard-sized boxes and envelopes that customers use to send items.
These packages range from small, medium to large boxes/envelopes. And although the packaging is free, note that the bigger the box or envelope you choose, the higher the price you’ll pay for shipping.
You will first have to order the proper packaging through your local courier office with that in mind.
Pack your items
Next, pack your items into the box or envelope. Ensure that the inside packaging is done correctly to prevent damage to the goods during transportation.
Address the package
Anytime you’re sending goods from one location to another, it is best to label your packages correctly. This is crucial in ensuring that the box gets to the correct destination and recipient.
Shipping label best practices require packaging to display essential information relating to the shipment. These include:
Customer’s name and address
Routing number
Carrier’s information
Weight and content of the shipment
If shipping fragile or dangerous goods, we recommend adding additional instructions to ensure safe handling and delivery.
Most importantly, ensure that your labels are secure and visible.
Purchase your postage
Once your package is appropriately packed and labeled, you can now buy the flat rate shipping postage from the local office or website.
And finally, you can bring the package to the local courier office for posting or arrange for a pickup and delivery service.
Differences Between Flat Rate Shipping And Standard Shipping
In essence, flat rate and standard rate shipping are pricing models that carriers offer for small package shipping services. As we’ve established, the flat rate shipping model provides a fixed rate for every time zone or weight slab. In this case, the flat rate costs remain consistent for all packages.
On the other hand, standard shipping rates tend to vary more. It offers prices based on particular time zones plus myriad other factors.
In standard rate shipping, the price varies every time you ship to a different destination. A variance in the weight, size, and dimensions of your shipments will also affect your standard rate shipping prices.
It is a traditional pricing model where carriers measure and weigh your package before determining the actual freight rate.
Compared to flat rate shipping, standard rate shipping tends to work best for longer or un-prioritized deliveries. This shipping service is also feasible for small businesses and individuals in need of tailored prices.
On the other hand, choosing flat rate shipping may work well for businesses and individuals who regularly send similar packages.
Flat Rate Shipping Benefits
Like everything else, the flat rate shipping model has its pros and cons.
Flat rate shipping can be an excellent way to lower your handling and shipping costs while maintaining/improving your profit margins. Its simplicity and predictability are also some of the top reasons shippers opt for the flat-rate pricing model.
But despite its many advantages, this shipping method can be restrictive in many aspects. So it may not always be a suitable option for your shipping operations.
That said, here are some of the top benefits of choosing flat rate shipping for your needs.
Offers the best value for money
The most apparent benefit of flat rate shipping is that it lets you save money. It is because you aren’t paying for the actual size or weight of your package. As long as your items are under the weight slab or within the time zone set by the flat rate shipping provider, it ships for a low rate.
It is quick and easy to get a quote
Flat rate shipping eliminates the measuring and weighing of shipments. Hence it’s fast and easy to a get quote and ship your items.
Highly predictable
Like I mentioned earlier, flat rate shipping is entirely predictable. With pre-determined fixed rates, you know how much you’re going to spend ahead of time. This predictability makes budgeting easy. If you know the linear rate, you already know how much shipping will cost you and thus can plan ahead.
No additional charges
Another good thing with flat rate shipping is that it’s too simple. There are no complex mechanics with pricing; even the shipping procedures are straightforward.
The best part is that it’s just one flat rate, with no additional surcharges, be it a residential delivery fee, weekend delivery, or fuel surcharge. Flat rate shipping is just easy. You can relax knowing you’re getting your money’s worth.
Easy to meet deadlines
A flat rate shipping is designed for small package shipping, carriers can easily process and deliver orders as fast as possible. They don’t have to go through endless evaluation processes before sending shipments out.
This quick small bundle shipping helps you meet your delivery deadlines, no matter how small.
It is safe
With flat-rate shipping, goods are often carefully and correctly packed and the box sealed off before shipping them. So you can rest easy knowing that your items will always arrive in good condition.
Easy tracking
Flat rate shipping companies will provide you with a tracking number for your shipment every time it’s sent out. This way, you can always track your shipments from when they leave the origin and when they arrive at their destination.
Drawbacks Of Flat Rate Shipping
As mentioned above, if there is an advantage, there’s a disadvantage to balance the equation. So, in this case, while flat rate shipping can be the best shipping strategy for your business, it can also backfire. This is especially when you need to ship extremely heavyweight and cross-border items.
Hence, it is essential to know the cons of flat rate shipping before choosing it for your business. Below are a few of the disadvantages to consider.
No brand exposure
Shipping items using the carrier’s box means that you can’t send your orders in custom branded packaging. This limits/denies you the opportunity to promote your brand, which is quite crucial for startups.
It is not always the most cost-effective option
Flat rate shipping can be pretty costly if sending items with little weight. In many cases, you can ship your packages or business orders for less using shipping services with traditional pricing models.
Moreover, you may end paying too much to ship packages in close proximity. Flat rate shipping can indeed save you money in most instances, especially for cross-border deliveries. But for orders close to home, it is may not be the most cost-effective option.
It may not be fast enough
Most flat rate shipping couriers deliver orders within three days, which is not fast enough for time-sensitive orders.
Luckily, you can still enjoy a flat rate and fast speed for your shipping operations. Some carriers provide the flat rate shipping option with speeds that qualify for fast shipping. This way, you get super-fast deliveries while enjoying the all-inclusive flat rate shipping prices.
Only feasible for small package shipping
Flat rate pricing only favors items with lesser weight and dimensions. Bulk cargo may not qualify for this shipping method.
Too much hassle
If you handle all your supply chain operations by yourself, flat rate shipping may not be ideal as it covers the shipping only.
Meaning, you have to complete all the other fulfillment tasks, which shouldn’t be a problem if you have help. Otherwise, it can be nerve-wracking if you have limited space and time to fulfill orders by yourself.
Flat Rate Shipping Box Sizes
You already know that flat rate shipping is done in standardized boxes offered by the courier company.
These boxes come in four different shapes and sizes, all of which are priced differently.
Small flat rate boxes: These boxes measure 8 5/8″ x 5 3/8″ x 1 5/8″. They are the smallest package available and are suitable for shipping small items such as small electronic items and jewelry.
Medium flat rate boxes: These come in two sizes: regular medium box and long medium box.
The regular medium box is 11″ x 8 1/2″ x 5 1/2″ with a regular card box shape. However, it is a little short and narrow.
On the other hand, the longer variation of this box is 11 7/8″ x 3 3/8″ x 13 5/8″.
Instead of the traditional cube shape, this box is more rectangular. The advantage of shipping in it comes from its length. It can perfectly fit anything too long to fit the other two boxes.
Generally, medium-sized shipping boxes are ideal if you want a variety of sizes but still cut the shipping cost.
Large flat rate boxes: At 12 1/4″ x 12 1/4″ x 6″, this is the largest of all the flat rate shipping boxes. It can hold can undoubtedly hold the most goods. Due to its size, large boxes are great for e-commerce shipping and other related applications.
When choosing between flat rate shipping boxes, you don’t need to worry about the weight restriction. The restriction is usually the same for all boxes, i.e., 70lbs. So you can pack as much as you want in the flat rate box as long as you don’t exceed the set weight limit.
More importantly, knowing which box size to choose is essential as different items have different packaging needs. A box too small or large can cause damage to the goods during transportation.
As you make the above considerations, bear in mind that flat rate box sizes do change every so often.
Therefore, it is wise to first research a shipping company’s available box sizes before ordering any. If you are unsure which box size matches your shipping requirements, this guide on how to measure a shipping box may be helpful.
Carriers That Offer Flat Rate Shipping
Several carriers offer flat rate shipping services. Ideally, the best service providers often boast many years’ experience, excellent customer service, and fast, small packaging shipping. The carrier should also offer the best value for your money.
Here are the top flat rate shipping companies you can consider:
Do note that each of these companies has its terms and conditions for flat rate shipping. Their packaging dimensions, costs, delivery timelines, weight limits, time zones, and other elements vary. So the decision on which flat rate shipping company is best will depend on your shipping requirements.
Whether you’re a business or an individual, be sure to compare your options before choosing a flat-rate service provider carefully. Otherwise, you may end up paying more than necessary while missing out on better opportunities.
The Cost Of Flat Rate Shipping
Generally, flat rate shipping has a uniform cost, but this depends on the packaging you use, the company, and the flat-rate service you choose.
To simplify your search, we have broken down the different prices offered by the top flat rate shipping companies.
FedEx Flat Rate Prices
FedEx flat-rate services are charged by distance. The higher the shipping zone, the higher the flat rate. You may also incur extra charges if you need any special services such as packaging and labeling.
Note that FedEx flat rates are unaffected by the weight of the shipment.
Small box: Starts at $9.95 for the express option and $22 for 2-day
Medium box: Starts at $12.95 for express option and $23.25 for 2-day
Large box: Starts at $20.00 for express option and $25.20 for 2-day
Extra-large box: Starts $32.35 for express option and $35.65 for 2-day
UPS Flat Rate Prices
The flat-rate option for UPS is called UPS simple rate. With this, you can use your packaging if the resulting package does not exceed 50 pounds. And unlike the FedEx one rate service, UPS simple rate price is uniform regardless of the destination.
Your shipping price will vary depending on the particular box size and flat-rate service you choose i.e.
Small flat rate box: Starts at $11.50
Medium flat rate box: Starts at $13.90
Large flat rate box: Starts at $18.40
Extra-large flat rate box: Starts at $22.85
Again, the weight and dimensions of the package do not affect the ultimate shipping cost.
USPS Flat Rate Prices
USPS priority mail flat rate prices are also generally based on the size of the package you’re shipping i.e.
Small flat rate box: Starts at $7.90 for commercial and $8.45 for private
Medium flat rate box: Starts at $13.75 for commercial and $15.50 for private
Large flat rate box: Starts at $19.30 for commercial and $21.90 for private
Flat Rate Shipping Restrictions
The notion that ‘if it fits, ship it’ does not entirely cover the exceptions and limitations of flat rate shipping. It might fit alright but may not qualify for flat rate shipping regardless of the size and weight.
Flat rate shipping restrictions apply to the following items:
Alcohol
Firearms
Prescription drugs
Tobacco or tobacco products except for cigar
HAZMAT such as aerosols, gasoline, batteries, and chemicals
Paint
Some cleaning products
How Long Flat Rate Shipping Takes
Most flat shipping companies will take approximately three days to deliver your shipment. To avoid delays, make sure to send the package for delivery on a business day.
Some service providers are a little slow, with deliveries taking up to eight days to complete.
If you need to send packages faster, choosing a speedier flat-rate service or an express shipping service may be ideal. Although you’ll pay slightly more for speed, the timely delivery and convenience may outweigh the cost.
Is Flat Rate Shipping The Right Choice For Your Business?
Whether or not flat rate shipping is the right choice for your business depends on the business and its requirements.
For example, if you’re looking to cut costs and maintain a steady profit margin, flat rate shipping may be viable. But, this is only if your items aren’t heavy enough (less than 70 lbs.). Otherwise, the flat rate will end up being costlier than the regular rate.
If you have any question on special delivery fee, you will find all information right here.
So, keep reading to learn more.
What Is Special Delivery Fee?
A special delivery fee is usually truck charges for making deliveries beyond their normal service area or service hours.
When Should You Pay For Special Delivery Fee?
The usual working hours which is 8 am -8 pm, Monday to Friday. When you need your goods to be delivered past 8 pm, you will be requested to pay a special delivery fee since it’s past our working hours.
You will need to pay a special delivery fee when you request the goods be delivered to you during the weekend, Saturday and Sunday.
We usually have our regular service parameters for deliveries; you will pay the special delivery fee if your goods are delivered past the parameters.
How Do You Place Order For Special Delivery?
When you need to place an order for special delivery, it’s easy. Just contact our customer care team via email or phone call.
The customer care will take it from there and give you a way forward for your special delivery.
How Do You Calculate Special Delivery Fee?
For special delivery fee calculations, you usually calculate the weight of the goods plus the kilometers for the delivery to get the fee for the goods.
If your goods are delicate, we also charge you an extra fee to deliver them since they need extra care.
Are Their Extra Charges After Paying For Special Delivery Fee?
After paying for your special delivery fee, we will not charge you anything extra for special deliveries. Everything is calculated and included in the special delivery fee that you have been requested to pay.
If you are requested to pay anything else by our delivery men, kindly contact our offices immediately.
What Is The Standard Time For Special Delivery?
We do not have a specific standard time for special deliveries. You might visit our website in case of any clarifications needed.
What Happened If My Special Delivery Delays?
Delays are typically rare cases in special deliveries, but they do happen. When we foresee a delay in making your deliveries on time, we will contact you and let you know about it early enough to reach an agreement.
If the delays are as significant as an accident, we compensate our recipient for all the damages cost due to the delays.
Will You Get A Refund For Special Delivery Fee If The Goods Are Damaged?
Yes, if the goods are damaged when delivered, we will calculate the damages and refund the special delivery fee as per the cost of the damage.
How Will I Know My Special Delivery Fee?
There is a special delivery fee chart from our website that will guide you on knowing your fee.
Keep in mind that you need to know the weight of your good since it’s the primary determinant of the special delivery fee.
Do I Sign For My Special Delivery?
Yes, when you receive your special delivery, the truck driver will give you a document that you will be required to sign.
This document will acknowledge that you have received the goods and they are in perfect condition. We will give you a copy and retain the original for our records.
Do You Issue An Invoice After Special Delivery Fee Payment?
Yes, we issue an invoice after your payment for special delivery to come along with your goods. The invoice will act as evidence in case of any damages of interests along the way.
What Is The Maximum Weight For Special Delivery?
As a special delivery company, we are ready and well equipped to serve you. We do not have a maximum weight for special delivery; no matter the weight, contact us. We got you covered.
When Do You Pay The Special Delivery Fee?
You will pay the special delivery fee before we do the delivery for you. This will enable us to pay for extra expenses along the way like staff allowance and fuel for the trucks used.
Which Products Do You Charge Special Delivery Fee?
Any product is charged a special delivery fee so long as it’s past working hours and it’s not within the radius of our normal delivery services.
Which Trucks Do You Use For Special Delivery?
It will all depend on the product being delivered we generally have all the trucks available for special delivery.
Is It Possible To Cancel A Special Delivery After Payment?
Yes, it is possible to cancel the special delivery after payment, so long as the products have not yet been realized for the special delivery.
If you need to cancel, we recommend you call the customer care team early enough, 24hours before the products are realized.
What Will Happen If You Do Not Receive Your Special Delivery?
If you do not receive your special delivery, we request you to talk to us directly for follow-ups and compensation to be done by the company.
Can You Change An Address For Special Delivery?
Yes, it is possible to change the address, but you need to change it in advance and communicate with us.
Which Method Of Payment Do You Accept For Special Delivery Fee?
For a special delivery fee, we do accept different methods of payment like
Wire Transfer
Cheques
Debit cards
PayPal
T&T
What Is The Comparison Between Recorded Delivery And Special Delivery?
Recorded delivery is generally a way to get your goods posted with proof of them reaching the destination.
In contrast, special delivery is a way of transporting goods much faster but at a high cost.
At Tj chinafreight, we make shipping from China to any global destination simple and straight forward.
If you’re wondering what storage charges are, you will find all information right here.
So, keep reading to learn more.
What Are Shipping Storage Charges?
Shipping storage charges is the fee levied if the shipping container is not moved out of the port within the free days offered by the port.
The storage period starts when the container enters the storage facility and ends when it is taken out of the facility.
The amount of the charges depends on the weight of the goods, the storage space the goods are stored.
Who Charges Storage Charges?
It will depend on an entity that stores the shipping container i.e.
Port storage charges
Port storage charges are levied for both empty and full containers within the port.
They are often passed from the terminal operator to the shipping line
The containers to be shipped are charged according to the levy offered by the freight forwarder or the ports authority.
The ports authority impose taxes on the cargo as a storage charge as the cargo is waiting to be cleared, the cost will determine on the efficiency of the documents.
Freight forwarder issues an inventory which includes the storage charges plan for the cargo waiting to be shipped to the receiving port.
Warehouse storage charges are associated with general administrative expenses, storage space hence it varies with the services required.
Are There Recommend Storage Charges Rates?
Storage fees depends on the Unit’s length, width, and height, the number of units and the time for the inventory.
From January through September, the standard fee is $0.025 per cubic foot, per day.
This is equivalent to $0.75 per cubic foot over 30 days.
From October through December, the standard fee is $0.080 per cubic foot, per day.
This is equivalent to $2.40 per cubic foot over 30 days.
For the units that are in inventory for more than 365 days, the future long-term storage fees will be as follows:
The standard fee is $0.230 per cubic foot, per day.
This is equivalent to $6.90 per cubic foot over 30 days.
The minimum is $0.150 per unit, per day.
How Can You Avoid Storage Charges?
Be quick on the customs clearance.
Work with the right freight forwarder to manage your customs brokerage and collect all the clearance documents needed for the import.
Use experienced freight forwarders.
They help Plan your shipment’s journey, finding a competitive storage solution, handling documents and complete key administrative steps.
Make sure your cargo is ready on time
Make the most of the free time allowed by the shipper making your cargo ready for pickup on time.
Have real time information.
Track all your containers and receive alerts with container to help you make good decisions in case of delays to avoid costs.
Communicate proactively.
The communication between broker, carrier, driver, shipper and consignee should be open and clear.
How Do you Calculate Storage Charges?
You multiply the length and width to determine the number of cubic feet of the storage required.
In Most warehouses charge depend by the number of spaces you rent per month.
Warehouses storage charge by square foot of floor space or the cubic foot of the space required.
Stack the goods you will require to be stored in containers or boxes.
Measure and record the length, height and width of the stack.
Multiply the length of the stack by its width.
Multiply the length and the width by the highest point to determine the number of cubic feet of storage required.
Divide the size in cubic feet by the size of the self- storage bay.
The answer is the number of bay that you require.
Multiply this number by the monthly rate for the storage bay.
Fee Calculation
To calculate the unit volume, take the length, width, and height (in inches) of a single unit. Multiply length x width x height to get the volume in cubic inches.
Convert this volume to cubic feet by dividing by 1728.
Round this volume up to the nearest hundredth to get the value on which is computed as the storage fee.
Example: We have a container with units of dimensions 20″ x 16″ x 8″. The volume in inches is 20 * 16 * 8 = 2560 cubic inches. In cubic feet, this volume is 2560 / 1728 = ~1.48148 cubic feet. We round this value up to 1.49 cubic feet. This is the volume on which is computed as the storage fee.
What Will Make You Pay For Storage Charges?
Some of the key factors include:
Extending the time when the container should be loaded on the ship when the ship departs without your cargo.
When the appointment at the receiving location is delayed as earlier as planned by the inconsistency of the freight forwarder.
Not understanding the chatter agreement which is offered before the cargo is released from the port.
Not Making timely document release if the cargo is under letter of credit.
Not making delivery documents available to all the involved parties for easy loading and unloading process.
Fewer Interactions with the driver, loader, broker and port authorities who partner with the freight forwarder.
Not securing a copy of an original bill of lading to safe guard the shipper’s payment when the cargo reaches the destination.
Inability to Negotiate with the port authorities for an increase in the number of free days when you are aware that there will be delays on the clearance.
Is Demurrage Charges And Storage Charges The Same?
No.
Demurrage charges refers to the charge that the merchant pays for the use of the container within the terminal beyond the free time period.
Shipping storage charges is the fee levied if the container is not moved out of the port within the free days offered by the port
Demurrage is avoided by ensuring that the appointment at the receiving location is not delayed as earlier planned.
The storage period starts when the container enters the storage facility and ends when it is taken out of the facility.
Are Detention Charges Same As Storage Charges?
No.
Detention charges are almost similar to demurrage charges but these charges are billed outside the port terminal.
Detention charges starts immediately when the full container is removed from the port up to the return of the empty container to the port.
For detention providers have to give out a reasonable free-time period.
Shipping storage charges is the fee levied if the container is not moved out of the port within the free days offered by the port.
Storage charges are collected for both full containers that are waiting to be shipped and the empty containers too.
Storage charges starts when the containers enters the storage warehouse and ends when it is taken out of the warehouse.
I know you’re probably wondering what ultimate consignee is about.
A reason this guide will answer all questions you have been asking about ultimate consignee.
So, keep reading to learn more.
What Does Ultimate Consignee Mean?
An ultimate consignee is the projected individual to receive the imported merchandize which has been sold by the shipper.
Who Is An Ultimate Consignee In An Export?
An ultimate consignee in an export is an individual or party who has their location abroad and is the receiving the exported shipment.
Is The Ultimate Consignee The Importer Of Record?
Yes, the ultimate consignee is the importer of record.
In cases where there is no presence of a broker or agent, the ultimate consignee should act as the importer of record.
They will be in charge and responsible to make sure that the goods being shipped are compliant with the regulations and legal requirements of the desired destination country.
Also, the ultimate consignee will ensure that the relevant duties and taxes have been paid accordingly, then files the correct export permits and documents.
Which Are The Types Of Ultimate Consignee?
There are four types of ultimate consignees that include the following;
Direct Consumer
This is an ultimate consignee that desires to use the exported goods as usable for their own internal processes.
The goods might be as an input to be used in the production of another good or as machinery that is part of the production process.
The goods cannot be distributed or sold to other parties for their own use.
A direct consumer can be a company, a non-governmental institution or an enterprise.
Reseller
This is an ultimate consignee who receives the imported merchandize and resells it.
The reseller of the imported merchandize can be a trading company, a wholesaler, a retailer, a distributor or a non-government reseller.
Government Entity
This is a government owned, a government controlled company, institution, enterprise or agency that receives the imported merchandize.
Unknown Or Other
This is an ultimate consignee that is not known at all during the time of export.
By not being known, means that the ultimate consignee is not a government entity, a direct consumer or a reseller.
What Does Intermediate Consignee Mean?
An intermediate consignee is an individual, entity or part that takes responsibility of goods at the time the goods are in transit.
The intermediate consignee take possession of the goods during transits so as to effect delivery to the intended receiver at the destination.
It might be a company that engages itself with transport services or a freight forwarder who is international.
Is Ultimate Consignee The End User?
At times, the ultimate consignee can be the end user if they have imported the goods for their own internal use and processes.
For example, an ultimate consignee can import machinery to be used in their own manufacturing company.
On the other hand, the ultimate consignee is not the end user if the goods are for resell purposes.
What Is Intermediate And Ultimate Consignee Compare?
An intermediate consignee is an individual responsible of the goods while they are in transit to effect delivery to the purported owner.
While an ultimate consignee is the purported receiver of the merchandize that has been sold by the shipper.
Additionally, the intermediate consignee can be a bank or any other individual acting as an agent for principal party interest.
While an ultimate consignee does not function as a forward agent or any other midway but can be an end user of the goods.
What Is The Purpose Of Bis-711 Form In Ultimate Consignee?
Being a document that is used by other countries that do not use the import certificate, it provides assurance from the importer.
The assurance is about the imported good not being transferred, misused or re-exported in violation of the Export Administration Regulations.
The BIS-711 must have sufficient information about the products, the end user and the use of the product in order to effectively control the product.
The information in the document helps the licensing authorities in making decisions on whether to approve or disapprove license applications.
Which Are The Requirements Of Ultimate Consignee?
The ultimate consignee is required to give the brokers and agents certain information will help the customs department to know who takes responsibility of the shipment.
Information required is;
Name
Address
Internal Revenue Service number
Through that, it will be easier for the customs department to track the shipments to their final destinations.
Which Are The Instructions Of Completing The Bis -711 Form In Ultimate Consignee?
The following are instructions of completing BIS-711 form in ultimate consignee;
Block 1: Ultimate Consignee
In the case it is an individual, the name stated should be similar to the name listed on government issued ID.
If the ultimate consignee is a company, the name on the business certificate or license should be issued.
Block 2: Use Of Items
The intended usage of items by the consignee named in the above block is explained at this phase.
Block 3: Ultimate Consignee’s Nature Of Business
The business’s nature of the ultimate consignee should be put here
It can be completed in both “A” and “B”.
Possible choices for “A” can include manufacturer, broker, wholesaler, original equipment manufacturer, retailer and much more.
Possible choices for “B” can be franchise, individual business, contractual, distributor and much more.
Block 4: Additional Information
Additional information that is not present on the document should be provided under this particular block.
Information that may involve transactional parties and any additional details concerning the material that may be of value during license application and review should be provided.
Additionally, the intended use of the products need to be well stated and explained.
Block 5: Assistance In The Statement Preparing
All individuals who assisted in the preparation of the statement excluding employees of the purchaser or ultimate consignee should be named.
Block 6: Ultimate Consignee
The ultimate consignee need now to put in the information that has been requested and sign the statement using ink.
Block 7: Purchaser
The document should get signed by the purchaser if at all the purchaser is not the ultimate consignee that had been identified in Block 1.
Block 8: Exporter Certification
The block should be duly completed to ensure and certify that there exists no any type of correction, addition or modification that was made on the document.
This is made following the signing of the ultimate consignee in Block 6 and purchaser in block 7.
Who Is The Ultimate Consignee?
This is an individual or party that is going to be the final receiver of the imported merchandize.
What Is Ultimate Consignee And Importer Of Record Compare?
An ultimate consignee receives the imported goods and products that have been sold by the shipper while an importer of record owns the imported goods during the time of importation.
The importer of the record can be an agent or broker facilitating the delivery of the goods but they are not theirs.
Who Is A Nominal Consignee?
A normal consignee is a carrier, freight forwarder or consolidator who may designate a customs broker to make an entry on their behalf but not themselves.
How Is Nominal Consignee And Ultimate Consignee Compare?
The nominal consignee in any case cannot make an entry in their own name where as an ultimate consignee is allowed to make entries in their own names.
What Is Ultimate Consignee In Shipping?
In shipping, ultimate consignee is the individual that is the authentic party of interest in receiving the goods for the intended purposes and use.
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Are you asking, what is the difference between inbound and outbound logistics? Then, you are on the right page because this article will help you compare and contrast these two types of logistics.
To understand how different these two types of logistics are, we will need first to define them and understand what they each entail.
Keep reading.
Inbound logistics
Essentially, inbound logistics focuses on receiving supplies and materials for internal use or for or manufacturing purposes.
It could refer to receiving ready-made products for office use or warehouse and fulfillment. Inbound logistics could also mean receiving raw materials and supplies for the production unit.
Importance Of Outbound Logistics
Inbound logistics is crucial because it is the first stage in the value chain. If something goes wrong at this stage, it will hurt the entire process. It may even mean stopping production and other operations altogether.
On the other hand, a well-run inbound logistics program can result in higher-quality products. It may also result in more cost savings and increased sales for the business.
Additionally, efficient inbound logistics can improve the customer experience while reducing your operational costs.
Plus, if you carefully organize your inbound logistics operations, you can easily negotiate better rates with your truck freight and shipping partners. This will result in even more significant savings.
Step By Step Inbound Logistics Process
Although the activities involved in inbound logistics vary from one industry to another, the process typically entails the following:
Procurement: this step focuses on the acquisition of supplies and materials. It simply requires a business to purchase the necessary materials at the lowest budget but without sacrificing quality.
Here is how it is done; firstly, the procurement team searches the market for vendors and selects suitable suppliers after a thorough due diligence process. If you’re sourcing suppliers from China, this article on how to choose the best Chinese suppliers might be insightful.
After choosing potential vendors, they then conduct a quality check to confirm the suitability of the supplies in question. The next step is to negotiate the prices and other terms and conditions. Lastly, payment follows, after which a delivery schedule is agreed upon.
Receiving inventory: this stage involves unloading the supplies from the delivery vehicles and sorting through them to verify their quantity and quality.
It is a laborious and tedious process. It requires staunch manpower and proper unloading equipment such as a forklift. The warehouse receiving process also requires an efficient inventory management system to help keep track of delivered items.
Reverse logistics: apart from procurement and inventory management, reverse logistics is also essential in the inbound logistics process. Here, businesses get back inventory from customers for repair, recycling, reselling, or remanufacturing.
Outbound Logistics
Outbound logistics involves everything from delivery to the distribution of finished goods to the customers.
Importance Of Outbound Logistics
The focus of outbound logistics is to ensure the smooth flow of goods from origin to destination (end-user).
It involves multiple partners, i.e., the manufacturer, distributor, retailer, and delivery team.
Once the manufacturer finishes production, the goods are taken to the warehouses for packaging, labeling, and other finishing touches. Afterward, they are either moved to the distribution centers or transported straight to the consumer via chosen retailers.
Note that the outbound logistics process is centered on customer demands by ensuring timely delivery of the finished products.
Businesses can choose to send out their products directly to the customer on an order-by-order basis. Alternatively, they can contract large distributors or sign up for a fulfillment service like FBA to help make their final deliveries.
Whatever option you choose for your business, the objective is to get the finished products to customers on time. Keep in mind that the way you manage your outbound logistics process will ultimately directly impact costs, sales, profits, and customer satisfaction.
Step By Step Outbound Logistics Process
Like inbound logistics, the outbound logistics process comes in many forms, but it can include the following:
Order processing: Outbound logistics begin when a customer places an order. When the order is confirmed, it is sent to the warehouse management for processing.
Sorting: After order processing is complete, the warehouse staff takes out the purchased items from the inventory. They then sort, pack and label the products for shipping.
Note that once stock is taken out from inventory, the warehouse management system is updated. Here, the relevant staff adjusts the stock and storage units, so they are up to date.
Shipping and delivery: once the order is ready, the carrier ships it to the retailer, fulfillment center, or distribution center.
Final delivery: Drayage is the final step in the outbound logistics process.
Here, a designated truck and logistics agent will pick up and delivery the order from the distribution center and to the customer’s location. With outbound logistics, customers can range from supermarkets to small retail stores or individual end-users.
The Main Differences Between Inbound And Outbound Logistics
Notably, both inbound and outbound logistics deal with the movement of goods from the manufacturer to the end-user. They’re like a double-edged sword, and based on the descriptions above, we can conclude several critical differences between them, such as:
Processes
Inbound logistics focuses on purchasing, storing, and allocating resources for production. On the contrary, outbound logistics applies to the sale of finished products. It involves processing customers’ orders and then choosing, packing, labeling, and transporting the purchased products to customers.
Documents Involved
When it comes to inbound logistics, the documents presented are often purchase orders, invoices, and receipts. On the other hand, outbound logistics mainly deals with sales orders and delivery order documents.
Parties Involved
In inbound logistics, interaction takes place between the suppliers and the company/business. Meanwhile, outbound logistics primarily focuses on the business and final consumer.
Conclusion
Inbound and outbound logistics form a critical part of supply chain management. While it may be costly to implement, it notably presents opportunities for significant time and money savings. It is why businesses should take a closer look at their logistical operations and see if they are well-optimized.
If companies manage their logistics appropriately, they can be more economical in their operations, and as a result, gain a competitive advantage.
In addition, if all operations run smoothly, the business can be more customer-oriented and sustainable. Over time, it may even be able to lower prices due to increased efficiency.
