Shipper: HIGER BUS

Port of Loading: Shanghai, China

Port of Destination: Suva, Fiji

Mode of transport: By Roll-Roll

Liners Term: FLT

Size Per bus:12000mm*2550mm*3820mm

Actually, there are three types of shipping for buses, include Roll on-Roll off, Bulker-Cargo Ship, and FLAT TRACK(FR), we can compare as below:

Our work

• Check the shipping Schedule and book the Space with Carrier
• Assist Higer drive the buses from Suzhou factory to Shanghai Port
• Finish the customs clearance smoothly(pay attention to the oil mass in oil box according to the China customs Policy)
• Tj chinafreight team provide loading supervision service in the port to make sure the buses loaded in the carrier
• Tj chinafreight confirm the reinforce for the buses in the Roll-on/Roll-off ship well
• contact with shipping line companies to provide the Bill of Loading to customer
• Shipping line unload the buses from Vessel after the Vessel arrive to Fiji

I know if you’re importing from China or other global countries, you’ve come across CIF shipping.

If this is the first time you import from China and not know what is CIF, then this is the righ guide for you.

Why?

Because I will guide you on every details of CIF shipping from China.

PS: If you’re looking for a reliable freight forwarder to help your shipping from China, Tj chinafreight can be your better choice, we’ll handle everything for your next shipment.

Ask for the Best Shipping Rate from China

What is the difference between FOB and CIF?

CIF called COST INSURANCE AND FREIGHT , that mean seller must pay the costs and freight includes insurance to bring the goods to the port of destination.

FOB called FREE ON BOARD, that mean the buyer is at risk and takes ownership of goods once the seller ships the goods.

The major difference between CIF and FOB is the transportation costs and insurance during it.

How is CIF value calculated?

CIF PRICE means : the good of cost, freight and insurance cost are to be added together.

What is the difference of  CIF and CFR?

Like CIF, in Cost and Freight (CFR), the seller is obligated to pay the freight and costs needed for the transportation of goods to the listed port of destination.

Risk obligation for damaged or lost goods and any extra costs is transferred to the buyer.

Of course, this is the moment the goods get onboard the ship at the port of origin.

Just like CIF, CFR compels the seller to do the customs clearance for the goods to be exported.

The main difference between the two arrangements is that, in CFR, the seller is not legally obligated to pay for the shipment’s insurance coverage while on transit.

Why Use CIF?

Buyers may consider buying CIF due to the convenience it comes with.

The incoterm saves you the stress of handling any claims, risk or any issues as far as the freight in transit is concerned.

The term is especially fit for new buyers who are not sure of the complexity of importing goods.
Furthermore, CIF is favourable to importers who are shipping a small quantity of goods.

It is because insurance cost for small quantities may in a real sense be comparatively higher than the amount charged by the sellers.
Sellers may opt for CIF since the arrangement can help them realize higher profit margins.

However, the fact that the goods in transit are still under their ownership places the extra risk on them.

Keep reading:

What is CIF?

When dealing with suppliers in the international market, China included, you will be offered Cost, Insurance and Freight (CIF) as one of the terms of pricing.

Cost, Insurance and Freight is among the 13 international commerce terms popularly referred to as Incoterms.

CIF among other Incoterms was developed by the International Chamber of Commerce.

Why?

To regulate the shipping rules and responsibilities of sellers and buyers involved in international trade.

So, what is CIF as an international commerce term?

With CIF, the seller is responsible for the shipment’s costs, insurance and freight up to the buyer’s port of destination.

In this case, the price includes insurance and sea freight costs to transport the goods to your nearest port.

However, it covers your shipment up to your port of destination only – from there onwards, you assume the responsibility of the cargo.

Why Buy Based on CIF Incoterm?

If you are new to importing business or have a small amount of cargo, then, buying based on CIF is probably your best option.

This incoterm is the most convenient shipping term for you.

You do not have to personally go through the tedious freight and shipping process.

Nonetheless, you should be aware that you will pay more than you should be paying for the goods.

With this term, your supplier bears the responsibility of arranging for the insurance and freight paperwork.

This comes in handy if you are a new importer since you transfer all the freight handling details to the supplier – you simply let the seller deliver the goods to you.

The best part:

This shipment arrangement is an easy way of transporting your cargo from the port of origin to your port of destination.

Of course, without going through many details though, it comes with an added cost.

The supplier will often liaise with their own freight forwarder and increase the cost provided by the freight forwarder as an extra way of increasing his or her profit margin.

However, CIF terms may work to your disadvantage when you begin buying in bulk.

With an increase in CIF shipments, more problems might arise since getting accurate shipment detail gets more difficult.

Your overseas supplier might not act in time when problems come up while your shipment is in transit.

Normally, the seller ceases responsibility the moment the cargo reaches your destination port.

Any rising issue afterwards might cost you extra in per diem, demurrage or unexpected costs relating to shipping.

As an importer, you have to depend on your supplier and the freight forwarder they have contracted.

This makes communication and information flow quite difficult yet even one day delay may be very costly to you as a buyer.

Please take note of this:

It is also important to note that you might find yourself being taxed on the freight and insurance fees yet, these charges are not dutiable.

This is because it can be a hassle separating the charges from the actual invoice amount.

The costs cannot be approximated but must be actual ones and proof of payment rendered to the China customs.

The Sellers’ Obligations

As a seller, here are some of your obligations under CIF terms to:

• Provide the commercial invoice and goods in compliance with the sale contracts.
• The purchase, cost of all licenses and official authorizations related to export, also the contracts and fees of the insurance coverage and transportation of goods.
• Deliver goods within the set timeframe to the buyer’s port of destination
• Bear the associated risk of damage or loss of goods until they are delivered to the buyer’s port.
• Separate customs, freight and related costs.
• Give the buyer adequate notice and proof of delivery, packaging, cover checking and marking costs, and meet any other associated obligations.

The Buyers’ Obligations

At the same time, the buyer is responsible for:

• The payment of the amount reached upon in the agreement.
• The purchase of required licenses and associated authorizations and the receipt of the shipments at the port of destination.
• Transferring risk on reception of the shipments, taking up liability at that juncture for any damages or losses of the goods.
• Separation of the associated costs of the goods such as taxes, customs, duties and related official fees in addition to paying for the goods pre-shipment inspection charges.
• Notifying the seller on delivery timing, issuing proof of delivery, as well as meeting other mandatory obligations, including giving the seller required details for acquiring insurance.

Now, let me take you to yet another important stage on shipping Incoterms.

CIF VS. FOB – Which one is Better for Importers?

As earlier explained, with CIF, the seller does the customs clearance and meets all the costs necessary for the exportation of the goods including, loading onto the ship.

Furthermore, the seller bears all relating costs and risk while the shipment is in transit.

In the case of Free on Board, FOB arrangement, the seller takes care of the transportation of goods to the port of destination.

However, the delivery is assumed complete immediately the supplier releases the shipment to the importer, when the ordered goods are onboard the ship contrary.

Unlike the CIF, where liability and ownership shift to the buyer from the seller when the shipment docks at the destination port.

Additionally, FOB contracts are not restricted to sea freight only, it can as well be used for air freight and inland shipments.

Why Ship FOB?

image source: edukazi

FOB is the most commonly recommended incoterm for most importers.

Why?

Because the term of sale allows the buyer to have sufficient control over both the freight costs and freight itself.

When an importer has the freedom to choose their own freight shippers, he or she definitely has great control over the freight.

He/she has the power to determine the transit time and route taken.

This gives the buyer the advantage of working with one freight forwarder during the whole transportation process. That makes communication simple.

I know you’re wondering how?

Because you will have a central point of communication for any questions or issues that may come up.

Dealing with one forwarding agent also guarantees that the shipper will be working for the best interests of the importer.

Because the primary purpose is to deliver the goods to the buyer’s specified port of destination.

Compared to CIF, where the buyer surrenders all control over the cargo yet acquiring most of the risk.

The seller is in charge of every phase of the shipment until it docks at the buyer’s designated port.

This gives the seller the freedom to contract their preferred freight carrier and determine the transit times.

In case of delay in shipment, the importer enjoys no recourse.

Normally, the buyer has no control over the transportation process and several carriers may be engaged in different stages.

Therefore, obtaining accurate details about the status of the shipment can be very difficult.

After all, the buyer is not the shipper’s customer, thus, no obligation to satisfy their interests.

And, one more thing…

The shipment is only insured up to the port of destination.

Implying, the importer must be prepared to handle customs and pay the necessary fees immediately the cargo reaches their designated port.

From the buyer’s view, any shipping agreement that gives them, control is most preferred.

FOB term gives the buyer more control over the freight shipping process than CIF.

Also, FOB provides control over the associated shipping fees and, ultimately, the general cost of your imports.

For most buyers, it is the most preferred incoterm.

Why Not Use FOB?

We advise new importers not to choose FOB because less liability should be borne by the buyer while goods are in transit.

New buyers who still do not understand the complexity of overseas transportation may make errors that can carry serious penalties.

Therefore, we recommend that new buyers select a CIF agreement until they get adequately conversant with the overseas importation procedure.

Why Not Use CIF?

Compared to FOB, CIF is a more expensive arrangement for buyers.

The seller will invoice you for their costs of insurance and ship the cargo.

Some suppliers might add extra fees in order to make a bigger profit.

In this case, you as the buyer ends up being charged more for the shipping.

Of course, it’s more than you would have been with a FOB arrangement.

But, that’s not all.

Surrendering control over your shipment may be of concern.

In case a problem arises with a CIF shipment, you as the buyer will have difficulties in getting accurate information about it.

It is because the buyers technically do not own the goods on transit.

Additionally, buyers depend on sellers to issue the Importer Security Filing document.

This calls for enormous fines and penalties when filed late by the buyer.

This dependence on the seller may expose buyers to vulnerable situations.

Since insurance is of importance in a cargo shipment, CIF agreement leaves the seller as the main beneficiary of the insurance coverage.

They own the goods in transit and the insurance policy.

Thus, in case a problem finds the goods while in transit, it is the seller who receives the compensation.

At the same time, the buyer had already paid for the goods.

The seller then has to either reimburse or reproduce the goods for you with the insurance compensation.

This most cases may have communication and legal issues.

CIF is a more expensive alternative when importing goods.

This is due to the fact that the seller contracts a freight forwarding agent of their liking.

At times, they may charge the buyer excess so as to have higher profit margins on the transaction.

And don’t forget.

Communication flow might as well be of concern since the buyer depends exclusively on people who are transacting on the seller’s behalf.

Additionally, the buyer might still incur additional costs at the port of destination.

Normally, this cost can be in the form of customs clearance and docking fees before their cargo can be cleared.

In a nutshell:

Each Incoterm has specific advantages and disadvantages to both involved parties.

While buyers prefer CIF and sellers FOB.

Basically, some trade engagements find one term favorable for all parties involved.

For instance, a seller with vast experience with the local customs would most probably take up CIF responsibility.

It is mainly to lure the buyer into taking up a deal.

Smaller parties would always prefer larger companies in the agreement taking liability, because this may lead to lower costs.

Other companies also have exclusive access through customs, filing freight fees when calculating the taxable amount, and other requirements that warrant a specific shipping agreement.

The main difference between CIF and FOB is on ownership and liability transfers.

Often in the majority of FOB agreements, ownership and liability shifts as soon as the shipment leaves the port of origin.

But with CIF, the obligation shifts to the buyer when the goods dock at the port of destination.

Often, we recommend CIF for sellers and FOB for buyers.

CIF enables sellers to get higher profit margins, FOB help buyers save on money and gives them control.

Nonetheless, we advise that new buyers opt for CIF as they learn the importing business and process.

CIF with other Incoterms

Now, let’s look at other Incoterms:

• CIF vs. CIP

CIF and Carriage and Insurance Paid (CIP) are similar in that the seller has the responsibility of paying for the insurance coverage of 110% of the value of the goods.

Normally, this is while they are onboard.

However, as CIF applies to only non-containerized sea freight, CIP covers all modes of transportation.

How does CIF Insurance Work?

Under CIF Incoterms, it is the buyer’s responsibility to ensure they take care of insurance charges for the shipment.

To ensure goods are appropriately insured, the formula of CIF value X 110% is used.

CIF value is obtained by adding commercial invoice value, insurance cost, and freight charges.

The 10% covers any unpredicted costs.

Insurance covers the repair and replacement of commodities at a location other than consignee’s facility.

However, if part of a shipment is damaged or lost, an insurance claim may be prorated.

Ideally, CIF needs clause C, which is a basic level of insurance appropriate for relatively bulk consignments but not manufactured commodities.

In case the shipment is underinsured, the insurer may only need to pay a certain percentage of the consignment.

If the products arrive damaged, it should be noted on the bill of lading at the time of arrival.

This is important since it helps in facilitating an insurance claim.

Can you use CIF Terms with Letter of Credit?

Yes.

CIF is one of the favorable incoterms to use with a letter of credit when sourcing products from overseas suppliers.

Often, under CIF, delivery takes place before the main carriage.

In essence, the carrier gives the importer the transport document, which serves as a control mechanism for the goods.

This document is what is presented to the bank under a letter of credit then passed to the buyer for goods to be claimed.

Many banks and financial institutions do not have issues with issuing the letter of credit for CIF terms.

Even so, there are some instances where banks tend to make a complete mess of the clause surrounding insurance cover.

For instance, they could sometimes require you to present a policy and not necessarily the actual marine insurance certificate.

Also, they could incorporate technical words and requirements, which makes the deal a bit complicated.

Nonetheless, the buyer must demonstrate a willingness to abide by the terms and conditions of the bank.

Consequently, the bank will provide a letter of credit, which is used under CIF terms when shipping goods.

Is CIF Applicable to Domestic Shipments?

Not really.

CIF incoterm is designed for cross-border shipping.

In principle, CIF is only applicable to ocean freight.

Therefore, it becomes relatively difficult to use it when shipping domestic consignments.

The terms in this incoterms outline the specifics regarding ocean freight hence cannot be used for domestic shipments.

How do you Calculate CIF Charges?

To calculate the CIF charges, you need to use the following formula;

Goods invoice + Insurance + Freight + Ex Works Charges.

In other words, CIF cost is the sum of all the above elements.

Ideally, goods invoice refers to the value of commodities as listed on the commercial invoice.

Insurance is the value charged by the respective insurer for the particular product you are shipping.

In many instances, cost of insurance is often based on a percentage of the consignment value.

The freight charge is the amount you pay the shipper for transporting the goods from port of origin to port of destination.

And Ex Works charges refer to the cost of transporting products from seller’s premises to a specific location.

Essentially, when calculating this cost, you must ensure you get it right because payable customs duty is pegged on the value.

When should you Consider using CIF?

Numerous circumstances make CIF a practical consideration in international shipping.

Generally, you would need to consider this option if you are new in international trade.

Alternatively, CIF would be ideal if you are shipping relatively small cargo.

CIF is a relatively convenient shipping mode since you will not necessarily need to deal with freight or other freight details.

Nonetheless, you must also understand that CIF shipping is a bit costly option compared to other means of shipping.

Does CIF include Unloading Charges?

Not necessarily.

It depends on the type of valuation basis on the CIF agreement.

Under CIF, it is the responsibility of the seller to pay for all forms of unloading charges till the specified place of a port.

The buyer, on the other hand, remains liable for the unloading charges at the port of destination and costs thereafter.

From an insurance and risk perspective, it is vital to clearly show the exact place of insured destination in sales contract.

Are there any Key Changes and Updates of CIF Incoterms in 2020 edition?

Not really.

The Incoterms 2020 edition does not necessarily reflect any major updates and changes of CIF.

This rule dates back largely remains unchanged in international shipping.

Can CIF be used for Air Freight?

No.

According to the stipulations of International Chamber of Commerce (ICC), the terms of CIF are strictly designed for ocean freight.

In other words, CIF can be used as an Incoterm only when the cross-border of goods is at least partially by water.

The specific provisions in CIF take care of shipments sent via sea and cannot be used in the case of air, road, or rail transit.

The obligations of both the buyer and the seller under CIF are defined based on ocean freight only.

Moreover, a CIF transaction will always read CIF port of destination.

For example, assuming you are exporting goods from China to Port of Incheon, the CIF transaction will simply read CIF Port of Incheon.

What does CIF Stipulate Regarding Cargo Security?

Arguably, cargo security is currently a major concern on shipping industry agenda.

Incoterms 2020 evaluates and scrutinizes the responsibilities by reference to different activities related to overall shipping process.

In practice, the core applicable security framework is usually the International Ship and Port Security Code (ISPS).

This code is an amendment to the International Convention for the Safety at Sea (SOLAS).

Technically, the obligation of security lies with the designated officials both at the ship level and for shipping terminals.

Often, the carriers will ensure that they charge for security/ISPS, borne by the respective party that contracts the carrier.

What does CIF stipulate about Cargo Insurance?

Generally, the incoterms are somewhat silent on matters regarding cargo insurance.

In this case, the buyer and seller each figure-out whether they wish to have the cargo insured.

But they have to agree on insurance cover for the part of the parts of the journey for which they’re liable for risk of loss or damage.

Under CIF, the seller must purchase cargo insurance for the portion of the journey where they are off-risk after goods delivered to the carrier.

Nevertheless, the insurance is for the benefit of the importer, who must claim it from insurance provider if necessary.

What is CIF Delivery?

This refers to a shipping term under CIF, which stipulates that the seller should be accountable for delivering goods to the destination port.

According to CIF delivery, the buyer has to organize for inland transportation of the goods until they get to the ultimate destination from port.

How does Risk Transfer in CIF takes place?

Under CIF, there are two levels of risk transfer from one party to another.

From the seller’s perspective, the transit process is carried out by the seller from the point of origin to port of destination.

Therefore, the CIF risk of shipments resides with the seller for all this duration.

But once the seller loads the items on the shipping vessel bound for the buyer’s country, the risk shifts to the importer.

The damage uncertainty and duty of goods thus move to the importer.

In such instances, the damage and loss is borne to the buyer should he fail to advise the seller accordingly regarding destination port.

What is CIF value?

It refers to the total cost the seller incurs, which he should consider when quoting the price to the buyer under CIF trade deal.

To determine the actual CIF value, you need to add freight and insurance costs.

While calculating CIF value or cost, the seller needs to consider several factors.

For instance, the cost of making or processing goods, maintaining and packaging of the merchandise.

Moreover, the possible cost to incur in covering insurance and freight for shipping as well as unloading the products.

Ordinarily, it is necessary to calculate the CIF value accurately since duties are determined on the basis of this value.

What does CIF Destination mean?

Ideally, in international shipping, the consignment is always designed to dock at a specific port in the destination country.

Therefore, CIF destination merely means the ultimate port of destination where the shipment will be finally delivered to at the end of the transit process.

It is the specific place where the goods are finally unloaded from the vessel once they arrive at the port of destination.

In simple words, it refers to the importer’s country’s port where the risk transfers from the seller to the buyer.

In such instances, it is always important for the buyer to provide the correct port of destination where the shipment will dock.

Do CIF Terms Include Duty?

No.

CIF is the obligation of the buyer, but it does not include any tax, import duties, or VAT.

However, it includes all the export requirements.

Under this incoterm, the seller is obligated to export and pay all the necessary costs to ship the goods to your port of destination.

Even so, the responsibility for importing and paying all costs associated with importation lies on you as the seller.

Is CIF Suitable for Small Parcel Shipments?

Not at all.

The design of CIF incoterm is to be used exclusively for ocean freight.

Of course, ocean freights are intended for large volume shipments.

Therefore, it would only be ideal to use this incoterm when shipping large shipments.

Ideally, you can use CIF for Less than Container Load (LCL) or Full Container Load (FCL).

For small parcel shipments, it would be ideal to consider other modes of shipping incoterms.

Who Regulates Rules in CIF Shipping?

International Chamber of Commerce (ICC) is the sole agency regulating all the rules and regulations related to CIF shipping.

The headquarters of ICC is in Paris, France. However, all the major trading countries in the world adhere to the ICC incoterms stipulations.

Furthermore, this agency is responsible for revising the incoterm rules, with the latest revised version being 2020 edition.

In principle, all the rules and regulations in CIF shipping are acknowledged by courts and various authorities worldwide.

Of course, under CIF, the seller and buy

If you are buying from Alibaba and shipping to Philippines,  and you need to find the cheapest way to ship your goods from China to your city, this is the right guide for you.

You will get every detail when shipping from China to Philippines, check below content list

Sea Freight Cost Alibaba Shipping to Philippines (We take Shanghai to Manila for example)

Sea freight shipping from your Alibaba supplier is the cheapest way if your goods exceed 1 CBM.

If you have placed your order on Alibaba, then you can try to find a freight forwarder to ask the best shipping cost from China to Philippines.

You may get different shipping rate from different China sea freight forwarder, at Tj chinafreight, if your goods are Over 3 CBM and need LCL shipping, our shipping rate is:

Tj chinafreight warehouse in China to Door in Manila(include ocean freight, destination charge for LCL, duty, vat, customs clearance in Manila), USD200 – 400/CBM Over 3CBM based on your goods detail, free delivery service in Manila.

Ask for the Best Shipping Rate China to Philippines

If you have a lot of goods and need to ship a lot of containers, you may get sea freight shipping rate from ” Zero” to max $50 dollars!

Yes, this is “Zero” shipping from China to Philippines by FCL shipping.

But you will need to pay the destination fee based on your detailed products.

Below is the detailed shipping cost you need to pay when shipping Alibaba to Philippines ( we still take this example: shipping from Shanghai to Philippines)

Suggested Shipping Companies from China to the Philippines

The following shipping companies offer excellent sea freight services from China to the Philippines.

• SITC

SITC International Holdings is a Hong Kong-based leading freight service provider in the intra-Asia region.

Its services range from ocean container shipping to warehousing, LCL shipping, and bulk cargo shipping.

As of December 2017, SITC was operating a total of 77 container vessels and 6 dry bulk vessels.

• APL

APL is a Singaporean based company that ranks among the world largest container and global transportation service companies.

The company operates about 153 vessels calling on major ports around the globe including the seaport of Manila.

• EMC

EVERGREEN Marine Corp currently operates over 150 container ships calling on 240 ports worldwide.

It has its headquarters in Luzhu district, Taiwan.

• WHL

Wan Hai Lines is a Taiwanese shipping line that operates vessels across Asia.

It recently expanded its operations to cover the US, South America, Africa and the Middle East.

Air Freight Cost Alibaba Shipping to Philippines (Shanghai to Manila)

For faster lead times when shipping less bulky items from Alibaba to the Philippines, air freight is suitable.

Although expensive, this freight method guarantees you faster delivery of goods from origin to destination.

For airfreight, these are the main shipping costs;

• Shanghai Factory to Shanghai Airport Trucking Cost

This is just the same cost as that of sea freight.

The particular charges, however, will depend on the distance between Shanghai factory and Shanghai airport.

Trucking like I said is not that expensive in China.

Plus, the excellent road network makes it easy to navigate Shanghai and its environs.

• Air freight Shanghai to Manila

The air freight cost is the expense of shipping items from an airport in Shanghai to Manila.

This cost, take note, varies widely among freight forwarders and it changes every so often.

In this case, you should shop around for a more cost-efficient air freight service.

• Destination Warehouse Charge

The destination warehouse charge is the storage fees that you may incur at the final destination.

This is if you do not have an own warehouse and needs to hire warehousing services.

Like every other cost, the warehouse charges are not constant.

They vary between providers and are based on several factors, i.e., size and type of shipment and storage duration.

• Duty

The duty charges are the import tariff that you will pay at the customs office in Manila.

Calculation of this cost is often based on the value of goods.

If yours do not meet the dutiable threshold then lucky you.
You won’t incur this cost.

• VAT

Unlike the duty charges, VAT tax is payable for all imports regardless of the value.

In the Philippines, VAT is known as sales tax and is capped at 12% of the total value of imports.

• Custom Clearance

Customs clearance as you already know is the clearing of shipments through Philippines customs.

Depending on who you delegate this task to, customs clearance if often done by the freight forwarder or customs broker.

Custom clearance charges are usually a part of the CIF price.

Unless of course if you are handling it alone or using a customs broker whom you’ll pay separately.

The latter option could also cost you more.

• Documents

Documentation is usually a part of the customs clearance process.

You need the right documentation for customs to clear your goods through the Philippines custom in Manila.

• Delivery Charge

This is the charge for picking up and delivering your items from airport in Manila to final destination.

As I said, transportation of cargo in the Philippines is mostly done by trucks.

You may use rail or waterway transportation too when it’s necessary.

Tj chinafreight Best Shipping Solution Alibaba to the Philippines

For LCL shipping from China to Philippines, you no need to provide us any document, just leave your goods and wait at home.

We will provide you best shipping rate and solution to help you reduce shipping cost.

Just send us your goods details and get an instant quote!

Trucking Cost from Shanghai Factory to Shanghai Seaport

If your supplier is in other cities in China, the land cost will be different.

So we still calculate based your supplier is in Shanghai.

If in this case, the trucking cost from your Shanghai factory to Shanghai seaport will be around $50/cbm for LCL shipping, around $140 /20′ container, around $170/40′ container.

Besides, most suppliers in China quote according to FOB terms.

If this is your case, the supplier will be responsible for transporting goods to the loading port ( but you know, the cost must have been included in their quotation).

• Local Charges

Local charges often include:

1. THC
2. Booking fee
3. Documentation
4. Customs clearance
5. Telex-release costs

Please note:

These charges are payable at the origin in China before shipment leaves the loading port.

And like the trucking costs, they don’t cost as much, and most of them are included in the FOB price.

• Ocean Freight Cost from Shanghai Port to the Destination Port

Actually few forwarders will quote you only the ocean freight shipping rate, they often quote you shipping rate including all details like ocean freight, destination charge for LCL, duty, vat, customs clearance in Manila.

• Destination Charge from the Carrier

The destination charges when sea shipping will occur at the destination port of your shipment. In this case, Manila.

Therefore, this cost is not considered as part of the freight costs.

It covers:

1. DTHC
2. Arrival notice
3. Documentation
4. Inspection
5. Unpacking,

Among other things that your cargo may undergo at Manila port.

• Port Charges

Port charges are often payable at the destination port to the relevant port authorities.

Usually, these charges are calculated based on whether you are shipping FCL or LCL.

FCL shipments are often charged per container while LCL shipments per volume of goods which is set per cbm.

• Customs Clearance in Manila

When your goods arrive in Manila and after paying the local charges, you will need to cater for customs clearance in Philippines.

In this case, you will have to present the necessary paperwork for verification of shipment.

Then, you will pay the applicable import tariff and taxes for goods to be cleared for entry.

Note that if your goods worth is below USD200, you won’t be paying any tariff in Manila.

You will, however, have to pay a sales tax which is usually a 12% charge on the total value of the shipment.

Besides, if you are importing certain goods like tobacco, alcohol, minerals, etc., you’ll have to pay excise tax.

This unlike the sales tax is payable at varying rates.

• Delivery from Manila Port to your Warehouse

Once cleared, you’ll have to incur the cost of transportation from Manila port to final destination in the Philippines.

Here, you may use trucks or rail or a combination of both.

The archipelagic nature of the Philippines also makes waterway transportation viable.

Final delivery, in this case, will depend on your preference and accessibility of the warehouse from Manila port.

Documents You Need to Ship from China to the Philippines

With your goods finally in Manila, you will need to present the following documents for customs clearance:

i. Packing List

A packing list is a document that details the contents of a shipment.

It acts as a reference point during inspection and verification of imports.

ii. Commercial Invoice

In international logistics, a commercial invoice is usually issued by the seller to buyer as a bill of sale.

It is a document that details the terms of sale between seller and buyer and is vital for clearance at customs.

iii. HS code

The harmonized system code is a six-digit number that identifies the category of a product and its applicable tariff.

This code is useful in customs processes primarily in the determination of import tariffs and taxes.

iv. Import Permit for Some Goods

In the Philippines, an import permit or license is vital for importing specific products into the country.

It is a government-issued document where a lack of it may deter you from importing goods like foodstuffs and live animals.

Importation of pharmaceuticals, chemicals minerals, and oil and petroleum products also requires a license.

v. Other Goods Information

Other documents that you may need are;

• Certificate of product registration (when importing food and drug items)
• Certificate of origin
• Customs import declaration
• Bill of lading document/airway bill (this mandatory for ocean and air freight shipments respectively).

Express Shipping Alibaba to the Philippines

If you need to deliver product samples or valuable documents fast and cheaply, express shipping suitable.

It will cost you less and takes lesser time to deliver compared to if you use freight means.

In the case of express shipping from Alibaba to the Philippines you can choose from the following options:

• DHL

DHL offers comprehensive trackable express shipping services from all parts of China to the Philippines.

Their service package includes complete pickup, customs clearing, and delivery.

• UPS

Express shipping with UPS from Alibaba to the Philippines won’t cost you anything more than USD5 per Kg.

Their services are generally cheaper than of most providers in this market.

They are also equally reliable and quick.

• SF-express

SF-express is also a popular choice for express shipping from Alibaba to the Philippines.

The company was founded in 1913, in Shenzhen China.

Currently, it is the second largest express courier service in China with net revenue of USD3.3 billion as of March 2017.

Now;

As you consider express shipping, please note that the fees here are usually set up by the suppliers.

In this case, your supplier on Alibaba will calculate the shipping costs based on the weight, size, and volume of your package.

The larger your package, the more you will pay.

This is why it is advisable to only use express shipping for packages less than 150kgs.

That said, do you know the best incoterm to use when importing from Alibaba?

Let me tell you which ones below.

Incoterms Tj chinafreight Recommends when Buying Products on Alibaba

There are lots of incoterms in international logistics.

However, each Incoterm is best for a certain scenario.

In our case of Alibaba to the Philippines, using the following terms could save you lots of headache, time and money.

• FOB

FOB (free on board) is the most common incoterm used on Alibaba.

Buying on FOB terms relives you of the trucking costs from factory to loading port.

This cost, as I’ve told you before, is usually a part of the FOB price.

You, as the buyer, however, will be responsible for shipping the items from loading to a destination in the Philippines.

• EXW

EXW stands “Ex works” is often followed by the name of a place, i.e., EXW Shanghai.

In this case, it means that the supplier is only responsible for availing the goods at a warehouse in Shanghai.

From thereon, you will take over the costs of transportation from Shanghai to loading port and finally to Manila.

Generally, buying EXW means that you will take care of all costs of shipping from Shanghai to the Philippines.

• FCA

FCA which stands for “free carrier” means that the seller will only avail the goods at a named carrier.

From thereon, all costs and risks pass on to you, the buyer.

These are the three terms that Tj chinafreight recommends you use when buying from Alibaba.

How Tj chinafreight help your shipping from China to Philippines.

Tj chinafreight, will help you in every aspect whenever you’re shipping from China to Philippines.

At Tj chinafreight, our knowledge of the Filipino market is quite extensive.

Every year, we ship over 6000 TEUs from China to the Philippines.

We ship all kinds of products from furniture, floor mats among other goods.

With Tj chinafreight, you won’t need to hasten the importation process for fear of missing shipping space.

No!

Our cooperation with major carriers and players in the market guarantees us a lot of things.

From enough shipping space to discounted shipping prices and more.

Besides, when shipping with Tj chinafreight, you don’t even need to bother with documentation.

We will take care of all the paperwork as well as do quick customs clearance for you, in the Philippines.

Our costs? Not much.

We are very competitive with our prices.

Want to know more about our service or shipping from Alibaba to the Philippines?

Feel free to drop a comment below.

You can also contact us through email or phone call.

Otherwise, good luck with your venture.

If you want to import goods from China to the Philippines, then this article is for you.

Here, I am going to introduce you to the basics of this venture.

It will help know what it is you are getting into.

So let’s dive right in.

How to Ship your Goods from China to the Philippines?

When importing from China to the Philippines, you can:

1. Let your supplier handle it
2. Do it yourself
3. Hire a China freight forwarder to do it

Do I need import license for importing from China to Philippines?

No general import permit for importing products from China.

But you might need a permit to import from a federal agency certain goods from China.

Where to Source the Best Products in China?

Here is where you might find the right products for you

· Online Sourcing Websites
· Trade Shows
· Online Searches
· Sourcing with a Sourcing Agent in China

Which Popular Products to Sell in the Philippines?

The Philippines has an extensive market for made-in-china products.

If you want to import safely and sell hassle-free you can consider the following products:

Furniture items like office desks, dining sets, beds, cabinets, etc.
Machinery and plant equipment
Tricycles, motorcycles, and bicycles
Steel products
Ceramic items
Electricals and electronic equipment
Construction materials
Vehicles
Plastic and plastic products
Paper
Pharmaceuticals and medical equipment

These are not the only ones. Of course, there are many other products that you can import from China.

You just need to do your research, identify your niche and then work on it.

Let’s move on.

• Where to Source the Best Products in China

Where to Source the Best Products in China

Sourcing products from China can seem daunting, but in a real sense, it isn’t.

You just need to do due diligence in finding the right supplier to deliver the products that you need.

Here is where you might find the right products for you

· Online Sourcing Websites

Online sourcing websites are large online directories where manufacturers list their available products.

These sites include Alibaba.com, made-in-china.com, globalsources.com, etc.

They are incredible resources to browse and see the selection and type of products available.

Here, you can get a general idea of what is available and general pricing information.

Besides, most suppliers list their MOQs here as well.

The best part:

You can chat and contact suppliers/manufacturers directly on these sites.

· Trade Shows

Visiting trade shows is an excellent way to see the product selection available in China as well as meet potential suppliers.

Here, you can walk the floor and have an up-close view of all the products in different industries.

You get to meet the sellers in person and talk business with them immediately.

When you meet potential sellers in trade shows, I recommend that you talk to them there and then and later do a factory visit.

This is so that you can be sure of the sellers’ capability to deliver the kind of products that you need.

The biggest trade show in China is the Canton fair which takes places twice a year in spring and autumn.

There is also the Hong Kong mega show which takes place annually.

· Online Searches

You can locate suppliers in China by performing a targeted search on your favourite search engine.

To avoid the thousands of results that comes with general searches, use specific keywords.

The best way to do this is to type in your ‘product +supplier, factory or manufacturer + china.’

If you find this overwhelming, you can try using China sourcing agents.

Allow me to explain this in the next section.

· Sourcing with a Sourcing Agent in China

If you don’t have much experience dealing directly with suppliers in China, a sourcing agent maybe ideal.

An experienced sourcing agent will help you find the right products in China and oversee their quality.

He/she will generally take care of most of the sourcing process.

All you need to do is provide specifications and instructions on how the product should look/feel like.

Ideally, using a sourcing agent is the best and most reliable way to source from China without having to travel there.

With this, you will less likely encounter scammers or fraudsters trying to rip you off your hard earned money.

The bottom line:

There are multiple places and ways to source products from China.

What’s important however is finding the right supplier for the product – one who is reliable and you can trust.

Tip: Always strive to have a long-term business partnership with Chinese suppliers. This way, you will get the best deals.

Well then, let’s go into more profound facts.

Product Quality Inspection: How to Assure Quality Imports from China

Taking due diligence when sourcing from China is quintessential.

Well, fine!

I know you can do everything online from your location in the Philippines. Even in Alibaba shipping to Philippines, quality is something you cannot overlook.

But then in 2018, online transactions come with a lot of risks like scams and in this case, getting poor quality products, etc.

If your interest is to establish a long-term relationship with your supplier, you need to perform adequate diligence.

For this, you can physically travel to China to visit the factory/warehouse of your potential suppliers – to ensure that everything is in order.

Or, you can get an experienced third party inspector to represent your best interests on the ground in China.

Either way, you need to ensure the quality of your imports from China.

You have to start by verifying the legitimacy, reliability, and suitability of your supplier.

And then, ascertain product quality by doing factory inspections at every step of the manufacturing process

This is the only way to ensure that only the products meeting your requirements are loaded for shipping.

How to Ship your Goods from China to the Philippines

When importing from China to the Philippines, you can:

1. Let your supplier handle it
2. Do it yourself
3. Hire a China freight forwarder to do it

The first option is quite common among first-time importers as it is simple and cheaper (as most think at first).

The second option is handling the shipping yourself which can save you money but not time.

Here, you will have to book the shipping space yourself from the shipping company.

You will also have to manage all customs processes both in China and your country.

Well, handling the shipment yourself can be stressful especially if you are not familiar with the process.

It is also time-consuming.

Now, the third option which I mostly recommend is hiring a shipping agent in China to handle the shipment.

It is convenient as you will be dealing with professionals in the import business.

Tj chinafreight has shipping service every week from China to Manila, whether if you have import license or not, we can handle your shipment and ship your goods to your home or warehouse.

Below is Tj chinafreight rate:

Tj chinafreight warehouse in China to Door in Manila(include ocean freight, destination charge for LCL, duty, vat, customs clearance in Manila), USD200 – 300/CBM Over 3CBM based on your goods detail, free delivery service in Manila.

Shipping Methods

On how to ship the products from China to the Philippines, there are three ways to do it.

• International express shipping using courier services like FedEx, UPS, DHL, China post, and SF express.
• Air freight; this is shipping by air using airplanes, and it is best for shipping samples and smaller orders.  It can, however, be costly.
• Ocean freightwhich is shipping by the sea which is best for larger orders and bulky items.

Here there are many options.

1. You can book FCL or LCL shipping depending on the quantity of your cargo.
2. You can also book Reefer, Roro or OOG shipping also depending on the kind of product you are shipping.

Apart from these, you can generally drop ship the products directly from your supplier to your customers.

You can also choose a door to door delivery service.

Here, your freight forwarder will help pick the goods from your supplier and deliver them right at your doorstep.

Generally, the best method of shipping goods from China to the Philippines will depend on your delivery timeline and budget.

In both cases, you need to use a shipping method that is suitable for your supply chain needs.

Of importance is to work with a reliable china freight forwarder as this will help you get a better shipping deal.

Incoterms You Can Use to Ship from China

Incoterms are three-letter codes that describe the responsibility of an international seller to an international buyer.

Simply put, they are sort of an outline of what the sellers’ liabilities and responsibilities are in the import transaction.

Now, there are lots of incoterms that you can use to ship from China.

Some of these are;

· EXW;

It stands for ex-works and often, a named place follows it, i.e., EXW manila.

This incoterm doesn’t put much on the seller regarding responsibility.

All they need to do is to avail goods at the named place, and that’s all.

Usually, this is their warehouse in a named city/town in China.

· FOB;

It stands for ‘free on board,’ and it is a pretty common incoterm when shipping from China.

Shipping FOB means that the seller is liable and responsible for the shipment until they departure from loading port.

Once the shipping vessel leaves the loading port, all risks and responsibility transfers to the buyer.

· CIF;

Cost insurance freight shipping is also common in the ship from China business.

CIF costs are often inclusive of insurance and other expenses from the supplier’s warehouse, up to the destination port.

The buyer, in this case, you, only assumes liability of goods from the destination port thereon.

· DAP;

This incoterm stands for ‘delivered at the place.’

Like EXW, it is often followed by a named place or destination where goods are to be delivered.

In DAP shipping, the seller is entirely responsible for delivering goods from factory in China to final destination in the Philippines.

· DAT;

Itthis stands for ‘delivered at terminal.’

In this case, they have to transport the goods from the supplier’s factory in China to a specified airport/seaport terminal in the Philippines.

Here, the seller is responsible for all costs including loading, shipping, and unloading at the destination port.

This cost also includes the local port charges both in China and the Philippines.

Unlike DAP, however, this incoterm does not include delivery cost from the terminal to the final destination.

*You can find more information on incoterms at the International Chamber of Commerce website.

So which is the best incoterm to use?

Well, before I answer that, there is something I would like you to understand:

This is that you should not make the mistake of thinking that shipping EXW is cheaper.

Well, it’s not (at least in my opinion) and, thinking that it is cheaper is a mistake that most first time importers make.

To the best of my knowledge, the best incoterm to use when shipping from China is one that takes your shipment as far as possible.

This is the one that will help reduce risks and costs for you.

In this case, EXW and FOB are not applicable as shipment does not leave China.

Nevertheless, if this is not your first time importing from China, you should work with FOB, EXW or CIF terms.

Also, if you are familiar with China import processes, the above incoterms can work for you.

The above terms will give you more control over your shipment and thus control of the cost over shipping.

So choose what works best for you.

Import Taxes and Duties in the Philippines

Importing goods from China to the Philippines is easier this 2018.

This is all thanks to the ASEAN trade and good agreements that exempts almost 99% of goods from tariffs.

Shipments whose worth is below USD200 (P10, 000) are also exempted from importation tariff in the Philippines.

Now, I want you to note that your import duty in the Philippines will be calculated using the customs value of your shipment.

Note: The customs value is the value of shipment estimated by customs officers.

Therefore, if your goods exceed USD200, you will have to pay a specific duty set at 0%-65% depending on their value.

So let’s say that your imports into the Philippines totals USD1, 000 and the applicable duty rate are set at 5%.

Your payable duty charge, in this case, will be;

5% x 1,000

= USD 50

Apart from the import tariff, there are also other taxes that you may have to pay depending on the type of goods.

The VAT tax is also known sales tax in the Philippines.

This tax is set at a standard 12% irrespective of the value of the shipment.

So on the declared value of USD 1000 the payable tax will be;

12% x (value of goods + duty charge)

= 12(USD1000 + USD50)

= 12(USD1050)

Sales tax = USD126

In this case therefore, the total import duty and taxes for a shipment valued at USD1000 will be;

= USD (126 + 50)

= USD 176.

Please note:

1. The declared value is crucial in the calculation of import duties and taxes.

Nonetheless, you cannot declare a large volume of goods under USD200 just to get rid of the duties and taxes.

Philippines customs often ask for the commercial invoice to confirm the value of the good.

So lying, in this case, can land you in big trouble.

1. As for the tariff, different goods categories have different tariff rates.

It is therefore hard to know the applicable tariff rate without knowing the type of good and the HS code.

The harmonized system code is what customs use to locate the applicable tariff for a particular category of goods.

1. Other taxes apply to certain kinds of products.

For example, alcohol, tobacco, perfumes, jewelry, petroleum products, etc. are subject to excise tax in the Philippines.

Wrap up

Importing goods from China to the Philippines can either be relatively easy or difficult.

If you are equipped with a full understanding of the process, it will be an enjoyable experience.

Otherwise, it will be stressful.

That said, I hope all the information I’ve given above will be helpful.

Use it as a guide to help get you started and take action towards finding and importing products from China this 2018.

If you have any questions on shipping from China to Philippines, welcome to contact Tj chinafreight anytime.

Shipping container to Philippines from China may cost you a lot if you’re not familiar with importing from China.

These are 7 must-read tips when you’re shipping goods from China to Philippines.

Keep reading:

#1 Ask Your Freight Forwarder about the Details of Charges at the Destination Port

If you are shipping with FCL, your forwarder may quote your shipping rate as “0”, or maybe around $50 for every 20ft container.

You will pay a lot at the destination port.

For example, shipping from China to Manila port, the destination charge will be around $500 for every 20ft container and around $800 for a 40ft container.

If you do not know about the destination port charges, you may regret when picking up your goods in the destination port.

If you are shipping with LCL, your forwarder will often quote an “all in” shipping rate.

For example, if your goods are over 3CBM, check Tj chinafreight shipping rate:

Tj chinafreight door to door shipping to Manila from China (include ocean freight, destination charge for LCL, duty, VAT and customs clearance in Manila), costs 200 – 300 USD/CBM. Over 3CBM is based on your goods’ detail and free delivery service in Manila.”

If you need a detailed quotation on shipping container from China to Philippines, please contact Tj chinafreight.

#2. Ensure You Have Both Import License and Import Permit for Special Goods

Before you import goods from China to Philippines, ensure you have an import license.

Without it, you will get into trouble during customs clearance at the destination port.

And, Philippines customs will confiscate your goods.

If you are importing special goods like chemical goods, vehicle, boat, kayak, cement, etc. you need a special import permit.

You can visit here to know more about how to get the import license.

PS: If you do not have an import license and import permit, or you do not want to spend much time on this, then contact Tj chinafreight.

We can import and ship goods to your home or warehouse with only a packing list.

You do not need to provide any other documents to us.

Ask for the Best Shipping Rate China to Philippines

#3. Use SOC Cargo if your Warehouse is in Remote Area of Philippines

If you are shipping your goods to remote regions like Puero, Princesa, Coron or Zambonaga, you should take care – do not use the carrier’s containers.

Because, for example, let’s say your destination port is Manila.

When the container arrives in Manila, after customs clearance, you will use domestic shipping service to transport the container to Puero.

It may cost you around $1400.

And then, after loading goods from the container, you have to ship it back to Manila.

Again, this will cost you around $1400.

This will cost you A LOT.

So Tj chinafreight suggests:

Buy an empty container in China to ship your goods.

One 20ft container will be around $1300.

Then, after loading your goods from the container, sell it in your local market.

This way, you will save at least $2000 for every container shipment.

#4. Ensure Both Documents and Goods have the Same Details

On every order, the goods’ weight, the quantity of package, pieces, and volume, must be the same as the real goods.

In case of any mismatch or discrepancy, Philippines customs will confiscate your goods, and you may lose them forever.

#5. Get Phytosanitary Certificate for Pallet Goods

A phytosanitary certificate is a must when shipping from China to Philippines.

Without it, you cannot do customs clearance at the destination port.

Below are details of a phytosanitary certificate.

Often, your supplier in China will give you a phytosanitary certificate.

If they forget, remind them to make a phytosanitary certificate for you. This is very important!

#6. Let Your Supplier Provide you with the Form E Certificate

Often your supplier will provide the Form E certificate.

Remember to keep the value of goods on the Form E lower than the real goods value to reduce your customs clearance cost.

If your supplier cannot provide the Form E certificate according to the requirement from a broker in Manila, find a forwarder to make a third party Form E certificate.

This way, you will reduce costs.

Tj chinafreight also provides this service at competitive rates. If you need the third party Form E, contact Tj chinafreight directly.

#7. If  You Ship Mixed Cargo, Provide Detailed Packing List for Customs Clearance in Philippines

You may ship multi goods from China. For example, you can put over 300 different kinds of goods in a container.

It is impossible to write all product names on the B/L – this indicates your merchandise.

So you must provide a detailed packing list for all your goods, the product classification, quantity, pieces, gross weight, and volume.

If you do not provide this, your goods will be seized by Philippines customs.

Conclusion

Every tip you can see above will make customs clearance easy, besides saving you both time and money.

Honestly, you need to know a lot when shipping container to Philippines from China.

If you still have more problems when importing from China, contact Tj chinafreight at any time.

We will solve all your problems about shipping from China to Philippines.

Related Article:

How to Import from China to the Philippines in 2018

Alibaba Shipping to Philippines: Get The Cheapest Shipping from China

I know you’re probably looking for the best Incoterm that will help you reduce liability and cost.

Well, the reality is:

Every Incoterm has advantages and disadvantages, depending on whether you’re the seller or buyer.

Also, the circumstances you’re doing the business also play a vital role.

Today, I want to talk about EXW Incoterm.

I will explain what it is and how it works.

Furthermore, I’ll walk you through its advantages and disadvantages.

And, later, you’re going to learn about buyers’ and sellers’ obligations under EXW incoterm.

What is EXW?

EXW is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs.

What is the Advantages to the Buyer of EXW?

All expenses and charges are the responsibility of the buyer, so they have total control and openness of the entire delivery process.

Buyer enjoys complete control of the costs which would not be overcharged by the seller.

Buyer can organize for the transportation and delivery of goods on their personal terms. For example, they determine the provisions of transport, time of delivery, fulfilment method, and terms of insurance.

What is the Disadvantages to the Buyer of EXW?

Export customs clearance can be complex as on numerous occasions they entail a lot of paperwork from the seller.

There could be extra expenses when transporting across international boundaries. For example, you would need to purchase, export licenses. This is where you do not possess the necessary license to export their merchandise.

Buyer bears total responsibility for the better part of the shipping process. This can complicate the process and even incur hidden charges. The buyer is also liable for damaged, lost or faulty goods. Thus, it is necessary to carry out research prior and exercise due diligence during the whole process.

What does EXW shipping terms mean?

The seller makes the goods available at their premises, or at another named place. … The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination.

If you’re looking for a reliable freight forwarder to help your shipping from China, Tj chinafreight can be your better choice.

What is EXW?

EXW, an acronym for Ex Works. It implies that the delivery of goods is regarded as complete once the seller delivers them to the buyer’s location.

The buyer’s location can be his/her warehouse or factory.

With EXW terms, the seller is not responsible for loading the goods onto the transporting vessel or handling the export customs clearance.

This Incoterms gives the supplier the least responsibilities.

You should avoid it in case the buyer is not in a position to directly or indirectly manage the process of exporting goods.

The EXW shipping term is flexible, you can apply it, despite the mode of transport.

Nevertheless, if both transaction parties choose to share the risks and responsibilities associated with loading the product during shipment, the agreement must be plainly declared.

EXW shipping terms are more suitable for domestic transport of goods.

Where the buyer can employ the services of, their logistic partners or freight forwarding agent to manage the transport.

This way, it will be cheaper and efficient, unlike when the seller manages the whole delivery process.

How EXW Shipping Terms Work

EXW costs are calculated by importers so that they may be able to save money from their purchases.

It gets rid of the value added for shipping by the seller.

An alternative form of EXW terms is the Free on Board (FOB) Incoterms.

Here, the seller bears the cost of carrying its products to a shipping terminal.

Also, the seller covers all the customs expenses to get the consignment on board the vessel.

However, the buyer covers the cost of getting, engaging and paying the carrier.

Furthermore, the buyer pays for the customs fees when the shipment arrives at the country of destination.

The importer as well pays all costs of insurance.

In reality, the majority of buyers sign contract of sales mainly in EXW terms, but in essence end up shipping on FOB terms.

Many times, the export customs declarations are still done in the seller’s name and it is them who enjoy the gains from:

• Foreign exchange
• Tax write-off
• Refund

The costs of export customs clearance are borne by the seller under such an arrangement.

But, in actual fact, this sharing of responsibilities and risks is FOB terms.

You should enter into an Ex works shipping from China term if the buyer is:

i. Capable of meeting all costs

ii. Cover risks during transactions – export and import taxes, alongside the paperwork

Also, this Incoterms compels the supplier in China to:

a) Assist in acquiring the shipping and customs paperwork

b) Ensuring they correctly register the contents of the consignment

However, as soon as the delivery has occurred at the seller’s location, all expenses associated to export violations or damages will be borne by the buyer.

Actually, EXW is at times not a practical Incoterms because of some jurisdictions’ customs rules.

For instance, in the European Union, a non-resident person or company cannot fill out the export declaration documentation.

Thus the importer may be left helpless.

In such situations, the most preferred shipping term is FCA.

Advantages and Disadvantages of EXW

In Ex Works, the importer is liable for all the risks and expenses from the point and time the goods have been made available to them.

So diligence and comprehensive planning are necessary.

EXW can be complicated and tricky for a buyer shipping from China.

This is because they will still require the supplier’s authority or communication in order to clear the merchandise through customs.

Or, give documents to freight partners during the transportation process.

Shipping on Ex Works terms may be the best alternative for sellers with inadequate knowledge in logistics and overseas shipping from China.

Considering that the only responsibility borne by the seller is to make sure that the goods have been packaged properly for delivery to the purchaser’s disposal.

There are minimal consequences for the supplier.

But irrespective of the reduced risk, the EXW terms may not be the most economical choice for the seller.

When you decide to solely use EXW Incoterm as a supplier, a buyer may opt to select another seller with a more appealing and simpler deal.

Obligations of Parties in EXW

Under EXW, the seller avails the goods to the buyer at the supplier’s chosen place of business.

This Incoterms gives the greatest responsibility to the importer and minimum obligations on the exporter.

The seller is not legally bound to do the customs clearance for export.

He/she is not responsible for the loading of goods onto the shipping vessel at the designated point of departure.

The table outlines the 10 responsibilities of both the seller and buyer as expressed in Incoterms 2010.

What is the Difference Between EXW and FOB in Shipping Terms?

Both EXW and FOB are Incoterms dictating various responsibilities of buyers and sellers in international shipping.

However, they vary in a few aspects, which include the following;

Under EX works, the seller is not mandated to load the cargo on buyer’s designated mode of transport.

Instead, it is the buyer’s responsibility to ensure they take the goods to the respective buyer’s selection. While at it, it is the buyer that incurs the transport charges.

Shipping and associated risks are no longer a liability for the seller under EXW option; hence this incoterm tends to favor the shipper.

On the other hand, under FOB, the seller must load goods on the buyer’s preferred shipping method and the selected shipping point.

In some instances, the seller may also be responsible for the goods throughout the trip to the ultimate seller’s destination.

In essence, FOB means the seller retains ownership and liability of the goods until they are loaded “on board” shipping vessels.

But immediately after the goods are loaded on the vessel, the risk transfers to the buyer.

Technically, EXW is more favorable to the seller even though the seller also has limited responsibilities.

However, FOB is relatively more favorable to the buyer than a seller. It incorporates more responsibilities to the vendor.

How do EXW and CIF Compare?

In international shipping, you can choose the specific shipping incoterm, which fits your particular demands.

EXW and CIF are ideal options you decide to explore since they offer great benefits depending on whether you’re seller or buyer.

In EXW, the importer assumes all the costs and risks associated with the shipping of the consignment.

The seller under EXW only has to ensure the goods are ready and available for pick-up at their respective business premises.

On the contrary, the seller assumes all the responsibilities and risks associated with the transportation of the goods under CIF.

In this case, the sellers take care of all aspects revolving around shipping the consignments until it reaches the buyer’s port of destination.

These include freight charges and export customs clearance as well as cargo insurance to the destination port.

But the importer under CIF is responsible for unloading the shipment from the vessel at the port of destination.

Moreover, the buyer will also take care of customs clearance at the port of arrival and pick up of goods.

Nevertheless, the buyer is responsible for cargo insurance and in-land transportation or trucking from the port to their premises.

Essentially, EXW is more favorable to the seller since they are obligated to a few liabilities in the entire cargo shipping.

CIF, on the other hand, tends to favor the importer since most of the liabilities are under the seller throughout the shipping process.

Where does the Risk Transfer from Seller to Buyer in EXW?

Ex-Works implies that the seller accomplishes his role the moment they avail the goods at their premises ready for buyer’s collection.

Any other activity beyond this point is not the buyer’s obligation.

In other words, under the term EXW, the role of the seller is to make the goods available at their premises.

The carriage of the goods is organized by the importer.

Therefore, risks and any associated costs are transferred to the buyer immediately the goods are made available to the buyer.

Once the buyer collects the goods from the seller’s premises, all risks and related costs are transferred to the buyer.

This is arguably the safest incoterm as far as risks and costs associated with the seller are concerned.

The seller is never involved in any activity beyond availing the goods for the buyer to collect.

Can You Use Letter of Credit with EXW Shipping?

Yes, but not necessarily advisable.

EXW is somewhat extremely difficult to arrange payment by a letter of credit.

In many instances, banks always want to see a negotiable airway bill, bill of lading, or copy of rail or road transport document.

However, under EXW, it is clear the seller is not responsible for shipping hence not entitled to receive any shipping document.

As far as the vendor is concerned, to make a feasible letter of credit, you would need a commercial invoice, packing list, and copy of buyer’s receipt.

The seller is also under no obligation to receive a certificate of origin, which should be arranged by the buyer as carrier’s exporter.

In this case, the risk to the seller is that the buyer has already received the commodities.

So if the buyer makes mistakes on the documents, is non-compliant or unscrupulous, they can claim spurious discrepancy and refuse to pay.

Therefore, a letter of credit is unsuitable for EXW incoterm since it presents several loopholes that can easily make the financier not pay the vendor.

Even so, you may consider it under extreme circumstances, especially where the involved parties have established unprecedented trust.

When is it Suitable to use EXW Shipping?

Several circumstances can make EXW shipping a considerable option.

Even so, many businesses often opt for EXW Incoterm when the seller is unable to export.

At times, the seller does not meet the minimum requirements to export the respective products.

Therefore, it becomes difficult for such vendors to take up the responsibility of exporting the goods beyond their business premises.

At times, you can choose this agreement as an importer looking to combine multiple shipments and,after that, export them under a single name.

Of course, this often happens with importers who source different types of products from numerous suppliers.

In such instances, you’ll only need to make your order to the respective supplier and pick it up when ready, and combine all as one shipment.

The advantage of this kind of arrangement is that it allows you to save a considerable amount of money and also offer convenience.

Another instance you would opt for an EXW agreement is when shipping via air express.

Most express couriers typically collect the goods from the supplier’s doorstep and deliver them to the buyer’s premises.

Express shipping, also known as door-to-door shipping, would be the ideal choice for EXW terms.

If you’re an established importer with set up offices in the exporting country, you’d also consider EXW incoterms.

In essence, such importers often use this method to ease the processing of their shipments.

Merely, you’ll need to collect the items and store them in your offices in the export country before shipping them to destination country.

How do you Calculate EXW Price?

As an importer, it is always necessary to know the full cost of shipment.

Ideally, this would involve some time in getting quotes from suppliers other than the seller.

Nonetheless, when calculating the cost of EXW, the vendor only provides the importer with the quote for cost of commodities.

It is the buyer’s prerogative to research the cost of an export license, possible cost of customs and shipping and insurance charges.

Of course, for a first-time importer, this can be relatively challenging and a bit risky in case you make a mistake.

In general, the seller under EXW will quote the price of the goods as decided by him.

And in case the seller and buyer agree that the former will transport the items, then the former must pay back the cost.

The reason here is because it is not the responsibility of the seller to cover such extra expenses.

In a nutshell, when calculating the cost of EXW, you must ensure that each leg of the journey is considered.

What are the Risks to the Buyer of EXW Shipping?

They are quite a number, especially from the importer’s perspective.

For instance, immediately after the items leave the factory or supplier’s premises, the buyer takes full responsibility.

Therefore, it is the obligation of the buyer to take an insurance cover for the goods.

Another risk is that at times not all goods clear customs in the country of origin.

Apparently, under EXW, it is solely the buyer’s problem in case customs paperwork isn’t in order.

Also, this can be problematic in instances where there is a need for inspecting the goods at the customs before clearance.

In such circumstances, the seller won’t be responsible for any additional costs incurred at the customs; instead, it would be the buyer.

When importing in some countries, the customs authorities would need the exporter to assist a few elements regarding goods clearance.

Thus EXW would not be an ideal option when importing such goods since it’s likely to subject you to delays and inconveniences.

Moreover, if the seller makes an error or omits some vital information on the paperwork, the buyer is held responsible.

At times this can be a bit costly, but in the end, it is the buyer will incur such expenses.

For a new buyer, you may have to factor in all the costs, such as obtaining an export license.

This may take a bit of time to process, including other paperwork, quotes, and dealing with multiple suppliers.

Of course, this consumes more time, which a new importer perhaps may not necessarily have.

The bottom line is that EXW has more risks to the buyer hence must be considered diligently.

Are there any Loading Limitations of EXW Shipping?

Arguably, the EXW Incoterm is the most comfortable option for many exporters or vendors, especially with little experience in shipping.

Of course, it is because the seller’s responsibilities end with preparing the commodities and ensuring they are collected.

Even so, in many instances, this could be a bit inconvenient for the importer.

A buyer out of the country or perhaps have a limited understanding of local market will find it difficult to maneuver around.

In such a scenario, the buyer will have to arrange for separate loading services on seller’s loading ground.

And this can be daunting since the buyer may not necessarily be familiar with such surroundings.

Also, any damage, which occurs during loading of goods is entirely the buyer’s responsibility.

Obviously, this can be disadvantageous to the importer since they stand higher chances of incurring a significant loss.

This is often common when handling relatively fragile goods.

Who Handles Customs Clearance Procedures in EXW Shipping?

Technically, the entire responsibility for moving goods from the start rests with the buyer.

Therefore, any other activity involved upon collection of the shipment is the buyer’s obligation.

In short, the buyer is the party handling both export and import customs clearance procedures under EXW.

The vendor only provides the necessary customs clearance documents such as commercial invoices and packing list.

However, at buyer’s request, the seller can facilitate the customs clearance process again at the cost of the buyer.

Furthermore, as a buyer, you can seek services of a reliable freight forwarder to assist you in facilitating customs clearance process.

What are the Ideal EXW Tips and Tricks to know?

When opting for EXW, you must ensure that you use a few but critical tips and tricks such as the following;

• If the exporter will assist in loading the commodities, ensure to include the arrangement somewhere in the contract.

This, however, should never be a problem if you are importing from China, particularly with a reputable freight forwarder such as Tj chinafreight.

• Under EXW, the buyer is not obliged to arrange a contract of carriage. It, therefore, implies that the importer may sell the commodities to a customer who will then organize how to collect the same.
• Always ensure that the exporter hands over a courier receipt or FCR to the buyer’s freight forwarder. This is a better option rather than handing over the Bill of Lading or Airway bill.
• Sellers will never have direct evidence of export in case they should otherwise be able to claim a rebate from domestic sales tax.

Is EXW Agreement Suitable when Importing from China?

Yes.

EXW is a viable option to consider when importing from a Chinese supplier without an export license.

It is also suitable when you are considering an express shipping option.

Nevertheless, you need to carry out due diligence before committing to the particular type of shipping incoterm.

Conclusion

Parties to an agreement must clearly define the law governing their trade contracts.

Ex Works shipping terms is the most preferred term by sellers.

It is because it gives

If you are interested to know how to import products from China to Pakistan, then you are in the right place.

Do you know what importing good is?

Importing goods means buying goods from vendors.

Which Product is Suitable for You to Importfrom China to Pakistan?

1.1 Kids Products to Import
1.2 Tools and Hardware
1.3 Sports Equipment
1.4 Apparel and Garments

How to Find a Profitable Product Import to Pakistan?

You are completing all the process carefully like
1. You may find your supplier
2. You may find a good price
3. Get a high quality product

Find reliable Amazon shipping agent
Boosted listing

How to pay Import Products from China to Pakistan?

Different methods you can follow

7.1 Bank Transfer
7.2 Western Union
7.3  PayPal
7.4 Secure Payment or Escrow Payment

What Are The Shipping Terms Mostly Used in Importing from China?

International standard shortcodes help you to decide when freight will be shifted from provider to importer.
FOB, DAP, LCL, FCL

Have a look at this outline to get an idea of this article:

1-What Products to Import from China to Pakistan

Importing business isn’t a bad idea, you can earn far better as compared to other businesses.

You can get different types of products from China at economical rates.

China manufactured everything you need.

Pakistan is used to import from China, almost everything.

You can check the list of items here

1.1 Kids Products to Import

If you want to get quality products for your kids, China has the best collection ever.

Check out this list for kids’ products

• Kids outfits
• Dolls, puppets, and stuff toys
• Remote control cars for kids
• Baby carts
• Swings, slides, and all playground equipment
• Colorful bouncy castles

1.2 Tools and Hardware

Every industry needs problem fix tools and equipment. Go through from the list of tools import from China to Pakistan

•   Wielding tools, plastic & steel pipe wielding machines
•  Complete hydraulic unit
•  High quality power tools
•  Agriculture machinery
•  Modern furniture hardware
•  Casting products
•  Poultry equipment
•  Forged items like Different flange
• Industry Motor products like starter motor and starter solenoids

1.3 Sports Equipment

Demand for sports equipment is high. Everyone like sports and most of them play specific sports.

You can import the best quality sports equipment from China have a look on the list:

• Tennis Balls& rackets
• Jim equipment to weight loss
• Treadmills
• Cricket kits, bats and balls
• Sports Bikes& scooters
• Helmet and Defensive Gear

1.4 Apparel and Garments

Most stylish and modern wears import from China to Pakistan with cheap price

•  Kids and toddler wear
•  Stylish nightwear
•  Comfortable footwear
•  Body Shapers
•  Glasses and watches
•  Sports kits
•  Undergarments
•  Bags and purses

2- What Products Avoid to Import from China to Pakistan

2.1 Do you know which product is suitable for you to import?

You must keep one thing in your mind, never import fake products.

If you want to deal with some brand name like Samsung or apple, then you need to focus, such product is original or fake.

® And ™ signs on product show this product is trademarked.

2.2 How to Validate your Products

Don’t waste your time, your money on any product which has no scope.

A platform which analyses for you to authenticate your product.

Go for Google Trends and tracks are people search for your product.

Google trends help you to find a high search volume product.

This provides detail insights about gradually increasing or decreasing trends of

A specific product.

You can get data on hours, days and months.

You can use Google Trends to validate your product by using the following methods:

2.3 How much popular your Product in the world?

 Check out the above analysis report:

If you search for plastic furniture in the search bar, you can see how many people searching for this product.

And you have a clear image in your mind, this product trend is increasing or declining.

You can search according to your requirement, like search volume for a specific country or worldwide.

You can have 12 months data, 5 years data or data from the past hour.

2.4 Where Your Product Has Maximum Search Volume

 Have a look at the above analysis report:

You can also get information, on which place your targeted product is trending.

In a way, you can find an exact idea of your sale in the future.

2.5 What Time is Suitable for Your Product in the Year?

You can determine which time period of the year is appropriate for your business.

Like summer clothing helps to make more income in the months of June, July, and August.

You can observe in the above image search volume is gradually increasing in June.

Or in the same case of winter clothing.

2.6 Always Analyze Your Competitor Activities

Have a deep look on competitor’s strategies, and find what they are doing to get their business developed.

Investigate, how they stand in market, by choosing which product on which time.

3- Popular Products to Sell in Pakistan

Do you want to start importing from China to Pakistan?

Don’t worry!

Just keep one thing in your mind choose the right product to import.

Now the question is how you can decide which products are suitable to sell in Pakistan.

Have a look at some steps to choose profitable products.

• Find Your Niche
• Niche with low competition
• Choose Low-risk products
• Choose products with suitable size

3.1 Find Your Niche

Do you know about your niche?

No?

Pay attention!

You need to know about your niche to decide which product is suitable to import from China to Pakistan.

Newbies don’t know how to start.

A good starting point is based on your area of interest and your hobby, if you don’t have a suitable hobby then work in your interest area.

3.2 Niche with low competition

If you want to be successful in the import business, never target to the main niche.

Get started from a relatively small niche.

If you want to find the concerns of people, search for online magazines or print media.

If you find a product in a magazine, go ahead and choose to work on.

It will be profitable for you to work on it because the market has the thirst for this product.

3.3 Choose low risk products

If you want to import products from any country.

Be careful!

Never choose harmful things.

Your business totally depends on the quality of products, so get products with minimum risk.

If you choose in hassle, there is a possibility of the wrong decision so decide intelligently.

3.4 Choose products with suitable size

If you start your business with a low budget, then import your products wisely.

Decide to import products in small size.

This will help you to reduce your expenditures and expand your Return on investment.

But all the products never help you to increase your income, this depends upon the value of the product.

4- How to Find a Profitable Product To Sell On Amazon

4.1 Choose a suitable product to get success in your Business

Just imagine a scenario.

You are completing all the process carefully like

• You may find your supplier
• You may find a good price
• Get a high quality product
• Find reliable Amazon shipping agent
• Boosted listing

Oops! Your decision of selecting a product is not according to the requirement of a profitable product.

Then what happened?

There are 100% chances to flop your business and lose your investment.

An important tip is “invest more time to find your required product. Hopefully this guide “how to import from china to Pakistan” will help you to increase your profit.

4.2 Quick Checklists for product requirements

• Price of the product must be under 50$
• The preferable weight of the product is between 2 to 3 pounds
• Avoid using brand name in niche name
• 2 or 3 items with positive reviews on the first page
• Monthly Search volume of top 3 keywords must be 100,000
• Expand your business with relevant products
• Product support multiple keywords

4.3 Find right Products to Sell on Amazon with JungleScout

Do you want to get a deep analysis of products for sale in Amazon?

Give a try to jungleScout for finding best opportunities.

5- How to Ship from China to Pakistan

 Is Shipping from China to Pakistan is a cup of tea?

China Freight forwarder provide maximum services not only on the national level as well as internationally.

Charges applied for shipping service of cargoes according to the competitors shipping rates.

If you’re looking for a reliable shipping forwarder and partner in China, Tj chinafreight will be your best choice, we’ll provide you best shipping rate from China to Pakistan.

Tj chinafreight provide very competitive ocean friehgt and lower destination charge for lcl shipment.

Ask for the Best Shipping Rate China to Pakistan

5.1 Ocean Freight service from China to Pakistan

Are you thinking to ship voluminous freight?

No worries!

Choose slow but secure way of shipping Ocean Freight.

Low cost but bear heavy weight.

5.2 Ocean Freight from China to Pakistan

You can avail service of ocean fright, shipping from china to Guwadur port, Karachi and Qasim port.

5.3 Gawadur port

Guwadur port located in Baluchistan, Pakistan.

This port is working on the plan of China Pakistan Economic Corridor.

You can import your products by the link of Silk Road.

Pakistan’s largest city Karachi is just away 533 km from this port.

5.4  Karachi Port

 

Do you know which is the busiest deep water sea port in the world?

No?

Let me tell you: Karachi port, Sindh Pakistan

The interesting thing is Karachi port is handeling approximately 60% freight of country.

25 million ton per annum is not a small thing to deal with.

You have some other options to import by ocean like

• Guangzhou
• Shenzhen
• Shanghai
• Tianjin

Whatever option you are using for importing your products FCL or LCL, keep one thing in your mind make functional arrangements.

5.5 Pakistan to Port of Shanghai, China

Do you know how much distance you need to cover to import things from china to Pakistan?

Have a look to the sea route to import your cargo.

And also I want to show you, how much time it takes to ship.

5.6 Pakistan to Mawei Port, China

You can’t imagine 23 days spend to arrive any shipment from china to Pakistan.

This is the approximate time duration, but you must keep natural disasters in your mind.

5.7 Port of Qingdao, China to Port of Karachi, Pakistan

Another sea port helps to import products.

Distance from china to Pakistan by this route is 6234 nm and it takes 26 days approximately to arrive on the destination.

5.8 Port of Keti, Pakistan to Mawei Port, China: 

22.8 days means approximately 23 days to reach on the destination by this route.

You have to cover the distance of about 5472 nautical miles.

5.9 Port of Shenzhen, China to Port of Karachi

Shenzhen is 5040 nm away from the Pakistani, Karachi port.

Need 21 days to complete the journey to transfer products.

Sea routes to import products is suitable way, especially for the heavy freight.

Do you have to face challenges shipping from China to Pakistan?

Shipping from China to Pakistan smoothly needs the quality services of a trustworthy company.

And, no doubt Tj chinafreight is the only reliable freight forwarder in China

5.10 Air Freight service from China to Pakistan

Do you want to get quick service to import your products?

No issues just try a reliable importer of air freighter and avail service in all seasons in reasonable price.

6- Things Consider When Shipping from China

6.1 Air Freight or Sea?

We are always missing something important in our decisions.

Just think, you can make more money by determining the right method.

Always choose a cost effective option.

 6.1.1 Air Freight

Have you ever import weight larger than 500kg?

If yes, which service suits you better?

I recommend you air shipment service is cost effective and convenient service.

If you want to deliver your cargo within 2 to 10 days Tj chinafreight Air Freight is not a bad option.

Always take care of airline schedule, to complete the documentation&custom clearance after arriving the products to the destinations.

6.1.2 Sea Freight

Slow and steady wins the race is a well-known quotation.

Sea shipping is a real slow process but quite safe and secure.

Importing by sea freight service takes long time but provide service of transferring heavy goods safely.

This option is valid if you have enough time to wait for your order, a wait of 3 to 60 days is an approximation, sometimes natural disasters in sea make it longer.

As like Air Freight you have to prepare mentally to handle all documentation and clearance of custom.

Shipping by sea freight is a cost-effective option to import products.

6.2 Handle by Yourself or Your Agent?

6.2.1 Work with a freight forwarder in your country

Get connected with your freight forwarder to import your products quickly.

Most of the agents have no personal office, they always charged a large amount of fee.

This type of work is not suitable and cost-effective.

6.2.2 Work with a freight forwarder in China

In this way, you are connected with agent of China.

Agent try to contact suppliers and remind your requirements, inform about updates.

And, if the supplier face any type of trouble, local person resolve the problem as soon as possible.

6.2.3 Work with a forwarder on each side

Directly contact with the suppliers of China and Pakistan resolve all the problems quickly.

This is the right choice for you to save your money and time.

6.2.4 Shipping from China Airport

Here is a suggestion to make your import experience far better, you should always require to find a solution from a third party.

Your agent belongs to China or belongs to Pakistan, if you find himself creative to you, just follow him and stick to him.

You need to take a decision to choose freight forwarder to make your import

7- What is The Payment Method to Import Products from China to Pakistan?

How can you pay to your suppliers?

Different methods you can follow

7.1 Bank Transfer

If your supplier is reliable and trustworthy, then you can choose this option.

30% of payment deposits before the start of production.

Another thing is quite risky, the pending amount will be paid after completion process and delivery of the order.

7.2 Western Union

Do you know what is Escrow?

Payment transfer is not recommended by the Western Union if it is not secure by escrow.

Well known persons should have to take the risk to transfer by Western Union.

7.3  PayPal

Get Maximum protection with PayPal payment method.

But suppliers don’t like to avail of this service due to difficulties in withdrawal process & high taxes.

Paypal transfer in Pakistan is not allowed, but there are some ways to transfer money from Paypal account in Pakistan.

7.4 Secure Payment or Escrow Payment

The safest method for buyers.

Buyers money remain under the protection of 3^rd party, infact it secures both parties buyer and seller.

You can use this option for wholesale deals, and if you want to use this option other than wholesale you need to follow a process.

First ask your seller to draft escrow payment order

8- Duty Taxes to Import from China

When you think to import something from China, keep duties and taxes in your mind.

8.1 Import Duty Calculation

Custom value always varies from country to country and also depends on the kind of products.

Normally you are calculating your duty by this simple formula

Duty = duty%* Product Price

Customs value depends on CIF (Cost, Insurance and Freight) value

Duty = duty % x(product price + cost of shipping + cost of insurance)

8.2 Tax calculation

Calculation of tax is actually the percentage of customs value plus duty.

You can check sales tax from different platforms on the web.

Sales tax = sales tax % x (CIF value + duty)

You can also calculate your sales tax by the above formula.

Pakistan offers zero duty on 6,000 items from China 2018

9- What Are The Shipping Terms Mostly Used in Importing from China

International standard shortcodes help you to decide when freight will be shifted from provider to importer.

FOB

Free on Board ensures you that all cargo legitimately exported.

All things included, transfer from production place to final destination.

DAP

Delivered at place, you can try this booking, shipping of freight from production place China and delivery to a specific address in foreign.

LCL

Less Container Load, you will find this option best in rank because it is cost effective.

Different buyers share the same freight container in LCL.

FCL

full container load, you can import by this service measured per unit and per weight.

You have two more options like DAT (Delivered At Terminal) or DAP (Delivered At Place).

Keep one thing in your mind confirm to your shipping company about your selected deal.

Wrap up

Importing products from China to Pakistan is not an easy task, but this not impossible.

If you are well aware from all process of importing products, then it’s adoring.

In other cases, it will be tension full for you

Hope you guys got all important information about importing products from China to Pakistan.

If you have some confusion feel free to contact Tj chinafreight, and find whatever you want.

Related resource:

Importing From China: The Definitive Guide

If you are about to ship furniture from China to the Philippines, you need to know four key things.

One, where you’ll find the best quality furniture in China.

Two, furniture shipping options available from China to the Philippines

Three, how much the shipping might cost you.

And, lastly, the custom rules and regulations for importing furniture into the Philippines.

In this article luckily, we are going to cover all this.

If you’re looking for a professional freight forwarder to help to ship furniture from China with best shipping cost, you can contact  Tj chinafreight, below is our shipping rate:

Tj chinafreight warehouse in China to Door in Manila(include ocean freight, destination charge for LCL, duty, vat, customs clearance in Manila), USD200 – 300/CBM Over 3CBM based on your goods detail, free delivery service in Manila.

Ask for the Best Shipping Rate China to Philippines

So let’s dive right in.

How Long will it Take to Ship furniture from China to the Philippines?

When shipping furniture from China, you should consider both the time it takes to prepare the cargo and the transit time.
Transit times, in this case, vary depending on final destination.
Shipping from China requires between 3-7days.
Here, you’ll have to factor in possible delays due to unforeseen circumstances as well as the time taken to clear goods at customs.
Due to this, it is best that you allow at least 10 days to receive your furniture from China.
Wait a minute, here is a bonus for you: 7 Must Read Tips before Shipping Container to Philippines from China.

Where you can Find the Right Manufacturer to Buy the Furniture in China?

To find the right furniture supplier/manufacturer in China, you can explore the following options:

· Alibaba
· Shunde City
· Trade Fairs

What about Insurance when Shipping Furniture from China to Philippines?

Well, I’ve already told you that furniture is quite delicate.
And while ocean shipping is the most reliable way to ship this kind of cargo, it does not guarantee the total safety of items.

Anything could happen as risks are sometimes inevitable.

So it is a must-have when importing from China.

The furniture could get damaged, lost, or even stolen during shipping.

Whatever the case, insurance is essential if the shipment is highly valuable.

What Paperwork needed to Ship Furniture from China to the Philippines?

. Packing list
. Commercial invoice
. Bill of lading document
. An import authority permit for certain kinds of furniture
. Certificate of origin

• Why Should you Buy Furniture fromChina?

Why Should you Buy Furniture fromChina?

No doubt, Chinese furniture is known for its uniqueness and exquisite quality.

So while there may be plenty of furniture options in the Philippines, you may not find exactly what suits your needs.

This is especially if you are in need of something more unique or of better quality.

Well with China, finding the kind of furniture pieces that you want is a simple task.

There are plenty of furniture manufacturers and suppliers in China selling a wide variety of furniture at wholesale prices.

Besides, there is a whole city dedicated to manufacturing and selling good quality furniture pieces – the city of Shunde.

You can choose from the vast array of designs available or have your pieces custom made in China.

You just need to know your options.

Then, identify a supplier/manufacturer that carries the style you are looking for.

With this, you can go ahead and plan your budget to include the cost of shipping the furniture.

This way, you can guarantee that you’ll get the best high-quality pieces available for your home, office or business.

By the way, if you want to buy hotel motel furniture, you can check this supplier.

Where to Buy the Furniture in China (Finding the Right Supplier/Manufacturer)

To find the right furniture supplier/manufacturer in China, you can explore the following options:

· Alibaba

If you are stranded on where to source furniture products or find a supplier for the same, try Alibaba.

Alibaba is the world’s largest online marketplace that links buyers to a variety of suppliers/manufacturers.

You can start by doing a random search:

Here, you will get access to a plethora of furniture products at wholesale prices.

Even if you need your furniture custom made, you can locate a trustworthy manufacturer on Alibaba and have them do this for you.

Alternatively, you can follow this simple procedure:

 i. Visit Alibaba official website

ii. Go to categories on the far left corner (just below Alibaba.com logo)

      iii. Then move to the 5^th category where you will see furniture. In fact, you will get many options, from home, commercial, baby to outdoor furniture. Even when you’re looking for furniture parts, you’ll find them on Alibaba.

For more information on this, read this article on how to ship from Alibaba to the Philippines.

· Shunde City

Remember Shunde?

Well, this is a city in China that is wholly dedicated to furniture production and wholesale.

The city is located in the Guangdong province of China, about 40 km south of Guangzhou.

It is home to a vast number of furniture malls including Louvre, Ajman, Sun-link and Tuanyi furniture malls.

Besides, the city has close connections to Hong Kong which makes shipping furniture from China even easier.

PS: If you need to a furniture sourcing agent, you can contact Foshan Sourcing.

· Trade Fairs

If you choose to explore the customization option, visiting furniture trade fairs in China can be a great way of finding manufacturers.

There is the canton fair, the largest trade show in China that is held every twice a year.

There is also the international furniture trade fair held every March and September in China.

Visiting either of the two will give you the opportunity to meet suppliers and talk business directly with them.

Here, you can do a random search using key words such as this “furniture trade fair china.”

Then go ahead to scrutinize what you find.

Also, you get to see firsthand the options that you have regarding material and design.

So in essence, you have lots of options to consider when sourcing furniture items from China.

As you hunt for suppliers/manufacturers, however, try to do due diligence to ensure that find a trustworthy and reliable one.

Furniture Shipping Options from China to the Philippines

More often than not, furniture from Chinais shipped by sea.

Why so?

Well, because furniture is inarguably bulky and quite delicate.

It thus requires a shipping method that can accommodate its large volume, weight and delicate nature.

Now, while ocean shipping from China to the Philippines is safe and reliable, it is way too slow.

Furniture delivery from China to the Philippines by sea can take five times longer the time taken by air freight.

This may be a long wait for someone is working on a fixed schedule.

If this is so, you may want to consider air freight which is fast.

In fact, it is about ten times faster than ocean shipping, although costlier.

For bulky items like furniture, it can cost you five times to ship the same amount of furniture by air than by sea.

So in this case, ocean shipping is more viable.

Note that there are two options that you can explore when shipping furniture items by sea.

One is to ship FCL, that’s if your cargo is large enough to fill up a standard shipping container.

If not, you can ship LCL where you’ll need to consolidate your cargo with that of other shippers to the Philippines.

You can also consolidate your furniture shipment with your other dry cargoes to ensure that all your stuff is shipped in one container.

As you do this, you might want to be keen on the packaging of the furniture items.

In this case, I would recommend that cartons be used for outer packaging and then sealed with a plastic wrap.

This will help keep the furniture safe during transit and also prevent molds.

Also, transport the packages using pallets as this provides for easy unloading when you get to the destination.

Remember, you want the furniture pieces to get to the Philippines in their best form.

That is, without any breakages, scratches or whatever damages.

If you are not sure that this is possible, you better get cargo insurance.

Please note:

Shipping companies often have a limited liability of only $500 for cargo damage per container.

This is not enough insurance for cargo whose value is beyond this amount.

The best things, therefore, is to get insurance from a reputable insurance company for your shipment to avoid any regrets later.

That said.

What is the Best way to Handle Furniture Shipment from China to the Philippines?

There are three ways to do this:

1. Let your supplier handle the shipping
2. Let a shipping agent handle it
3. Or, handle it yourself

The first option is quite common among first-time importers as it is simple.

And, presumably, saves them logistical headaches.

Well yes, your supplier handling the shipping part can help save you a lot of headaches.

But in the end, it will cost you more.

Plus, you need to wrap your head around the process of shipping items from China.

Letting other people do it for you won’t help in this case.

Unless of course if it’s your first and last time importing from China.

If it’s not, you can hire a professional freight forwarding and logistics company to take care of the shipping for you.

Here, you need to identify the right company, tell them your needs, pay up and let them do what they do best.

So what the difference?

Well, a freight forwarder will work with you to ensure the safe delivery of the furniture from China to Philippines.

Forwarders, you should know, is more of partners in the supply chain process.

They use their expertise and experience to guide and help you ship your items in the best possible manner.

Thismeans that working with a freight forwarder to ship items from China will keep you on top of things.

If however, you feel confident enough to handle the shipping yourself then okay, go ahead.

Just be sure that you can book the shipping space on time, oversee the shipping and handle customs processes without any challenges.

So how much will shipping furniture from China to the Philippines cost you?

Let’s find out.

Cost of Shipping Furniture from China to the Philippines

The aspect of cost is one that you have to consider when shipping stuff internationally.

In this regard, you’ll have to work out the cost of shipping the furniture from China to your final destination in the Philippines.

About this, we will break it down into two parts:

a) Shipping Cost from China to the Philippines

The cost of shipping furniture from China to the Philippines is quite reasonable.

Figure 8 How much does it cost to ship furniture? – Photo courtesy: PODS

The ballpark figure is about USD2500-USD4000.

This could be higher or lower depending on your shipping requirements.

To get an estimated cost, use an international freight cost calculator.

This will give you a free quotation on the possible cost of shipping your furniture from China to the Philippines.

b) Import Duties and Taxes on Furniture Shipping to the Philippines

The limitation to shipping furniture from China to the Philippines is the import taxes and duties you will incur.

It doesn’t matter if the furniture you are shipping is for personal use, or for commercial purposes.

The furniture will be subject to an average of 6.7% customs duty rate and a 12% sales tax.

Note that this tariff will also be based upon the value of the shipment which must be above USD 200.

Imports whose worth is below USD 200 are not dutiable in the Philippines.

Also, used furniture could be exempted from tax, but only if you have a foreign passport or a special resident retiree visa.

Before doing anything else;

I advise you to contact either a professional customs broker or seek help from the Philippines customs authority.

Either of these will assist you in determining how much you’ll need to pay for importing furniture to the Philippines.

The total cost of importation, note, will include other charges, i.e., local port fees, trucking costs, documentation among other expenses.

Paperwork needed to Ship Furniture from China to the Philippines

To successfully send furniture from China to the Philippines, you will need to get the following documents ready:

• Packing list
• Commercial invoice
• Bill of lading document
• An import authority permit for certain kinds of furniture
• Certificate of origin

Please note:

If you are not that familiar with the customs rules and regulations, hire a professional customs broker.

He/she will be the one to handle the entry of your shipment to the Philippines.

In this case, you will need to supply all relevant information for the customs broker to file the pertinent documentation.

Also note, that a customs broker offers lots of advantages.

Besides handling the customs clearance and documentation processes, they’ll also;

• Help you weigh and find out any import duties and other details on your shipment
• He’ll specify to your supplier the requirements he must prepare before your shipment
• He can inspect your cargo before it is shipped to your final destination

Conclusion

When you are buying new furniture, there is a lot to think about.

The above are just but a few of the things that you have to take into account when shipping furniture from China.

I must say, the process is not complicated at all.

It is even easier when you decide to work with a professional shipping agent like Tj chinafreight.

This, shipping agent, will help you ship only the top-quality furniture from China to the Philippines.

They’ll guide and advise you through the entire process of shipping.

In the long run, you’ll save yourself from unnecessary headaches as well as save on time and money.

Related Articles:

China Furniture Market – The Complete Guide

If you’re looking for a suitable shipping container when importing from China, then this is a must-read guide for you.

Reason?

I am going to help you choose the right shipping container for your imports.

This guide covers every single detail you’d like to know – from shipping container sizes, designs, applications to transport relationship, among others.

Here is a quick overview of what you’ll learn here:

What is a Shipping Container?

A shipping container is a vessel or box that is commonly used to transport goods over a long distance.

It is also preferred for shipping goods across countries and continents.

Why do you need a Shipping Container?

You need a container for your business or company due to the several advantages that come hand in hand with them.

Some of the pros of using a shipping container are as follows:

They are suitable for storage of a variety of goods. From heavy bulky goods to livestock and flammable products.

Surety of the safety of your cargo. This is a secure means of goods transportation.

The containers are versatile and flexible. Therefore, they are easily movable across diverse locations.

They are strong and durable thus they can be used over and over again without being written off (usually for many years).

The containers can be used over various global destinations since they are internationally accepted.

They are also vast and spacious offering you just the adequate space you require for your consignment.

Affordable and effective, hence offers low transportation cost plus initial inexpensive buying cost.

Can be modified and used with other accessories e.g. padlocks, lock boxes to suit your needs.

Available in different sizes and therefore offers you the chance to select your preferred size. From 20 feet to 40 feet container.

By now am sure you have already made up your mind that you need a shipping container.

But before you make a purchase, you need to make a decision on the most suitable type.

With that in mind, why don’t we look at the various types of these containers?

What are the Types of Shipping Containers Available in the Market?

1. According to the Types of Goods you’re Shipping
Therefore, these containers also fall into the following classes:
i. General cargo container.
ii. Bulk shipping container.
iii. Liquid cargo container.
iv. Reefer shipping container
v. Tank shipping container.
vi. Flat rack shipping container.
vii. Open top shipping container.
viii. Car shipping container
ix. The livestock shipping container ( Pen Container)
x. The hide container
§  General Cargo Container
§  Bulk Shipping Container
§  Liquid Cargo Container
§  Reefer Shipping Container
§  Tank Shipping Container
§  Flat Rack Shipping Container
§  Open Top Shipping Containers

What is NVOCC ?

NVOCC is famously known as a Freight forwarder or forwarding agent.

Interestingly, the forwarder does not transport goods, but does logistics.

This agent usually contracts other carriers to do the shipment.

In most cases, shipments undertaken by forwarder involve several modes of transport that are ships, air, road, and rails.
Additionally, there exists international NVOCC who

Ensure you read till the end.

Let’s do this.

What is a Shipping Container?

Well, it sounds a pretty obvious question.

Shipping containers are preferred by many due to their rigidity, ability to sustain adverse weather conditions and strength together with their stipulations for use in turnover.

Apart from that, you will most likely like the containers since they have a unique and distinct identification mode.

All these containers are embedded with 11 alphanumericalpatterns referred to as box number.

The first four digits are usually letters while the last seven digits are numbers.

The process of shipment of the goods is very simple.

They are loaded at the consignor’s warehouse or factorystoreroom thereafter shipped to the consignee’s warehouse.

The goods are thus unloaded at this point.

The good news is that, even if the truck is changed in the process of transportation, you need not worry.

Why?

Because your goods are safe and cannot be mishandled.

They shall remain within the box untampered with.

Due to the popularity of shipping containers, various countries and governments have made a significant input to ensure the safety and protection of customers and users of containers.

These nations, including China, Japan, USA, France and others have incorporated quality assurance bodies.

The containers are thus certified by the following organizations.

• International Organization for Standardization (ISO).
• International Container Safety Convention (CSC).
• Container Customs Convention (CCC).
• British National Standards

If you are indeed not sure whether you need to acquire a shipping container.

Then have a look at the next part.

What are the Types of Shipping Containers Available in the Market?

Well, for clarification, the shipping container types are classified based on FIVE categories.

They are thus grouped on the basis of:

1. Types of goods you’re shipping.
2. The shipping container material.
3. Design and structure of the shipping container.
4. Dimension and size of shipping container.
5. Total weight of the shipping container.

Interesting uh?

I will take you through all these categories.

Ensure you continue reading till the end.

1. According to the Types of Goods you’re Shipping

Every type of container is designed with respect to the kind of cargo to be loaded into it.

Therefore, these containers also fall into the following classes:

i. General cargo container.

ii. Bulk shipping container.

iii. Liquid cargo container.

iv. Reefer shipping container

v. Tank shipping container.

vi. Flat rack shipping container.

vii. Open top shipping container.

viii. Car shipping container

ix. The livestock shipping container ( Pen Container)

x. The hide container

Our focus now is based upon these classes.

It’s time we discuss them.

§  General Cargo Container

It is also called a general – purpose container.

If your business deals with general groceries, then I bet this kind of container will just serve you dearly.

Besides, it is very common and available.

Actually, it is liked by many since it serves many kinds of purposes.

In addition, it does not need to be adjusted to meet specific temperature ranges.

§  Bulk Shipping Container

Just as its name suggests, this container is basically used for loading and transporting very bulky goods.

It is built to withstand the immense stress of handling and pressure caused by the freightload.

The cargo associated with this container may include powder, granules and large components.

§  Liquid Cargo Container

Are you in need of shipping liquid consignment?

Then you are catered for, this container is specifically built to assist in the transportation of liquid cargo.

It is therefore customized to suit the liquid loads and minimizes leakages that may be caused.

§  Reefer Shipping Container

Commonly known as refrigerated containers.

This is an inter-modal container used for the shipment of goods that are sensitive to temperature changes or conditions.

These containers are suitable for transportation and holding of perishable goods.

To serve their purpose, they are distinctively constructed.

There exists a refrigeration unit in their compartment.

The freezer relies upon electrical power points called reefer points.

Some of these reefers are also equipped with water cooling scheme to serve together with the freezer for thermal regulation.

Their interior walls are constructed using a special material which has low thermal conductivity.

This helps to minimize any variation in the regulated temperature range.

Refrigerated containers usually control temperatures in the range of -65˚C to 40˚C.

§  Tank Shipping Container

Also known as tanktainer.

It is used for the transport of liquids, gases,and powders.

They are built in accordance to the ISO standardization.

They are thus effective for transport of both hazardous and non-hazardous freight.

This kind of container is specially structured.

It has a stainless steel wall coated with a layer of insulation and protection.

The container is usually made to fit into the center of a steel rigid frame with dimensions of 6.05 meters long, 2.40 meters wide, 2.55 meters high.

Measurements are aligned according to ISO standards.

Both smaller and larger containers are available for this kind.

Additionally, the components of these tanks should range from 17,500 liters to 26,000 liters.

The certified tanks used to transport of hazardous goods or products have to pass the quality tests and regulations.

Some of these requirements are those of the IMDG US DOT, etc. a variety of UN-portable tanks are used for transport of dangerous bulk chemicals.

§  Flat Rack Shipping Container

Unlike bulk containers, this type is suitable for loading large and bulky cargo that is impossible to fit in an ordinary container.

So then the cargo needs to be loaded from the top or sideways.

The cargo associated with flat rack container may include pipes, cables, steel coils and heavy machinery.

You will be amazed by the fact that they have collapsible and non-collapsible end walls.

Some with side walls while others without.

The sole advantage is that you can still stack many of these containers together.

The collapsible flat rack containers have got a big loading capacity floor.

They also have two end walls, but lack side walls.

However, their end walls are non-fitted and collapsible if need be.

They are therefore important for shipping wide cargo and due to their collapsible ends, it is possible to store them in limited space.

They are manufactured from steel and available in two sizes that are 20 feet and 40 feet.

Let’s have a look at their respective dimensions.

The table below shows the dimensions of the flat rack containers.

It is important to note that these dimensions may vary depending on the manufacturer’s preference.

§  Open Top Shipping Containers

Unlike the flat rack containers, this kind of containers has got a wide open top and firmly intact walls.

However, the top may be covered if need be using a material such as removable tarpaulin or hardened roof.

This feature suits the oversize, irregular and bulky cargo that needs to be loaded from the top by use of a crane.

Some of these goods are timber and scrap metal.

They additionally have got end doors to serve hand in hand during loading and offloading of goods.

Loading is a lot easier when using an open top container.

This is because items can be loaded and offloaded directly into the container by a crane.

Afterward, the roof may be reattached if required and ready for shipping.

This kind of container is preferred by shipping companies, especially when clients need a container for overseas shipping.

Like flat racks, the open top containers are also available in 20 feet and 40 feet.

The various dimensions of the open top containers are summarized in the table below.

Again, note that they all depend on the manufacturer and sometimes can be customized.

Have a look.

Please note:

• Ft – Feet
• Cu ft – cubic feet
• M – Meter

§  Car Shipping Container

Are you a car dealer?

Do you want to purchase some cars?

This type of container is therefore ideal for you since it has several adjustments to enable secure shipping of cars across the world and even overseas.

This container floor can be divided into two or more layers.

The automobiles are securely blocked and tied down to ensure absolute security during shipping.

This helps to minimize the chances of damage to the autos.

§  The Livestock Shipping Container (Pen Container)

It is now more easy and safer to transport your livestock than ever.

This because the livestock container has several adjustments to accommodate your farm animals.

The customizable provisions are:

• Floor, side walls, a closed end wall and a roof.
• Portioned interior space of the container.
• Stalls for the livestock.
• Feed storage segment for the livestock.
• Ventilation partitions

All these justify the need for transporting your livestock, over a long distance in a pen container.

• Hide Shipping Container

For this kind of container, it is particularly designed to transport the leaking portions of the animal skin such as rawhide’s.

It is fixed with a double bottom floor segment to trap the leakage.

Additionally, hangers are stationed at the roof to hook the hide leaving them hanging to enhance complete leaking of the liquid.

Let’s move onto the second classification of shipping containers.

2. In Accordance with the Shipping Container Material

The materials used to manufacture the containers are diverse depending on the suitability of each material.

Therefore the containers may be subdivided into:

i. Steel shipping container

ii. Aluminum alloy shipping container

iii. FRP Shipping containe

iv. Fiberboard shipping container

v. Wooden shipping container

Shall I guide you now through these types?

§  What is a Steel Shipping Container?

This kind is composed of steel as a major raw material.

Now, I know you might have some reservations about steel due to its bulky nature and reduced corrosion endurance.

Nevertheless, you might want to give that a second thought.

Below are some of the advantages of steel container you really need to know.

• Extraordinary strength
• Concrete structure
• Great weldability
• Good waterproof
• Relatively cheap to buy

· What of the Aluminum Alloy Shipping Container?

This kind of container is manufactured of aluminum alloy materials.

Rewards for using this container are.

• Light in weight
• Beautiful exterior
• Resistance to corrosion
• Elastic
• Appropriate processing
• Reduced processing cost
• Little repair costs
• Durable

It is prudent to mention that some of its disadvantages are that it is expensive to buy and inferior welding performance.

Still, you need to consider their numerous pros.

· FRP Shipping Container

This kind is constructed by use of Fiber Reinforced plastic material.

They are ideal for both shipping and storage of your cargo.

Some of the benefits of using this container are: its’

• High power or strength
• High rigidity
• Great interior volume
• Adequate capability for heat insulation
• Resistance to corrosion
• Ability for chemical resistance
• Ability to enhance easy cleaning and repair

The limitations associated with it are that:

• It is heavy
• It is notlong lasting
• With time the bolt strength is minimized

· Wooden Shipping Containers

These vessels are entirely made of wood or timber.

They are commonly used for transporting heavy and immensely compact products.

Did you know that they are usually preferred for use by government agencies, especially in the shipment and delivery of military and government equipment?

Now you know.

·  Fiberboard Shipping Container

The fiberboard is usually used to build a folding container.

It can be molded into corrugated fiberboard container whose primary role may be for protection.

This container offers you a superior combination of services i.e.

• Shipping
• Material utilization
• Availability of a variety of designs and structures.

Due to the fiberboard construction:

• Container has got lightweight
• It can be recycled
• The container is firm enough to ship a wide range of goods

Having known that, it is time to move onto the next category.

3. In Relation to Design and Structure of Shipping Container

The container designs and structures differ widely.

Therefore, they can be classified into:

• Folding shipping containers
• Fixed shipping containers
• Thin shell shipping containers

· Folding Containers

Are you in need of storage space?

Do you have a small floor space?

Then folding containers are the perfect answer for your situation.

These containers can be folded down and easily moved to different locations with a lot of ease.

Additionally, they are quick to assemble for use whenever required.

This property gives them an edge over other pre-assembled containers that consumes a lot of time and space ,especially during transportation.

Some other advantages of foldable shipping containers are:

• They are compact and hence can be carried to any location.
• Due to they’re easy to carry nature, they help with savings of transportation and delivery costs.
• They are easy to assemble, simple to set up and fold.
• Strong and durable.
• They come in different sizes – 2m, 3m, and 4m but have a uniform width of 2m.
• They are also flexible and can be inter-joined to provide a larger storage area for your goods.

· Fixed Shipping Containers

These vessels are as well available in different types such as:

• Open top containers
• Rack containers
• Pallet containers

More details had been issued on this subject.

For more information about them, please refer to the earlier discussion in the guide.

· Thin Shell Shipping Container

For this kind, all its components are embedded into a steel body.

Its exclusive advantage is that it is very light in weight.

Besides, it easily adapts to stress and torsion generated by the goods.

But no worry since no permanent deformation of the container can occur.

4.  According to the Total Weight of the Container

The container weights vary, but the common ones include 30 tons, 20 tons, 10 tons, 5 tons, 2.5 tons etc.

The weight, however, depends according to the container manufacturer.

Again, they can be customized to meet an emerging trend or serve a specific purpose.

5.  In Relation to the Dimension and Size of a Shipping Container

The dry containers that are commonly used globally are diverse.

They are classified into 20 feet, 40 feet, 20-foot cabinet, 40-foot flat bottom container just to mention a few.

I have compiled the table belowto assist you to understand the classification of the containers in this category in relation to their dimensions.

Please note that the initials used are:

• Ft – Feet
• In – inches
• m – Meters
• m³ – cubic meters

Furthermore, the outer dimensions comprise of:

• The longest length
• Width
• The height of the exterior parts of the container.
• This is also inclusive of the permanent attachment points of the vessel.

This outer dimension is essential in determining if a container can be fitted between a ship, truck, a chassis or any locomotive.

This is, therefore, a vital technical information that has to be grasped by transportation authorities and agencies.

Also,the internal dimensions referto the maximum

• Length
• Width
• Height

The height is the interior distance between the floor of the box and the inner topmost roof.

The width is the distance between the two interior liners.

On the other hand, the length now makes the distance between the inner part of box door and inner end wall.

These parameters aids in the calculation of the internal volume of the container and the maximum size of goods that can be fitted into it.

The interior volume of the container is also referred to as the loading capacity.

It can be calculated from the size of the vessel.

However, containers of similar specifications have got the difference in capacities due the varied structural designs and material.

Have you been wondering how the quantities of containers available are calculated?

Twenty- feet equivalent units (TEU) also called 20-foot conversion units is used.

Containerization in most countries, employs the use of 20 feet and 40 feet long containers.

For the sake of uniformity in the estimation of the number of containers, a 20-foot container is used as a single unit of calculation.

Likewise, a 40-foot container provides two calculation units to enhance the harmonization of the determination of container operations.

That brings us to the end of the discussion based upon the type of shipping containers.

You may be asking yourself:

So what type of container is th

Are you a newbie in the shipping industry or a specialist?

Is your experience in this sector sufficient enough?

Well, whatever the case you must have somehow bumped onto the word “Incoterms.”

If not, “Incoterms” simply means the International Commercial term.

This is a standard universally recognized term specifically used in international trade contracts between the seller and the buyer of goods.

These terms have always been published and updated by the International Chamber for Commerce since the year 1936.

ICC

Over the past, a lot of reviews have been made to the terms beginning 2000 and later changes were amended in January 2011.

Consequently, this update was referred to as version 2010.

That aside, in this guide, I will take you through one of the Incoterms that is DDP.

We shall focus on the following interrelated concepts:

What is DDP?

DDP is called Delivered Duty Paid.

DDP is one of the Incoterms included in the original 13 trade terms of the general principles of version 2000.

Notably, it still features in the version 2010.

What are the Obligations of sellers in DDP?

§  A1 Provision of Goods in Fulfilment of the Contract
§  A2 Licenses and Formalities
§  A3 Contract Of Carriage and Insurance Contract
§  A4 –Delivery
§  A5- Risk Transfer
§  A6-Cost Divison
§  A7-Notification of Buyer
§  A8-Proof of Delivery and Transport of Documents
§  A9 Check, Package and Mark
§  A10 Other Obligations

What’s the Obligations of the Buyer in DDP?

Let’s now quickly have a detailed information of the obligations.
§  B1 Payment of Price

§  B2 Licenses and Other Procedures

§  B3 Contract of Carriage and Insurance Contract

§  B4 Receiving Goods

§  B5 Transfer of Risk

§  B6 Division of Costs

§  B7 Informs the Seller

§B8 Proof of delivery, transport documentation or corresponding electronic communication.

§  B9 Goods Inspection

§  B10 Other Obligations

What’s the Incoterms 2010?

Delivered Duty Paid (DDP)
Ex-works (EXW)
Free Carrier (FCA)
Free on Board (FOB)
Cost And Freight (CNF)
Cost, Insurance, and Freight (CIF)
Delivered at Terminal (DAT)

 

Ensure you read meticulously until the end. Let’s kick off.

What is DDP?

As I have mentioned above, DDP is one of the Incoterms included in the original 13 trade terms of the general principles of version 2000.

Notably, it still features in the version 2010.

Unlike the others, Delivered Duty Paid, shoulders the maximum risks, liability and expenses on to the seller.

So what kind of responsibilities are these?

The seller would solely take up the task of shipping the consignment from the warehouse at the location of departure to the agreed destination point in the country of import.

This is done in accordance with the stipulations of the contract.

Actually, the goods are delivered to the consignee after the completion of all the procedures.

The seller or the shipper has to put up with all the risks and expenses associated with transportation of the goods to the required endpoint.

Some of the expenses the seller bears are:

• Payment for the cost of shipment
• Import duties
• Export duties
• Insurance levies
• Tariffs, taxes and any other expenses incurred during shipment to the agreed destination in the buyer’s country.

It’s worth noting that under the Ex Works (EXW) term, the seller assumes the least liability while the seller assumes the maximum liability when it comes to the DDP term.

In addition, DDP never applies in circumstances where the seller is incapable whatsoever of acquiring an import license.

In cases when both the parties are in agreement for the buyer to accept some of the following responsibilities, then the meaning and the term shifts.

Such obligations may be payment of all:

• Customs
• Duties
• Taxes

In the above instances, the DDU terminology is applicable, i.e. Delivered Duty Unpaid.

However, if the parties wish to relieve the sellers of some duties specifically some of the charges payable due to importation such as the Value Added Tax, a clear pact should be reached.

Subsequently, the DDP becomes, “Delivered Duty Paid, VAT unpaid.

With that in mind, let us shift our attention to the obligations of the sellers in DDP.

So What are the Obligations of Sellers under DDP?

Before we get to that, remember that the Incoterms specify the role of each party during the transactions.

In the signed contract some of the binding issues are:

• Responsibilities of the buyer and seller.
• Party who acquires the insurance, licenses and all the paperwork.
• Who plans for the transport to a specific point
• The circumstances under which the costs and some risks shift between the seller and buyer.

Having known that, let’s now pick up on the obligations.

The DDP expression may be used regardless of the mode of transport used by the seller or consignor.

Although, DES – Delivered Ex Ship or DEQ – Delivered Ex Quay are used in cases when the cargo are supplied on board or at the terminus.

For clarity, we shall denote the following parties:

• Seller’s obligations denoted by A
• Buyer’s obligations represented by B.

These obligations are sequential and can be summarized in a simple diagram shown below.

Take a look.

§  A1 Provision of Goods in Fulfilment of the Contract

The consignor has to first arrange forthe goods together with the commercial invoices with regard to the sales contract.

The commercial invoices, as well as other documents as stipulated in the contract or needed for proof,may also be transmitted electronically.

§  A2 Licenses and Formalities

The seller needs to acquire and have all the licenses together with all documentation at his own disposal i.e. export and import licenses.

In addition, he needs to discharge all duties related to the customs formalities for the exportation or importation of goods.

If need be, even crossover via another country.

§  A3 Contract Of Carriage and Insurance Contract

It is divided into two components

a) Contract of Carriage

The seller has to commit to contract a suitable carrier for the transportation of goods to the agreed point of destination as required by the consignee.

One may ask what if both the parties fail to have a consensus on the suitable designated point?

Well, in that case, the seller is free to pick a suitable point within the named locality that best suits him.

b) Contract of Insurance

This not an obligation for the seller.

§  A4 –Delivery

The seller must thus promptlysupply the goods to the buyer in relation to the provisions of A3 within the agreed timelines.

Remember, the seller still shoulders all the risks of delivery.

§  A5- Risk Transfer

The seller shall bear all the risks associated with the shipment, whether losing or damage of goods.

This is pertaining to the provisions of B5.

The seller is only relieved of this duty once the goods are distributed and delivered to the buyer as per the requirements of A4.

§  A6-Cost Divison

The cost allocation is done in accordance with the stipulations of B6.

The seller takes care of all the levies from A3.

This includespayment of all expenses till the delivery of goods to the consignee as stated in A4.

On top of that, the seller pays for the customs formalities for the exportation or importation of goods unless stated otherwise or differently agreed by both the parties.

He also settles fees relating to intercountry crossover if any.

§  A7-Notification of Buyer

The seller has to sufficiently and accurately notify the buyer of the dispatch of the consignment and anyother supplementary information.

This process is vital since it enables the buyer to adequately prepare in advance to receive the shipment.

§  A8-Proof of Delivery and Transport of Documents

The consignor has to now furnish the buyer at its own expenses with a bill of lading together with usual shipping documents.

Or, any other documents that might be needed to acquire the goods with respect to the stipulations of A4 or B4. Some of them are:

• Negotiable bills of lading
• Non-negotiable sea waybills
• River transport documents
• Air waybills
• Rail waybills and road orders
• Multimodal transport documents

If both the parties opt for electronic transmissions, then all the above documents may be substituted with respective electronic data interchange (EDI) message.

Note that the EDI’s are suitable enough for use.

§  A9 Check, Package and Mark

The seller has to cater to all the costs involved in checking the goods.

At this point, this is done to guarantee the quality of the products and their respective weights. Remember this must be done according to the terms of A4.

In addition, the seller must also provide the necessary packaging of the goods for delivery again at his own expenditure.

An exception is only applicable in cases where the goods involved in the contract are to be supplied without packaging due to relevant industrial practices.

§  A10 Other Obligations

Eventually, the seller must, therefore, cover the costs encountered in obtaining the documentation as termed in B10.

Or corresponding EDI messages except for provisions of A8.

The buyer should, therefore, be reimbursed if he made an input to assist in the acquisition of the documents.

Optionally, the seller needs to provide the buyer with detailed information about the insurance cover bought.

That is all for the seller’s obligations.

Shall we proceed to the buyer’s responsibilities now?

Obligations of the Buyer in DDP

Just like the seller, the buyer also carries a junk of responsibilities. Study the diagram below to have an idea before we proceed.

Let’s now quickly have a detailed information of the obligations.

§  B1 Payment of Price

The buyer ought to pay for the full amount of money for the goods as outlined in the sales contract.

§  B2 Licenses and Other Procedures

The buyer must assist the consignor with the process of obtaining both the import and export licenses at the request of the consignor and bearing all the risks and expenses.

Any other formal licenses might also be sorted for the importation of goods.

§  B3 Contract of Carriage and Insurance Contract

a) Shipping contract

This is not a commitment for the buyer.

b) Insurance contract

No commitment to the buyer.

§  B4 Receiving Goods

The buyer is obliged to collect the cargo once the seller conveys the goods with regards to term A4.

§  B5 Transfer of Risk

The buyer has to assume all the risks of loss of or destruction to the shipment after delivery of the goods according to A4.

In a situation whereby the buyer does not fulfill the obligations set out in B2, he is solely responsible for all the extra risks of loss or damage to the goods.

Should the buyer fail to give notice to the seller regarding the terms of B7.

He shall thus cover for all the risks of loss or damage to the goods from the fixed agreed date or the expiry of the delivery timeline.

§  B6 Division of Costs

The buyer needs to pay the costs of the goods from the delivery period, according to A4 as long as the goods have been identified to have been the ones stipulated in the contract.

Consequently, the buyer bears all the additional expenses if he ignores or fails to adhere to calls of delivery of the goods.

Or, give notice with respect to B7 when the commodities have been conveyed according to A4.

§  B7 Informs the Seller

The buyer picks on the suitable time within the provided timeline and the specific location at which the goods are to be received at the port of destination.

He/she must promptly notify the seller.

B8 Proof of delivery, transport documentation or corresponding electronic communication.

The buyer has an obligation to receive the bill of lading or shipping documents issued in accordance with A8.

§  B9 Goods Inspection

The buyer pays tosave for otherwise agreed, the fees for pre-shipment inspection.

However, when the inspection is carried out by the relevant authorities of the exporting country, then the buyer does not cater to that.

§  B10 Other Obligations

Judging the seller, at his plea, risk,and expense, every assistance must be issued by the buyer in gaining any documents.

Or, equivalent electronic messages disseminated or conveyed in the country of importation.

Which the seller may need for the reasons for placing the goods at the disposal of the buyer as provided by this rule.

Conclusion

Basically, this all you need to know regarding the Delivery Duty Paid incoterm.

I am sure you can now differentiate DDP from other terms.

Moreover, you can now distinguish the obligations of both the seller and the buyer as per the DDP.

Remember, it is important to share your intentions with the supplier, whenever you’re importing from China.

This way, you will definitely get better deals.

You’re now good to go.

For questions, or free consultations, Tj chinafreight team is always here for you.