You probably might have heard it more than once; “China is set to overtake the United States as the world’s largest economy in the 21st century.”

A large part of China’s economic success has been due to its incredible manufacturing industry, which makes it a nexus for business people and entrepreneurs to source products – and one of the best places to find products is at one of the many trade fairs that take place in China.

Here is a quick overview of what you’ll learn here:

What’s Mistakes to Avoid for Sourcing Products at Trade Fairs in China?

Here are some common mistakes that you can avoid

when attending trade fairs in China:

Do not commit to any supplier unless you’re fully satisfied after weighing your options.

Do not waste your time talking to unqualified suppliers.

Do not concentrate on prices; it’s important to get reference quotation.

Do not forget to follow up on suppliers.
 

Why Should You Go to Trade Fairs in China?

While online sites such as Alibaba, Made-in-China.com and Global Sources are well known for sourcing products, attending trade fairs in China can be an excellent way to:

Easily and quickly meet good suppliers while weeding out the bad ones.

Meet face-to-face with suppliers, interact, build a relationship and trust.

Check out and explore various samples in real life, products, and services

Learn about new products and trends.

Instead of emailing or communicating on social media with a Chinese supplier, just imagine the amount of precious time you’ll save by speaking with the supplier face-to-face.

Attending trade shows in China will save you the stress of having to wait for days, weeks or months on end to get a sample delivered.

Sourcing from China can be as easy as walking from trade fair section to section, viewing samples, asking various questions about the products, and signing deals right in the trade booth, while at the same time interacting and creating business relationships with suppliers.
 

What do I need Preparing for The Trade Fairs?

Do yourself a huge favor by following these trade fair preparation tips as they’ll help you maximize the benefits of attending trade fairs in China:

Pre-register online and print the confirmation code. This will basically help you at the trade fairs as you’ll easily breeze your way past long and winding registration queues like a VIP.

Research and learn about the suppliers or exhibitors who offer the products or services that you need.

Contact your highlighted suppliers/exhibitors before you travel. This will give you an advantage over other attendees at the fairs in the sense that you shall have cultivated some relationship with the suppliers beforehand.
 

Which is the Best Practices for Attending Chinese Trade Fairs？

Here are some basic tips for when you are walking around trade fairs in China.

Bring boxes of business cards and know how to properly and respectfully present them to the suppliers– for example, use both your hands when presenting the cards.

Treat the business cards that you give out or receive with care because it shows that you’ll take utmost care of the business relationship.

Come with a friend or a partner as an extra “set of eyes” to ease any overwhelming pressure off you, especially during negotiations.

Wear comfortable shoes and dress for the weather.

Bring an easy-to-carry bag to the trade fairs. If you expect to collect many samples, consider bringing a small four-wheeled luggage.

Come with a full detail of the products and services that you need for instance, pick about 3 to 5 products that you’d want to look at in detail as this will enable you manage your time better.

Get to the trade fair early.

Avoid last day rush.

Use your smartphone to take lots of pictures. You will have a difficult time recalling all the products and suppliers at the end of the day.

Talk to the most senior person in the booth (he/she is probably the manager).
 

• Why Should You Go to Trade Fairs in China?

It’s important to arm yourself with a few travel tips before you consider hopping on to the next flight to Beijing, Guangzhou, or Shanghai.

Whether you’re an experienced traveler or a first-time traveler, it’s vital to remember that a trip to China can be frustrating and intimidating.

These are the most important tips for travelling to China:

• Get your proper visa ahead of time
• Learn a few Mandarin words
• Learn about the biggest touristscams
• Get a VPN before arriving in China. A VPN allows users to unblock websites and apps that are censored in China, such as Google, Youtube, and Whatsapp
• Bring a breathing mask in case of air pollution

The Most Popular Trade Fairs to Attend

Most trade fairs in China are held twice every year; in the Fall (October to November) and in the Spring (April to May).

Most of these trade fairs last for the entire month with each segment or phase lasting for about three to five days.

These phases are typically organized into categories, for example: Phase one is about electronics, phase two is about gifts and home goods, and phase three is about clothing and fashion etc.

Some of the most popular trade fairs to attend in China include;

• Canton Fair held in Guangzhou in the months of April and October
• Hong Kong Electronics Fair held in Hong Kong in May and October
• The Yiwu Commodities Fair held in Yiwu in October
• East China Fair held in Shanghai in March
• The Global Sources Consumer Electronics Fair in April and October

Communicating with Chinese Suppliers

It’s crucial to keep in mind that communication is of much importance during these trade fairs.

It’s true that English is a commonly used second language in China, but imagine how your trip can be a success if you’re able to communicate with the suppliers in Mandarin Chinese!

It’s advisable to get a translator and focus on guanxi (cultivating relationship) if your sourcing requirements are substantial or complicated.

If you have to speak in English, it’s advisable that you use simple terms, speak slowly, smile and mind your body language.

All these are crucial in building a positive rapport with the suppliers.

Dealing with Suppliers and Having a Strong Pitch

It’s important to get suppliers to notice you by making a good pitch and first impression.

Some suppliers may brush you aside if they get the impression that you’re a small volume buyer.

That’s why you have to play it big, make a good impression, and persuade the supplier to pay attention.

When negotiating with a supplier, you should make sure that he/she has the ability to perfectly supply the products that you need.

You should also showcase your ability to buy, your experience and potential as a future client. In this way, a supplier will see you as being valuable and would want to deal with you.

Questions to Ask Suppliers

Some of the questions that you might find useful to ask suppliers include:

• Do you manufacture product a, b or c?
• What other products do you manufacture?
• Which countries do you export to?
• What quality system do you use?
• Can you customize products for me?
• What are your prices and volume of production?

Be careful of suppliers that seem to be able to say “yes” to every request, as they may be bending the truth in order to secure your order.

Consider deliberately throwing in some impossible requests to make sure suppliers aren’t blindly responding“yes” to everything.

Conclusion

Attending a trade fair in China can be very beneficial for your business.

You’ll not only get to meet suppliers, interact with them, and negotiate with them face-to-face, but you’ll also get the opportunity to sample various products while learning about new trends.

However, without the above-mentioned tips, your trip to China may not be as successful as you’d want it to be.

Therefore, it’s crucial to keep all the tips in mind as you plan, attend, and follow up on a China trade fair trip.

About The Contributor:

Rachel Mok is a Chinese-Canadian writer with a passion for technology. When she isn’t writing about the latest in startups and business in China at Startup Living China, she can be found traveling around the world, trying new recipes in the kitchen, and relaxing with a good book.

CFR means “Cost and Freight”, a lot of people call it C&F. 

If your trade term is CFR, you just need to find your own freight forwarder and let your supplier send your goods to your freight forwarder’s warehouse. You need to pay for all costs from the warehouse to your home or warehouse.

PS: Tj chinafreight provides free warehouse in any city of China, you just need to let your suppliers send your goods to our warehouse, Tj chinafreight will handle the left.

You can learn more details from the below guide about CFR incoterms.

Now, let’s dive right into the main subject of this section.

What is CFR?

CFR is an initial of a combination of two words which are Cost and Freight.

It is also common to come across the initial CNF when reading through the same content on Cost and freight.

There is no need to worry because they stand for the same thing.

The world has developed to a point where business is being conducted across borders.

People are continuously purchasing and selling goods and services from different countries all over the world.

As result, you may need to ship a range of goods from one point to another.

Heavy goods usually require transport by sea (ocean freight or sea freight) and this is the point where cost and freight comes in.

CFR is therefore better understood as an Incoterm where the seller pays for the cost and freight of transporting cargo from one port to another.

Apart from that other charges incurred during the trip such as getting it from the warehouse, transport to the destined port, delivery of the cargo and customs are also catered for by the seller.

In other words, CFR is an internationally agreed term where the seller is expected to assume all the responsibility in terms of cost from the factory to the point where the buyer will be collecting his goods.

As soon as the cargo has been delivered to the buyer, all responsibility ceases to be on the seller.

In case of further transportation to other destinations, the buyer will have to carter for the expenses.

It is important to note that the buyer will also be responsible for the cost of off-loading the cargo from the ship and any other cost that will be incurred depending on the rules of the destined port.

Having said that, let me take you back to the basics.

I know if you are importing from China for the first time, the term Incoterm can be somehow challenging.

Let me break it down for you.

What are Incoterms?

Incoterms basically refers to the International Commercial Terms.

Now, Incoterms are pre-defined commercial terms that relate to international commercial law.

It the International Chamber of Commerce that published the Incoterms.

As I had mentioned earlier, that are many Incoterms (about 11 Incoterms).

Through these Incoterms, importers and exporters know when the tasks, responsibilities, risks or costs shift from one party to another.

However, for the scope of this guide, I will focus on the CFR.

With that brief background information about Incoterms, let’s come back to the main subject of this article.

Breaking Down CFR

Shipment of goods through international waters or sometimes inland waterways usually dictates a number of terms.

The terms involved in conducting this kind of transport ranges from:

• Payment
• Place and time of delivery
• Conditions under which the risks involved shifts between the seller and the buyer
• Cost of insurance among other things.

It is important to note that CFR is strictly involved in transport of goods and does not meddle in any other form of transaction other than transport.

Examples of the Related Commercial Terms

Apart from CFR, there are three other terms that are being used in international shipping and inland water transport of goods.

• Free alongside ship – means the responsibility of the seller ends when he/she delivers the goods to the port alongside the vessel that is supposed to transport it. At this point the buyer takes responsibility of loading it up into the ship and transporting it all the way to the destination port.
• Free on Board – means that the person selling the goods will have to go a step further to make sure that the goods are loaded onto the ship.
• Cost Insurance and Freightis quite similar to CFR. Here, the seller is forced to insure the goods he/she is selling all the way from the source to the port where it was expected to reach.

CFR Calculation

The cost of shipping goods from one port to another is often calculated using the formulas below.

Please note that the formulas are used in the calculation of Cost and Freight.

In this case FOB has been introduced in the formula which will be explained below.

CFR Price = FOB Price + Shipping

CFR Price = CIF Price X [1 – (1+ Insurance Premium) X Insurance Rate]

FOB: is an initial that is mostly used in the shipping industry which stands for “free on board” or “freight on board”.

It is in other words, a designation that is used as an indicator of the period when ownership and liability of goods ceases to be on the seller.

And thereafter, the buyer assumes full responsibility.

In case a physical address has been identified, its designation is the determinant of the party with the responsibility of payment for the freight charges.

Not forgetting the point where responsibility is passed from the seller to the buyer.

As an example in international shipping:

“FOB (name of originating port)”, means the consignor (seller) takes the responsibility of paying for the cost of transport to the loading point and the cost of loading.

The consignee (buyer) on the other end caters for the cost of:

• Ocean freight
• Unloading
• Insurance
• Further transport from the destination port

In this case the consignor passes all responsibility to the consignee once the goods are loaded on to the ship.

CIF Price: is an initial which stands for Cost, Insurance and Freight depending on the named port of destination.

In this case the seller assumes responsibility of paying the cost of freight and insurance all the way to the destination port.

It however gives the buyer the responsibility of all the risks that are involved once the goods are on the ship.

Analysis of the 1990 CFR

Here what you should know about the 1990 CFR rule:

As soon as the goods or the cargo goes through the ship’s rail at the port where it is being shipped from, the consignor completes the process of delivery.

At this point, the seller has already paid the cost of freight at sea to the port where it was destined to go.

The seller also incurs the cost of risks involved in case of any damages or loss of the goods at sea.

Apart from that, the seller also assumes responsibility for the cost of booking and chattering, normal cost of shipping to the destination point.

The other obligations assumed by buyer and the seller are explained below.

Essential Obligations of the Seller

1. Takes full responsibility for the delivery of goods from the warehouse or factory to the port where the goods are to be loaded on to a ship.
2. He/she takes care of the costs incurred during this kind of transaction making sure that the goods are loaded and ready for shipment.
3. He/she does everything in accordance to the contract that was signed between him and the buyer taking note of the time and place after which the buyer is notified.
4. Handles all the procedures leading to the export of the goods including all the export approvals and licenses from the country where the goods are coming from.
5. Takes responsibility of booking and chattering and then making the relevant payments on the cost of freight all the way to the destination port.
6. Caters for any costs that is incurred from the port of shipment including the cost of loading the cargo onto the ship.
7. Provides all the commercial invoices and other shipping documents that will be required for the shipment of goods to the destination port.
8. The parties involved which include the buyer and the seller, may opt for electronic communication. At this point all the relevant documents are replaced by equivalent information in electronic data.

CFR Considerations

A contract stipulated according to the CFR considerations is not complete unless the inclusions explained in the following paragraphs are agreed upon.

1. The CFR terminologies has a section on shipping notification issues which requires very close attention. It requires the seller to do arrangements on transport as the buyer handles the insurance. This means that before the cargo is lifted into the ship, or before the buyer assumes all the responsibility, he has to make sure that the goods are insured as stipulated in the contract.

The seller is also expected to notify the buyer that the cargo is on board a particular ship with the relevant details or else the seller will be in breach of the stipulated contract.

2. The cost of unloading the cargo from the ship is usually a variant in CFR terminology.
3. The terms stipulated on the CFR considerations with regards to the liner terms state that the cost of offloading are usually handled by the conditions of the liner and are usually taken care of by the seller.
4. CFR ex ship’s hold, is a phrase implying after the cargo has been transported all the way to the port where it was meant to go, the buyer will assume all the responsibility from that point. This includes the cost of offloading the goods from the ship, on to the bilge and then to the port.

There are however other conditions that are stipulated on the CFR which should not be a real issue as they seek to clarify more on the matter of unloading fees.

5. CFR ex tackle, refers to the cost that the buyer has to incur when the goods have been delivered to the port, offloaded from the bilge and to the terminal.

The additional information on the same is just for clarification and does not influence the meaning of the stipulated rules and conditions.

6. CFR landed, refers to the idea that the seller will have to pay for the cost of offloading the cargo from the ship on to the port where it was destined for.

2000 CFR Analysis

General principals stipulated in the 2000 CFR, clearly stipulates that the CFR terminologies are allowed to be used only on inland waters navigation and in shipping.

In case the parties that have a particular contract are not interested in using any form of delivery over the rail of the ship, CPT terminologies kick in.

They will be used in these circumstances.

The interpretation of the 2000 CFR by the International Chamber of Commerce states that the obligations of the seller and the buyer are stated and divided as explained below.

Obligations of the Seller

1. The seller is expected to obtain license and other official documents that will be used in the export of the cargo at his own risk and expense.

They are also to be available in handling all the formalities required for the export of goods in case they are required to do so.

2. He is expected to read and understand all the terms stipulated on a contract that will be used as the agreement form allowing the goods to be transported from one port to another.

He will therefore sign the contract then makes sure that the goods are loaded at the time and place written on the contract.

After that, he is expected to inform the buyer that the cargo is on-board and will be ready for shipment after paying all the charges.

3. In this contract, the buyer is excused of any form of responsibility on the risks that the goods face as it crosses the rail onto the ship.
4. Provision of the usual documents of transportation is done by the seller. In case both parties agree on electronic form of communication, all the relevant documents are usually replaced by electronic data interchange EDI. The system is as effective as the physical documents.

Differences and Links between CFR and EXW, FOB and CIF

The points that are very common in CFR, CIF and FOB are often seen in three types of foreign trade quotations as explained below:

1. Loading the goods and informing the buyer of the progress is the responsibility of the seller while the buyer has the responsibility of receiving goods sent to him.
2. Export formalities plus all the documents involved are supposed to be handled by the seller while on the other hand the buyer should be ready to handle all the formalities of importing the goods with all the relevant documents.
3. The bills incurred in export are to be paid by the seller while the bills incurred by imports are to be received and paid by the buyer.
4. Delivery of goods at the port where they are to be loaded for shipment, the risks and cost involved are taken care of on the ships side.
5. Other deliveries of the same nature include the delivery of vouchers and subsequent voucher payments.
6. They are all bound and restricted to inland water transport and international or marine water transportation.

Once you identify the supplier or goods you want to buy, Tj chinafreight will handle everything for you.

Who Pays Freight in CFR Shipping?

It is the seller’s responsibility to cater for freight charges in CFR.

In principle, CFR incoterms stipulate that the seller is responsible for transporting goods to the required buyer’s destination.

Additionally, the seller under CFR needs to provide the buyer with all the necessary documentation for picking up the shipment from the carrier.

Under CFR, the shipping party has a greater amount of responsibility when it comes to organizing and paying for shipment transportation.

While at it, the seller stays liable for inland transit from the warehouse to the port of origin and port of destination.

The freight cost in CFR is therefore fully borne by the seller.

Does CFR Include Duty when Shipping from China?

Yes.

Under CFR, customs duty is inclusive, which is borne by the buyer.

Immediately after the seller drops the shipment at the respective designated port of destination, unloading rests with the buyer.

Therefore, it becomes the buyer’s responsibility to cater for all import duties and taxes at the port of destination.

Additionally, the buyer will still be liable for local and depot charges where applicable.

Who handles Duty and Customs Clearance in CFR Shipping?

Seller.

CFR terms dictate that the seller is responsible for export customs proceedings.

They manage all relevant documents needed for export such as commercial invoice, packing list, and bill of lading among others

Moreover, the seller is in charge of making payments such as terminal and freight forwarding fees.

After carrying out all the customs clearance procedures, the sellers ensure they hand over the documents to the buyer.

This makes it easy for the buyer to carry out the ensuing freight proceedings.

Is there difference between Incoterms 2020 Incoterms 2010?

Yes.

Ideally, Incoterms 2020 is a revised version of Incoterms 2010.

In principle, Incoterms 2020 text tends to have a relatively different layout and style of presentation.

The sequencing and presentation of the rules are a bit different in Incoterms 2020.

Nevertheless, the Incoterms are still 11 rules in both the 2010 and 2020 versions.

Some of the notable difference in these two versions, however, include the following;

a) The DAT Incoterm, Delivered At Terminal,has been renamed in Incoterm 2020 and now referred to as DPU, Delivered at Place Unloaded.

In essence, the name changes are necessitated by the fact that delivery of shipments can take place at any given point.

Technically, delivery of goods is not restricted only at a transport terminal.

As with DAT, this is the only regulation, which requires the seller to unload the cargo at their destination.

b) Incoterms 2020 attempts to assist the seller whenever the FCA rule is used together with a letter of credit.

Both parties can agree that the buyer should direct the carrier to give the seller documents such as a bill of lading or letter of credit.

Ideally, this acts as a stop-gap solution preventing financial institutions from insisting on getting an on-board bill of lading for containers.

It also does little to reduce the underlying risks when the buyer is allowed to arrange for shipping.

c) Another difference is that Incoterm 2020, the rules now takes care of the situation where either party transports cargo using their vehicles without engaging services of a third party.

d) Incoterm 2020 also describes in detail the allocation of costs arising from security-related obligations.

e) In terms of freight insurance, for CIP rule, the level of cover needed is institute cargo clauses. Incoterm 2020 describes a higher level of cargo than specified in Incoterm 2010. The level of cargo cover in incoterm 2010 is Institute Cargo Clause.

Essentially, the reasoning, in this case, is that CIF is quite popular with goods transactions where the lower level of cover is largely accepted.

How does CPT compare to CFR?

Ideally, CPT is an Incoterm abbreviation for Carriage Paid To.

It’s an international trade term stipulating the seller must supply commodities to a carrier or any individual nominated by the seller at their expense.

Under CPT, the seller is liable for all risks, including failure before the goods are in the chosen party’s care.

A carrier under CPT can be an individual or entity responsible for shipping the goods by sea, road, or air.

Alternatively, it could be a person or entity who chose to procure the carriage’s output. In most instances, the CPT tend to include Terminal Handling Charges (THC).

CPT is an international commercial concept denoting the seller is liable for the risks and costs associated with shipping goods to a carrier to an agreed destination.

Where multiple carriers are involved under CPT, risks and expenses are passed to the buyer once delivery to the first carrier is accomplished.

Expenses under CPT include taxation and export duties

The buyer under CPT is at liberty to opt for a Carriage and Insurance Paid To (CIP) agreement as an alternative. In this case, the vendor also insures the shipment during transit.

On the other hand, CFR is an acronym for Cost and Freight.

Essentially, this Incoterm stipulates that a complete sale is a cost and freight.

Therefore, the seller is responsible for arranging transportation of cargo by sea to the respective port of destination.

Under this Incoterm, the seller is not responsible for acquiring insurance againstdamage or loss of cargo when in transit.

The seller and buyer may agree to include cost and freight in the agreement.

 In this case, CFR ensures the seller is not responsible for providing insurance of loss or damage for load during shipment.

What does CFR state Regarding Cost for Cargo Security?

In the recent past, cargo security has become an integral element in the shipping industry.

Incoterms 2020 edition analyzes the obligations by reference to activities related to the overall export clearance process.

Practically, the most relevant security framework, usually the International Ship and Port Security (ISPS) code.

Thus, cargo security under CFR lies with the respective designated parties involved in the shipping process.

Carriers will often levy a small charge for ISPS, which, of course, will be borne by the seller.

Can you use CFR for Containerized Cargo?

Not really.

CFR is unsuitable for containerized cargo.

Essentially, the risk transfer point of CFR incoterm tends to be a bit different from cost transfer point.

Thus with CFR, risk is transferred when the shipment is loaded onboard the vessel at origin.

In principle, it should only be used when the vendor or supplier has direct access to the vessel.

For instance, it could be a vessel like bulk cargo shipping when commodities are loaded directly onto the vessel rather than dropped off at container terminal before loading.

Who Controls Rules in CFR Shipping?

The International Chamber of Commerce is the agency responsible for controlling all the rules and regulations in CFR shipping.

ICC is headquartered in Paris, France, but all the Incoterms are adhered to by all the major trading countries in the world.

This body is also responsible for revising the rules after every 10 years, with most recent version being Incoterms 2020.

Ostensibly, all the rules in CFR shipping are recognized by courts and different authorities globally.

Under CFR, the buyer and seller have a specific set of responsibilities guiding implementation of this incoterm.

Both parties can modify according to their convenience provided for them to agree to it.

Is CFR suitable for Letters of Credit?

Yes.

Essentially, delivery under CFR Incoterms takes place before main carriage.

Letters of Credit are mainly used as bank guarantees for payment of the respective shipment to the seller.

Therefore, the carrier provides the seller with relevant shipping documents. This document often serves as a mechanism for control of the commodities.

The document can be presented to the financial institution under a letter of credit and passed to the buyer for goods to be claimed.

You can thus use CFR as an ideal incoterm with a letter of credit where there is a need.

Can you use CFR in Airfreight?

Not at all.

According to the International Chamber of Commerce,the CFR terms are strictly designed for sea and ocean transit.

All CFR terms are designed to take care of consignments sent via ocean only and does not consider any airfreight related factor.

The responsibilities of both the seller and buyer in CFR shipping are pegged on sea transit.

Therefore, you can never use CFR in Airfreight.

How does Risk Transfer in CFR Shipping Work?

Under CFR terms, it is the responsibility of the seller to contract carriage.

However, the seller does not assume the risk of loss or damage to the cargo.

Similarly, the vendor is hardly liable for additional charges arising from events occurring after shipment or dispatch.

Ideally, risk transfer in CFR shipping is effected to the buyer immediately after export clearance.

In other words, risk in CFR shipping is transferred to the buyer once the shipment is loaded on board.

This happens before the main carriage takes place.

Once the risks are transferred from the seller to buyer, the seller will never be liable for damage or loss to the shipment.

Moreover, the seller does not cater for cost of marine insurance hence is not obliged to any unfortunate event of the shipment.

However, related costs are always on the seller until the moment of import clearance at a specified destination.

How does CFR compare to Ex Works?

CFR and Ex-Works are some of the commonly used incoterms in the shipping world.

These two incoterms, however, compare in different ways.

Under CFR, the vendor must take care of cost and freight necessary to ship the cargo to a specified destination.

But the risk of loss or damage to the goods and additional costs occurring after goods delivery is transferred to the seller.

This happens once the goods pass ship’s rail in port of origin.

On the other hand, Ex-works incoterms stipulate that the seller must deliver goods at his premises.

While at it,the buyer arranges how to pick and transport the shipment to their respective destination.

Under Ex-Works, the buyer carries all the risks and costs of logistics operations once the goods are delivered.

Moreover, CFR terms require the seller to clear goods for export.

Significantly, CFR is only applicable for ocean and inland waterway transport.

CFR terms are favorable for the buyer since the seller takes up significant responsibilities hence reducing cost.

However, Ex-Works terms tend to favor the seller since the buyer takes the burden and related risks after delivery.

Technically, the seller is relieved from any kind of liability after making the goods available for collection at his premises.

Should you Indicate Date of Delivery at Destination when using CFR Shipping Term?

No.

It is not advisable for either party involved in CFR shipping to stipulate date of delivery at destination.

Ideally, this kind of stipulation often defeats the object of CFR terms. In essence, it creates a loophole for varied interpretations of the contract.

In case the shipment fails to reach the specified date, several contractual issues are bound to arise.

Of course, ocean freight can be unpredictable due to unprecedented delays such as bad weather on transit.

This can lead to unnecessary misunderstandings such as violation of the contract obligations.

Therefore, when using CFR incoterms, avoid indicating date of delivery at destination.

How do you Determine the Cost of CFR Shipping?

In calculating the price of CFR, several elements must be taken into consideration.

For instance, the price of commodities, customs fees, insurance charges, duties and taxes, freight, verification, labor, documentation, etc.

As a seller offering CFR terms, you must figure out all these factors when determining the ideal cost of CFR.

Once you figure out charges for the respective elements, it becomes easy to know an approximate figure to quote.

Nevertheless, the vendor under CFR hardly charges the buyer for shipping costs.

But it would be vital to consider it while arriving at the ultimate cost of CFR shipping.

Once you factor in all these elements, it becomes easy to provide a rough estimate on your quote.

Conclusion

Like other Incoterms, CFR also plays a fundamental in international trade.

And, at this point, I am sure you can explain everything about CFR shipping terms.

But more importantly, you should evaluate all options available at your disposal to choose an appropriate Incoterm.

Now, it’s your turn.

Are you importing goods from China?

Or, you want to learn more about Incoterms.

Well, talk to us today – we will make your shipping simple and easy.

A Bill of Lading is a very important piece of Paper in the shipping industry.

If you want to ship your products then check what you need to know about the Bill of Lading for shipping.

What’s the Most Applicable Bill Of Lading types?

Two types of Bills are practically used for shipping Sea bill of lading and the airway bill of lading.

If you want to transfer your products in short transit time and you have a rigid deadline then choose airway Bill of Lading.

Airway BOL is a little bit expensive but meets your deadline.

Another option is Sea/Ocean Bill Of Lading.

Sea BOL is a cost-effective and secure way of shipping.

Ocean Bill of loading is issued exactly at the time of loading products in the ship and right after signature done by the shipmaster.

Keep one thing in mind, Bill Of Lading delivered when payment released under the conditions on the letter of credit.

This type of ocean bill of lading is delivering when payment is conditional on a letter of credit.

What is a notify party on Bill of Lading?

Name and address of a specific person are notified who should be updated with the arrival of freight on destination.

When am I tracking my cargo, why Bill Of Lading not found?

There could be some reasons

Maybe you have not enteredBill of Lading Number

If you are using public access tracking service then verify your account number is correct or not.

What is the difference between Bill Of Lading and Seaway Bill?

Both are ownership documents for the shipping by the ocean, but never think BOL and Seaway Bill have the same functionality.

A Seaway Bill is the confirmation proof of shipping products and receipt of transferred goods.

In another side, BOL is ownership document, contract of shipping while also used as a document of title.

1. The meaning of the bill of lading

What is the bill of lading?

The short name is B/L when you start shipping your products transport department give a certificate to the consigner.

The interesting thing is, the word “lading” comes from the word “loading”

In foreign trade, the piece of document (certificate) is called Bill of Lading.

Another name certificate of ownership of the freight which allows shipping of your products.

The person has the bill of lading allowed to receive & exchange goods.

Bill of lading is the contract which allows the carrier to transfer goods from the loading port to the destination port.

Most important and worthy document in the shipping journey but also the most misused document.

• The contract of carriage
• Receipt of loading products
• Title of goods

The contract of carriage

To transfer freight required details about loading port, destination port, and regulations mentioned in this paper.

The Bill of lading is a simple contract between buyer and seller.

BOL is a negotiable instrument and can be endorsed to the third party without any restriction.

Receipt of carriage

Details, number of loaded products & cost on freight services.

Title of goods

Required names for receiving party mentioned on the bill of lading.

This allows the holder to further transfer the products to someone else.

Who issues a bill of lading?

The bill of lading issued by the freight forwarder or shipping agent after properly acknowledging the freight receipt.

Carrier or agent is responsible for the loss & profit during cargo transfer & consignee is the other party mentioned on air waybill for which shipment is committed.

But keep one thing in mind authorization of carrier or shipping agent must be crystal clear.

When is a Bill Of Lading issued?

Bill of lading is issued at loading time. In case of ocean freight, BOL issued when ocean container loaded.

But there’s another case at the time of rail freight multimodal Bill of Lading issued by the freight forwarder.

2. The contents and filling of the bill of lading

1. The Bill of Lading NO
2. Shipper
3. Consignee
4. Notify party
5. Name of vessel or container
6. Place of receipt
7. Port of loading
8. Port of Discharge
9. Place of Delivery
10. Description of goods
11. Number and kind of package
12. Shipping marks
13. Gross weight
14. Freight & Charges Detail
15. Temperature Control
16. Freight forwarder or agent signature
17. Terms and conditions of

The Bill of Lading Number

Check the upper right corner of BOL.

When consigner starts shipping process he should provide ship name & Bill of Lading number to the consignee.

Shipper

Shipper name and address is recommended to fill out in BOL, the code is also necessary.

Shipper detail is mandatory to proceed the process.

Consignee

All the information relevant to consignee is mandatory to fill.

Credentials required to contact the consignee phone number, fax number, and address.

Notify Party

This is about the receiving end, shipping company notify after reaching the destination port.

This section may have the same information Name, detail address, and phone number.

If you provide a wrong address or phone number, then how a company contact consignee to inform about the freight status.

Name of The vessel/Container

Filling the name of shipment, container, and voyage.

Container name is required when the Bill of Lading shipped.

Actual time of loading cargo Fill onto the Bill of Lading.

Place of Receipt

This column is specified for the multimodal transport.

It indicates the location where freight forwarder receives the freight.

Port of Loading

This column should be filled by the name of the port from where cargo is loaded.

Port of Discharge

The column should be filled with the specific name of the destination port.

Port of discharge where all the products unloaded from the container.

You should pay keen attention when you fill this column.

You need to have the exact name of port for smooth shipping process.

Place of Delivery

This column indicates where the freight forwarder delivers the products.

Carrier fills this column under multimodal mode.

The terms of carriage involved are door to door, field-door, and station-door.

Description of Goods

The important thing is the name of products must be the same as the name on the letter or credit.

All the details about products mentioned in the Bill to make shipping process secure.

Gross Weight (Measurement)

If delivery details mentioned in the letter of credit, it should be filled according to rules and regulations.

In another case, weight is mentioned in kilograms & volume in the cubic meter.

 Temperature Control Instructions

If you want to ship a refrigerator, the specific temperature should be mentioned in the column of the temperature control instructions.

Two parts are included in the content of Bill of lading

1. Positive fact record
2. Back bill of B/L

Every shipping company formulated the contents approximately in the same way.

How to fill a Bill Of Lading (BOL)

BOL is the legal document of ownership used by shipping companies.

The main purpose of this document is the shipping companies or freight forwarders has received the products.

You should follow some instructions when you fill a Bill of Lading.

• Put your exact name and location in the appropriate field.
• Mention your purchase order on Bill of Lading.
• Insert the name and address of shipment receiver.
• Include some guidelines for the freight forwarder about the handling of shipment.
• If you already collect the shipping charges then mention.
• Mention the number of packages in the container & specify the type of packages.
• If you want to ship hazardous material then choose a special type of shipment & mention on BOL to avoid any inconvenience.

Check how the BOL filled correctly by an example:

To get the better understanding to follow step by step.

1. Put the exact date
2. If necessary then fill with lading number.
3. Attach barcode to fill this field.
4. Enter pro number of freight forwarder.
5. Insert reference number for official use (optional).
6. 6 Insert Shipper and consignee’s name and proper address. ( Zip code is mandatory to mention)
7. If a third party involved paying for shipment then mention the company name, contact and address.
8. Some of the special notes should be marked on Bill Of Lading

• Special guidelines for delivery status
• Purchase order number
• Account number

9. Indicate the shipment delivery date and time & mark for the proactive notification.
10. If you want your freight is collected by freight forwarder mark the BOL as COD (Collect On Delivery)
11. Insert collect on the delivery amount, this is basically the price of the specific product.
12. Indicate verification of company for COD.
13. Mention number of shipping containers. Sometimes you don’t need to mention the individual number of packages and items in a shipment.
14. Indicate the type of package typically package is boxes, barrels, and skids.
15. Enter the number if you ship individual pieces.
16. Mention unit of measures for weight and volume.
17. If you want to ship chemically hazardous material then first discuss with the freight forwarder.

Special rules applied to such type of products.

Place simply X in this Column to mention products hazardous.

18. Write a proper description of products with the nature of the material. Your freight forwarder helps you to determine the exact specification of your freight.
19. Insert item number of National Motor Freight Classification.
20. Your shipping charges based on the classification of products. Enter correct class specification.
21. Put exact field in this field. If you want to ship different types of products then prepare the list of things.
22. You need to mention the exact height and width of the products. If you want multiple products to ship then list of shipment products required to attach with Bill of Lading.
23. Enter correct contact number in case of the emergency company can contact you.
24. Mention the name of the person or company who is responsible for the payment of shipment charges.
25. Insert the declared price of products.
26. Mention the charges billed to the consignee.
27. Enter the name of Freight Forwarder Company (as the shipper) and sign the bill BOL by the forwarder.
28. An authorized person from freight Forwarder Company sign the Bill of Lading and mention the number of shipping containers.
29. All the details should be mentioned here who loaded the container & counted the shipment packages.

What information must be included on the bill of lading?

• Shipper and carrier name and contact credentials.
• The date and port of shipment
• Freight Classification.
• Weight and volume of the shipment
• Types of Bill of Lading
• Description of the products according to the material and nature of goods.
• Special instructions to the freight forwarder.

3. The function of the bill of lading

Read this guide to know the functions of Bill of Lading

• Bill of Lading is the receipt of shipping products or the ownership documents to allow the goods to be loaded into the container.
• The function of Bill of Lading is receiving goods, this is not only for loaded freight carrier has issued the obligation to ship the bill of lading.
• Bill of lading is the proof of loading the cargo in the container, it also indicates the time when products loaded.
• Loading goods mean seller to transfer the products to the buyer and transit time of shipping also means the time of receiving goods.
• Bill Of Lading is the legal ownership of freight to transfer products and carrier has right to receive goods on the destination port.
• If you transfer bill of lading to the third party it means you are transferring the right to transfer goods.
• The freight forwarder is responsible if any product is damaged during shipping.
• After transferring the bill of lading from seller to buyer risk of damage products also transfer to the buyers.
• The document is a legal contract to ship products by sea.

4. Issuance & correction of the bill of lading

A Bill Of Lading is the legal document issued by the carrier for the transfer of goods.

Bill of lading terms & conditions

In the year 0f 2013 The Federal Motor Carrier Safety Administration issues new regulations about

New rules established to eliminate double brokers.

You cannot ship without brokerage license and keep one thing in mind freight breakage and carrier responsibilities are not same.

You must follow the regulations, what is acceptable and unacceptable according to the shipper and carrier.

If carrier finds any type of incongruity then shipper must create a new copy of Bill of Lading.

How Bill of lading works?

Bill of Lading works in a different way like:

• As receipt of products
• As a contract between carrier & shipper
• As a title of goods

Receipt of goods

Bill of Lading is a document issued as receipt of products, this is the evidence carrier receive products in good condition.

As Contract between carrier and shipper

BOL is a contract to transport the freight from seller to buyer.

This contract is an evidence for the ownership of the carriage.

  As the title of the goods

A piece of paper is the legal proof of ownership.

The holder of the BOL has the right to claim the products to transfer to another party.

Consequences of an incorrect bill of lading

There’re different things you have to face by the incorrect filing of BOL

• Freight doesn’t transfer safely to the destination
• Claims
• Loss or protection from the loading port to destination port
• Loss of the right to transfer goods to the third party

Claims and clean bills.

When the cargo transferred by the shipping company according to the specified time the receiver sign a document (Bill Of Lading).

Bill of lading signed if they are delivered in satisfactory condition.

When products delivered without any damage and in a satisfactory condition not even late then it is called “clean bills”.

The other condition is the late delivery of consignment and your product is damaged during the way then customer intends to fill a claim.

You need to mention nature of your claim on the Bill Of Lading before signing them.

What is the difference between a Bill of Lading and Freight Bill?

Both documents are approximately same but freight bill cannot provide evidence for transferring products from one party to the other.

Fright bills is an invoice with 3PLs which helps to improve costs and resolve different problems.

Bill of lading in import

How bill of lading used in international trade shipments?

• Bill of Lading helps to maintain economic, social and political stability.
• Normally shipper support to deliver products and carrier issues the Bill Of Lading.
• It contributes to improving the domestic goods on the national level.

Transferability of Bill of Lading

The Bill of Lading is ownership document of title, having precise attributes which are commercially important.

These attributes help to improve international trading.

5. Endorsement of the bill of lading

Endorsement Charges in shipping

A legal transfer of goods between parties is called the endorsement. It can be the amendment in contract or legal document.

Shipping Guarantee/Bill of Lading Endorsement helps to avoid high charges and fluctuation of price.

It guarantees the products delivers before Bill of Lading arrives.

You can transfer your goods without advance payment first.

Risk of the blank endorsed bill of lading

Blank endorsement means no owner of BOL.

In this case, the carrier becomes the owner of Bill and has the right to claim the products, and responsible for the shipping of freight.

6. Recommendations of Bill of Lading

What is the importance of creating an accurate BOL?

Bill of Lading included a lot of information, don’t you ever think why BOL is so important?

Let’s read this article to know why

Name and address of the shipper and receiver are important.

If contact is not provided accurately your consignment could be delayed by the freight forwarder.

Date & Time of Shipment is important, you can estimate the transit time of your shipping.

The specific date mentioned on BOL help to track the products.

The number of units loaded in the container is mandatory.

This information help to claim the shipping packages in case of any inconvenience.

Freight Classification helps to find out the exact charges.

Different type of products subjected to different charges according to the nature of freight.

Packing type– another factor to estimate freight charges.

This totally depends on the packing of products (cartons, skids, and drums)

Special Instructions helps to handle all shipping activities and processes.

Things to consider before signing the BOL

Some of the points you must keep in your mind before signing the Bill of Lading.

Verify The Shipper’s Identity

Verify all the information provided by the freight forwarder first.

The shipper has to assure the transporter’s service.

So make sure your shipper name, address and contact number should be mentioned on the Bill Of Lading.

Port and Date of Loading

The Date of loading should be mentioned on the Bill of Lading.

Port and date of loading help to calculate customs duty & transit time of shipping.

Port of Discharge

You must know about the port of discharge, it helps to avoid deviation charges.

The condition of the Goods

Confirm the conditions of the products before loading into the container.

Mention the description of the products correctly on Bill of Lading.

After arriving at the destination port you can check the freight condition accordingly.

Commercial Terms

There’s no need to include any type of commercial terms in Bill of Lading.

If you mention these terms in BOL, ideally you should remove from the Bill of Lading.

Proof Reading

Filling the form carefully is an important thing but you need to double check your bill of lading to evaluate the mistakes and missing fields.

You should make sure you fill your loading port and destination port accurately to avoid any type of inconvenience

Checks to be made before signing bills of lading

You must keep some of the points in your mind prior to signing the Bill Of Lading.

Bill Of Lading is the piece of the document approved by the Charterparty.

Put the exact name of the vessel or container.

Provide detail descriptions about products you want to ship, place of loading freight, destination to unload products, cost & transit time for shipping.

Check your Bill Of Lading with the shipping company is it correct to refer to specific places.

7. Common Types of the bill of lading & When to Use Them

Straight Bill of Lading

Normally used when to start shipping to a customer.

Straight Bill of Lading assigned to the specific team and team cannot reassign to any other party.

Straight Bill of lading is for the products that have already paid for & cannot sale again.

Order Bill of Lading

Type of Bill of Lading used for shipping when no advance payment paid.

You can read two important functions of to order Bill of lading

1. To order Bill of lading helps to prevent shipping to undesired people.
2. Consignee can ship the title of products to the third party with the endorsement.

Clean Bill of Lading

This type of Bill of Lading indicates carrier receive all the products in good condition and in proper packaging.

The condition of received goods is the same as on loading time.

Unclean Bill of Lading indicates carrier receive the products with slight damage.

Inland Bill of Lading

When freight is totally transported by road or by land then this type of BOL issued

Rail freight is also included in this type.

Ocean Bill of Landing (Port to Port BOL)

Ocean Bill of Lading is a paper issued when your shipment transfer by sea freight services.

This is the ownership letter for shipper and carrier.

Express bill of lading

Express is the type of bill of lading in which carrier is assigned to deliver products to the specific consignee without original Bill Of Lading.

Work mechanism of Express Bill of Lading is you can ask your freight forwarder for the issuance of “Express Bill Of Lading”.

Just right after the customs clearance process, your customs agent send BOL directions to freight forwarders and after that, you will get a copy of Bill Of Lading to reach on the final destination.

Advantages

• Consignee doesn’t require original Bill Of Lading so shipping process is speedy.
• Shipper saves the courier service cost, you can send confirmation by Email.

Disadvantage

• This’s just a receipt of shipping products, it’s not negotiable.
• Without Original Bill Of Ladingshipping isn’t secure.

Through Bill of Lading

Different distributors and mode of transport required some documentation

This type of BOL issued if your shipment transfer by different distributors & mode of transport.

Bill of Lading issued for the ocean as well as land freight.

Multimodal Bill of Lading

As according to the name BOL issued, when your shipment transfer by different modes.

Ocean freight, Rail freight, and Road freight.

Mostly industries used multimodal BOL these days

Direct Bill of Lading

Different types of BOL mentioned here but Direct Bill of Lading is the most recommended type.

Your freight is loaded into the container, the same container will deliver your cargo to the final destination.

Stale Bill Of Lading

Bill of Lading presented to the bank administration or delivered to the carrier after safely reached the destination port.

Received Bill of Lading

A simple form of Bill of Lading presented your freight arrived at the port and safely loaded on the container.

You must use some temporary Bill of Lading if your shipment is delayed.

Clause Bill of Lading

“Bad Bill Of lading” or “foul Bill of Lading” in which delivery of your products is totally opposite to the expectations regarding quality.

Bearer Bill of Lading

In this type, a bearer of the BOL is totally responsible for cargo

Consignee name is not mentioned in the Bill Of Lading.

This is the unique type, but be aware chances of misuse are also high in this kind of BOL.

Switch Bill of Lading

Most convenient option Bill of Lading can be replaced with the new one.

This document is issued at the loading time of shipment.

Seaway Bill of Lading

Seaway bill of lading is a document issued to shipper and carrier.

No original Bill of Lading is required products authentication is automatically processed & send to the destination port.

Seaway bill is also known as express release Bill of Lading.

Original Bill of Lading

A very simple document consists of straight Bill of Lading and in order bill of lading assigned to the shipper and carrier to precede shipment process.

8. Mistakes you need to avoid on BOL

• Description of the freight wrongly
• Be concise to write your product description. Name of freight & details should be mentioned carefully on Bill of Lading.
• Number of freight containers wrongly mentioned
• You should mention the number of containers/ vessels and in some cases a number of products in one container.
• Be sure how many products you order to ship and verify on the destination port.
• No precautionary measures for hazardous material
• If you want to ship dangerous material, you need to take care of safety measures.
• Label the Bill of lading appropriately and learn how to ship your hazardous products safely
• Improper communication with the freight forwarder.
• Make sure you are providing required information to the freight forwarder. If your carrier needs to ask some questions then answer carefully to make your shipment process easy.
• Fill wrong information in the contact section
• Bill of Lading is the document which is the evidence of the carriage. Your freight forwarder may need to contact you in any case of emergency. You must provide the correct contact information to avoid any type of inconvenience.

Missing information in Bill of Lading

Check twice the BOL and make sure all the fields have been properly filled out.

Not Understanding Rules and Regulations on Bill Of Lading.

Understand all the terms and conditions and recognize your responsibilities.

The consequence of Not Used or Inaccurate Bill of Lading

The worst consequence of incorrect filling is you wouldn’t get your shipped products.

But there’re some other consequences which effect badly.

· Exposure to claims

If the products loaded in good condition from loading port but received in damaged condition at the destination port.

Consignee will allow exposing a claim for the damage.

Another example will help you to understand if your shipment consists of 100 boxes but 90 arrived at destination consignee have the right to make claim against the BOL carrier.

· Criminal action

· Loss of the right of protection

Solutions to Ensure Your Bill of Lading is Correct

This’s incredible, shippers and carrier how to deal with risk factors &compete with their opponents.

To ensure your Bill Of Lading correct follows some tips.

Use Standard Bill Of Lading

If you try to find Bill Of Lading form from the internet you can have a varietyof bills

If you are using seaway bill to ship your goods, then this is a must-read guide for you.

Why?

I am going to tell you about how seaway bill of lading helps you to import your products easily.

This guide covers everything you need to know about seaway bill like uses, pros, and cons of sea waybill and why we use seaway bill as compared to the original bill of lading.

Why we need Seaway bill as compare to Bill of Lading?

I don’t like a bill of lading for the shipping of products because B/L is quiet slow, in 2018 people have no time to waste.

You know the bill of lading works on the very complex procedure to transfer products.

On the other hand,the process of the seaway bill is not complex and really simple to handle.

As I already explained SWB is a modern application of information technology and offer unlimited service.

In comparison,an electronic bill of lading offers only a few applications to operate.

When we required to use seaway bill of lading?

Seaway bill used whenever a relationship is very strong between shipper and carrier.

Best time when domestic things need to transport.

Your products are according to the predefined line of credit.

When shipper wants to ship products immediately.

Most important when shipper and carrier both belong to the same group and no negotiation required for shipping process.

The goal we want to achieve by seaway bill is:

Getting a receipt of shipping products by the shipper.

This evidence will help you at the time of unloading cargo from the container.

How to apply for the seaway bill of lading?

If you want to ship your products immediately by sea cargo service, then seaway bill is recommended for you.

You need to apply for the seaway bill of lading by writing an application.

Some of the important information mandatory to put on the application.

Vessel/container information

Port of shipment/discharge information
Cargo description
Shipper Name
Consignee Name

You can request for the seaway bill by putting the correct information in the application.

You need to mention that you know the terms and conditions of seaway bill of lading.

And you must follow the terms and conditions.

Most important thing is Seaway bill is not the document of the title so you cannot transfer the bill to the third

Best thing is, consignee doesn’t need any document at the discharge port.

The carrier is responsible for the customs clearance.

When would I use a Sea Waybill instead of a Bill of Lading?You can use seaway bill ?

You can use seaway bill when You know who the recipient of cargo is.

When a high level of trust exists between importer and exporter.

What is a sea waybill?

I want to explain sea waybill is Contract of carriage or ownership document.

See this way bill is a contract to transport your products from loading port to the destination port.

In short:

This document works as receipt of cargo; we don’t need this bill for the delivery of products.

The interesting thing is the seaway bill is also called “marine shipping order.”

But the next question comes in mind is sea waybill is negotiable or non-negotiable.

Non-negotiable but how?

Shipper can’t endorse the bill to the third person for the delivery of cargo.

If you are in a hurry

Then I suggest you Seaway bill to opt as compare to the bill of lading.

You can get an immediate release of your consignment with the help of freight forwarder.

Don’t waste your time by collecting documents in hard form and keep them safe for your smooth shipping process.

It’s easy to get complete all the shipping formalities online.

However, I believe in saving time by using the seaway bill.

Do you know seaway bill is real implications of information technology?

Yes, you don’t need to have a hard copy of documents like a bill of shipping products, receipts and detail description of goods.

Amazingly seaway bill regulated by the modern communication system.

Connect with your carrier by website system instead of a telex release system.

Important Terms used in the Shipping system

Carrier

The person which provide a guarantee for the shipping process.

And the legal document has been issued and signed on behalf of the carrier.

Merchant

The term merchant used for the shipper, carrier, receiver of products and owner of seaway bill.

Carriage

This term means all the action and procedures proceeds by the carrier as according to the products.

Holder

Owner of the seaway bill has right to allow and disallow the shipping of consignment.

Holder has right to endorse the seaway bill to the third party.

Goods

All the allowed things for shipping under the terms and conditions are called goods.

Container

Transferable tank or trailer used to consolidate shipping products or packages.

Size of the container depends on the weight of products.

Freight

All charges required to pay the carrier for releasing the shipment.

Vessel

You can say ship or feeder to transport small products.

Package

Largest packing of cargo for the shipment it might be a trailer or container.

No limitation applied to the weight or volume.

Port to port shipment

Shipment from one port to another port.

Carrier is responsible for the loading and unloading products with seaway bill.

Third party

Transfer responsibility of shipping process and products transferred from one carrier to the other carrier.

Another carrier is called the third party in shipping terms.

COGSA

It means Carriage of Goods by Sea Act of United States of America

Non-Negotiable Seaway Bill

Do you know, Non- negotiable seaway provide two functions as an original bill of lading

• Non-negotiable seaway bills work as receipts of products from the shipper to the carrier.
• It’s the evidence or the contract of carriage same like an original bill of lading

(all important clauses printed on the one side of the contract)

Above two functions are the same with a bill of lading.

But keep that in your mind, this is  not a bill of lading.

Because seaway bill is not working as the title of the document.

If you select seaway bill, what do you think is it right?

You know seaway bill works between two reliable persons or companies.

And after getting this document, you actually don’t need a bill of lading to verify your consignment.

Seaway bill issued in hard copy or some time in soft copy format.

For example, if you need in the hard form, you can download and take a print on paper.

Keep one thing in your mind; seaway bill isn’t a document of the title.

There’s one holder of the cargo;ownership cannot transfer to the third.

Most important thing is:

Owner name mentioned on the consignment.

Which definitely indicates cargo owned by a single person.

Sample Non- negotiable Seaway Bill of Reality

Non-Negotiable Sea waybill of Lading

There’s no hell difference in looks between the bill of lading and seaway bill of lading.

Do you know what basic information required to the bill of lading?

First, you need to mention shipper name, consignee information,and cargo description.

And on the fourth step, you need to mention port of discharge.

If you want to release your cargo immediately, don’t worry.

And head to Google and get into the shipping company website.

The shipping company will help you to release your consignment as soon as possible.

After releasing the cargo from the discharge port, you can send mail or message to the receivers of goods.

The reason why seaway bill is born?

Well, there are a lot of reasons to born seaway bill of lading like:

• Above all, advanced technologies and fast communication between shipper and carrier.
• You can get faster delivery of products from the discharge port to the destination port. (the Original bill has some better properties )
• On the negative side of the Original bill of lading:

It’s not suitable for receiving products because of the original documents required to receive the products

• Seaway bill boost up the release of surrendered Bill.
• Best property of seaway bill of lading is the terms & conditions mentioned in the back of the document( in small letters)

Use of seaway Bill of Lading

Before I share some benefits of seaway bill which can help you to improve your shipping process

I want to tell you the additional property of this bill.

“You don’t need any documents in hard form to release your cargo.”

And above all seaway bill is only the reference to ship your products.

1. Seaway bill used when you transfer your products by sea freight.
2. If you belong to the same multinational company, seaway bill is used to ship products between different branches of the same
3. According to the conditions of shipping, buyer and seller both are responsible for paying
4. If you want to ship domestic products, you can choose the seaway bill of lading confidentially.

Similarly, the items which have no commercial value also use SWB.

5. Seaway bill only used when a close, reliable relationship exists between two persons or business partners.
6. Get rid of the situation when B/L does not arrive at the destination port,and you have to wait for it.

Seaway bill helps you to avoid such type of conditions.

Where to Use Sea waybill:

1. When you start shipping your products, you need to have two things for the quality ofthe shipment

Fast and smooth shipping

As I already mentioned above seaway bill is the best option when you’re in rush.

Just imagine,

You’re shipping your products,and at the same time, you’re in a bit hurry.

The time duration between the loading port and destination port is very short.

And the bill of lading takes plenty of time to operate, so what option do you have?

Seaway bill?

Yes, it takes a very short time to ship your products from loading port to destination port.

So, Seaway bill helps to make shipment process fast and smooth.

2. There are actually a lot of things to consider before shipping, most important is time duration.

Seaway bill is the instant solution of the shipping process.

3. You can use this bill when seller and buyer have a strong business relationship.
4. It’s still very important to focus on the repute of the seller in the market.

Especially how he deals with bulk products.

5. You can use the seaway bill of lading but according to some rules & regulations.

Asa receiver,the name should be on the SWB.

(This is also same as an original bill of lading. The holder of the document can receive the products.)
Some Functions of Seaway Bill

There are some important functions at the pole that will truly separate the seaway bill and original bill of lading.

• The first thing which differentiates is simply signed an agreement between buyer and seller.
• Don’t waste your time check the information on seaway bill.

Information on SWB must be the same as information of manifest.

You can say business often use referrals for the verification.

• Seaway bill used when the buyer and seller trust each other.

And both parties have the confidence to complete the shipping process.

• However, Seaway bill provides you the ownership of goods.

And keep one thing in your mind without ownership SWB cannot work.

• Above all, trust is the only guarantee of the seaway bill document.

Of course, in that case,you can face some difficulties like in the customs clearance process.

• Some of the countries don’t believe in the trust relations they avoid to use this type of bill of lading.
• If both parties belong to the same organization/company,the best option is seaway bill of lading.
• If you take a look at the example of some donation based shipping products.

All the products are advised to ship through seaway bill of lading.

• Some banks accept seaway bill of lading for the purpose of shipping payment.

Seaway Bill Process Level

If you are confused about the workflow of seaway bill of lading, continue reading:

Step 1

On the first step, you can book your shipment, pack your cargo in suitable containers.

Step 2

After booking and packing, you need to complete the customs clearance process (customs clearance is the responsibility of carrier).

Step 3

Send a brief description of products and bill details to the shipping company for getting bill draft.

Step 4

The shipping company or the freight forwarder send you the request for the validation and confirmation.

If a company finds the correct information, then the process will continue with the same flow.

As a result, the shipping company sends the notice to receive the products at the port of destination.

Step 5

Consignee must provide some referrals to validate the process.

Contents to fill out on the seaway bill

You need to fill out some important information in seaway bill of lading

Let’s check below:

1. Consignee name
2. Shipper name
3. Carrier name
4. Place of receipt
5. Exporting carrier
6. Port of discharge
7. Product description according to the quantity, quality,and nature of products
8. Number of packages
9. Number of containers/ vessels
10. The weight of the container
11. Gross weight of cargo
12. Measurement
13. Port of loading
14. Place of delivery
15. Cargo insurance (if applicable)
16. To obtain delivery contact

Generally speaking, the seaway bill is not like an original bill of lading.

But also need full attention to fill for smooth shipping process.

Advantages and disadvantages of sea waybill

Here are the points why you should use the seaway bill.

First and foremost advantage of the seaway bill of lading is “it doesn’t need original Bill of Lading to receive the products from the destination port.”

You can save your time by sending the letter of recommendation of your company by email or any other mode of communication.

1) Benefits of using seaway bills (Advantages of Seaway Bill)

Remember now you are not stuck with the large community to ship your products.

Just carrier, shipper and consignee involved in the complete shipping process.

Some of the benefits you need to know before use:

1. The procedure for using the seaway bill is very simple.
2. You can operate this bill conveniently, no hard work required to transfer products.
3. Seaway bill is a reference receipt and used for the security purpose

But the question is how is it secure?

Simple it’s not negotiable and can’t transfer to the third party.

4. Best, no documentation required for the authorization of shipment.
5. Immediate process of shipping, everything includes from the start to end.
6. Cost-effective delivery of consignment helps to resolve all the problems of short distance shipping.
7. Keep that in mind; this is not a document of title; you can use it as an electronic bill of lading.

Disadvantages of seaway bill

You may face some difficulties with the use of a seaway bill of lading.

The first drawback, like stock, cannot be maintained actively in this type of bill.

2) The shortage of shipping orders

The International Maritime Committee(Agency to deal with shipping process) helps to improve the shipping process.

How?

It helps to formulate uniform rules for sea freight and air freight service.

The limitations of the sea waybill mainly indicated in the following piece of content:

1. Look, the shipper works as consignee,but he’s not contactor of shipping.

And also remember he has even no direct connection with the carrier.

2. Indeed, the original consigner has no right to use issued seaway bill again.

Surprisingly, the shipper is allowed to interfere in a contract of carriage.

But he can add or remove something on behalf of the consignee.

In a way,the carrier has the right to receive the products easily.

Seaway bill is just a receipt for the shipping of the products.

You must remember shipper and carrier have authorized relationship, and terminate the right of the consignee.

Now the carrier is the authorized person to ship your products.

3. You cannot transfer your Products under the seaway bill till order not arrived at the destination port.
4. If importer refuses to pay the charges your shipping process ultimately in danger.

But every problem has a solution.

You can use bank option to keep your cargo secure.

You know the seaway bill is the additional document for the bill of lading.

It helps to improve the international trade experience.

Pros and Cons of Seaway bill of Lading

Seaway bill terms and conditions

Regulations related to goods

Some of the people think how sea waybill help to ship the products safely.

Here’s a secret behind

The carrier should need to follow all rules and regulations to transfer products safely.

In the meantime,the carrier is also responsible for paying customs duty, and expenses of shipping.

In the case of inappropriate packing, incorrect numbering and labeling carrier is answerable.

Freight and charges

You can get your products on the receipt (seaway bill),and your dealer provides all particulars to calculate the exact freight.

Seaway bill helps to avoid any inconvenience on the way of shipping.

Sometime Carrier needs to open the container or re-measure the weight.

If you request to do so, you must pay to the carrier for this purpose.

Although, the carrier is responsible for any danger and risk during the shipping process.

Received products may be damaged or mismanaged, don’t worry carrier will help you to recover.

Description of goods

Of course,the product description is really important to mention in the bill.

Seaway bill is the receipt of cargo you want to deliver.

So, you need to mention the brief description of the products which you want to ship.

Especially the number of goods, number of containers and even condition of products at the loading time.

Some things are mandatory to ensure the security of cargo.

Guess what?

The weight of the individual products and the total weight of the package.

As well as contents, measures, the number of goods and detail quality description.

Usually, products compare on the destination port as according to the description on the seaway bill.

Inspection of goods

In the final analysis, the carrier is responsible for the ups and downs during the shipping process.

So, the carrier has the right to inspect the products before loading into the container.

And he allowed checking products during the way sooner or later.

The carrier needs to check the measure and quality of products under the seaway bill of lading.

Delay

The transit time of shipping is the estimated idea of duration from the loading port to the destination port.

With seaway bill normally consignment arrived at specific time.

But some time natural disasters and accidents waste some extra time.

To be sure, the carrier is not responsible for such type of delays.

Dangerous Goods

All the harmful and dangerous products particularly radioactive material need to apply some specific regulations for shipping.

First thing,the carrier should need to understand the nature of goods (inflammable, radioactive and bitter).

Second,The merchant should take care of packing way as according to the rules and regulations.

If the shipment process disturbed by the carelessness of the carrier,for this reason, he will pay for it.

Carrier’s responsibility

You know the process of shipping includes shipper, carrier and freight forwarder.

Every person has equally important responsibilities to ship the products.

Before checking some of the duties of the carrier you need to read all rules and regulations behind the seaway bill of lading.

First and foremost duty of carrier is to keep the receipt of shipping product safely.

One thing carrier should keep in his mind Rules and Regulations of shipping when products loaded into the container

Safety measures for the shipping process:

It’s pretty important to keep the receipt of shipping products safely.

Follow the rules and regulations on the backside of the seaway bill help to continue a smooth shipping process.

Waybill tracking is the additional feature to take care of your cargo during the journey.

You can use UPS waybill tracking and DHL waybill tracking service to get the exact position of cargo.

It’s time to get into the Nitti gritty, the carrier must follow all practical implications from the agreement.

I want to give the advice to follow on different steps like:

• Need to follow the rules at the time of loading into container/vessel.
• During the time from the loading port to the destination port.
• When products discharge from the container.
• Especially during the storage process after receiving products.

You can say throughout the time.

Restricted Cargo

Another key point which is very important to know

In some cases, you need to ship dangerous products like poisonous and highly reactive items.

Let’s check some instructions about:

1. You can’t transfer refrigerated products without prior notice.

If you insist on transferring then the carrier is not responsible for any loss or damage.

2. If your goods are delicate, put appropriate packing otherwise carrier shall not pay for the breakdown and damage.

Advice:

You need to allocate the refrigerated area before loading the products into the vessel.

In this way, you can keep your consignment secure.

Special Delivery

Special delivery is not a complicated procedure.

You have a lot of products to ship then the shipping company provides a special arrangement of Full Container Load (FCL) or oppositely Less Container Load (LCL).

Well, you can use FCL or LCL service for your convenience.

But the carrier isn’t responsible for any loss and damage to goods.

Most of the people ask “How can I secure my shipment?”

You need to pay some additional charges to the carrier for security.

Once payment transferred carrier will be the responsible for any discrepancies even until products delivered to the consignee.

Methods and Routes of Carriage

Carrier may start shipping journey at any time

• You can use any way of the carriage, transfer your products by railway freight, sea freight,and air freight service.
• Use air freight for speedy service but if you want to ship some delicate products then use sea freight.

Not a document of title

You know seaway bill is the evidence of carriage and receipt of cargo.

Although the process of shipping by seaway bill is simple.

The first step is the ownership of shipper, then bring the products from the factory to the loading port.

The third and final step is releasing consignment from the discharge port.

On the other side shipper transfer the ownership to the carrier by the seaway bill.

The positive point is, the carrier need not an original bill of lading to deliver products.

And even consignee need not have a hard copy of the bill to receive cargo.

Seaway bill is not a document of the title so products cannot transfer to the third party according to the rules.

Law and Authority Control

Whenever you need to claim your products in case of damage and discrepancy.

Don’t panic and claim according to the laws and regulations.

Sometimes you pay to the carrier to get additional service of protection.

Hope you will find your cargo super fit.

But in case, cargo get scratches carrier will pay for your loss.

General Average

Unfortunately, when you face a natural disaster or accident.

According to rules carrier have to pay general average.

In other words, he has to pay the estimated amount of products.

You need to pay security charges to the carrier to make your consignment secure.

The difference and connection between sea waybill and bill of lading

Seaway bill VS. Bill of lading

The point where people get stuck let me tell you something about:

As I explained above, bill of lading is receipt and contract of carriage as well as a certificate of ownership.

Comparatively seaway bill is different it’s not a document of title.

Bill of lading is a document of title and allow to transfer ownership to the third party.

Oppositely seaway bill restricted not to transfer authority to the third party.

Best thing is you can track your cargo status by seaway bill tracking system with no cost.

Telex Release VS Express Release

You know, some terms confuse the people in the commercial enterprise.

The thing you must clear in your mind is, these terms are not the type of bill of lading.

With the telex release what you can do?

First, bill of lading issued second printed and at third step surrendered.

Contrarily by the express release no bill of lading issued or printed.

Telex Release

Telex Release

Actually, Telex Release is the notification which sent to the shipper at the loading port.

In other words the message by agent or shipping company.

It’s a notification to assure all issued original bill of lading surrendered.

This message allows to release the cargo; this is the evidence of shipping from the loading port to the destination port.

Shipping products can be a money-making business.

If you’re a beginner in shipping, you need to know some important shipping incoterms like FCA.

Despite being such an important part of the shipping process.

Most of the people don’t understand what FCA is and how this term is used in the shipping of the products.

That’s why I write this guide for you to provide inclusive information about FCA (Free Carrier).

And clearly explaining the responsibilities of the buyer and seller.

When does FCA obligation transfer from the seller to the buyer?

Oh yes, by FCA vendors feel comfortable because of minimum obligations.

Buyers engaged with maximum responsibilities.

You know, FCA term applied to all transportation modes.

Some of the obligations of the shipping process mentioned here:

Receiving cargo from the factory and delivering to the loading port.

In addition,the seller is responsible for all expenses of shipping.

Most difficult thing is to manage risk factors before delivery of products.

No doubt after accepting consignment all responsibilities automatically transfer from seller to buyer.

Now the question is, what a buyer needs to do after receiving the products?

Buyer deliver all the products from destination port to customer’s warehouse

Shipping by different modes of transport works with the same principle.

There are some slight differences between various incoterms.

What are the Incoterms?

Incoterms stands for the international commercial terms.
Well, trading terms are predefined codes used in international shipping processes.

I know you’re thinking who introduce incoterms.
Incoterms published by the ICC (International Chamber of Commerce).

Terms define the key elements ofthe shipping process.

As you see, learning about incoterms is mandatory for shipping products.

Let’s look at the incoterm 2010 to get standard shipping terminology.

Why should you need to take care about incoterm 2010?

When you start trading business what you need more?

You must have proper knowledge about the Incoterms.

And one thing more you need to know what is in and what is out these days by ICC.

It’s really important to understand all the risks and cost factors of shipping.

Buying, selling, and shipping aren’t simple.

It’s really important to understand the terms to continue the shipping journey smoothly.

Assuming you’re using incoterm 2010

So, why would you want to follow these incoterms?

As I mentioned above, incoterms help to seller and buyer for shipping according to the rules.

You can make your shipping process secure.

Applicable knowledge helps to avoid legal issues.

Above all, it helps to classify the responsibilities of buyers and sellers

What’s the Difference between FCA terms and DAP terms?

The name represents the purpose of incoterm.

By DAP,the seller is responsible to deliver your cargo at a specific place.

This is approximately the same as FCA.

One major thing which is different from FCA is customs clearance is the responsibility of the buyer.

1. What is Free Carrier (FCA)?

You know FCA (Free Carrier) is a trading incoterm.

Transfer of products by the seller at the named place (destination).

Keep in your mind destination is the area where shipper and carrier operates.

A seller is a person who takes responsibility for all expenses.

Although it’s very difficult,the seller bears loss until cargo delivered to the carrier.

In FCA, after delivering the goods all responsibilities shifted to the buyer.

FCA (Free Carrier) International trade term

Do you know what the positive edge of this term is?

The term used not only for one mode of transport.

You can have different options to transport your cargo.

Like air transport, sea transport and multimodal transport.

I shocked to know, FCA widely used in international shipping processes.

The thing I find most interesting is,about all international trading terms starts from F.

In FCA the seller works with the freight forwarder.

As you know cargo delivered at pre – designated destination.

Responsibilities of the buyer are insurance and other expenses after receiving the products

As you probably already know,FCA term works on the same principle of FOB.

But there’s a difference between FCA and FOB.

And that’s the seller’s obligation.

Hope you already familiar with the seller’s responsibility before shipping.

Modes of transport in FCA term

FCA supports different modes of transport.

As mentioned above seller handles completes the hipping process.

It doesn’t matter which mode of transport used in the shipping process.

Although that’s true, nature of cargo is very important to decide the mode of transport.

But you need to know how much time you have to ship your products.

Different ways of transport waiting for you in FCA

• Railway transport
• Road Transport
• Airway Transport
• Inland Waterway transport

Before starting the next point I want to explain who bring the products to the loading port.

Yes, shipper helps to bring and load products into the container.

On the other hand, the buyer unloads the products and takes to the final destination.

Sometimes buyer alternatively hires a person to receive the products.

Breaking down Free Carrier (FCA)

Furthermore, you need to know what the carriage point and seller’s location is.

Your seller must be in the same country.

Because he’s the person who’s responsible for all shipping activities.

Don’t you know what shipping activities are?

Like releasing cargo, loading container, & customs clearance.

Once the cargo delivered to the named area then what happens?

Ownership transferred to the buyer as well as responsibilities too.

What are incoterm 2010?

Terms published to help the traders worldwide when products sold and shipped.

Incoterms 2010 are the key terms of international shipping.

All the trading incoterms work as contracts of sale.

These trading terms help the buying and selling parties.

There are a few properties related to every specific term.

You’ll notice FCA incoterm suits your shipping process better.

Do you know who’s behind updating incoterms?

No other than, International Chamber of Commerce.

Here’s what that ICC do for shipping terms

Analyze and update incoterms according to time.

Updated revisions help to design modified versions of International Commercial Terms.

Do you know in 2000 there are 13 incoterms officially published?

Yes, after the update of 2010 incoterms reduced from 13 to 11.

DAF, DES, DEQ, and DDU has been replaced with the updated incoterms DAT and DAP.

According to the International Chamber of Commerce in 2010, we have the incoterms

1. CIP (Carriage and Insurance Paid)
2. CPT (Carriage Paid to)
3. CFR (Cost and Freight)
4. CIF (Cost Insurance and Freight)
5. DAP(Delivered at Place)
6. DDP (Delivered Duty Paid)
7. DAT (Delivered at the terminal)
8. EXW (Ex works)
9. FAS (Free Alongside ship)
10. FCA (Free Carrier)
11. FOB (Free On Board)

All the incoterms mentioned above are very useful in the shipping process.

Like ocean freight, inland water transport and for all the modes of transportation.

3. Basic Responsibilities of buyers and sellers in FCA term

· Obligations of seller

First of all, Seller needs to handle all formalities like Bill of lading.

Also responsible to get officially approved documents for you.

Majorly help you to manage customs clearance issues.

The seller should be responsible to deliver your products at a designated place.

Delivery on time is an important thing.

The seller has to notify the buyer about the shipping status of cargo.

Seller is responsible for all cost and risk factors of shipping procedure.

But only before the delivery of products at the destination port.

Seller needs to bear all damages and discrepancies before delivering the products.

Communicate electronically is far better

If both parties connected by Emil then formal documents not required.

If buyer and seller agree to communicate electronically then no need to provide formal documents.

Furthermore, delivery of products must be according to the contract of carriage.

The seller must take proof of the delivery before the handover of the products.

On the other hand, the seller needs to have any evidence of cargo delivery.

So, get a proof of delivery before transferring the products.

· Obligations of buyer

Responsibilities transferred from seller to buyer.

Well, it’s simple.

You’re probably thinking when a buyer starts to perform his duties.

The answer is when the products delivered to the designated area.

Buyer needs to pay the fixed amount to the seller according to the contract of carriage.

The authorized certificate is required to manage risk factors.

So, the buyer needs to get from the shipper.

Most important, the buyer should have shipping license to deal with legal formalities.

Buyer should be responsible to pay all charge from the destination port.

Do you think without cargo receipt you may complete the shipping process?

No, you can say never.

So, buyer must get signed receipt of products.

4. FCA Incoterms

You can check some of the delivery conditions under various modes of transportation.

Railway transportation

Hope you know the fastest shipping mode is railway shipping.

In general, trains are used to transfer bulk products.

Bulk products are of different types.

Choice of the container totally depends on the type of cargo.

Quantity of products equal to full container?

Don’t worry seller will be responsible to load the products in the container.

You can get receiving receipt whenever your consignment arrived on the destination port.

Road transport

I think you guys are used to get this service at any time.

The best thing you find in this mode of transport is the seller’s service.

First, you find what the location of the seller is.

If seller belongs to the same area then he’s responsible to load the products in the container.

In another case, you can find the buyer’s service for unloading products.

Keep one thing in your mind road transport is the most common mode.

 River transportation

River transport is the same as road transport as already mentioned above.

If you want to ship heavy products, river transport is best for you.

You can get cost-effective and secure service by this mode.

However, products transfer from seller to inland water carrier to complete shipping process.

Marine transportation

I am shocked to know marine transport is commercially worthy.

And in the case of FCL, you need to deliver your products to the ocean carrier.

Oppositely, in case of LCL seller is responsible.

Seller’s responsibility completed on loading port.

After that ocean freight forwarder is responsible to complete the process.

Air transportation

Fast and most efficient freight service is Airway transport.

Is it right?

Yes, prefer this service if you have a short time frame.

The seller delivers the products directly to the freight forwarder or the agent of air freight for the completion of the shipping process.

As a matter of fact, weight and volume are the most important factors in air freight service.

No mode of transport specified

No mode of transfer is a bit different.

The mode of transport when no mode is selected.

In this case,the seller delivers cargo to the freight forwarder.

And freight forwarder helps to complete the shipping process.

Multimodal transport

Transfer your products by different means of transport

You can ship your products by rail, ocean, marine or the air mode of transport.

Select vehicle according to the weight and nature of your cargo.

Vehicles you can choose for shipping are trucks, trains, ships,and airplanes.

I already explained the transfer of obligation from seller to the buyer.

In multimode transport same rules, you need to follow.

The advantage of multimodal transport

• You can have the option to manage delivery according to weight and volume.
• You can track your freight easily.
• Single contact provides you enough information about shipping modes.

5. Comparison of different shipping terms with FCA

· Difference between FCA and FOB

Have you any knowledge about Incoterms before?

Start reading these differences after getting basic information about incoterms 2010.

First, When FOB introduced?

FOB (Free On Board) introduced in 2000.

Secondly, When FCA introduced?

FCA (Free Carrier) introduced in 2010 (updated version of Incoterms) by ICC.

FCA helps to divide the responsibilities of buyer and seller.

All risks and expenses charged to the seller before delivery of products.

And after the delivery,the buyer is responsible for everything like documentation and customs clearance.

FOB assigns the responsibility to the seller as well as the buyer.

At the first step,the seller is responsible to load the products into the container.

All the expense charged to the seller.

After releasing cargo buyer assigned for the shipping responsibilities.

Same as seller expenses charged to the buyer.

· Difference between FCA and Ex Works

Ex-works belong to the Incoterms 2010.

Buyer is responsible to transfer products from factory to loading port.

There’s no restriction whatever transport used for transferring.

Most important “Insurance policy is arranged by the buyer”.

By using this term you can protect your cargo with the assurance of protection.

In another side, the seller is just loading products into the container.

In FCA all the products delivered from shipper to the carrier

All the charges paid by the seller.

Compulsory thing is to follow the contract of carriage.

Products must be delivered at designated area according to the contract.

· Difference between FCA and DAT shipping term

DAT stands for what?

This term means delivered at the terminal.

According to this term, seller arranges transport to deliver the products.

All the required taxes and charges paid by the seller.

And even customs clearance is also the responsibility of the seller.

In short cost and risk management is the responsibility of the seller until the cargo is not delivered on the terminal.

FCA (Free Carrier) divide the workload and expense load on buyer and seller.

Responsibility transfer from buyer to seller as products delivered at a designated place.

· Difference between FCA Shipping term and CIP

CIP stands for Carriage and insurance paid to

In CIP seller is responsible for packing, loading and transporting the cargo.

Also responsible to pay insurance amount according to the contract.

In FCA there’s no need to pay insurance amount by the seller or by the buyer at any spot.

· Difference between FCA and CPT

CPT stands for carriage paid to.

As name represent the meaning,the seller is responsible to pay all charges till the products delivered to the designated location.

This is approximately the same as FCA.

6. Advantage and disadvantage of the free carrier (FCA)

Every incoterm has some of the pros and cons.

But you must keep 2 things in your mind before discussing the advantages and disadvantages.

• It depends on the nature of shipping products.
• How much time you have to ship your products.

Advantages of FCA (Free Carrier)

• Cost effective incoterm because most of the expenses charged to the buyer.
• No need to panic for customs clearance and legal documentation.
• Everything is according to the contract of carriage.
• All the charges, risk factors,and damages divide into both parties.
• Your cargo can be tracked by this term accurately.

Disadvantages of FCA (Free Carrier)

• No obligation is applied according to the insurance policy.
• Seller has to bear the expense of all documentation and customs duty and other taxes.
• Buyer and seller both are responsible to deliver the products at a designated location at a specific
• Both parties must been gaged in the shipping process

7. Why should you ship under FCA incoterm?

First of all, I thought about the obligations and ownership.

Both are very important to ship your products.

A simple process like above explained as ownership transferred responsibilities also transferred.

Most of the people think how they can choose the way of shipping.

Simple answer way of shipping depends on the nature and type of cargo.

FCA (free carrier) divide the responsibilities between buyer and seller.

Why should you choose FCA is an important question?

Continue reading to get the appropriate answer.

1. Seller’s participation in shipping is compulsory

As I mentioned above, in FCA seller is responsible to deliver the cargo at loading port.

Loading port means a seaport or airport.

Give a try to another incoterm for your shipping process.

This is the way when you find the differences between different incoterms.

In other shipping terms, only the buyer is responsible for everything.

But in FCA seller helps to all the loading, customs clearanc e,and documentation approval process.

2. Seller and Buyer protect the products

You’ll notice, in FCA seller and buyer help you to make your shipping secure.

So, feel comfortable to choose.

If you’re new to shipping business, don’t waste your time and get protected cargo.

Buyer has right to inspect your products in the container.

Well, it’s not simple but essential to deliver products safely.

Who Pays for FCA Shipping?

In Free Carrier shipping the seller covers the transportation cost to the designated carrier for delivery to the buyer.

The seller assumes the risk of transporting the goods or product to the carrier, at which point, the buyer assumes the risk of transportation.

Also, the cost of FCA Shipping is usually shared by both the seller and the buyer.

Besides, the buyer covers the import cost of clearing the goods upon delivery by the carrier.

Does FCA Shipping Term include Customs Clearance?

Standard FCA shipping terms provide that the seller shall bear the cost of export duty, taxes, and obtain all necessary export documents and clearance.

The buyer, on the other hand, is obligated to cover the transportation cost, duty, and all importing documents and clearance.

FCA shipping terms provide for the seller to cover the cost of customs clearance of transporting the goods to the specific location selected by the buyer.

Furthermore, the buyer is similarly obligated to cover the cost of customs clearance before receiving the goods.

How Does FCA compare to FAS?

FCA is a free carrier shipping in which the seller covers the cost of delivering the goods to the importer’s carrier for transportation to the importer’s destination.

FAS is a shipping term that means Free Alongside.

Under the FAS the exporter is obligated to hand over the subject of the agreement to an agreed vessel in a particular port to be transported to the buyer.

The FAS covers terms such as the time of delivery, cost, and the mode of payment.

In FCA, the seller covers the cost of transporting the subject of the agreement to the buyer.

In FAS, the seller is only obligated to deliver the goods to a particular vessel.

Under the FCA, the buyer is obligated to cover the cost of transportation and insured the goods against risk.

In the FCA the seller’s risk terminates when the subject of the agreementis delivered to the importer’s nominated carrier.

The seller’s risk terminates upon delivering the goods to the agreed vessel.

Furthermore, the buyer’s risk commences immediately after the goods gave been delivered to the vessel.

What is FCA Shipping Point?

FCA shipping point means the point when the seller delivers the subject of the agreement to the carrier nominated by the buyer for transportation.

The goods passes from the exporter to the transporter at the exporter’sfactory, company, or place of business.

It is necessary for the buyer to be specific and clear about the carrier.

This is because the risk passes to the buyer upon the handing over of the subject of the agreement to the carrier by the exporter.

Who Handles Export Clearance in FCA Shipping?

The export clearance in FCA shipping is handled by the seller.

Here, the seller is under the obligation to acquire the necessary export clearance before delivering the goods to the designated carrier for delivery to the buyer.

The seller’s obligation includes the following:

• Ensuring that the goods are in a deliverable state.
• Preparing commercial invoices and documentation.
• Acquiring the necessary export licenses and customs formal processes.
• Delivery of the subject of the agreement to the carrier.
• Covering the cost of pre-shipment inspection.
• Sending the buyer proof of delivery.

Is FCA Collect or Prepaid?

FCA is prepaid in most parts of the world.

The exporter will deliver the subject of the agreement to the nominated carrier, before delivery to the forwarders facility.

Besides, the transportation is prepaid and must be met before the goods are shipped out by the carrier.

How does DDP compare to FCA?

DPP is a shipping term that stands for Delivered Duty Paid.

This is a delivery arrangement where the seller agrees to cover the cost and risk of transportation until the buyer receives the goods.

In FCA, the seller covers the cost of delivering the goods to the designated carrier.

The carrier is nominated by the buyer and the buyer incurs the risk and cost of delivery.

Under the FCA, the seller’s obligation is fulfilled when the once the goods have been delivered to the carrier and cleared for export.

At this point, the seller-buyer assumes all risk and cost of the delivery of the goods to their destination of choice.

Under the DPP, the seller covers the transportation cost and also bears the risk and covers the insurance cost.

In FCA, the buyer covers the transportation risk and funds the insurance cover for the goods while it is in transit.

How does CIF compare to FCA?

CIF is a shipping term that means Cost, Insurance, and Freight.

This is an arrangement where the exporter covers the cost of transportation, the insurance, and freight of the goods while the goods are in transit to the buyer’s destination.

In CIF, the goods are delivered to a transportation point and cover the customs duties and cost of export processes, and inspection.

The seller covers the cost until the freight is loaded.

At which point, the buyer’s obligation commences.

Also, the FCA obligates the exporter to deliver the subject of the agreement to the importer’s nominated carrier.

Furthermore, the exporter is obligated that the goods are ready for export at the time of delivery.

The seller is not obligated to cover the transportation cost to the buyer or cover the risk and cost of freight.

Under the CIF the seller’s responsibilities are”

• Covering the cost of transporting goods.
• Covering the cost of insurance to protect the state and value of the goods.
• Acquiring the export clearance and licenses for the product.
• Covering the cost of damages or destruction to the goods.
• Inspection of the goods to ascertain it’s in a deliverable state.

How Does FCA Compares To FOB?

FOB is a shipping term that means Free On Board.

In a FOBagreement, the seller is obligated to deliver the subject of the agreement on board a vessel for transportation to the importer.

The seller covers the cost of transportation of the goods to the vessel, and that is the point where the duties and risk of the seller ends.

The buyer would bear the cost of transporting the goods on the vessel to their destination.

The buyer will cover the cost and risk of delivery from the port to their destination.

The duties of the seller in a FOB agreement are:

• Supply the goods as agreed upon in the contract of sale and delivering the subject of the contract on board the importer’s designated vessel and Port.
• The exporter bears the cost and covers the

When shipping from China to Singapore, you have a lot to learn, certainly, to become an expert in freight.

Getting the appropriate means is a good start.

If you are considering ocean or air freight, ensure that when requesting for shipment quotes, you are choosing a good forwarding agent as well as the best price.

Contracting the services of a freight forwarder will help stay away from any problems, as they take over the management of the shipping.

But there is one crucial step before bringing forth a forwarder.

Before brokering an agreement with your seller, ensure that you are familiar with the chosen trade term.

Most buyers select incoterms without knowing the risks they are assuming.

Sometimes you can go scot-free with it, but the freight can become a nightmare, leading to losses.

Contracting a forwarder implies that you do not need to know everything concerning shipment.

But prepare yourself for the barrage of documentations that will ensue.

Always ensure that all paperwork is complete and correct.

Also, furnish yourself with a freight charges reference; do not admit to every surcharge and levy.

If you are considering continuous shipments, engage your supplier on the packaging alternatives.

You might be able to save on freight charges.

And insurance coverage?

You can conduct extensive research, but there is no need.

Bottom line is, ensure that you acquire comprehensive cargo insurance.

I would like to share with you these seven practical tips on how to get the cheapest shipping from China to Singapore and believe all the information provided will be useful in improving your supply chain management.

Which Shipping Method you can choose import from China to Singapore?

Different logistics means can make a huge difference both in freight costs and transit time.

Thus we at all times need to establish which medium will be the most economical one. Here the transportant you can choose:
· Regular Post
· Express Courier
· Air Freight
· Sea Freight

How to Choose the Right Shipping Container for your Cargo?

When importing from China to Singapore, you can select FCL or LCL in case your overall shipment volume does not satisfy one full container stipulations.

There are LCL destination charges, more than the amount you prepaid in most instances.

If you cannot meet a full container capacity, FCL shipping might notwithstanding be the best alternative.

How to choose a the right Incoterm ?

Depending on the incoterm you settle on, you can allow the supplier to manage the shipping of goods to

A convenient port in China, which FOB

A nearby port in Singapore, which is CIF

No further place other than their premises, which is EXW

all the way up to your final destination, which is DAP/DDU
In summary, we can divide it into two categories.

FOB and EXW implies you can use your freight forwarder and settle up for their services directly.

Other term implies your supplier uses a freight forwarding company of their choice and you still cover the cost.

What is the Sea Freight?

Sea shipping from China to Singapore can take a very long duration but can transport a large quantity of goods, which reduces the costs.

The variety of cargo you can ship is as well a prominent advantage of this mode of shipping.

That is why it’s prevalent and widely used means in logistics.

Regardless of the long delivery time, if you plan upfront, and have the patience to wait, shipping by sea will be your first choice.

The delivery period ranges between 5-10 days.

Sea freight can be cost-saving, especially, if you are ready to handle the customs clearance of goods.

Also, this the best method for transporting large purchases.

• Choose the right Incoterm (Trade Term)

Tip 1: Choose the right Incoterm (Trade Term)

There are four common Incoterms 2010 used when buying from China to Singapore.

Your products prices will be quoted based on the trade term you select.

Principally how much of the shipping you pay the seller to manage your freight.

Commonly, you will find the term declared in the quote sheet or proforma invoice issued by your supplier.

If not, ask the seller to include it in the documentation to avert any dispute or confusion.

When you are comparing prices from different suppliers, ensure to base them on the same trade term.

For example, if seller A quoted FOB USD 5.5 per unit while seller B quoted EXW USD 5 per unit, it does not imply the price of supplier A is not more competitive than supplier B.

Majority of suppliers will quote FOB or EXW price at the start but are adaptable in offering different price founded on a different incoterm upon your request.

A quick suggestion

If you are fresh to shipping goods from China to Singapore, let the seller manage the haulage as far as possible.

Then you can concentrate on growing your business.

Simple but expensive.

If you have acquired enough experience, then you can take control of the goods transportation through a forwarding agent by yourself.

Simple and cost-effective.

It all depends on you.

I recommend you get in touch with a good freight forwarder as early as practical, particularly one with international shipping alternatives.

They can be useful in various ways, not only during the logistics process but equally in the supply chain management.

Tip 2: Consider Hiring the Services of a Freight Forwarder in China

Choosing the correct Incoterm and finding a Chinese freight forwarding agent to manage your consignment transportation will be beneficial to you.

The lower exchange rate, reduced labor cost, lower expenditures among other considerations, make Chinese forwarding company relatively cheap.

The circumstance here permits them to come up with the best pricing depending on your needs.

Furthermore, your Chinese logistics provider needs to be your partner.

You need to work with each other to boost the sustainability and growth of both businesses.

If your freight forwarder is only after getting money from you and not working for the best interest of both of you, that is not a good partnership for you.

Most international freight forwarding agents with operations in China will work with local Chinese transportation or logistics company due to their local knowledge and reduced costs.

Tip 3: Choose the Right Shipping Container for your Cargo

When importing from China to Singapore, you can select FCL or LCL in case your overall shipment volume does not satisfy one full container stipulations.

Sounds easy, but in my years of freight forwarding experiences, I have witnessed sad stories on how buyers are astonished by the invoice they had to settle at the LCL destination.

There are LCL destination charges, more than the amount you prepaid in most instances.

If you cannot meet a full container capacity, FCL shipping might notwithstanding be the best alternative.

LCL consignment larger than15 cubic meters attracts more cost than a 20 feet shipping container, even supposing half the container is free.

LCL allows you to smaller quantities of shipment whose volume is not large enough to qualify FCL a practical choice.

This implies your consignment will be put together with other cargo going to your destination.

The billing of LCL is dependent on the volume, fixed in cubic meters contrary to FCL, which always has a fixed rate per container.

LCL shipping is an economical way out for smaller consignments since you only need to settle up for the volume space used.

For the case of FCL, we use these three most popular types of container.

• 20ft container = 20′ container = 20’GP
• 40ft container = 40′ container = 40’GP
• 40ft high cube container = 40’HQ = 40’HC

Most businesses shipping from China to Singapore employ only these three standard sizes that constitute the majority of the container volume shipped globally.

As an importer, you should economize on your freight cost.

The price per unit product will be lower When you select FCL.

Some importers, nonetheless, only buy what they require.

Not only factoring landed cost, but as well avoid additional catalog that you might not sell.

If you are planning to ship a large number of goods frequently, then it would be wise considering FCL, as it has substantial economies of scale. Stick to LCL if your cargo is comparatively small.

Try to purchase FCL not LCL, and ONLY purchase LCL when your shipment volume is below 15 cubic meters, you should make this a basic rule.

Tip 4: Plan Ahead of Time

Last minute and holiday shipping are generally very costly.

If you want an express shipment with short deadlines, chances are you will incur extra charges.

Planning upfront not only enables you to evade over-paying, it also helps you enjoy some price cuts.

This can accord you time to arrange for storage in case it is necessary and generally make you more adaptable regarding selecting a carrier and tariff.

Planning a head implies you will have ample time to select the right transportation means, get a good forwarding agent and gives you and your clients better preparation.

Upfront planning will ensure achievement of all the other tips on how to get the cheapest shipping from China to Singapore.

Holiday effect

• Chinese New Year (approximately three weeks, lunar calendar)
• National Holiday (one week, October 1 – October 7)

China exports peak season is usually the month prior to Chinese New Year (January).

And the third quarter of every year (between July to September) when traders ships goods from China for Halloween, back to school and Christmas.

The freight charges will be comparatively high during this period since a lot of shipments are awaiting dispatch.

You would better plan rightly as limited number of vessels and container will be available.

Nevertheless, you do not have to be keen on the effect of Chinese Holidays.

Everything will go on as usual save for this big festival – Chinese New Year.

Individuals will be away from work for approximately three weeks.

This big holiday may impact your shipping, so plan correctly.

You do not want to arrange any shipment during this period.

Tip 5: Work with local transport companies in both China and Singapore

So, how do you go about this?

·Work with a Freight Forwarding Company in Singapore for Convenience

Get the services of a freight forwarding firm of the right size, and one who cares about your business.

But majority of the forwarders do not usually have their office in China.

They always collaborate with Chinese agents and add their profit on top of the fee charged by that agent.

This is not an economical or efficient option, though it is the most convenient one.

· Work with a Freight Forwarding Company Based in China for Speed

Most importers shipping goods from China to Singapore have chosen this option – the advantage is speed.

The freight forwarder can maintain close contact with your seller and keeps you updated on everything.

When an issue arises, your local associate will solve that as quick as possible.

· Work with a Freight Forwarder on Both Side, for Savings and Speed

Another alternative is to be in direct personal contact with every party.

This is the right option for small and medium businesses transporting shipment from China to Singapore.

It enables higher control level since it is worth fighting for every dollar you save.

You should at all times contract a third-party logistics provider whether it is you or the supplier who will handle the transportation.

Whether you work with a forwarder based in China or Singapore, when you get the right associate, stick with them.

Tip 6: Choose a Suitable Shipping Method

As with most trades, cost cannot be the sole factor, though it is usually a fundamental and determining consideration.

We are all in this and reaching every decision to assist our clients, and ourselves cut cost or make money.

Different logistics means can make a huge difference both in freight costs and transit time.

Thus we at all times need to establish which medium will be the most economical one.

· Regular Post

This means ordinary postal services which can take a duration of between 5-10 days to reach you.

If you are patient enough, this is the most economical alternative for small shipments, such as parcels and samples.

This method makes it possible to track and trace your goods online, though the information may not be updated promptly.

Though the regular post is an economical shipping method, we do not recommend it since it is difficult to find lost cargo.

· Express Courier

Shipping with a courier firm is the most appropriate method of shipping from China to Singapore for individuals new to the business.

Courier companies popular in China include UPS, FedEx, and DHL.

Courier service offers you an online tracking facility and fast delivery times.

Shipping by courier takes between 1-2 business days for the shipment to reach your destination in Singapore.

Even though this shipping method to Singapore is fast and dependable, the cost is more expensive than postal service.

· Air Freight

If your shipment has a weight too big for courier, for instance, 500kg, air freight might be the best option.

Air shipment cost will be significantly reduced compared to courier delivery.

Air freighting is suitable for goods that are not so heavy, and there are tight security control or strict deadlines.

Transit times differ depending on the airlines, schedule, though its is usually in the range of 1-2 days.

I recommend if the chargeable weight is above 250kg, you can settle for air freight.

If below 250kg, opt for international couriers.

Summary

Each shipping method from China to Singapore has its unique advantages, and it is often a blend of these shipping modes to have your China-sourced goods to your destination.

You should consider the time frame you want the cargo, the safety of your products, and commonly the biggest concern, the cost.

Shipping rates will constitute a larger proportion of your goods total landed cost.

Thus it is essential to ensure they are as modest as practical all the time.

However, on occasions, time is more critical than money.

The bottom line is balance. Select the appropriate mode after deliberating on the prevailing circumstances.

You will have to determine which aspects are crucial for your business to decide a winner.

The decision on whether air or ocean shipping is convenient for you could easily vary from shipment to shipment.

Tip 7: Properly Package and Insure all your Shipment

All these cost-saving will be in vain if you do not pack your goods correctly to avoid destruction, or if you incur damages yet the consignment is uninsured.

Make sure that the products have proper inner and outer packaging, seal and label.

Moreover, if you have not secured cargo insurance, your freight forwarder should at least propose it to you, and if they provide the service, broker the best deal with them.

Conclusion

Every shipping company from China to Singapore are under growing pressure to lower landed and shipping costs.

Economizing on freight cost leads to lower charges and happy customers.

I am sure if you follow these seven tips, you will definitely get affordable shipping rates from China to Singapore.

If you’re looking for an affordable way of shipping furniture from China to Singapore, then you should read this guide.

Because I am going to show you the basic, efficient and faster way of shipping furniture.

They are simple and practical ways to ensure the furniture reaches your warehouse or doorstep in Singapore safely.

Let’s get started:

Why need a Freight Forwarder paetner in China to help I importing to Singapore?

a) They Help Get Cheaper Shipping
b) Help in Fast and Easy Shipping from China
c) Customized Service and Customer Attention when Shipping Furniture from China
d) Freight Forwarders Guarantee Operational Effectiveness and Flexibility

What’s the Advantages & Disadvantages of FCL shipping?

Advantages of FCL shipping:

Reduced price per cubic meter in comparison to an equal weight or volume of products shipped by LCL sea freight or air freight.
More appropriate to maximize amount and goods packaging to optimize the usage of space within a20” or 40” container.
Boosted security levels and reduced risk of destruction because of negligible handling (loading, temporary storage, unloading) of your furniture.

Disadvantages of FCL shipping:

Not economical; unless the volume of your consignment is 15-20 cubic meters(Equivalent to 50 – 70% of a 20” container).

What’s the Import Clearance procedure in Singapore

Step 1: Apply for Unique Entity Number (UEN) and activate your Customs Account
Step 2: Enroll for Inter-Bank GIRO
Step 3: Apply for Customs Import Permit
Step 4: Prepare Cargo Clearance Documents
Step 5: Keep your Trade Documents

What’s the Export Clearance Procedure in China:?

i. Observe the laws
ii. Ensure your supplier has customs permit for export
iii. Prepare all the needed declaration documentation and reveal all information to customs truly
iv. Use the correct HS customs classification code.
v. Offer other relevant documentation, if required

#1: Know Customs Clearance Procedures in China and Singapore

When it comes to furniture shipping from China to Singapore, you must clear them with customs in the two countries.

You can do the customs clearance on your own, though it is advisable to engage the services of a customs broker to undertake the documentation for you.

Import Clearance procedure in Singapore

Singapore boasts as the second busiest container seaport in the world and is the doorway to the ASEAN region.

In compliance with Singapore’s standing for its business-friendly and simple regulatory environment, import formalities in the country are straightforward and efficient.

Obtaining the necessary permits and authorizations can be completed in short order.

The country is predominantly an open and free port economy.

More than 99 percent of all goods into Singapore are duty-free.

The state charges a Goods and Services Tax (GST) of 7%.

For dutiable imports, the customs calculates the taxable amount for GST based on the CIF http://www.Tj chinafreightchina.com/what-is-cif/(Cost, Insurance, and Freight) amount, including all duties and other levies.

To ship furniture from China into Singapore, you should make a declaration with the Singaporean Customs.

Since furniture is a non-dutiable good, you will only pay the 7% Goodsand Services Tax.

All imports priced above $400 are attract a GST.

For that matter, first, you will have to establish if you should be paying the GST when your furniture enters Singapore.

To ensure success of the furniture shipping process, kindly follow the procedure below to acquire the necessary import permits and authorization from the respective competent authorities.

Step 1: Apply for Unique Entity Number (UEN) and activate your Customs Account

Since you will be importing furniture from China to Singapore, you will need to enroll with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) or the appropriate UEN issuance firm to acquire a UEN; and activate your Customs Account.

Step 2: Enroll for Inter-Bank GIRO

You or your declaring representative should have an Inter-Bank GIRO (IBG) with Singapore Customs.

This will enable you to pay for GST, levies, penalties and other fees on services provided by Singapore customs directly from your bank account.

You may allow your declaring agent to work with your IBG to pay for the goods and services tax for your customs permit a day after acceptance of your application for IBG.

The authority will deduct the GST from the Inter-Bank GIRO of your declaring agent if you do not have an IBG with them.

Step 3: Apply for Customs Import Permit

You can either do the application on your own or assign a declaring agent to do it on your behalf.

To apply for the customs import permit, you will need to register as a declaring agent and request for a TradeNet user ID.

Submission of the license application is through Trade Net, which is available via Trade Net front-end software from Government Front-End module or an approved software vendor.

Each application of permit ordinarily costs $2.88.

The fee does not cover the service levies billed by service providers like declaring agents, freight forwarders, among others.

In case you are involving a declaring representative to present the license application, make sure you confirm the price they charge for their services.

Step 4: Prepare Cargo Clearance Documents

The approved permit application has a validity period.

You should confirm the validity of the license issued for the clearance of your furniture.

For shipping of containerized furniture from China to Singapore, you require the shipper seal number and container number when applying for a license.

Documents necessary for Containerized Furniture

When importing containerized furniture from China by sea, you are not required to issue the hard copy of the customs license.

Besides, this also applies to supporting paperwork to the checkpoint officials at the points of entry.

You need to furnish the customs permit and supporting documentation like packing list, invoice, and a bill of lading to the checkpoint officials for validation.

Documents necessary for Conventional Cargo

For conventional cargo, you should present the furniture, hard copy of the customs permit.

Besides, all supporting paperwork to the checkpoint officials when clearing your consignment for customs approval.

For a shipment which needs partial clearance, you should present the same customs permit each time for authentication until the whole you clear the whole consignment.

Step 5: Keep your Trade Documents

Generally, you should keep the applicable supporting documentation relating to the import of the furniture from China for five years from the date of approval of the permit application.

You can store these documents either as images or hard copies.

You should always be in a position to produce these documentation upon request by Singapore customs.

Export Clearance Procedure in China

When importing China to Singapore, Chinese customs charges no export tax,but you will have to pay a 17% VAT, which is non-refundable.

Generally, your Chinese supplier holds the key to quickening the process of clearing your furniture with the China customs.

Here are tips that can be instrumental in making sure you accurately fill all your declaration documents.

i. Observe the laws

This is indeed the vital principle.

Consult your customs broker or freight forwarding agent in case you have questions concerning what is needed.

ii. Ensure your supplier has customs permit for export

Make sure your Chinese supplier has either registered successfully with the customs and has the registration license or has entrusted another company to do the customs clearance for them.

iii. Prepare all the needed declaration documentation and reveal all information to customs truly

Customs retains the right to decline any declaration documents that do not meet the requirements.

To avoid additional expenses and delays, advise your supplier to issue true and exact information about their furniture needed by the customs to ensure the process goes smoothly.

Here are the necessary declaration when doing export clearance:

• Country of origin
• Value and details of the furniture
• Finished/semi-finished
• Composition of the furniture
• Destination of furniture
• Name/contacts of the supplier
• Harmonized System code
• Recipient
• Destination of product

iv. Use the correct HS customs classification code.

Your supplier should provide the right HS code since the customs may apply fine for any consignment declaration having incorrect harmonized system code.

v. Offer other relevant documentation, if required

Typically, the exporter will conduct the export clearance procedures.

Your supplier needs to furnish China customs with:

• invoice
• packing list
• certificate of origin
• Fumigation
• Customs declaration

#2: Hire a Freight Forwarder in China

When shipping furniture from China to Singapore, it is much simple getting a freight forwarder near you, or within the country.

Also, a number of them are capable of managing the shipping of your house fittings from China.

This is very true, but there is a better option to select, which is engaging a local freight forwarding agent in China.

Let’s check the advantages and reasons why you need to partner with a local freight forwarding company when importing furniture from China to Singapore.

a) They Help Get Cheaper Shipping

Just as furniture made in are comparatively cheap, Chinese freight forwarders will also be less costly due to the lower expenses, exchange rate, and cost of labor, among other factors.

They are not only affordable regarding transportation rates but other handling charges as well.

The situation in China enables them to come up with the best pricing dependent on your distinct shipping requirements.

This, in turn, results to higher profit margins for you, or you can sell your furniture at more competitive prices.

Be aware that majority of freight forwarding companies having operations in China will liaise with a local forwarder or logistics company.

This is because of Chinese freight forwarders local knowledge, and lower cost.

You realize, therefore, that the freighting agent in your country is not capable of managing China shipments directly.

b) Help in Fast and Easy Shipping from China

It’s very crucial for a shipping agent to adjust their operations fast to serve better your needs and also provide versatility in how to manage your cargo.

Multinational freight forwarding companies are stuck with engaging their own abroad office to ship your furniture.

Sometimes, this is not the best choice since their associated office may lack the skills that is right for you.

This implies they are incapable of switching service providers or enhance their service level in a situation arises.

You would better work with a freight forwarder big enough to handle you transportation needs, and small enough to listen to your concerns

c) Customized Service and Customer Attention when Shipping Furniture from China

Mostly, you will be working with one or two people in an office of independent forwarder that will handle your entire logistics process.

Local shipping agents provide a more intimate,  local forwarders offer a more close, one-to-one partnership.

It can aid boost your business as they get acquainted with your operations and requirements.

They can as well empathize with your day-to-day challenges since you are not just a customer to them.

China forwarders will give you the attention you deserve and come up with solutions quickly whenever a problems occurs.

d) Freight Forwarders Guarantee Operational Effectiveness and Flexibility

There are several documentation and administration, currency, timings, logistics, language barriers, time differences, and strict export and customs formalities to consider.

Both China and Singapore have different rules that need to be understood and adhered to by the forwarding agent to guarantee safe and quick shipping of the furniture from China to Singapore.

Local freight forwarders have at their disposal several options in choosing the best price, carrier and routing combination.

They can as well easily adjust and modify their operations to focus directly towards you – the buyer.

The possibility that an independent agent does everything within their capability to address a problem is much higher than when dealing with a multinational.

Multinational forwarding companies generally deal with too many issues to try and assist you with a sense of urgency.

Freight forwarding agents provide several advantages to entities and individuals alike.

At times they are not suitable for everyone nor every consignment.

Therefore, comparing your requirements and their services closely should guide you on whether or not a shipping agent is the appropriate fit for your freight.

Selecting the right forwarding partner will assist you concentrate on the main business.

The right freight forwarder should possess sufficient experience to balance and improve your operational, shipping cost, speed, and supply chain management.

#3: Choose an Appropriate Incoterm

The Incoterm 2010 you select will dictate the control you have at every stage during the process of shipping furniture from China to Singapore.

Whoever has say over the sea freight will have higher bargaining power, and command over the costs.

If you allow your seller to take charge of the shipping, you will have to work with the price, and terms agreed between him and his freight forwarder.

Always ensure that these terms are working to your advantage and if not, demand for improvement.

You should make it a point to negotiate with the forwarding agent directly to try and secure reduced freight price and schedules that conform to your needs.

Alternatively, you can hold the consignment off till you have a sizable quantity of cargo to have more leverage with carriers and freight forwarders.

Apart from cost, your choice of Incoterm you use for importing furniture from China to Singapore may also impact other critical elements like:

• Transit times
• Supply chain efficiency
• Conditions of the furniture, among others.

These are aspects that can either make or break your shipping campaign.

CIF, EXW, and FOB are viable Incoterm alternatives for shipping furniture from China.

Each comes with varying amount of responsibility, security, and risk.

Select an Incoterm that gives you the most control over the shipping of goods.

Bear in mind: Whoever is in charge of the shipment controls the price!

#4: Go for sea freight

I understand that sea fright has its fair share of disadvantages including taxes, port duty, lead time or onward inland delivery.

However, this mode of transport boasts of numerous benefits that will make it your better option for shipping your furniture from China to Singapore.

Economic advantages that come with ocean freighting are of gain to you who would like to ship furniture from China to Singapore.

Sea freight is still among the most economical modes of transportation for both you and the forwarding agent.

Ocean shipment is not only beneficial in transporting bulk goods.

Sea freight can also accommodate more consignment, and this is another aspect why you should choose it over other modes of transport.

This is advantageous for any business and implies that you are capable of bulk buying smaller house fittings and establish an avenue for better business.

Others may be of the opinion that long lead times on your cargo is a disadvantage.

Nonetheless, if you have the patience to wait and plan upfront, then the economical nature of sea fright is a no-brainer.

The longer lead times are known to every person shipping by sea.

Therefore, once you have ordered for your furniture from China, using updated tracking system, you will know the duration the furniture will take to reach Singapore.

#5: Get a Shipping Insurance

Cargo insurance coverage is an essential ingredient of the logistics process.

It secures your consignment while in transit and lets you go about your business with confidence and peaceful mind.

Marine insurance covers your furniture against loss or physical damage during shipping from China to Singapore.

Most importers tend to think that the carrier is the party who should take care of this insurance.

Nevertheless, being responsible for the insurance coverage’s ensures that you place the correct amount and type of insurance on your goods.

Shipping furniture from China to Singapore exposes them to an array of risks, some which consist of loss or destruction due to:

• Hijack, theft or pilferage
• Mistakes during shipping like dropping, careless or incorrect handling
• Carrier accident such as aircraft crashing, vessel sinking, road traffic accidents, vehicle fire, among others
• Exposure to salt water or rain
• Variations in temperature.

Majority of these risks are hard for you to handle in person.

This is because the cargo will be under the control, custody, and care of third parties.

They will limit their responsibility for the damage or loss of your shipment.

#6: Choose Appropriate Mode of Shipping

Sea freight is the most economical mode of shipping your furniture from the supplier’s factory in China to your premises.

You can choose from a range of shipping containers.

This is particularly true when transporting larger quantities based on Full Container Load (FCL) terms.

However, majority of importers do not buy large enough amounts to occupy a whole container with products.

For this group of buyers, Less than Container Load (LCL) alternative remains.

· FCL Shipping

FCL is aglobal ISO standard meaning one (full) container load (20” or 40”) havinggoods for one buyer.

FCL shipping is the most affordable transportation mode when shipping from China.

However, for it to be a viable alternative, it requires you to buy a comparatively large amount of products.

· LCL Shipping

LCL is a global ISO standard meaning a consignment owned by different importers that are put together into one container.

LCL shipping allows you to ship smaller quantities of goods that does not have enough size to make FCL a viable choice.

Additionally, this mode of transportation is more economical compared to air freight.

Advantages of LCL shipping:

• Gives you a very economical middle way for transporting your furniture too heavy for air transportation, but insufficient in weight or volume to qualify FCL shipment a non-viable alternative.
• Highly favorable for goods inspections and reduce packaging expenses if repacking is needed.

Disadvantages of LCL shipping:

• Higher cost per cubic meter in comparison to FCL shipments
• Commonly a non-viable shipping alternative for consignment volumes above 15 cubic meters because of its higher loading, handling, unloading, and freight charges per cubic meter in comparison to FCL shipping of furniture from China to Singapore.

· Port-to-Port Shipping

Port to Port Shipment describes a type of shipping, which begins at the loading port and ends at the port of destination.

Port-to-Port delivery is the primary method of ocean freight transportation which has been employed by shipping companies for hundreds of years.

Bill of lading is the common name of the shipment document, often used in Port to Port transportation.

It is also referred to as ocean bill of lading, marine bill of lading or port to port bill of lading.

Port-to-port delivery of furniture from China to Singapore is typically fit for importers who have dealt with container cargo shipments before.

You should go for this mode of shipping if you possess enough skills in container shipment.

Also, you need to have a person available ready to handle the consignment, including documentation, import customs clearance, finding a domestic carrier, among other tasks.

Yes, you can cut cost while using this shipping mode, since you will cut back on some of the services.

With Port-to-Port delivery, you can freely handle the freight at your appointed time.

The technological advancements in the logistics field and standardization brought by containerization comes with several benefits.

You can now enjoy flexible transport options from both actual or contractual carriers.

Also, technology makes it possible for you to track you cargo during the entire journey till it arrives at your destination port.

· Door-to-Door Shipping

Door to Door Shipment encompasses the whole transportation from your supplier’s factory to your warehouse.

You should carry out this mode of shipping using one carrier under a single transport document, often a multimodal bill of lading.

If more than one transporting company is responsible for the shipping or you have more than one kind of transport document, then the shipment cannot be termed as door to door delivery.

This can be an economical alternative because the door delivery prices are usually very affordable when booked solely from door to door.

However, the shipping mode offers you very little control over the process of delivery making it challenging to plan appropriately.

Time delays could impose unforeseen expenses to the shipment.

For that matter, it is crucial to assess these likelihoods and ensure that the outcome is still the best and most economical alternative for your freight.

· Port to Door Shipping

If transportation of your furniture begins at the port of loading in China and ends at your warehouse,in Singapore.

Then this type of shipment is referred to as port to door delivery.

Port to door shipment uses multimodal bill of lading as the transport document.

Port-to-door shipping is an option for additional savings.

Your Chinese supply delivers the consignment to the designated port of destination.

Then your freight forwarder clears the cargo with the Singapore customs and deliver them to your final destination.

By doing so, you relieve yourself from the headaches relating to inland transportation of the goods within Singapore.

#7: Proper Packaging of Furniture

When choosing your packaging materials, it is crucial to examine carefully the kinds of packages which are available.

You should take into consideration the quarantine stipulations of Singapore.

When packaging your furniture for shipping from China, you need to consider aspects such as:

• Breakage
• Moisture
• Pilferage and
• Weight

The mode of transportation and destination determines how you package your furniture.

You should design your packaging in a manner that it can sustain repeated loading and unloading and stress.

To guarantee protection of your furniture during shipping, use the following checklist:

• Plastic encasing: Yes (on exterior carton)
• Freight remark: Yes (imprinted on exterior carton)
• Interior cartons: 5 layers

• Exterior cartons: 5 layers
• Pallets: Yes (ISPM 15 EU Standard)

Ensure to furnish your supplier with precise and straightforward export packaging prescriptions.

Do not let them decide by on what to do, and issue graphical illustrations whenever possible.

#8: Let Supplier Handle the Shipping

Depending on the Incoterm you decide to apply, you can task the supplier to manage the shipping of your furniture from China to your doorstep in Singapore.

To ensure you get the best deal, do comparison of pricing between two or more seller with the same Incoterm.

If you are unfamiliar with overseas shipping or fresh to importing, try to select an Incoterm that delivers the goods as far practical, for instance, DAP to door.

Conversely, if you have built relations with a dependable shipping company, try to apply FOB and leave the rest to the freight forwarding agent to handle.

Conclusion

Shipping goods globally takes time.

For instance, furniture shipped from China, on average, takes around 13 days to reach the Port of Singapore.

During the time, check your commercial invoice, packing list, the bill of lading, and other related freight documents to ensure that everything is in order.

At Tj chinafreight, we can handle all your furniture shipping needs from China to Singapore.

Talk to us today for competitive shipping rates from China.

If you are importing from China to India, you need a guide that will assist you during your importation. Here is a guide that contains all the information you need when importing your cargo from China. The information you will find here include the laws and regulations when it comes to importing from China to India. You will also be able to understand the process of finding a freight forwarder for your shipping. Without getting into details, let’s get straight into it. Keep reading.

Chapter 1: Identify Products You’re Importing from China to India

You need to have a specific product that you are going to import from China to India. The process might be tiresome. However, there are different ways you can find a product to import. Here is a look at these methods.

Search for Products Yourself

Searching for a product you want to import by yourself involves you researching the available products. There are various ways you can achieve this. For instance, you can travel to China to visit the available industries that you can source your products. The advantage of traveling gives you the first-hand experience of the industries. You also get to engage them on a matter such as pricing, quality, quantity and if they meet your demand schedule. The other option is by attending trade fairs and exhibition. Such events enable you to interact with various suppliers which from where you can choose those that can serve you.

Popular products importing from China to India

Another option of finding a product to import is by checking on the popular products that importers are importing from China to India. As an importer, you want goods that sell faster to increase o your profit Among the popular imports in India from China include:

1. Electronics

You can import nearly any electronic that you can think about from China to India. Electronics such as mobile phones, laptops and computers, and tv make it to the top electronics that you can import. Other electronics that you can import include security surveillance systems, business automation system and computer software.

2. Heavy machinery

Machinery is yet another category of imports to India from China. Among the items you can import in this category include industrial engines, pumps, and machines. Other machines that you can import include refrigerators and refrigeration equipment.

3. Organic fertilizers

India relies heavily on its agriculture to feed its population. If you want a niche in the agricultural sector, then you can import organic fertilizers.

4. Transport equipment

You can have a wide range of transport equipment that you can import from China to India. Motor vehicles, ships, and aero equipment make it to the list which also includes their spare parts.

5. Medicines and medical equipment

If you want to get involved in the hospitality sector, then you can import medicines and medical equipment. The medical equipment that you can import from China to India includes PET and CT scanners, X-ray machines and ultrasound machines.

6. Plastics and plastic products

You can import various plastics or its products from China to India. They include plastic bottles and plastic pipes that you can use in the construction industry.

7. Consumer products

This category involves the items that are in daily use in India. They range from a yoga mat, sofa cover, toothbrush, and blankets. Also, you can import batteries, stationeries, cosmetic items, mobile covers, and table covers. This list is not comprehensive; however, you can check with the government officials for the full list of goods that you can import. Alternatively, your forwarder needs to be in a position to advise appropriately on this segment.

Hire China Sourcing Agents to Find Imports to India from China

Lastly, another way of finding a product to import is by hiring a China sourcing agent to do it for you. Sourcing agent has a vast experience on which goods you can start importing. They will guide you on available goods, how to find the best supplier for the products as well as the best price in the market. Most sourcing agents have supplier contacts which can facilitate you acquiring quality goods at an affordable price. The advantage you have with hiring a sourcing agent is that it frees you from the hassle of getting to identify the goods to import.

Chapter 2: Establish Relationship with Potential Suppliers in China

Finding a supplier for your goods can be difficult especially when you are new in the industry. Getting a supplier who meets your specification means that you have to maintain that supplier. Numerous advantages come with having a reliable supplier. A right supplier can sort issues such as timely delivery, right quality, and even pricing. Allow me to take you through the process of getting a supplier and establishing a lasting relationship with them.

1) Identify your supplier

The first step is to identify which supplier you want to engage with to supply your cargo. There are three categories of suppliers you can engage with when it comes to supplying your goods. They include manufacturers, distributors, and independent craft persons. There are various online sites that you can identify the supplier that you want to engage to supply your goods. Alibaba is one of these sites which avails a pool of supplier for different goods at different prices. Once you have selected your supplier on Alibaba, you can make contact with them and establish if you can transact. Also, sites such as made-in-china and global source offer a list of suppliers that can supply your goods.

2) Understanding your supplier

To have a lasting relationship with your supplier, you need to understand your supplier. There are several factors that you can check on to understand your supplier. You can check how dependable it is when you want to use their services. If they can deliver as per your schedule, then that is a supplier that you can engage. Another element you can check on to understand your supplier is how stable they are. You can understand this by checking on how long your supplier has been in the industry. A supplier who has been in the industry for a long time means that they are stable and can handle your cargo. Lastly, you will need a supplier who offers the right price for the goods you need. A supplier who you can negotiate when it comes to pricing is a right supplier for your goods.

3) Have a lasting relationship with your supplier

Now that you have the right supplier for your goods, you can go ahead and establish a lasting relationship. This relationship will come in handy if you are in the importation business for the long run. You can achieve this in various ways. You can start by contacting them on a regular basis not only to make an order but checking up on them. The purpose of this is to make them are of you and that you care. The other way you can achieve this is by making payments on time. Suppliers like working with clients who keep their end of the bargain. The likelihood of your supplier transacting with you again is if you pay them as per schedule. Place your orders on time to give your supplier ample time to deliver. Rushing your supplier may make them turn down your orders or even refuse to transact with you. By giving them enough time, you can develop the trust as they will ensure that they meet your standards. This will make them want to do business with you again. Also, make it a habit of reporting any damaged goods or faulty items on time. By doing this, your supplier takes note of how you want your goods to be. When you make the next orders, your items will be as per your requirements.

Chapter 3: Understand Laws and Regulation on Importing from China to India

Laws and regulations are there to govern you when you are shipping from China to India. Breaking these laws can have serious consequences including jail terms. Understanding these laws and regulations is therefore essential. Here we take a look at the laws and regulations governing your importation from China to India. Keep reading.

I. How to get the Import license in India

Before you start importing from China to India, you need to have a license which will give you the freedom to import. The process of getting a license might seem hard, but it is a simple process that entails the following. If you are intending on importing to India, the first thing you will be required to have is an Importer Exporter Code (IEC). IEC refers to a 10-digit number which you can obtain from the Directorate General of Foreign Trade (DGFT). There are several regional offices of the DGFT where you can obtain your IEC. They have the authority over your business location. While you are applying for the IEC, you will be required to have the necessary documents and fees which I will explain to you. The documents you will need when getting the IEC include:

• The PAN Card of the business entity
• List of partners in the business, their address, their ID and the PAN card
• Bank Account statement
• A banker certificate as prescribed by the law.

When making an online application for the license, you will follow the following steps You will avail all the documents above in an electronic format when checking the DGFT website portal. The first thing you will be required to do on the website is to insert you Pan number to create a new account application The next step will be to register in the right information of yourself and your business. Once you finish this step, you will have to make payments. You will then have to upload all the necessary documents which support our application. Once you have completed, you will be required to print the document and present it to the DGFT offices. Remember, you will submit the form, to a DGFT that deals specifically with your business. After you have done this, the system will generate a 10-digit code. The code is what you will use as your import export license.

II. Know Trade Terms when Importing from China to India

International shipping involves the use of various trade terms that are unique. If you are a 1^st-time importer, these terms might be confusing. To help you understand these Incoterms 2010, here is a look at the definitions and where to apply them.

· FOB

Importing under this incoterm gives you control and responsibility over your cargo during the shipping period. While using this incoterm, your responsibility will include paying for the freight and choosing an insurance cover for your cargo. You are also responsible for customs clearance at the port of destination and facilitating the movement of your cargo from the port to your warehouse. On the other hand, your supplier will make sure to avail your goods at the port of origin. This includes paying for the transportation fee from their warehouse to the port. They will also pay for loading of the goods to the carrier as well as customs clearance at the port of origin. The fact that you have total control over your shipment ensures that you get to pick your carrier, negotiate with your forwarder your supplier.

· CIF

Perhaps this is the commonly used incoterm when it comes to international shipping. Under this incoterm, you are responsible for the cost of your cargo and customs clearance at the port of destination. You are also responsible for transporting your cargo to your warehouse. Your supplier will cater for the availing of your cargo to the port, customs clearance at the port of origin and hiring and paying for the ocean freight. They will also cater for the port charges at the port of origin as well as providing an insurance cover for your cargo.

· EXW

Under this incoterm, you are responsible for your cargo in some ways. First, you are responsible for covering the cost of your cargo and handling customs clearance at the port of origin and port of destination. You will also pay for the ocean freight as well as taking an insurance cover for your cargo. The responsibility of your supplier will include delivering your cargo to a named place and providing the documents needed. The use of this incoterm places the minimum responsibility to your supplier and maximum liability to you.

· DDU

The user of this incoterm implies that your supplier is responsible for the delivery of your goods to a named place usually the port of destination. Some of the responsibility of your supplier includes paying for the transportation fee to the port of origin. They will pay for the customs clearance as well as the freight charges up to the named place. The responsibility of the cargo transfers to you once the goods are in your possession. You will be in charge of paying the duties involved as well as arranging transportation to your warehouse.

· DDP

The use of this incoterm implies that your supplier is responsible for the shipment of your cargo up to the named place in the country of destination. Your supplier will cater for all the charges including paying taxes and duties and any risk that may happen during shipment. The use of this incoterm places maximum responsibility on your supplier and minimum responsibility on you.

III. Prohibited Items for Import in India from China

There are some items you cannot import to India. These items are known as the prohibited items, and the customs will confiscate if you import them. To prevent such a scenario, don’t import the following items

• Narcotic drugs or psychotropic items
• Certain aero machines like toy helicopters.
• Pornographic or obscene materials
• Counterfeits or pirated goods that infringe on the rules governing intellectual property rights.
• Wildlife and wildlife products
• Certain chemicals
• Antiquities
• Maps and literature that depicts incorrect information about Indian external boundaries

IV. Import Documents in India

For faster clearance of your cargo by the customs, there are documents you need to have them a hand. Missing these documents may result in your goods being held by the customs which implies higher cost and longer clearance time. Therefore, you need to have the following documents at hand when the customs are clearing your goods.

· Bill of Entry

The Bill of Entry is a document that indicates the exact nature, quantity, and value of goods that have landed in India. You or your forwarder will prepare this document and hand it over to the customs. The customs will use this document as an accounting source document when calculating the tax that you will pay.

· Commercial Invoice

This is yet another document that describes the nature, quantity, and price of the gods you are importing to India from China. Your supplier must fill this document which will be handed over to the customs. You need to be careful when filling these documents since all the information needs to be the same.

· Bill of lading/ Airway Bill

Another document that acts as a source document when the customs are calculating your duties is the Bill of Lading. The carrier of your goods usually a ship or a plane for the case of airway bill will issue you with this document.

· Certificate of Origin

The important if this document is to indicate which country you are importing your cargo from to India. In this case, since you are importing from China, your certificate will state China. The customs use this document to analyze the trade volume of a country. The chamber of commerce in China is the one responsible for issuing your cargo with this certificate. Among the details, you will find on this document is the name and address of your supplier as well as a description of your goods.

· Letter of Credit

When it comes to making payments, a letter of credit plays a vital role. This document is an undertaking by your commercial bank to pay your supplier on your behalf for the goods you are importing. In exchange, your supplier will hand over the necessary documents.

· Bill of Exchange

An alternative way of making payment when you ship your cargo from China to India. This refers to an undertaking that you will pay at a later date for the goods your supplier has supplied you. A bill of exchange can either be Bill of exchange after sight or Bill of exchange after the date. A bill of exchange after sight is when the calculation of the payment due date is from the date when you accept the bill. On the other hand, the bill of exchange after the date is where the calculation of the due date starts from the date the bill is drawn.

V. Calculate Import Duties in India

Here is a look at the import duties and taxes that you will have to pay on your cargo. The critical thing to note is that the calculation of these duties are on the value of the goods you are importing. Depending on the type of goods you are importing into India, you will pay the following types of duties.

· Basic customs duty

The basic customs duty applies to all goods that you can import to India. Basic customs duty in India is divided into standard and preferential duty rates. The standard duty will apply for the goods which you import from China since there is no trade agreement between China and India. If there were an agreement, preferential duty rates would apply.

· Integrated Goods and Services Tax (IGST) and Compensation Cess

The customs will levy an IGST tax will on nearly all the goods that you import from China with there being a few exceptions including certain petroleum products. You will also pay an additional Compensation Cess on cargoes such as motor vehicles and tobacco products. The amount to pay is calculated based on the selling value of the goods.

• Social Welfare Surcharge

A 10 percent levy charge on your import will go towards the social welfare program.

• Anti-dumping duty

To avoid importation of substandard goods, you will have to pay an anti-dumping duty on your import. This duty also protects the growth of local industries. The list of goods that you pay this duty keeps changing. Hence you need to check with the customs to determine if you will pay this duty.

• Safeguard duty

To protect domestic goods from imported goods, you will have to pay a safeguard duty on the products you import. This duty is practical if the sale of imported goods is below the market price of locally manufactured products.

VI. Ensure Compliance with Bureau of Indian Standards

Importing your cargo implies that it has to adhere to certain standards set by the Bureau of Indian Standards. Subjecting your shipment to the Bureau of Indian Standards is voluntary. However, there are some goods which you must subject them to BIS. They include the following products.

• Cement
• Household electrical goods
• Batteries
• Food and related products
• Oil pressure stoves
• Automobile accessories
• Cylinders, Valves, and Regulators
• Medical Equipment
• Steel and Stainless-Steel Products
• Electrical Motors
• Electrical Transformers
• Capacitors
• Chemicals and Fertilizers

The process of ensuring that your product complies with the Bureau of Indian Standards entails the following steps The first step involves you giving the samples of the product you are importing to a laboratory that has the approval of the BIS. This laboratory will test your samples by the standards that are in place. After the test results are out, you can now go ahead and apply for the BIS certificates. You can do this by filling the form VI and attaching the lab test report with the relevant documents. After completing, the officers will counter check the documents and issue you with the certificate after 30 days.

Chapter 4: Agree on Payment Terms when Importing from China to India

Once you have cargo has been shipped to you, you will have to pay for them before receiving the necessary documents. You will use these documents when clearing your cargo at the customs. Therefore, you need to agree with your supplier on the payment terms for your goods. Here is a look at the frequently used payment terms that you can use when importing your cargo from China to India.

a) Telegraphic Transfer

Though not in everyday use nowadays, Telegraphic Transfers enables you to transfer funds from your account to your supplier. There is specific information that you will need to compete a telegraphic transfer. This includes the account and bank details of your supplier. As a mode of payment, your supplier will receive the cash between three to four days of you making the transaction. There are limitations for using this mode of payment both for the supplier and you the importer. If you transfer cash early, there is a risk that you might not get your goods or get cheap goods. On the supplier’s part, if they send the goods before payment, they run a risk of not getting paid.

b) PayPal

An online payment system that lets you send money to your supplier. The only information you need to do this is there PayPal address. The use of this method is secure to both end users. However, if you are a new importer, you need to limit the use of this mode to a small volume of goods.

c) Letter of Credit

A letter of credit is the conventional way of making payment in international trade. The use of this method is secure to both you and your supplier. There are many advantages to using a letter of credit for your import transaction. First, you have a guarantee that your supplier will honor their part of the deal in supplying your goods. Your supplier, on the other hand, can supply you the goods with the knowledge that if you default in payments, your bank will pay them.

Chapter 5: Hire Freight Forwarder from China to India

You will have to engage the services of a freight forwarder to handle your shipping from China to India. There are many forwarders available but having a reliable forwarder can save you a lot of problems. The problem, however, is finding that trustworthy forwarder. The following steps will help you in hiring a freight forwarder who can handle your cargo from China to India.

· Conduct a background check on the company

Before engaging a forwarder, ensure that you have the relevant information about the company. This information includes the physical address of the company and the facilities they have to offer your cargo. Facilities such as warehouses play an essential role in ensuring the safety of your cargo. There are freight forwarders who provide these services at a fee while there are others that offer them at a cost.

· Check on experience

Forwarding industry in itself is a massive industry. You are therefore likely to find a fording company that lacks the expertise to handle your cargo. Services such as RORO and REEFER can come in handy when you are shipping special cargoes such as vehicles and perishable goods. You need to inquire about such services before engaging a forwarding company. On the same note, a forwarding company that has been in the forwarding industry for a long time is likely to handle your goods professionally. The reason for this is that they have handled various problems during this period and have the necessary solutions to the issues.

· International membership and licenses

A forwarding company that is a member of an international body such as FIAT will be an ideal forwarding company. You see, such a company has a reputation to uphold by being a member of such an organization. They will professionally handle your cargo and even communicate during the entire shipping period. On a local front, a forwarding company needs to be registered by the relevant authorities and given the licenses to operate. Always insist on this before engaging a forwarding company. Remember, in international trade; the probability fraudsters are high. Prevent this by ensuring you are dealing with the right company.

· Office network

Having a forwarding company that will handle your cargo both in China and India will make your shipping easier. This is because they understand the customs requirement in both countries which facilitates your shipping.

· Meeting your deadlines

The forwarding company that you pick needs to ensure that the shipping of your cargo is per your schedule. Remember, you don’t want to keep your clients waiting due to the lack of goods. The best way to find a forwarder is by searching for a forwarder in China. The reason for this is that most forwarders in China have a global network which will ensure easy shipment of your cargo. Also, the availability of cheap labor ensures that you minimize your shipping cost. Don’t forget that you need forwarders who are conversant with the customs. Most forwarders are conversant with the customs clearance procedures in China and India which ensures smooth clearance process. And by the way, I have some useful tips for you here: 7 Tips for Finding a Freight Forwarder in China.

Chapter 6: How to Ship Products from China to India

As an importer, understanding the available means of shipping your cargo can be of help in deciding the best option. You can ship your cargo either via air or ocean when you are importing your cargo from China to India. To help in coming up with the best shipping for your cargo, here is a look at the details of the ocean and air shipping from China to India.

Note: If you want to get the cheapest rate shipping from China to India, you can contact Tj chinafreight and get our best shipping rate China to India.

Ask for the Best Shipping Rate China to India Keep reading.

· Ocean Freight to India from China

Ocean freight from China to India is ideal if you are shipping a large volume of cargo. The advantage you have is that it will cost you less if you compare with using air freight. He flipside of using this method is that it takes longer for your cargo to arrive from China. You can navigate this by aligning your schedule with that of your shipping. Ocean freight from China to India entails the following.

· China to India Shipping Time

Here is a look at the shipping time your cargo will take when shipping to different ports of origin and destination.

Importing from China to the US offers a better option of getting quality goods at a lower price.

But how you go about the importation procedure can be hectic due to the many processes that are involved.

That is why I have prepared this simple guide to help you understand the importation procedure from China to the US.

I have broken down the complicated process into a simple process that you can easily follow.

Have a look.

How to estimate Cost of Importing from China to the USA?

Here is an explanation too of these costs.
a) Cost of buying good from Chinese suppliers
b) Shipping cost from China to the USA
c) Cost of logistics
d) Calculate import tax from China to the USA

What is the documents for Importing from China to the USA?

· US Customs Invoice
· Commercial Invoice
· Packing list
· Bill of Lading/ Airways Bill
· Arrival notice
· Special permits

What’s the Import Handling Process to US?

This section takes you through the process of hiring these entities who will handle your cargo from China to the US.

· Hire freight forwarder from China to the USA
· Hire licensed customs broker from China to the USA

How to choose a Secure and Safe Payment Method?

To help you in choosing a payment option that will be secure, let me take you through the major payment options.
· Telegraphic Transfer
· Letter of Credit
· Online Escrow
· PayPal
· Cash
· Western Union
· International Credit cards

• Understand the U.S. Regulations when Importing from China

Step 1: Understand the U.S. Regulations when Importing from China

Perhaps the starting point when you want to import from China to the USA needs to be understanding the US regulations.

These regulations will guide you right from what you want to import to the taxes that you will pay for the imports.

Let’s look at these regulations.

· Product safety regulations & standards

There are specific regulations and standards that your products should meet before you import them to the US.

The process of getting your approval for your goods can be somehow complicated given the many regulations.

To assist you, here is a simplified way that you can go through this process.

Have a look.

I have described these safety regulations and standards as per category:

1. Cosmetic products

When importing cosmetic products, you will have to ensure that they comply with regulations from the following standards: CFR Title 21 & 16, food, Drug, and Cosmetics Act, Safe Cosmetics Act 2011 and Fair Packaging and Labeling Act.

In addition to those, you will ensure that they comply with state regulations.

These regulations include California Proposition 65 – lead in cosmetics and California Air Resources Board (CARB)

2. Children’s products

When you are importing anything that is related to children, it should meet the regulations that are under CPSIA.

These regulations include: Taking the product samples to a CPSIA accredited laboratory and ensuring that your samples adhere to the safety standards

You also need to ensure there is fixing of a tracking label on each product that is permanent.

Failure to comply with these regulations will lead to confiscation of your products by the customs.

What you need to note is that all the laboratory tests, as well as the labeling costs, are your responsibility.

So, you need to make arrangements for this cost.

3. Electronic products

The FCC is the regulatory body that deals with imports.

As such, you need to ensure your electronic imports adhere to these regulations.

This includes having an FCC mark clearly on your imports.

On top of these, you can have other standards on your products if you want.

For instance, if you are importing electronic equipment for use in water, you can have standards from bodies like underwater Laboratories.

4. Chemicals and metal ores

At the federal level, CPSC regulates your chemical imports.

However, there is some regulation at the state level that differs from one state to the another.

On a personal level, you as an importer should submit your product for testing.

By doing this, you are ensuring that your imports have the correct amount of chemicals such as lead and calcium.

5. Kitchen appliances

If you are importing any kitchen appliances such as utensils, need to meet the necessary food contact regulations.

Such regulations include: the appliance should not transfer its elements including color to food, the appliance need not affect the smell and taste of the food in it.

Product labeling requirements

Whenever you’re labeling imports into the USA, it is important to consider the following:

· Labels indicating the Country of Origin

The first regulation that you need to have on your import is to indicate the Country of Origin which in this case is China.

This is a necessity if you are importing anything from China.

However, there are a few items such as watches that you can import minus the label.

You need to check with the customs authorities before importing your cargo.

· Textiles and apparel

If you are in the process of importing textiles or apparel, you need to ensure that they comply with OTEXA requirements on the labeling.

This includes fiber composition, care instructions, and language which needs to be in English.

Remember to inform your supplier of these requirements and the specifications necessary.

Don’t make a mistake of assuming that your suppliers know the details of your regulations.

· Laboratory testing documents and regulations

The purpose of having your goods tested is to ascertain if they are safe for consumption in the US.

There are various laboratory tests that you will subject your goods to depending on the type of goods you are importing.

In case your goods pass these tests, the relevant body will issue you with a certificate of conformity which you will give the customs.

Regulated imports from China to the U.S.

If you are planning on importing the following goods from China to the US, you will be required to seek permission before importing.

• Firearms
• certain fruits and vegetables,
• Certain animals, animal products and animal by-products.

·         Prohibited imports from China to the U.S.

You cannot import the following goods from China to the US. If you import these products, the customs will confiscate them, and you will have to pay fines.

• Drugs
• Alcohol
• Firearms
• Textiles and clothing
• Trademarks and copyrighted items

You can learn more about the U.S. Custom Boarder Protection.

Step 2: Identify Products to Import from China to the USA

Once you have understood the regulations that will govern your importation, you need to identify a product that you will import.

The process of identifying a product can be a challenge especially if you are starting your importation business.

However, here is a look at some of the ways you can identify a product to import from China to the USA.

First, you can choose to travel abroad on a mission to find a product to import.

Though this method will consume your time and resources, the probability that you will find the quality product is high.

Again, while on the visits, you can interact with potential suppliers who you can negotiate the details of your product.

The other method you can use is by getting manufacturers contacts.

This method involves getting calls from manufacturers from China who may want to supply you with their goods.

The advantage of this method is that you save the time you would have taken to travel to China.

Also, when you get a call from a manufacturer, it means that they know that you are interested in their product.

As such, you are in a better position to negotiate on the terms of the product.

The disadvantage with this method is that you cannot use it if you are a new importer since you are unknown to the international market.

As an importer, you have the upper hand of interacting with your customers.

This is yet another source of identifying a product to import.

When clients call to request a particular product, you can build data from it and with time, get to know what product to specialize.

The other method through which you can identify products to import is by attending trade shows and fairs.

Most manufacturers from China present their goods and the incentives they have if you import these goods.

You are therefore able to interact and choose a product that you want to import from China to the US.

You can also visit the U.S. government’s International Trade Administration for information regarding importation.

These offices have data of goods that you can import as well as possible suppliers in China.

Having said that, the top imports from China to the US include:

• Machinery
• Electronics
• Vehicles
• Medical equipment
• Organic chemicals

Step 3: Find Reliable Chinese Suppliers/Manufacturers

Identifying a product to import is just the beginning of your importation.

There are other aspects of the importation business that you need to consider.

For instance, you need to identify a reliable supplier who will be able to supply you the goods you want to import.

Numerous suppliers can supply your goods.

However, not all of them are reliable.

So how do you get a reliable supplier?

This section explains all the steps you can take to find a reliable supplier for your goods.

Keep reading.

Searching for Suppliers on Online Market Places

One of the quickest ways you can find a supplier is through trusted online market sites.

These sites offer an opportunity through which you can engage and choose suppliers who will deliver at reasonable terms.

These sites include:

· Alibaba

Alibaba is one of the sites that you can source for potential suppliers and manufacturers for your goods.

There are several advantages you can get by using Alibaba.

First, you can get a pool of suppliers which gives you an opportunity to select one that meets your specifications.

The fact that it is an online marketing site means that you can access it from virtually anywhere as long as you have internet.

This means that you don’t have to travel to China to search for suppliers.

Recently, Alibaba has introduced Alipay which is a secure means of making your payments.

You can source for a supplier, have them deliver your goods and pay them later.

· Made in China

Made in China is another online site that helps you interact with different manufacturers and suppliers.

Made in China, you can select a supplier then engage them.

Using Made in China means that you will have to agree with your supplier on the details of the trade including the mode of payments.

· AliExpress

A sister company to Alibaba, AliExpress offers you an opportunity to interact with retail suppliers.

So, if you want to import small quantities from China to the US, this is the site that you need to look out.

AliExpress will not charge you for shipping your goods when you make a purchase on it.

Your supplier will take care of this.

One of the most natural ways of buying a product from this site is to check on the reviews of other clients.

A supplier with a higher rating implies that their goods are of high-quality meaning that you can engage them for importation.

Lastly, you can track your cargo right from when it leaves your supplier to your doorstep.

Hire sourcing agents

The advantage you have by hiring a sourcing agent is that it saves you the hassle of looking for a supplier by yourself.

Sourcing agents usually understand the importation business, and they will hook you up with the right suppliers.

What happens is that once you explain your import details to your sourcing agent, they will use their networks to find you, potential suppliers.

Once they have a list of potential of suppliers, they can take you through the pros and cons of each supplier.

Finally, they will assist you to narrow down to that one supplier for your goods.

Some of the qualities you can look out for when hiring a sourcing agent include:

• Expertise in importation
• Fluency in Chinese as well as English
• A proper understanding of the Chinese business culture
• Experience with suppliers

Look for Chinese Suppliers in the US

Some suppliers have agents based in the US.

This can be a good source of finding a supplier who you can engage for importing your goods.

You can find information relating to such suppliers at the Chinese embassy.

This information includes their locations in the US and which category of goods they supply.

Consider visiting China to meet suppliers

The advantage you get by choosing to visit China to source for suppliers is that you get to interact with them on a face to face basis.

This will give you an opportunity to visit their manufacturing sites as well as observe the manufacturing process.

You will also get the opportunity to negotiate on the product details including the price and production schedule.

Also, you can use this opportunity to negotiate on the minimum order quantity.

Use China trade fair

China trade fair is an event organized by the Chinese government in the US.

It is an opportunity for Chinese suppliers to showcase their products to potential importers.

You can use this event to interact with various suppliers on the goods they manufacture.

Also, you can visit the manufacturer’s factory in China once you get their details.

Step 4: Request for Product Samples before Importing from China to the USA

One of the ways that you can ensure that you have the goods that you want is by getting samples from your supplier in China.

Once you have the samples, you can check on ensuring that that is the right quality.

Also, you can take the samples for government approval at the laboratory.

This will save you time when you are importing your goods.

Here are the sample details of your goods when importing from China to the US.

i. Receive and assess the quality of product samples

The basis of you requesting a sample is to determine if the sample is the right quality that you want for your product.

Once you have this sample, you can pass it through the relevant quality process.

One thing that you need to note is that some suppliers can be naughty when supplying you the samples.

What happens is that they will supply you a high-quality sample but deliver low-quality products.

To prevent this, try requesting the sample close to three times including using another address to compare the quality.

If you find even a slight deviation with no reasonable excuse, be cautious.

Sample quality can form the basis of your goods getting permission to get into the US.

When talking to the government agencies for testing, be keen on their feedback.

ii. Understanding the MOQ

The Minimum Order Quantity (MOQ) refers to the lowest quantity of a product that your supplier is willing to supply to you.

Different manufacturers have different MOQs depending on factors such as their production capacity.

You see, most suppliers and manufacturers don’t store the goods they produce.

So, when you order your goods, that is when they start the production process.

Again, the profit margin of most suppliers is pretty low which is brought about by the fierce competition that exists in China.

As such, for them to increase their profit margin, you will find most suppliers emphasizing a high MOQ.

This can be difficult especially if you are a small importer.

A way of lowering your MOQ is by negotiating with your supplier to reduce it.

Though practically, this will come at the cost of you having a higher price for your products.

iii. Sign a sales contract before bulk importing from China to the USA

Lastly, you need to sit down with your supplier and draft a sales contract before you embark on bulk importation of your cargo from China to the US.

A sales contract is an important element of your importation including as a proof of ownership or purchasing goods.

There are some instances where you will be required to produce this document, especially during inland transportation.

The details that you will find in the sales contract includes a description of your goods, terms of sale, payment terms and your details and those of your supplier.

Step 5: Choose a Secure and Safe Payment Method

One of the major concerns when it comes to international trade is finding a secure and safe method for making payment.

There are several means that you can choose to make payments on goods you import from China to the US.

However, you cannot just choose any payment method.

You need to minimize the risk that occurs when it comes to payments.

Some of the risks include you making payments without receiving the goods you ordered.

It can also be making payments for substandard goods.

To help you in choosing a payment option that will be secure, let me take you through the major payment options.

· Telegraphic Transfer

This is one of the oldest methods of payment that you can use.

It involves you wiring your supplier an advance payment before production of your goods and finishing up once you get the goods.

The risk that is available if you choose to use this method is your supplier not delivering after receiving the advance payment.

Ideally, you can use this method if you trust your supplier and if the transaction is for medium value.

· Letter of Credit

A Letter of Credit is the common and one of the most secure means of payment you can use when importing your goods.

By using a Letter of Credit, your commercial bank will undertake to pay for the goods you are purchasing.

The advantage of using this method is that there is a guarantee of your goods.

This is because your supplier won’t get paid unless you have received your goods.

You can use this method of payment when importing a large volume of your cargo from China to the US.

The limitation you have is that it is a complex process but that in itself serves to secure your payments.

Also, small suppliers in China don’t like using a Letter of Credit as a means of payment.

· Online Escrow

If you are a small importer let’s say for goods worth $5000, then you can pick online Escrow for your payments.

In China, Alipay Escrow is a common payment option which is owned by Alibaba Group.

Since Alibaba owns Alipay, it is enough evidence enough that this payment option is credible.

The disadvantage of using this method is perhaps getting goods that you didn’t order,i.e. low-quality products.

· PayPal

The popularity of PayPal as a method of payment in international trade is gaining momentum due to its improved features.

Most tech0 savvy supplier prefers this method of payment.

Ideally, you can use it to pay any amount of your goods.

However, there is a limitation to this method.

A transaction fee of PayPal is percentage based.

This implies that the higher the amount you transfer, the higher the amount you will pay.

Typically, what happens is that most suppliers who use this method will tell you in advance that you will cover this cost.

In return, you as the importer need to factor this cost on your selling price to stay the business afloat.

For better protection, always try to use “PayPal checkout” instead of transferring the payment directly to PayPal accounts.

· Cash

The common method of paying for any volume of your goods in China.

While making cash payments, you can either be present or have a representative.

However, this is the riskiest option when importing your goods from China to the US.

In the event of occurrence of any event, you are the one who will be on the losing end.

You, therefore, need to ensure that you use this option only for the small volume of goods.

· Western Union

Western Union and PayPal are ranked top on the ease of using it as a payment option for your goods.

Many suppliers in China prefer this method of payment due to its efficiency.

However, you need to be cautious when using this method.

This is because tracing back the payment in case you don’t receive your goods is hard.

As such, I would advise that you use western union only with those suppliers who you trust with the delivery of your goods.

· International Credit cards

International Credit cards have a limited usage when it comes to international payment options.

Mostly, those suppliers who deal with electronics and computer accessories accept this payment option.

Most suppliers are afraid of using this method since they have expensive terms of charges and also chargeback issues.

All in all, security of your transaction needs to be of paramount due to the risks involved.

Perhaps you need to note that these risks can happen to both parties.

Either you as an importer or your supplier hence the need to ascertain security from both sides.

Before settling on a method of payment to use for your importation, you need to consider several factors.

They include: How each payment company resolves disputes surrounding payments.

And the cost associated with the use of a particular payment option.

Step 6: Get Reliable Import Handling Process

The safety of your goods will be determined by how best your cargo is handled right from your supplier to your doorstep.

Much of these have to do with the people you entrust to handle your product.

This section takes you through the process of hiring these entities who will handle your cargo from China to the US.

· Hire freight forwarder from China to the USA

There are many freight forwarders that you can engage to import your goods from China to the US.

However, not all these forwarders are reliable when it comes to importing.

Again, the process of finding a reliable forwarder can be complicated.

Here are tips you can go through when selecting a forwarder for your importation.

1) Understand your business needs

Before you start looking for a freight forwarder, you need to analyze what your business will need for your shipping.

The importance of this is that it lets you come up with the requirement for your shipping.

By doing this, you can come up with a list of possible forwarding companies that can handle your shipping.

Things that you can factor in here include Volume of your cargo, shipment type, available modes of shipping, annual shipments and convenient method of payments.

2) Analyze the forwarder’s experience

When we talk about experience, many confuse it with mainly being how long a forwarder has been in the industry.

In as much as that is important, there is more to that.

Experience also has to do with finding out how reliable the forwarder is to handle your cargo.

You need to check if the forwarder has all the expertise that you will need to ship your freight.

A reliable forwarder will ensure accurate shipping time as well as handling any shipping related problem.

Some of the areas you can check if your forwarder can handle include customs hassles, port shutdowns, workers strike, cargo rerouting and warehousing issues.

3) Handling of multiple shipping

Your freight forwarder needs to be in a position to handle multiple shipping.

This can be possible if the forwarder has networked with different shipping companies which handle different shipments.

Also, your forwarder needs to be flexible to your shipping demand.

That is to mean if you switch from air shipping to ocean shipping, your forwarder needs to be able to help you.

4) Point of contact

One thing to note is that you need t access your forwarder.

We are all aware that anything can happen during the shipping process including delays in shipping.

Having offices where you can get clarification on emerging issues can help you have a peace of mind during importation.

5) Experience customs agent

Having a customs agent will help in quick clearance at the customs.

You need to check if the forwarder has customs agents in China and the US who understands the customs procedure in both countries.

6) Cargo insurance

An essential aspect of importing your cargo is to ensure that your shipment has an insurance cover.

While you can make arrangements for it on your own, a freight forwarder will offer you at a competitive price.

7) Communication level

Importing from China to the US can be hectic with all the details involved.

You, therefore, need a freight forwarder who will be in constant communication with you during the importation period.

Check to determine the level of communication a forwarder has before choosing them for your importation.

8) Licenses and membership

To ensure that you are dealing with a legit forwarder, you need to inquire about their licenses.

These are the permits a freight forwarder is given by the government to enable them to carry out their business.

9) A legit forwarder will be willing to show you these documents.

Another area you can check on is the membership of a forwarder to the internationally recognized body such as FIAT.

One thing for sure is that having such membership indicates a high-quality service delivery.

You are therefore at

As a businessman, you must be looking for the most efficient way to bring merchandise to South Africa from China.

The worry might intensify when you think of getting it all the way from China to supply your customers.

Well, worry no more because you are about to know everything about transporting your cargo from China to South Africa.

Which products can I importing to from China to South Africa?

Here find out about the main products that China exports to South Africa in the following paragraphs:

· Importing Bags from China to South Africa
· Import cars from China to South Africa
· Importing wedding dresses from China to South Africa
· Importing electronics from China to South Africa
· Importing furniture from China to South Africa
· Importing hair from China to South Africa
· Importing machinery from China to South Africa
· Importing building materials from China to South Africa
· Importing tires from China to South Africa and others.

How to calculate the Import Cost from China to South Africa?

The factors that you will look at when calculating the cost of transport are:
· Calculate the Landed for Importing from China to South Africa
. Import Duties from China to South Africa
. Importing from China to South Africa Logistics Cost
. Cost of Hiring a Customs Broker
. Cost of hiring Chinese freight forwarder to South Africa

May I know any other documents that may be important when I am importing goods from China to South Africa?

The other list of documents that you may need for shipping from China to South Africa are:

Bill of lading
Air waybill
Sea waybill
Certificates of Origin
CMR
Courier waybill
CIM consignment note
Certificate of shipment

Do you offer any form of door to door services from China to South Africa?

There is the door to door services that you can get depending on the money you pay.

Express shipping offers this service, and you can get it from other forms of transport.

It will depend on the type of arrangement you will have with the supplier.

I have made this guide to help you solve this problem.

And, here we go.

Chapter 1: What Can I Import from China to South Africa?

China is a leading manufacturer of different products that they export to various parts of the world including South Africa.

According to the United Nations COMTRADE, South Africa imports goods from China to a tune of 15.22 Billion dollars.

Continue reading and find out about the main products that China exports to South Africa in the following paragraphs.

· Importing Bags from China to South Africa

China is one of the biggest manufacturers of designer bags with the highest quality you can find.

South Africa imports bags from China in huge containers because of the high demand for the product.

The main mode of transporting the bags to South Africa is by using the full container load depending on the importer.

If the importer does not import a lot of luggage, then he will have to use less than container load.

Most of the containers come through the sea on different shipping freights depending on the importer’s choices.

Many of the bags are women handbags, clutch bags, backpacks, camping bags that manufacturers make from different materials.

· Import cars from China to South Africa

Since South Africa does not have many car manufacturing industries, they opt to get them from China.

China is a leading car manufacturer economy and takes care of the demands from other countries such as South Africa.

The cars come on special types of ships that have the ability and capacity to carry the load of cars.

The ships that carry cars or luggage that has wheels are known as the roll on roll off cargo ships.

The ships have ramps that the car can easily roll on to the ship and roll off the ship.

The cars also pack on different decks of the ship when on transit to South Africa.

· Importing wedding dresses from China to South Africa

Wedding dresses is another key import that South Africa gets from China for the ladies planning for their weddings.

China exports all types of wedding dresses to South Africa that have different price ranges to accommodate everybody.

The cheap wedding dresses come in containers via sea freights and put for display in different wedding shops.

There are other types of dresses that the owner can order for early enough for customization.

These types of dresses are high end very expensive since it requires special material and designs.

The importers usually prefer to use express shipping services such as DHL to deliver the dresses at their doorsteps.

The mode of transporting wedding dresses will depend on the type of dress that you are importing.

The government will also charge import duty on the dresses depending on the quality and cost of the dress.

· Importing electronics from China to South Africa

Whenever you are transporting electronics from China to South Africa, you should use the air freight.

Electronics are usually fragile and should get to the buyer as soon as possible and in good condition.

It is the most significant reason why exporters typically prefer to use air freights as they are safer and faster.

The kind of electronics that China exports to South Africa include refrigerators, television sets, radios, computers, phones and many more.

Most of them are fragile and require special packages as they are on transit to South Africa.

· Importing furniture from China to South Africa

China is a leading manufacturer of different types of furniture that manufacturers make from various materials including timber.

The timber that the manufacturers use varies from hardwood to softwood for creating different designs of furniture.

The manufacturers load the furniture into containers that will come to South Africa on ships.

The type of shipping freight that you decide to use for the furniture will depend on the cost you pay.

It means that the furniture can come on the air freight or through the sea freight depending on the bulk.

A huge consignment of furniture will go into the country through the sea freights as it is economical.

· Importing hair from China to South Africa

Cosmetics are taking a huge share of the market in the world today including hair for the ladies.

The type of hair that South Africa imports from China are mainly for the ladies which is synthetic.

The other models are human hair, and they come into the country through the sea freights, or air freights.

Air freights a reserve for express shipping where the customer needs to get the hair as soon as possible.

There is the possibility of shopping for the type of hair you need on AliExpress.

This is the easiest mode of shopping for hair, and you will receive it as soon as possible.

· Importing machinery from China to South Africa

The size and type of machinery that you intend to import will determine the mode of transport.

Heavy and fragile machines are given special packages, and the freight forwarder takes extra care of the merchandise.

The type of machines varies from the type of machines for construction of buildings and roads, among other types.

The big machines may come in different parts for assembly one they arrive in South Africa.

Other types of machines that are too big to fit in a container will come on different types of ships.

The ships that transport this type of machinery that are out of shape is known as out of gauge ships.

· Importing building materials from China to South Africa

Certain types of building material are not readily available in South Africa.

Most of them come from China and arrive in South Africa on cargo ships.

Some of the building material from China include floor tiles among other types of building materials.

There has been an issue about the imports from China flooding the market of South Africa.

The competition is real, and many of the products arriving in South Africa are of the same quality.

· Importing tires from China to South Africa

Tires are spare parts for vehicles that will need replacements once they wear out.

Many of the tires that arrive in South Africa from China come from the car manufacturing companies.

Once the manufacture of the cars is complete, the manufacturer has to make spare parts for replacements.

The parts such as tires come into South Africa in containers through different importers.

Since they come in bulk, they are often put on sea freights.

An order for the tires should come through to the manufacturer in time for disbursement of the consignment.

· Importing solar panels from China to South Africa

South Africa has the potential of lighting up their homes using solar power and solar panels.

The solar panels require enough sunlight which is a resource that is available in plenty.

This is the reason why South Africa imports many solar panels from China and uses them for lighting.

The imports arrive in bulk on special containers on ships through the sea freight.

Air freights can also transport the solar panels depending on the urgency of the order.

· Importing clothes from China to South Africa

China has many cloth manufacturing companies that produce clothes of very high quality.

The production process is cheap due to cheap labor, and most of them produce in bulk.

The bulk produce is taken to different countries for sale including South Africa.

Most clothes come through sea freights on the FCL or LCL shipping freights depending on the importer.

Full Container loads are the most common for clothes, and one is sure to receive the goods in good shape.

Besides that, clothes are not fragile and can take a long time in transit, and that is the reason why sea freights are common.

· Importing shoes from China to South Africa

Shoes are huge imports from China to South Africa, and most of them arrive in containers via sea freight.

Just like clothes, they are not fragile and can take time on the sea as it is on transit to South Africa.

Most of the shoes from China are of different qualities, and therefore the pricing is also different.

Many shoe companies base in China because of the cheap cost of producing shoes and cheap labor.

It is sufficient enough to produce shoes in China and then export it than importing the raw materials.

The type of shoes and delivery time will also determine the type of freight that you will use for transport.

· Import toys from China to South Africa

Toys also make one of the greatest imports of South Africa from China.

You will need to import the toys in bulk before and bring them in a container via the sea.

Some of the toys are expensive and require extra care that’s why it is important to use air freights.

The size of the toys will determine the type of container you will use in transporting the cargo.

Importing bigger toys in bulk will require a huge container or many containers to make it successful.

The government also charges different rates for the toys depending on the cost of the cargo.

Chapter 2: List of Prohibited and Restricted Imports in South Africa

South Africa as a sovereign state has the rules that govern the import of goods and there are restrictions.

These restrictions are on certain types of goods that they do not allow into the country.

The reason why the country does not allow the importation of these goods vary depending on the type of good.

The most significant difference between prohibited and restricted goods are:

i. The goods under prohibition are not to be given a chance to exit or enter the country. The circumstances that the goods are under will not matter and can never be given a chance.

ii. Restricted good will get a chance to get into the country only under special circumstances. The conditions for allowing such goods into South Africa include:

Provision of particular permits, letters, and certificate that the government requires

The prohibitions and restrictions apply to all forms of transport that you can use in transporting the merchandise.

The status of the cargo you intend to import into South Africa must be well articulated as either:

i. N for new goods

ii. U for the goods that have been in use

iii. S for the goods that are changing hands from the first user to the second (Second-hand goods)

The prohibitions and restrictions are on a list that the government usually compiles from different departments.

The list is available online for reference and also with the customs department for inspection.

The list has special categorizations in accordance with the tariff structure of the “Harmonized Commodity Coding and description System.”

The list of the restricted and prohibited goods in South Africa include:

i. Habit forming drugs and narcotics that can cause addiction such as marijuana

ii. Fully automatic, unnumbered, military weapons.

iii. Fireworks and explosives

iv. Toxic substances such as poison and other materials

v. Cigarettes that have a mass over 2 kilograms for every 1000 sticks

vi. Counterfeit goods that take advantage of logos and trademarks from other legal companies

vii. Unlawful reproductions for any subject that has copyrights

viii. Penitentiary or prison-made goods

The department of trade and industry is responsible for revising and publishing the list of prohibitions.

It is the department that issues the permits for restricted goods.

There are certain groups of goods that will require the involvement of other departments for clearance.

Chapter 3: Calculate the Import Cost from China to South Africa

The cost of importing cargo from China to South Africa will vary according to a number of factors.

The factors that you will look at when calculating the cost of transport are:

i. The cost of the merchandise that you intend to transport

ii. The distance that the cargo will cover from the factory to the final destination. It will include the distance from the factory to loading port, from the port to South Africa and then to the warehouse.

iii. The means of transport that you choose for the cargo. It includes the cost of either sea freight or air freights. Air freights are more expensive than sea freights.

iv. The cost of the insurance you choose

v. The cost of the Incoterms you intend to use for transporting the cargo

vi. The shipping company that will transport the merchandise for you from China to South Africa Different shipping companies offer different price lists depending on the services they offer.

vii. The type of merchandise you are transporting from China to South Africa Fragile goods require extra attention and care, so you have to pay more for it.

· Calculate the Landed for Importing from China to South Africa

The cost of land for importing goods from China is inclusive of a number of factors.

You might be lucky to get a product at a cheap price in China but the product is not in South Africa.

Importing it to South Africa will lead to additional costs on the product making it more expensive.

The cost of land for goods from China to South Africa will include the following:

i. Cost of the product

ii. Cost of transporting the product to South Africa

iii. Cost of insurance for the products

iv. Cost of import duties in destination country

v. Excise taxes and VAT charges on the product

vi. Other fees that the customs department may charge on the product

· Cost of Best Products to Import from China to South Africa

The cost of transporting the best products from China will also vary accordingly.

The factors you have to look at include the cost of the products and the type of freight.

The best of products will also require the best treatment thus increasing the cost of transport.

Note that when you purchase the goods online, the supplier in China will organize for the cost of transport.

Most of the time the cargo comes through air freight that the supplier will organize for but you have to confirm.

· Cost of Shipping from China to South Africa

The cost of shipping cargo from China to South Africa is significant to a lot of factors.

The factors that you will incur when making inquiries into transporting any form of cargo.

The key factors that you will have to look at in this case are:

i. The type of transport you will use for transporting the merchandise. It includes the use of sea freights or air freights. Air will deliver the merchandise faster than sea freight making it costly

ii. The distance that the transport will cover with the cargo on board. It will depend on the sea route that the ship has decided to take.

i. The Incoterms that you will choose for your cargo

ii. Shipping companies that you contact will have different prices, and that will affect the cost. Remember, other factors such as geopolitics, global oil prices, sea weather, etc. can also play an important role when it comes to shipping cost.

· Choose the Best Incoterm when importing from China to South Africa

Incoterms 2010are the terms you will use when shipping merchandise from one country to another.

The terms are international, and many people who work in the import and export of goods accept them.

They are also admissible in a court of law, and you will use them whenever you are referring to transactions.

Apart from that, they also explain the relationship between you and the seller or supplier of goods.

It gives a clear explanation of the responsibilities that the seller or supplier has towards the cargo.

It will also explain the terms of payment that you should be taking care of during the transport of your cargo.

The cost of transport will vary according to the kind of incoterms that you decide to use.

Some of the Incoterms will exempt you from payments while others will force you to dig deeper into your pockets.

The most significant incoterms that you may encounter during the process of shipping merchandise are:

1. FOB

Free on board where the buyer takes care of the contract and insurance of the cargo.

The buyer will deliver the cargo at the loading port and clear it for export.

The rest of the responsibilities are for the buyer to take care of.

2. CIF

Cost, Insurance and Freight where the seller pays for the freight contract and Insurance for the cargo.

His responsibility will end once the cargo is safe on the ship.

The buyer will assume responsibility for the cargo from that point.

3. CIP

Carriage and Insurance paid to the relevant authority, and the seller is only partially responsible for the cargo once the seller delivers the load at a destination where the buyer states.

Responsibility shifts, the buyer becomes responsible for the goods for the rest of the journey.

4. CFR

Cost and Freight is the incoterm that allows the seller to pay for the freight but not the insurance.

The insurance will be the responsibility of the buyer, and he will take care of the goods once on board.

It means the seller will take care of everything until the cargo is on board the ship.

5. CPT

Carriage paid to the relevant authority by the seller and the rest is the responsibility of the buyer.

It means that the seller will only transport the goods to the carrier and leave the rest to the buyer.

6. DAT

Delivered at Terminal is where the seller takes care of the delivery of goods to the destination port.

The seller will take care of all the costs all the way to the port of destination.

The buyer will take responsibility for the rest of the journey to the place of interest.

7. DAP

Delivered at Place is the incoterm that states that the seller will deliver the cargo to the final place.

The seller will assume full responsibility for the cargo up to the point where the buyer receives the cargo.

It might be at a specific warehouse or at a place the buyer will specify.

The buyer will take care of the customs clearance, import taxes and duty for the cargo.

The seller should worry about insurance just in case of any problems before the unloading of cargo.

8. DDP

Delivery duty paid means that the seller will deliver the goods to the buyer after paying all costs.

This includes all the import duty and taxes, customs clearance and any other cost.

All the risks that the goods may have during the process of transporting the cargo is on the seller.

9. EXW

Ex Works means that the seller will deliver the goods at a destination such as a warehouse or a factory.

The buyer will assume all the responsibility for the goods all the way to the destination point.

It includes the cost of transport, export and import clearance among other issues.

10. FAS

Free Alongside Ship means that the seller will cease responsibility for the cargo once they are at the side of the ship.

The seller will take care of the export clearance, but the buyer will take care of the rest.

The rest will include the cost of loading the cargo on the ship, insurance and many more till delivery.

11. FCA

Free Carrier means that the seller will complete his responsibilities when he delivers the cargo to the carrier.

From that point, the buyer will assume full responsibility for the cargo to the destination.

This includes the cost of transport, insurance for the cargo, customs clearance among other costs.

Estimate Import Duties from China to South Africa

As soon as you consider importing cargo from China, you have to know about the import duties.

It means that the government will charge a certain amount of money to allow your goods in the country.

The import duty will depend on the type of goods that you import into the country and the cost of the cargo.

The fee that you will pay for the goods to come into the country is in different divisions as follows.

· Calculate the Customs Duties

The first step in calculating the customs duties for the imports in South Africa will be filling a declaration form.

With the assistance of a customs agent, you will be able to complete the declaration form stating your intentions.

The key issues that you should fill in the form are:

Value of the goods you are importing

i. The cost of freight you are using

ii. The cost of insurance for the goods

iii. HS code of the product that you are importing

iv. Description of the product and more information about the product

v. The total cost of all the orders that you are making

vi. Cost of shipping the cargo

vii. Name of the insurance broker,

Please include your details such as name and the mail address then wait for the confirmation.

The confirmation will include the cost of customs duties that you should be paying.

· Anti-dumping and Countervailing duties

Antidumping and countervailing duties are the charges that you will pay on the following goods:

i. The goods that the government seems to consider as dumped goods.

ii. The goods or imports that have subsidies on them

Such goods are subject to an investigation into the export incentives and pricing from the origin country.

The rate that the government will impose depends on the results of the complete investigation.

The duties are either as a percentage of the value of goods or have specific duty charges on them.

The criteria for determining the type and amount of duty depends on the following factors:

i. Customs value of the goods

ii. The quantity or volume of the goods

iii. How VAT is imposed on the goods in particular and the rate of charging VAT at 14%.

iv. Added tax value

The calculation follows the following procedure:

((Customs value + 10% thereof) + (any non-rebated duties levied on the goods)) * 14% = (ATV) * 14% = VAT payable

Importing from China to South Africa Logistics Cost

Considering to use certain types of logistic companies can simplify the job of importing to South Africa.

The logistics companies that you can use include freight forwarder and customs brokers.

The logistics companies are available in both South Africa and China for your consideration.

Cost of hiring Chinese freight forwarder to South Africa

In case you are taking a freight forwarder from China, it will be cheaper for the whole process.

It is because they know the country well and can find cheaper deals for your goods.

The suppliers also know the freight forwarders, and they can help you in getting one that is cheap, and you can trust.

The freight forwarders in China are also available online for you to find.

There are certain factors that you have to look at when looking for a freight forwarder.

This will include the kind of equipment they have for handling the cargo and experience.

Other factors that you will consider are:

i. Do they have the licenses to act as customs brokers?

ii. Do they have a clean record of customer references?

iii. Do they have online tracking systems you can use to track your goods?