Import from China: FOB, CIF or EXW Incoterm?

Import from China: FOB, CIF or EXW Incoterm?
Import from China: FOB, CIF or EXW Incoterm?

FOB, CIF or EXW? The Incoterm you choose to import from China can greatly affect your overall cost. But oddly, it's rarely the focus of your import activity.

Most importers tend to put the lowest possible sales price as a higher priority, ignoring other details. This could end up being a costly mistake. Given their direct impact on import costs, now is the time to start taking a closer look at Incoterms.

Product prices vary by Incoterm

The price of your purchase will vary depending on whether you imported using FOB Incoterm, CIF Incoterm or EXW Incoterm. Many Chinese suppliers include shipping costs directly into the product price, which is why they usually have different price lists depending on the Incoterms used.

Be very careful when negotiating with Chinese suppliers here, as the price difference does not always correspond to the price of sea freight. Suppliers have been known to use this to manipulate buyers into choosing a specific Incoterm that is more beneficial to the supplier. This will be explained further when we discuss the CIF Incoterm.

Incoterms determine the control you have

The Incoterm you choose will define your control over your shipment at every stage of the shipping process. Whoever controls ocean shipping has control over costs and greater bargaining power.

If you let the supplier manage the ocean freight, you must accept the price and conditions he sets with the freight forwarder.

Import from China with FOB Incoterm

FOB Incoterms are probably the favorite - and in some cases only - Incoterms of experienced importers. We are talking about countless imported products with different characteristics, each with their own unique needs.

In my opinion, if you can only choose one Incoterm to import from China, FOB Incoterm will be your best choice. Why? FOB Incoterm gives you more control over your imported ocean cargo without the responsibilities that come with it.

Import FOB and EXW from China

As mentioned, the biggest advantage of using FOB to import from China is the control you have. You also have less responsibility than EXW.

For FOB, your responsibility as the importer is freight, cost of arrival and delivery. This means that any problems at the origin will be the responsibility of your supplier in China. However, with EXW, you are responsible for any problems and unexpected expenses - both at the origin and destination.

In short, while both FOB and EXW Incoterms are considered safe options for importers, there are significant differences in how responsibility is allocated.

Import from China using CIF Incoterm

Buyer's responsibility: payment of goods, arrival fee, customs clearance at destination, inland transportation at destination from port to warehouse, and corresponding import duties.

Responsibilities of the seller: deliver the goods according to the conditions agreed with the buyer, obtain the necessary documents for export, manage the inland transportation in China, manage the customs clearance and pay the corresponding customs fees in China, rent and pay the sea freight, insurance, and original Origin port charges.

For a novice importer, a CIF Incoterm may look very tempting: no need to pay for shipping, no need to choose or negotiate with a freight forwarder, no need to organize shipments, and most importantly, the item is actually cheaper than buying under another Incoterm they.

Import from China using EXW Incoterm

Buyer's Responsibilities: Pay for the goods, manage inland transportation at origin and destination, pay origin, ocean freight, insurance, manage customs clearance at origin and destination and pay appropriate fees, and pay appropriate customs duties.

Seller's Responsibilities: Deliver on the terms agreed with Buyer, provide all required documents and proofs.

What is the best Incoterm when importing from China?

In theory, FOB, CIF and EXW are your viable options for importing from China. Each involves a different amount of risk, liability, cost, and safety.

My advice

Choose the safest Incoterms that give you maximum control over your ocean freight.

Why the Panama Canal Matters

Cargo ship in transit of the Panama Canal passes under the Centenary Bridge, Panama
Cargo ship in transit of the Panama Canal passes under the Centenary Bridge, Panama

Where is the Panama Canal?

The Panama Canal is located in Panama City and connects the Pacific and Atlantic Oceans. Comprising a 77km long waterway, it is an important gateway for ships heading to South America, saving them over 12,875km of voyages.

Panama Canal: When was it built?

The construction of the Panama Canal was the second attempt by the United States after France failed to build its own canal in the Isthmus of Panama. The construction of the canal was decided in 1906, which required moving more than 1 million cubic yards of dirt. The job requires more than 25,000 workers to complete the construction of the building facility every day.

What is the purpose of the Panama Canal?

The Panama Canal is one of the most strategic man-made waterways in the world, providing vital services for the movement of goods. It reduces the sailing of ships by providing a passage that takes them directly to South America. This reduced travel time by more than 15,000 kilometers.

Routes to North and other South American ports also facilitate easy travel through the Panama Canal, saving more than 6,500 kilometers. On the other hand, the use of the Panama Canal reduces voyages from East Asia and Europe to Australia by 3,700 km.

What is the Panama Canal for?

Today, the Panama Canal is used for the transportation of goods, mainly in the import and export industry. It became an important gateway to different parts of the world by allowing easier routes and faster voyages.

Why is the Panama Canal important?

The importance of the Panama Canal lies in its import and export advantages as well as its international trade relations. It has commercial and military importance.

Commercial importance

The Panama Canal provided a cheaper and easier way to move cargo and commercial goods between the Pacific and Atlantic. It eliminates the need for ships to sail around Cape Horn and the southernmost tip of South America to reach their destination. From a voyage that took 67 days to cover 12,000 miles, the canal paved the way for a voyage of just 8,000 miles, which was only 8 to 10 hours.

Military importance

The Panama Canal was of military importance in the 1900s, when the United States provided money and a naval blockade to Panama for its revolution. This led to the independence of Panama, which enabled the United States to enter into a treaty with them to build the canal. In 1999, the military presence in the Panama Canal Zone was strong, especially when U.S. military bases were closed.

To this day, the Panama Canal is still used to transport military watercraft.

How did the Panama Canal affect the world?

The Panama Canal is hailed as one of the few projects that changed the face of the planet and created transoceanic shipping routes. From 1914 to the present, it is one of the most important waterways facilitating international trade and import and export.

Freight Handling Professional and smooth shipments

Freight Handling Professional and smooth shipments
Freight Handling Professional and smooth shipments

Freight handling, also known as hauling, is the delivery of your cargo from the loading dock/carrier or premium warehouse to your booth and back to the loading dock/carrier at the end of the show. Hauling includes the delivery of materials to your booth, the handling of empty containers in and out of your warehouse, and the removal of your materials from your booth for reloading onto your outbound carrier. Freight handling should not be confused with the cost of materials to and from the show.

The safe handling of goods depends on the relevant personnel following the relevant procedures and applying the necessary skills to handle them. Therefore, this qualification is designed to provide learners in the freight sector with:

  • Comprehensive practical and theoretical foundations of freight handling.
  • The ability to work more effectively with others.
  • The skills necessary to maintain and improve the level and quality of service expected by customers.
  • Knowledge and understanding of key business principles leading to the transformation, transferability, economic growth and social development of the freight handling industry.

Freight Forwarding Services in China

Freight handlers play a key role in the movement of goods because they represent the physical link that ensures that goods are handled efficiently and safely. Warehouse and distribution companies hire freight handlers to unload their incoming cargo. The warehouse's freight handlers have offices on-site and on-site management. They generally use forklifts and pallet jacks provided by the warehouse. Their work is the main business because not only do they play an important role in inbound freight, but now they are starting to be used for outbound freight because they are cost effective. Freight handlers contract through warehouses and distribution centers for periods ranging from one to five years. Once at the warehouse, the carrier can choose to unload its own cargo or hire a freight forwarder.

Benefits of using a freight handler

  • The warehouse has a full-time third-party employee who spends nothing during the dead time, and basically they don't go to work.
  • Once the driver decides to hire, it is the responsibility of the unloader to unload.
  • The driver pays for the unloading of the semi-trailer
  • There are no warehouse or distribution charges for unloading of goods.
  • Another great benefit of this deal is that warehouses and distribution centers get rebates or cash back on all business generated.
  • It was a winning situation for both sides.
  • Freight handlers can also be trained to perform all duties around the warehouse. Then, when your company employees start working overtime, you can release them and use temporary service employees to
  • fill those positions. This is a great way to keep working hours low and profits high.
  • The unloading service of cargo is paid for by the cargo, box or pallet, they are usually never paid by the hour. This is great for productivity as they will work hard to stay productive because if they are not productive it will hurt their paycheck.

A good freight handling service provides weekly productivity reports so they can analyze where the problem is and come up with solutions to maintain control of the terminal. A good trucking service can help you recruit by letting you hire their staff. This gives you the advantage of trying before you buy. The best services don't even charge you for this benefit. This can be a free training ground for your future employees, giving you time to learn about their work. By outsourcing, you can develop a robust warehouse or distribution service.

International Cargo Booking Service from China

International Cargo Booking Service from China
International Cargo Booking Service from China

Booking is simply the process of booking a space for your cargo from a shipping company in order to use their shipping company. This article explains some of the main steps to take before booking a LCL shipment with a freight forwarder. These precautions help you handle LCL shipments with your forwarder for smooth delivery and cost savings.

Cargo booking regarding transit time

First of all, don't expect the goods to arrive faster than the whole box. As a reminder to exporters, when booking LCL shipments with a forwarder copy, the cargo will be stuffed into the container as the cargo is a Less Container (LCL), once the forwarder has received enough cargo to make the container 'full' instead Receipt. The place of receipt may be close to the port of loading or container freight station, far from the port of loading depending on where your factory is located, export cargo is booked.

Second, they may have one or more transshipment ports before the goods reach their final destination. There may also be a delay of one or more days at the transfer point. Before appointing a freight forwarder, you need to have a clear understanding of the arrival of the goods at the destination. Have your forwarder provide you with the closing date (container packing date), the planned vessel schedule, the vessel schedule at the transshipment port (if any) and the estimated time of arrival (ETA). Once the cargo booking is delivered to the forwarder, the arrival schedule is properly monitored according to the planning details given by them.

Get a quote before booking

If any shipping is involved, what is the cost of inland shipping? How much is the sea freight to the final destination port, etc.? As the cargo booking is for Less Container Load (LCL), the freight forwarder quotes a fee per cubic meter basis (CBM basis). Learn how the CBM is calculated if the weight is more.

Destination service fee

Get written information from your local freight forwarder about "the amount of the fee, what their counterparty at the destination charges your buyer." This is important because in the LCL world, different freight forwarders charge different "delivery note fees" to the consignee. Because, as the forwarder gets to know each other at the port of loading and the final destination, the price quoted at the port of loading may be lower, but the “freight” price at the final destination is higher. Here, once the excess is charged to the consignee at the port of discharge as a "Bill of Lading fee" and a certain "rebate" is refunded to the forwarder at the port of loading!

Booking type

Shipping incoterms are international standard codes used to determine when and where to transfer cargo bookings between suppliers and importers.

For example, FOB (Free on Board) only includes transportation from the factory to the port of destination (ie, Hong Kong). In addition, FOB also includes all export formalities that are necessary to ensure that the goods can be exported legally. However, from the port of destination, you must arrange for transshipment to the final destination.

You can also pre-order DAP (Delivered in Place), which includes shipping from a factory in China to a designated address overseas. For example your office or warehouse when the cargo is booked.

Global Logistics 2022: Is this the new normal?

Global Logistics 2022: Is this the new normal?
Global Logistics 2022: Is this the new normal?

Over the past year, global supply chain disruptions, port congestion, capacity shortages, rising ocean freight rates and the ongoing pandemic have created challenges for shippers, ports, carriers and logistics providers.
Looking ahead to 2022, experts estimate that pressures on global supply chains will continue - with the light at the end of the tunnel not appearing until the second half of the year at the earliest.

On top of that, the consensus is that the pressure on the ocean freight market will persist in 2022, with freight rates unlikely to fall back to pre-pandemic levels. Capacity issues and congestion at ports will continue to be combined with strong demand from the global consumer goods industry.

German economist Monika Schnitzer expects the current Omicron variant to have a further impact on global shipping times in the coming months. "This could exacerbate an already existing delivery bottleneck," she warned. "Transit times from China to the US have increased from 85 days to 100 days due to the Delta variant and may increase again. Europe is also affected by these issues as the situation remains tense."

Meanwhile, the ongoing pandemic has sparked a standoff at major ports on the U.S. West Coast and in China, meaning hundreds of container ships are at sea awaiting berths. Earlier this year, Maersk warned customers that wait times for container ships to unload or pick up at the port of Long Beach near Los Angeles were between 38 and 45 days, with restrictions expected to continue.

While exporting goods,you may wonder why you need to know Incoterms?

What are Incoterms rules?
What are Incoterms rules?

The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.

Incoterms:

EXW (factory)

According to Incoterms rules, Ex Works (EXW) means that the seller has fulfilled its responsibilities when the goods are normally provided to the buyer at the seller's destination. The seller shall package the goods properly or as specified in the mutual agreement. The buyer is responsible for everything necessary to load the goods in transit and to get the goods to their final destination. Risk or responsibility for the goods passes from the seller to the buyer when the goods are available at that location. This means that the buyer is at risk if the goods are damaged in any way while the buyer is in transit, even if the seller assists with loading. Precautions should be taken.

FCA (Free Carrier)

Free Carrier or FCA is a trade term that states that the seller of goods is responsible for delivering those goods to the destination specified by the buyer. When used in trade, the term "free" means that the seller must deliver the goods to a designated location for transfer to the carrier. Considering that the carrier is nominated by the buyer, the shipping costs under the FCA terms are paid by the buyer. The seller arranges for the goods to be loaded onto the carrier nominated by the buyer.

The seller is responsible for delivering the goods at its location. In this case, it is the seller's responsibility to load the goods on the buyer's means of transport and for delivery to the port and export clearance, including security requirements. Risk transfers once the goods are loaded onto the buyer's means of transport.

CPT (shipping paid to)

Carriage Paid to or CPT means that the seller delivers the goods to the carrier or a person designated by the seller at the agreed place, and requires the seller to sign a contract of carriage and pay the agreed freight for delivery of the goods. The seller must go through the export procedures and the buyer must go through the import procedures. But the seller is not responsible for purchasing insurance.

CIP (shipping and insurance paid to)

Carriage and Insurance Paid To (CIP) is similar to CIP with one important difference. Risk passes to Buyer when Seller clears the goods for export and delivers them to the carrier or another person designated by Seller at the place of shipment. This Incoterms rule requires the seller to take out maximum insurance for the buyer - at least 110% of the value of the goods covered by the ICC (Institute Cargo Clauses) (A) or (Air) or similar clauses to cover the buyer's risk. Seller must provide Buyer with any insurance documentation required by Buyer in case it must file a claim under that insurance.

DAP (Delivered On Site)

Delivered at Place or DAP, this incoterm rule can be used for any shipping method. An extension of DAT, the seller delivers the goods at the destination specified by the buyer, although under ICC rules the unloading of the goods is the buyer's responsibility. The buyer also needs to sort out duties and taxes, as well as clear the goods through customs.

DAT (delivered at terminal)

Previously named Delivery at Dock or DAT, this Incoterm has been renamed to Delivery at Unloading Point (DPU) as the buyer or seller may require the goods to be delivered elsewhere. The term is often used for consolidated containers with multiple consignees, and this is the only term that requires the seller to unload. The seller clears the goods for export and assumes all risks and costs involved in the delivery and unloading of the goods at the named port or terminal at the destination. Buyer assumes all costs and risks from then on, including customs clearance of imported goods at the named destination.

DDP (Delivered Duty Paid)

Delivery After Tax, or DDP, works very similarly to DAP, with one most important difference. Seller must import customs clearance goods in buyer country and pay any duties and VAT/GST. DDP is a risky clause for sellers as they may not be aware of import customs clearance procedures at the import destination. Its value is also uncertain for importers, who must rely on sellers to successfully navigate the complexities of destination countries.

Why do you need a freight forwarder that provides it?

Why do you need a freight forwarder that provides it?
Why do you need a freight forwarder that provides it?

When transporting your goods, whether by road, air or sea, there are various risks. Even with the assistance of a reliable freight forwarder, there are many external factors that can interfere with the progress of the logistics process.

The International Commercial Terms Rules are official terms published by the International Chamber of Commerce (ICC) and are widely used in international commercial transactions or procurement processes. They are well thought out, standard, globally accepted and complied texts that determine the responsibilities of consumers and traders to deliver goods under contracts of sale in global trade. Incoterms are closely related to the United Nations. Convention on Contracts for the International Sale of Goods. Incoterms are known and implemented in all major trading countries.

Guaranteed no financial loss

Everyone wants hassle-free shipping. No one wants to have problems shipping their goods overseas, but there are still some risks you can't avoid and can cause problems with your shipments. This is the most important reason why you need to rely on a freight forwarder who provides cargo insurance: they will ensure that you will not suffer any financial loss if anything happens in transit.

Prepare for the unexpected

When running a global logistics operation, you should be prepared for unexpected events throughout the operation. Whether it's inappropriate weather conditions or carrier issues that could cause your cargo to be lost, good cargo insurance will give you all the support you need in situations beyond your control.

Expertise in exporting/importing anytime, anywhere

In addition to the safety and financial reasons for hire cargo insurance, there is also the fact that some countries only allow import and export business to carriers who provide proof of cargo insurance. Therefore, insurance must be employed to be eligible to ship to these countries!

How to find the ideal cargo insurance for your logistics needs?

Each type of cargo insurance has specific coverage, and you should find the one that works best for your cargo. To determine the most suitable international freight insurance, it is recommended that you get the help of a freight forwarder who can guide you through all the insurance options available and best suited for your export/import needs, such as TJ chinafreght.

Safety isn’t expensive, it’s Priceless

 

First, we need to understand that different types of goods require different transportation measures. For example, products such as food, clothing, toys and home decor products can be easily packaged and shipped by air or sea without additional cargo handling work. Also, we should be extra careful when transporting dangerous and dangerous goods. Dangerous goods are goods and products that require special management to be packaged, palletized and loaded. In some cases, they require special machinery, equipment and containers to be transported safely. In short, dangerous products that may pose a threat to living things.

In this blog we will discuss hazmat - how to transport hazmat safely? Let's dive into it.

How are hazardous substances classified?

Since many daily necessities are considered hazardous, it can be difficult to determine if the product is dangerous. Products such as perfumes, detergents and paints. These are classified as hazardous materials.

Dangerous Goods Classification——

The United Nations Committee of Experts on the Transport of Dangerous Goods classifies dangerous goods according to the hazard they pose. Under this category, each substance is divided into a category. There are nine classes in total. Some are divided into a subcategory.

Why hire a freight forwarding partner who provides cargo insurance?
Why hire a freight forwarding partner who provides cargo insurance?

Some substances fall into two categories. In this case, the class with the highest hazard class belongs to the primary class, and the lowest class belongs to the secondary class.

Points to Remember

  • Knowledge about dangerous goods.
  • Follow the rules and regulations for dangerous goods.
  • Follow proper packaging procedures and protocols.
  • Do the required packaging according to the material.
  • Train shippers on the handling of hazardous materials.
  • Make sure the MSDS certificate and other documents.
  • Physically check labels, signs, markings for accuracy.
  • Check the packaging for leaks and other damage.
  • Notify the port of discharge authority.

Steps to reduce ocean pollution

Steps to reduce ocean pollution
Steps to reduce ocean pollution

Because shipping is such an important point in our global economy. Maritime transport drives global trade overseas, with more than 10 billion tons of containerized cargo being transported across the world's waters each year.

More than 90% of the world's trade takes place overseas. Nearly 50,000 merchant ships sail the world's oceans, transporting everything from food, fuel, building materials, raw chemicals and household goods.

Shipping is responsible for 2.5% of global greenhouse gases (GHGs), but without further action, shipping emissions are projected to grow by 50-250% by 2050. Shipping containers produce more greenhouse gas emissions than any small country. It's hard to imagine how much carbon dioxide the ship would emit. Because ships travel so far at sea. Not only carbon dioxide, but ships also release nitrous oxide (NOx) and sulfur oxides (SOx), highly toxic chemicals that have been shown to cause acid rain.

Not only gas emissions, container ships also create another kind of pollution, such as ballast water, biocides, waste, and sometimes outright oil spills, which are very difficult to clean. Pollutants have catastrophic effects on the oceans: Pollution kills more than 1 million seabirds and marine mammals each year because they cannot survive in toxic waters, while coastal states that rely on seagrass meadows, mudflats and wetlands die when aquatic vegetation dies Critical resources are being lost. In this article, we will learn about the main steps to reduce ocean pollution.

Steps to reduce ocean pollution:

Install the overflow pipe in the tank

During bunkering, if more than capacity is supplied to the vessel's fuel tanks, the fuel may flow out of the vessel through the tank vents. To prevent this from happening, install an overflow pipe in the vessel's fuel tank. The overflow tank allows the fuel overflowing from the fuel tank to flow into the overflow tank, and a flow detection sensor is set in the pipeline or a high-level alarm sensor is set in the fuel tank to detect the overflow immediately.

Use an air seal on the stern tube

The stern tube of the ship is air-sealed so that compressed air is continuously fed into the space where the propeller shaft penetrates from the inside to the outside of the ship. This creates a sealed area within the stern tube for separation of lubricating oil and seawater.

Use electric deck equipment

Ships using electric deck equipment such as mooring winches (*1) and gangways (*2) that were previously hydraulic power equipment. This reduces the risk of leakage of hydraulic oil for hydraulic drives.

1. Mooring winch: A device used to wind a rope or wire rope to moor a vessel.
2. Ramp: A ramp that extends to the dock when the car is loaded onto the car carrier and docked. It is stored during the voyage.

Indirect cooling system or central cooling system

It is a device that cools the engine and lubricating oil by indirect heat exchange between dedicated fresh water and sea water. Using this system prevents oil leaks or spills due to cooling system failures, as there is no direct heat exchange between the oil and seawater in this system.

Eco-friendly paint.

When marine life attaches to the hull, the hull resistance increases and the fuel consumption increases. This leads to an increase in carbon dioxide emissions. When these attached marine organisms are carried into other seas during the voyage, it will affect the marine ecosystem. New ships are encouraged to use low-friction coatings to reduce fuel consumption and prevent the attachment of marine life, and efforts are also being made to reduce carbon dioxide emissions and preserve biodiversity.

Environmentally friendly fuel

Standard for zero-emission berths in ports. Ships can use waterfront electricity while in port, virtually eliminating ship-sourced SOx, NOx, PM and CO2. Alternatively, ships can use alternative fuels such as hydrogen or ammonia.

Ballast water

Ballast water is critical to the safe operation of ships. Used to adjust the overall weight of the vessel and its internal distribution to keep the vessel safe, upright and stable afloat. It is used to compensate for different cargo loads that the vessel may be carrying at different times, including during loading and unloading. It also provides stability and maneuverability during transport.

Container Fumigation

 

Container Fumigation
Container Fumigation

Fumigation is a form of pest control by which the disinfection procedure is carried out in a dry manner. This method, also known as phytosanitary treatment, is widely used today and is becoming more common in different market segments (especially when shipping goods by container).

Why is fumigation so important?

Container fumigation procedures are designed to prevent foreign quarantine pests from entering the cargo. In this procedure, special products are used to eradicate or control the international spread of pests already present in the shipment.

You may be wondering what are quarantine pests?

Quarantine pests are any form of pests or parasites that, under natural conditions, cause damage to plants and animals in an area. These pests can pose a significant threat to international health when exposed to new environments. There are many types of quarantine pests, but none are as trivial as the Asian lady beetle. This beetle is commonly found in containers and woody materials used to hold loads. For this reason, it ranks among the world's worst-hit quarantine pests.

How does the container fumigation program work?

Container fumigation controls any type of pest through an efficient, safe and dry disinfection process, usually done with gas. The most commonly used gases in the fumigation process are methyl bromide and phosphine. While both maintain the same level of effectiveness, methyl bromide is more commonly used in containers. To receive fumigant, the container must be of good construction. The fumigation site must be isolated within a 5-meter radius, and a sticker containing basic information such as the start and end date and time of the treatment, as well as the information of the treatment company and technician responsible for the operation, must be affixed to the container door. The gas is injected through a probe inserted into the container. This process only happens when the door is closed. Appropriate protection of surrounding personnel must be provided with personal protective equipment, and collective protective equipment is recommended for fumigation sites. After the specified exposure time, aeration should be performed for commodity release.

What are the requirements for fumigation?

Do I need a fumigation certificate?

As you saw at the beginning of this article, any type of cargo and its wooden packaging can be refused entry into the destination country if not processed. To verify this, the Port Authority requires a written permit, certificate or other proof of processing. Therefore, every fumigation container, if done in the right way and by the right company, will be accompanied by a certificate. Fumigation is a legal requirement for the buyer, so a fumigation certificate is usually issued by the fumigator or approved for fumigation by a licensing body. This certificate, sometimes referred to as a pest control certificate, is a document confirming that any wood packaging material used in the shipment of goods has been properly fumigated. This document contains details such as purpose of treatment, fumigant used and temperature range.