Transportation management and import logistics
Transport management when importing from China is probably the most systematic step and the only one we can perform from the country of destination thanks to new technologies. However, the most common way to avoid headaches is to outsource this task to specialized companies to avoid going crazy with the paperwork. In addition, these companies generally move much more volume and therefore have preferential treatment with forwarders and in some cases even with customs.
What do we have to do to manage transportation?
Negotiating the Incoterm: This is a decision in which the supplier has a lot of power, but it can always be negotiated. If we are very small, it is convenient for us that the shipments are CIF or even DDP so that we do not have to manage anything, since we do not have the human resources to do so. On the other hand, if our supplier is a small factory, he will always try to sell EXW or FOB for the same reason.
The most common is to buy FOB and hire a company to manage all the importation to receive the goods in our warehouse.
Calculate the tariffs: As we said in this article, we must look for the HS or Taric code of our product to know what is the tariff that we have to pay for it in the customs of the country of destination.
Hire a forwarder: The most common thing to do is to hire a reliable forwarder (freight forwarder) who will take care of managing the more technical part of the transport. They deal directly with customs and are specialists in groupage.
– Insurance: In general, it is always advisable to take out insurance. The price is usually around 0.5% of the value of the cargo, although the range varies considerably depending on whether we want to insure only the goods or also the cost of transportation.
– Preparation of documents: The most important ones to be aware of are the Bill of Lading (B/L) and the Certificate of Origin. Basically they give all the information about the goods, its value, its origin, the parties involved in the operation, the responsibility of each one, etc. We will discuss this in more detail in future posts.
Once we have done all this, we will have no problem in receiving the goods at our home or warehouse. I hope you found it useful, and do not hesitate to make any comments you may have in the comments.
Other entries in the Handbook for Importing from China:
– How much does it cost to import from China? (A practical example)
If you want to import from China, do not hesitate to contact us without obligation.
