Transport management and import logistics
The management of transport when importing from China is probably the most systematic step and the only one we can carry out from the destination country thanks to new technologies. However, the most common practice to avoid headaches is to outsource this task to specialised companies so as not to get overwhelmed by 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 need to do to manage transport?
Negotiate the Incoterm: It is a decision in which the supplier has a lot of power, but there is always room for negotiation. If we are very small, it suits us better for shipments to be CIF or even DDP so that we do not have to manage anything, since we do not have the human resources for it. On the other hand, if our supplier is a small factory, they will always try to sell EXW or FOB for the same reason.
The most common practice is to buy FOB and to hire a company to manage the whole import for us until we receive the goods at our warehouse.
Calculating tariffs: As we said in this article, you need to look up the HS or Taric code of our product to know what tariff we have to pay for it at customs in the destination country.
Hiring a forwarder: The most common practice is to hire a trusted freight forwarder, who in turn handles the most 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 cargo value, although the range varies quite a bit depending on whether we want to insure only the goods or also the cost of transport.
– Document preparation: The most important documents to know about are the Bill of Lading (B/L) and the Certificate of Origin. They essentially provide all the information about the goods, their value, their origin, the parties involved in the operation, the responsibility of each one, etc. We will discuss this in more depth in future posts.
Once we have done all this, we will have no problem receiving the goods at our home or warehouse. I hope it has been useful, and feel free to make any remark that comes to mind in the comments.
Other entries from the Manual for importing from China:
– How much does it cost to import from China? (A practical example)
If you would like to import from China, please do not hesitate to contact us with no obligation.