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AMA: Customs Brokerage/Freight Forwarding (International Logistics)

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Dicky Dee

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@Rsimmons016 Thanks for the valuable info you have provided! Im located in Canada and i import roughly 80k of clothing a year from the U.S. as you know duties is high for clothing especially shoes and delivery by UPS is a killer which really cuts into my margins, do you have any tips as to the cheapest way of shipping goods from U.S. (mainly L.A.) to Canada? By sea perhaps?

I also have started importing goods from China to Canada, as of right now i only havea freight forwarder when the shipment arrives to Canadian ports and they handle all the paperwork, i currently ship my CIF terms but i was wondering if it would be more cost effective if i hired a freight forwarder to handle the goods in China? If so do you have any reccomendations of reputable companies?

Thank you for any advice you can give me!
 
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Rsimmons016

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@Rsimmons016 Thanks for the valuable info you have provided! Im located in Canada and i import roughly 80k of clothing a year from the U.S. as you know duties is high for clothing especially shoes and delivery by UPS is a killer which really cuts into my margins, do you have any tips as to the cheapest way of shipping goods from U.S. (mainly L.A.) to Canada? By sea perhaps?

I also have started importing goods from China to Canada, as of right now i only havea freight forwarder when the shipment arrives to Canadian ports and they handle all the paperwork, i currently ship my CIF terms but i was wondering if it would be more cost effective if i hired a freight forwarder to handle the goods in China? If so do you have any reccomendations of reputable companies?

Thank you for any advice you can give me!

Hello Dicky,

I understand your concerns with UPS. How big are your shipments from L.A. to Canada (pieces, weight)? Where in Canada are you shipping to (Big country)?

For your shipments coming from China. I would recommend you taking the details from your last couple of shipments and getting quotes from a couple of different forwarders to see if their rates are competitive enough for you to purchase EXW or FOB. If your supplier is giving you better rates than stick with them.
 

MoneyDoc

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I sent you a pm bro, please check.


Sent from my iPhone using Tapatalk
 

Dicky Dee

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Hello Dicky,

I understand your concerns with UPS. How big are your shipments from L.A. to Canada (pieces, weight)? Where in Canada are you shipping to (Big country)?

For your shipments coming from China. I would recommend you taking the details from your last couple of shipments and getting quotes from a couple of different forwarders to see if their rates are competitive enough for you to purchase EXW or FOB. If your supplier is giving you better rates than stick with them.


@Rsimmons016 The shipments from L.A. are usually anywhere between 30-70 lbs, i ship it to Edmonton, Alberta.

Would my freight forwarder in Canada be able to handle the shipping from China? Or do i have to find a company over there to do it? thanks.
 

Rsimmons016

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@Rsimmons016 The shipments from L.A. are usually anywhere between 30-70 lbs, i ship it to Edmonton, Alberta.

Would my freight forwarder in Canada be able to handle the shipping from China? Or do i have to find a company over there to do it? thanks.

Hi Dicky,

I would recommend that you find a freight forwarder in Canada. They should be able to assist you with both the shipments from LA and China.
 

mzee99

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My questions are:
  • From the moment you place an order of 1500$ from China on Alibaba, what are all the steps necessary to clear customs?
  • At what price range do these steps change?
Thanks for the AMA
 
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Rsimmons016

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Hello Mzee99
My questions are:
  • From the moment you place an order of 1500$ from China on Alibaba, what are all the steps necessary to clear customs?
  • At what price range do these steps change?
Thanks for the AMA

Hello Mzee99,

I have answered these questions in the thread already. Go back and read the thread, If you still have specific questions afterwards let me know.
 

Dicky Dee

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Hi Dicky,

I would recommend that you find a freight forwarder in Canada. They should be able to assist you with both the shipments from LA and China.
Yes i do have a freight forwarder and i will ask him about shipments from L.A. Being in the industry do you know of any cheap options to ship goods from L.A. to Canada instead of UPS?
 

Rsimmons016

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Yes i do have a freight forwarder and i will ask him about shipments from L.A. Being in the industry do you know of any cheap options to ship goods from L.A. to Canada instead of UPS?

Hi Dicky,

An LTL trucker might be less expensive.
 
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Last edited:

mzee99

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Hey Rsimmons,

Another question:

If I'm in Canada, but I'm having my suppliers in China ship my products directly to US, should I hire a customs broker in the US or would a Canadian customs broker be fine?

Thanks
 

IntegraR0064

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So just to clarify, if I place a $2,000 order for a category that is the $2500 informal entry threshold (batteries), and they're shipping DHL from China to US, is there anything that needs to be discussed with the supplier when it comes to shipping and terms outside of how much shipping will cost and the fact that it's DHL? I assume I don't have to worry about incoterms or ports or custom brokers or anything. They just ship it to my door and DHL handles customs?

Does DHL charge me extra for that privilege outside of the quoted shipping fee from the supplier? I assume the duty and merchandise processing fee are not included, but does DHL charge me extra fees?

Thanks for your help, this thread has been immensely helpful.
 
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Rsimmons016

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So just to clarify, if I place a $2,000 order for a category that is the $2500 informal entry threshold (batteries), and they're shipping DHL from China to US, is there anything that needs to be discussed with the supplier when it comes to shipping and terms outside of how much shipping will cost and the fact that it's DHL? I assume I don't have to worry about incoterms or ports or custom brokers or anything. They just ship it to my door and DHL handles customs?

Does DHL charge me extra for that privilege outside of the quoted shipping fee from the supplier? I assume the duty and merchandise processing fee are not included, but does DHL charge me extra fees?

Thanks for your help, this thread has been immensely helpful.

Hello Integra,

Based on the details provided you should not have any issues. In regards to whether or not DHL will charge you any additional charges? That is at DHL's discretion.
 

IntegraR0064

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Hello Integra,

Based on the details provided you should not have any issues. In regards to whether or not DHL will charge you any additional charges? That is at DHL's discretion.

Thanks for your help. Now that I have passed the "extreme basics" of importing by having a package sent UPS to my door informal entry with UPS handling customs, I'm looking into the next level and what's involved.

If I am considering the possibility of importing car exhausts (fairly light but large - 5 kg each, wood carton ~60x18x12 inches each, order quantity of 5-20 - so air will definitely be out of the question), and they have quoted me prices EXW, from Guangdong China and I'm in the east coast of the US...what are my next steps to determine what an estimate of the price to my door will be, including outsourcing as much of the process as possible? Who would I need to hire and how much will they cost? Are you available to hire as a customs broker yet?

Oh and it would probably have to be formal entry.
 
Last edited:

GravyBoat

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I've never had any issues with importing products from South America or China. I'm sure you guys have heard horror stories but unless you're doing something very obscure, you probably won't have an issue getting your shit into the country.

@Rsimmons016 good thread tho, lots of great stuff that I had no idea about.
 
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Rsimmons016

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Thanks for your help. Now that I have passed the "extreme basics" of importing by having a package sent UPS to my door informal entry with UPS handling customs, I'm looking into the next level and what's involved.

If I am considering the possibility of importing car exhausts (fairly light but large - 5 kg each, wood carton ~60x18x12 inches each, order quantity of 5-20 - so air will definitely be out of the question), and they have quoted me prices EXW, from Guangdong China and I'm in the east coast of the US...what are my next steps to determine what an estimate of the price to my door will be, including outsourcing as much of the process as possible? Who would I need to hire and how much will they cost? Are you available to hire as a customs broker yet?

Oh and it would probably have to be formal entry.
Sent you a PM
 

Rsimmons016

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i just want to thank you for your suggestion, i tried my first LCL trucking company and it saved me about 50% in shipping costs!

Hey Dicky!

Congrats! I am happy to hear you were able to save some $$$$.
 
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Rsimmons016

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I've never had any issues with importing products from South America or China. I'm sure you guys have heard horror stories but unless you're doing something very obscure, you probably won't have an issue getting your shit into the country.

@Rsimmons016 good thread tho, lots of great stuff that I had no idea about.

Hey Gravy!

I am happy to help as much as possible.

It's really good to hear that you haven't had any issues with your imports. The issues that typically do arise are less about the country they were purchased from and more about the actual eligibility of the products being imported. (I.e. The importer didn't do their due diligence and wasn't aware of any additional government agency requirements.)
 

amp0193

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Hi, quick question for you:

I made two orders of identical quantity of a product from Europe to the United States about a month apart. The first time through Customs, a 3% duty rate was applied, but the second time a 27.7% duty rate was applied and I owed hundreds more. The only difference in the two shipments was that the first one was valued at $916, and the second was valued at $1,167 (due to a price increase).

Is the duty fee decided based solely upon the discretion of the customs agent handling the package, or is there something I can do to make sure it stays the same every time? Is it based on how the paperwork was filled out by the supplier?

The classification I think the product belongs has neither a 3% or a 27% rate, but an 11% rate, so I don't understand where these numbers are coming from.

Thanks
 
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Topaz

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That's Great! This is a very good industry to get into! Yes it is growing and will continue to grow. Like anything else you have to get your foot in the door and learn!

Even though in the same industry there are three main avenues you can pursue; Imports, Customs Brokerage, and Exports. These are all completely different businesses and are not as closely related as it would seem. Once you get enough experience and make all the right contacts you can set up your own office and build your business.

Exports:
Main Customer is U.S. manufacturers/suppliers
Coordinate with Overseas Agents
Negotiate contracts with Airlines/Steamship Carriers
Obtain bookings with Airlines/Steamship Carriers
Consolidate multiple shipments to same final destination (Overseas City/Country)
Generate export packages for Customs/Carriers
Work with Hazmat companies to ensure all hazardous cargo is packed, documented, and declared properly
The export side is always a time crunch, you have meet the cut offs for the carriers or you will miss the departure.
To open office you have to apply and receive OTI license
No license required to work in field

Imports:
Main customer is U.S. Importers as well as Overseas agents
Work closely with Overseas Agents
Work closely with Customs Brokers
Consolidate multiple shipments destined to your U.S. location
Deconsolidate shipments
Coordinate delivery (If broker doesn't)
To open office you have to apply and receive OTI license
No license required to work in field

Customs Brokerage:
Main Customer is U.S. Importers
Work Closely with import forwarders
Work Closely with Customs
Work Closely with Other Government Agencies
Have extensive knowledge on customs import rules and regulation
Process customs clearance for import shipments
Coordinate exams with Customs and Other government agencies
Forward all releases to Freight Forwarders warehouse
Coordinate delivery of shipments
Educate importers of regulations for different items they are interested on importing
To open office you have to pass Brokers exam, apply and receive Customs Brokers license
No license required to work entry level positions

You mentioned one would need an OTI license. What does OTI mean?
 

Rsimmons016

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Also, how can one get info on becoming an import/export trade agent?

That's a very vague question. What kind of work are you interested in as "trade agent"? Are you looking to be a buying agent, selling agent, consolidator, logistics provider, etc.?
 
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Topaz

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That's a very vague question. What kind of work are you interested in as "trade agent"? Are you looking to be a buying agent, selling agent, consolidator, logistics provider, etc.?
I will be more like an intermediary between the seller(manufacturer) and buyer. More like a broker. I hope that helps.
 

Rsimmons016

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I will be more like an intermediary between the seller(manufacturer) and buyer. More like a broker. I hope that helps.

Find someone in that space and go work for them for a bit and learn everything you can. Take whatever they are willing to pay you. If they aren't willing to pay, then be an apprentice. You aren't looking to make a living of off them, you are there for a "free" or "paid" education.
 

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