- Thread starter
- #181
This Q & A requires a short preamble. The new importer chose to go against my book’s recommendation to use a local freight forwarder and has engaged a Chinese forwarding company to save money on the sea freight.
Q & A. 8
Q. The documents from my forwarder in China say CFR Long Beach CA. So do I need a Customs Broker to clear Customs here?
A. You will need more than the services of a customs broker. There will be a variety of charges once the container reaches Long Beach and from there to the point where you take delivery.
You have a couple of choices to make now, but each will cost you quite a lot.
1. Appoint a customs broker to clear the shipment. Arrange with a trucking company to collect the container and deliver to you. Make sure the trucking company regularly does port pickups. If they are not regulars, the driver will possibly have to sleep overnight in his truck before being allowed entry to load because he will be treated as an outsider. They should quote you for payment for port charges on your behalf and then they will collect those from you as part of their service.
2. Appoint a local freight forwarder to clear the shipment using their in-house customs agent, and arrange to have your container collected from the port and delivered to you. This would be my preferred option rather than try to synchronize clearance by one party and pick up by another. A freight forwarder also knows the importance of quick clearance and pick up to avoid extra costs.
I expect that the big cost saving on sea freight will be eaten up by these extra charges. Because your supplier has quoted you FOB Shanghai, I recommend that for future shipments you arrange shipping on a DAP (Specify your address) basis, because that will cover all of those costs from Shanghai to your warehouse.
See Chapter 3 for how to find a local freight forwarder.
Q & A. 8
Q. The documents from my forwarder in China say CFR Long Beach CA. So do I need a Customs Broker to clear Customs here?
A. You will need more than the services of a customs broker. There will be a variety of charges once the container reaches Long Beach and from there to the point where you take delivery.
You have a couple of choices to make now, but each will cost you quite a lot.
1. Appoint a customs broker to clear the shipment. Arrange with a trucking company to collect the container and deliver to you. Make sure the trucking company regularly does port pickups. If they are not regulars, the driver will possibly have to sleep overnight in his truck before being allowed entry to load because he will be treated as an outsider. They should quote you for payment for port charges on your behalf and then they will collect those from you as part of their service.
2. Appoint a local freight forwarder to clear the shipment using their in-house customs agent, and arrange to have your container collected from the port and delivered to you. This would be my preferred option rather than try to synchronize clearance by one party and pick up by another. A freight forwarder also knows the importance of quick clearance and pick up to avoid extra costs.
I expect that the big cost saving on sea freight will be eaten up by these extra charges. Because your supplier has quoted you FOB Shanghai, I recommend that for future shipments you arrange shipping on a DAP (Specify your address) basis, because that will cover all of those costs from Shanghai to your warehouse.
See Chapter 3 for how to find a local freight forwarder.
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