In international trade, if it is determined that the goods are to be exported, you can hand over the related matters of freight to the freight forwarder. First, you must understand several common transaction methods of international freight forwarding companies.
1: FOB price on board
In layman's terms, foreign customers have designated freight forwarders, and only the shipper needs to arrange the trailer and customs declaration at the port of departure. There are also EXW ex-factory prices, direct delivery at the factory or delivery at a place designated by the customer. Customs declaration is arranged by the customer. The customer picks up the goods by himself and delivers the goods at the factory.
2: CIF cost plus insurance premium and freight
The popular understanding is door-to-port (including the port of departure trailer + customs declaration + ocean freight). Now generally speaking, insurance is not included. If the customer requires insurance to be calculated according to the value of the goods, the term CIP is only CIF, which is generally only used in shipping. CIP is applicable to various modes of transportation including multimodal transportation, such as air transportation.
3: DDU double cleared unpaid delivery
DDP means double clearing and delivery (including tax). The popular understanding is door-to-door. The often said double-clearing package includes trailers at the port of departure + customs declaration + shipping + customs clearance at the destination port. The need for door-to-door delivery depends mainly on the customer. It’s important to note that DDP must provide the value of the goods because the tax is based on the value of the goods.
Therefore, when making an inquiry to a freight forwarder, it is best to first specify FOB/CIF/DDU/DDP, etc. If it is FOB, you need to provide: product name/container type/quantity/weight/shipping address/shipping port/buying bill or document. Of course, it may also be bulk cargo, without providing the cabinet type, only the quantity: a few squares.
The difference between paying customs declaration and document declaration
Only companies/factories with export rights have documents, and a complete set of customs declaration materials must be provided to the freight forwarder/customs broker for document declaration. The state encourages exports and provides tax refunds for enterprises with export rights. Therefore, enterprises that declare customs documents mainly can apply for tax refunds. The specific refund depends on the corresponding national policies of the goods.
Paying customs declaration refers to enterprises that do not have the right to export, relying on other people's documents for customs declaration, so paying customs declarations do not need to provide documents, of course, and do not enjoy the right to tax refunds.
CIF needs to provide:
Goods name/container type/quantity/weight/loading address/departure port/buying bill or document, and destination port DDU/DDP need to be based on the specific requirements of the customer, based on the CIF information, may need to provide the value/ Detailed destination address/consignee information, etc.
When the freight forwarder receives the above information, it will give the shipper (customer) a quotation to confirm the quotation and then take the order. Generally, the customer needs to provide: packing list/provide a manifest for the customer to fill in the information and confirm the customer (including the packing list information) /Ship schedule, etc.)
Take CIF as an example:
The freight forwarder arranges the trailer to the shipping company to book the space (specify the container number, license plate number, driver and contact number) and issue the SO (booking order/packing list) to the shipping company
Give the packing list to the trailer driver. The driver will take the packing list and go to the storage yard to play the order. After the order is completed, he will get an "equipment handover form" (multiple copies) and a lead seal driver to the designated storage yard with the information Take the empty container, and then go to the factory to load the container. After the factory has loaded the goods, seal the box with a lead seal (usually taking photos for evidence) and then pull the sealed container back to the dock.
After the container arrives at the yard, the yard will ship to the yard according to the pre-allocated manifest provided by the freight forwarder. After the "pre-allocated manifest" and "arrival information" are available, the customs broker can declare customs. It is usually best to set aside two for the customs declaration. Days (before the ship closes)
After customs clearance, the shipping company issues a bill of lading according to the cargo carrier of the tiered transportation. This is the general procedure for the settlement of the cost. Other matters are determined by the information such as the bill of lading/invoice/packing list and the customer can after the cargo arrives at the port. Pick up counters, customs clearance, etc.