Customs Clearance

One stop get through for importing and delivery

There are various ways of exporting to the United States. The shipper pays the customs clearance fees and taxes for some goods imported from the United States. In this case, the American customs clearance office will require the Chinese exporter to sign a POA power of attorney before shipment.

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There are usually two ways of customs clearance:

  1. Customs clearance in the name of the U.S. consignee

That is, the American consignee provides POA to the American agent of the freight forwarder, and also needs the bond of the American consignee.

  1. Customs clearance in the name of the shipper

That is, the shipper provides the POA to the freight forwarder at the port of departure, and then the freight forwarder transfers it to the agent at the port of destination. The American agent helps the shipper to handle the import customs registration number in the United States, and the shipper needs to purchase the Bond.

matters needing attention:

  1. Either of the above two customs clearance methods must use the tax ID (also called IRS No.) of the American consignee. IRS No. (The Internal Revenue Service No.) is a tax identification number registered by the U.S. consignee with the IRS.
  2. In the United States, you can’t clear customs without Bond and without tax number.

Customs clearance process under such trade mode

  1. Customs declaration

After receiving the arrival notice, the customs broker can apply to the customs for customs clearance within 5 days after it is ready to arrive at the port or at the inland point. Maritime customs clearance will usually inform whether to release within 48 hours, and air transport will inform within 24 hours. The customs has decided to inspect some cargo ships before they arrive at the port. Most inland points can declare in advance (Pre Clear) before the arrival of goods, but the results will only be displayed after the arrival of goods (i.e. ARRIVAL IT).

There are two ways to declare to the customs, one is electronic declaration, the other is that the customs needs to review written documents. Either way, we must prepare the required files and other data information.

  1. Prepare customs declaration documents

(1) B/L;

(2) Commercial Invoice;

(3) Packing List;

(4) Arrival Notice

(5) In case of wooden packaging, fumigation certificate or non wood packaging statement is required.

The name of the consignee on the bill of lading should be consistent with that on the last three documents. If it is inconsistent, the consignee on the bill of lading must write a Letter of Transfer, and the third party can clear customs. The name, address and telephone number of S/&C are also required on the invoice and packing list. Some S/documents in China lack such information and will be required to supplement.

  1. Customs transfer

If customs clearance is required inland, we need to provide I T. #, effective date, departure place and termination place. Inland customs will use I. T # to control and release.

  1. Delivery

(1) In the previous ABI system, the shipping company’s wharf was directly connected with the customs, which meant that if the customs released in ABI, the shipping company and the wharf could see it.

After the trial implementation of AMS, large shipping companies such as EVA, APL, Maersk, COSCO, CSCL, etc. are also connected to AMS, but there is no terminal, so the customs release in AMS. These shipping companies as well as NVOCC AMS FILER can see that the shipping company helps the terminal system update at the same time. Relatively small shipping companies, such as Sinotrans, LYKES and GWS, have not achieved online AMS, so they can only be released through NVOCC AMS FILER fax NVOCC guarantee letter and copy of customs pass (CUSTOMS FORM 3461). These shipping companies will manually update the terminal system after receiving the fax.

(2) The terminal/shipping company is connected with the shipping company. If the freight is prepaid and the bill of lading is released by telex, the terminal will automatically release the goods to the truck company as soon as the customs release. American customers do not need to exchange orders, so the American agent has no way to help detain goods, which is completely different from China. Therefore, if the shipping port has not received the freight from the customer, do not telex release the large bill of lading of the shipping company or prepay the freight.

(3) After customs clearance, the shipping company will give a PICK UP # to the goods released inland. After the agent gets the PICK UP #, the agent will notify C/, and the truck company will pick up the goods with this number. This number must wait: A. The goods arrive at the storage yard and get on and off the container from the train. B. After the customs release, C, the shipping company will release the goods before they can get them. If any item is missing, they cannot get it. Therefore, it takes a long time to track inland goods until C/receives PICK UP #.

To put it simply, the operation process of imported goods in the United States is as follows:

A. Receive the agent’s documents (including 1+B/L, M B/LCOPY+D/C NOTE) and input them into the computer.

B. One week before the arrival of the goods, they will ask SSL or CO-LOADER for the arrival notice, so the loading port OP must write the arrival date on D/C NOTICE, which will help the American agent to timely query the arrival date.

C. After receiving the SSL or CO-LO arrival notice, input it into the computer and send it to C/and their customs broker on the same day (if you know who it is).

D. After receiving the original bill of lading or ocean freight from C/or the customs broker, we will immediately send the freight we need to pay and the original bill of lading to SSL or CO-LOADER by courier or express, which will usually arrive within 24 hours. If there is an IC, it will be sent to SSL or faxed to them.

E. After receiving the bill of lading and fees, SSL will input them into the computer for delivery. If they send them to CO-LOADER, they will repeat (D above) and send them to SSL for delivery. Therefore, the delivery of CO-LO goods will be about 1-1.5 days late, and C/will complain.

F. For goods going inland, track the journey of the goods until PICK UP # and fax it to C/.

G. After the goods are released, they will be sent to the truck company by D.O. (DELIVERY ORDER) and contacted with the receiving warehouse until they are confirmed to be received. Some C/s require POD to be delivered to C/s after being obtained from trucks.

H. The SOC tracks the return of boxes to the designated storage yard (requires C/signature for return confirmation when releasing goods).

With the rapid development of international trade and the continuous extension of transport services, container LCL transport is widely used. However, unlike FCL transport, LCL transport has its own special and independent transport requirements. Now, some problems encountered in the actual operation will be discussed here.

  1. Less Than Container Load (LCL. Gather the goods to the same destination into a certain number and put them into boxes.

Because there are goods from different owners in one box, it is called LCL. This situation is adopted when the consignor’s consignment quantity is insufficient to fill the full container. The classification, sorting, centralization, packing (unpacking), delivery and other work of marine LCL cargo are carried out at the container freight station of the carrier terminal or inland container transfer station.

Marine LCL can be divided into direct LCL or transshipment LCL. Direct LCL means that the goods in the marine LCL container are loaded and unloaded at the same port, and the goods are not unpacked before they arrive at the destination port, that is, the goods are at the same unloading port.

This kind of LCL service has a short shipping period and is convenient and fast. Generally, competent ocean shipping LCL companies will provide only this kind of service. Reshipment refers to the goods in containers that are not at the same destination port and need to be unpacked for unloading or transshipment in the midway. Due to different ports of destination, long waiting time and other factors, such goods have a long shipping period and even high freight.

  1. Generally, LCL cargo cannot accept the designation of a specific shipping company. The shipping company only accepts the booking of space for FCL cargo, rather than directly accepting the booking of space for LCL cargo by sea. Only after the LCL cargo is assembled by freight forwarders (some shipping companies with strong strength through their logistics companies) can they book space from the shipping company. Almost all LCL cargo is transported through the freight forwarding company’s “centralized handling and centralized distribution”, Shanghai Port is basically the port of LCL in East China.

Due to the limitation of cargo sources, general freight forwarders can only book space from several shipping companies, rarely meeting the needs of the designated shipping companies. Therefore, when trading LCL cargo, they should try not to accept the designated shipping companies, so as to avoid failing to meet the requirements when handling consignment.

  1. When negotiating a deal with the customer, special attention should be paid to the relevant transport terms, so as to avoid the other party’s letter of credit being issued and then finding that the transport terms cannot be met when handling the consignment.
  2. The charging ton of LCL cargo shall be accurate as far as possible. Before the delivery of LCL, the factory shall be required to measure the weight and size of the goods as accurately as possible. When the goods are delivered to the warehouse designated by the freight forwarder for storage, the warehouse will generally re measure them, and the re measured size and weight will be used as the charging standard.

If the factory changes the packaging, it should ask the factory to notify in time. Don’t wait until the goods are delivered to the warehouse of the freight forwarder to feed back the information through the freight forwarder. The time is often tight, and then change the customs declaration documents, it is easy to delay the customs declaration, or produce expedited customs declaration fees and port charges.

  1. Some ports adopt the minimum charging standard for the goods with less cargo volume due to the shortage of cargo source and high cost of sea freight consolidation. For example, the minimum starting price is 2 freight tons, that is, less than 2 freight tons. All freight charges are based on 2 freight tons. Therefore, for goods with small volume and biased port, more consideration should be given to such factors in the transaction to avoid being passive in the future.
  2. For LCL cargoes on some remote routes and ports that the customer proposes to deliver to inland points, it is better to consult before signing the contract to confirm that shipping companies and freight forwarders can handle the delivery of these remote ports and inland points and relevant fees before signing the contract
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