In late 2021, two Ming dynasty terracotta clay figurines returned to China after residing in a private collection in the United States for nearly a century. The figurines were presented to the Shanghai Museum for inclusion in their collection of 66 similar Ming dynasty figurines, which owner Suzanne Fratus had seen at the Asian Art Museum in San Francisco in 1983 when they were on loan from the Shanghai Museum.

Fratus’ grandfather, John Herbert Waite, who was an ophthalmologist and spent some time working in Asia, was gifted the figurines by a Chinese patient whom he cured. He returned to the United States with them in his possession in the early 1900s, and the figurines were passed down through the family to Fratus, who decided to return them to China via the Chinese consulate-general in San Francisco in April 2021.

The return of the figures, which was facilitated by the freight forwarding specialists at CBBC member company Heighten, is not just a story of cultural appreciation across borders; it also sheds light on the unique skills needed to ship fine art and artefacts across borders.

“The list of specific challenges when shipping cultural artefacts is very long,” says James Grayland, Heighten’s International Director. Beyond obvious requirements like making sure items are properly packaged so they don’t get damaged in transit, there can be multiple layers of bureaucratic and communication-related hoops to jump through when transferring art or artefacts to and from China.

Suzanne Fratus’ clay figurines ready to be returned to China. Source: Heighten

Museum objects, for example, are usually national property, requiring permits at the national and local levels, which, in recent years, have typically been issued very close to the time of shipment. In addition, objects over 100 years old like the clay figurines in this story are treated as antiquities under the jurisdiction of the National Cultural Heritage Administration (part of China’s Ministry of Culture & Tourism), meaning that they need to be handled differently to modern art, for example.

In addition, Grayland notes that there can often be a significant cultural gap. “The level of transparency on the ground handling process or with China customs is lacking,” he says. “Furthermore, often fine arts teams do not have regular customs interaction, meaning their depth of knowledge can be lacking, combined with possible language barriers and a lack of understanding of norms in other countries.”

As a result, communication is key. “Like many projects involving China, the key is to build relationships across all the stakeholders, and where possible and applicable, to open up communications across all those parties,” says Grayland. “What we find is that chains of communications traditionally are just that, ‘chains’.” Communications move back and forth between single points of contact, but this can be very inefficient. Instead, Heighten focuses on creating broader networks of relationships from the get-go, so that “as the pressure increases, communications are much more effective and the level of trust & understanding higher. Likewise, there are much better lines of communication across all stakeholders, who, if necessary, can develop smaller expert groups to work on specific technicalities.”

As with most interactions with China these days, one of the major challenges Heighten is having to work with is Covid-19. “The majority of the projects we worked on before required courier supervision end to end. For large exhibitions this can be a governmental and insurance-based prerequisite,” Grayland explains. Of course, China’s strict quarantine requirements under the ongoing zero Covid policy now mean that end-to-end supervision by a single individual is not possible.

“Due to this we have been helping clients by offering a bookend courier solution, where our team can step in and meet the shipment, then carry out due diligence and monitoring of the exhibits in place of their own team,” says Grayland. “This is an exciting new area for us, however it does create new dynamics and requires very clear communications and agreement on expectations between the multitude of different parties involved.”

Get immediate access to the China market with Launchpad, CBBC’s flagship market entry service. Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out more.

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Where and how can you find the right shipping/freight company for you?

Whether you are importing from China or anywhere else in the world, freight forwarders will play a pivotal role in your business. It is important that you choose the right forwarder for you, which can appear to be a minefield. Look for a forwarder that offers expertise and advice. This will give you immediate feedback and confidence that you are choosing the right one for you. While it is always good to get cost comparisons, quality of service and speed of response should give you a better indication of the service levels you will get moving forward – the cheapest isn’t always the best. Liken it to if you were wanting a new kitchen or building work; you would look for a reputable builder to use, you would want a professional, and your logistics partner should be the same.

What are the customs rules and where can you find them? 

The freight company you choose (especially if it is a reputable one) should be able to navigate you through all the processes and legislation on the product you are looking to purchase from overseas. While you are ultimately responsible for choosing the right commodity code for your goods, a goods forwarder will offer guidance. There are also departments within HM Revenue & Customs that will be able to advise on correct commodity codes, which dictates the duty you will pay. Your freight company should be able to steer you in the right direction.

What costs and fees are involved?

The final costs you face, in particular, the cost of freight from China, are very much dependent on the Incoterms (International Commercial Terms), a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law, of the sale of the product to you. This will dictate which part of your shipment’s journey you are responsible for. The two most common terms are: 1) Ex Works, where you are responsible for all local charges in China, as well as the freight charges to the UK and UK Local Charges, and 2) Free on Board (FOB), where you are only responsible for the freight charges and UK local charges.

A few important things to note:

• JAG-UFS usually recommends FOB to their clients, as this gives more control of costs and shipping to the UK, whether by air or sea. You are in more control of your shipment and there are no nasty surprises of local charges at origin.
• Beware of suppliers offering to get your shipment to the UK for “free”. Especially for ocean freight shipments: often, the local consolidators for less than container (LCL) loads will offer incentives to suppliers and as the UK importer, you will receive overinflated import costs which will have to be paid before the release of your shipment.

How do payments work (upon order or upon delivery)?

Payment is very much dependent on whether your shipment is by air or ocean and your relationship with your supplier. For air shipments, your supplier would probably expect full payment before releasing the shipment to your chosen forwarder. For ocean freight, ownership of your shipment will only happen when full payment has been received and on production of the original bills of lading. Once paid, the supplier will issue a stamped copy of an original bill of lading which can either be surrendered to the local forwarder in China, who will then either send an “Express Release” and no original will be required in the UK, or the supplier will send the original to you, which you will have to send to your freight company to gain release of the shipment. The payment for ocean freight shipments will need to be done at least a week in advance so that the express release or sending of the originals to the UK well in time before the shipment arrives to avoid shipments being delayed awaiting release.

What are bonded warehouses and where should you store your product?

Bonded warehouses are licensed warehouses that can store goods without duty or VAT being paid at the time of importation, although there still must be an import entry produced at the airport or port of arrival and goods can only be delivered directly to the chosen bonded warehouse. Shipments can then be called off in smaller batches, with duty and VAT being paid at the time orders are needed. Bonded warehouses work well for higher value items or for goods that are going to remain in bonded storage for long periods. However, since the introduction of post VAT accounting, the requirement for a bonded warehousing is not as prevalent as before. If you register for post VAT accounting, this will help you defer VAT payment and you will not have to pay at the time of importation.

This article is part of a series on importing from China. See all the articles in the series below.

Part 1: How to source a manufacturer in China
Part 2: How to source and manage suppliers
Part 3: How to ship products and navigate customs

Click here to read our Exporting to China series

Get immediate access to the China market with Launchpad, CBBC’s flagship market entry service. Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out more.

The post Importing from China: How to ship products and navigate customs appeared first on Focus - China Britain Business Council.

Surprisingly, when the pandemic first hit the UK in March 2020, shipping companies did not immediately follow the increase in airfreight charges with their own. Airfreight rates quadrupled nearly overnight, whereas initially, there was no significant movement in rates on ocean freight until some nine months later at the end of 2020.

When the price increase did come, it was explained by the shipping lines as an “imbalance of equipment.” At the time this made perfect sense, as the pandemic hit China’s major export markets — the USA, the UK and Europe — with countries in these regions seeing very strict lockdowns. In turn, this meant that when containers arrived at their destination they would be met with major delays due to shortages of drivers to remove goods from the ports, deliver to end users and ultimately, slow turnaround times in returning empty containers back to ports. With many importers having to work from home, there was a backlog at both manufacturing hubs and ports, and vessels were returning to China relatively empty and with very few exports. This is when the export price from China began to rise to accommodate the cost of vessels returning with empty containers. Since then, rates have remained at all-time highs. Industry insiders could see that increases were inevitable. However, the level of increase could be said to be slightly overinflated.

Importers and forwarders alike, however, could not have foreseen the rate levels that have been imposed by shipping lines. Within three months from November 2020 to January 2021, rates rose by 500%. Ocean rates peaked in December 2021 to a staggering 850% above pre-pandemic rates.

This has of course had an adverse impact on businesses, not only in the UK but in all of Europe and North America, leading to the unprecedented rises in inflation that we see being reported today.

And this situation could be exacerbated by the Covid-19 lockdowns that have hit Shanghai since late March. While the world’s busiest container port has remained open (thanks to a ‘closed loop’ management system that keeps workers isolated at the port site), an estimated 30% of the global backlog of container ships are thought to be sitting in traffic jams outside ports in China. There have also been problems getting cargo to and from the port due to the strict rules on truck drivers entering and exiting the city.

During this time, many companies have decided that shipping is just not a viable option anymore, certainly until rates return to a more feasible level. Rates may never return to pre-pandemic levels, but there is still hope that common sense will prevail and that shipping lines will continue with the downward trend and find a reasonable level, where shipping lines can make a profit, and at the same time allowing businesses to start shipping once again.

The UK has suffered a little more than most EU countries, with higher rates being imposed on the UK market. This is due to the big imbalance in imports and exports containers, forcing shipping companies to return to Asia with many empty containers on board.

The export market has also suffered, but not to the same degree as imports. Pre-pandemic, ocean export rates from the UK to China sat at anywhere between $500-600 (£389-467). This peaked during the pandemic and averaged at $1,850 (£1,441), although there has recently been a 20% decline in rates. The availability of equipment and space has eased and it seems that apart from the rate still being a lot higher than pre-pandemic, there does seem to be light at the end of the tunnel. In more positive news, there are signs of some sense of normality returning to the shipping industry and rate levels are on the decline in both the import and export market.

The post How is Covid in China affecting the cost of shipping? appeared first on Focus - China Britain Business Council.

The cost of shipping between the UK and China continues to test the resilience of companies of all sizes, be they from Liaocheng or Liverpool. Shipping containers remain in short supply. As a result, the cost of securing passage on a boat from Felixstowe to Foshan, for example, has risen by over 400% since the start of the pandemic.

Many UK companies have already reported that this spike in costs has priced them out of the China market. Many more are precipitously close to following suit. The disruption created by lockdowns and port closures the world over has brought the global shipping business to its knees. Unfortunately, the industry does not look like it is about to make a hard turn to change course. 

The shipping industry finds itself caught in a vicious web. It is a business that is used to managing boom or bust cycles usually caused by increasing fuel prices or reduced consumer demand. Larger ships, fewer sailings, and significantly faster or slower journey times to conserve or burn fuel to meet projections calculated by supercomputers had become standard practice to reduce shipping companies’ exposure to such factors.

However, Covid-19 and the steps countries have taken to contain its spread – ranging from localised lockdowns to prohibiting imports – have proven to be too disruptive across too many variables. Now, the shipping industry’s tendency to operate at an enormous scale and in a highly standardised way means multiple elements of its business model are closer to the bust end of the spectrum. There is also no obvious solution to fix this sorry state of affairs. 

The UK is geographically poorly positioned in terms of shipping routes. British ports pale in comparison to the super-sized terminals at Antwerp or Rotterdam. Boasting superior infrastructure, Europe’s mega ports can unload the tens of thousands of containers a ship will likely be carrying far more efficiently. And time is at a premium. Demand for shipping is estimated to be up by 25% compared with pre-pandemic times. However, that does not translate to ships simply taking 25% longer to unload cargo or come in to dock. Ships are reportedly now sitting on anchor – often within sight of their intended port – for as long as two months, such are the delays that ports are experiencing in cargo processing. Docking used to take 24 to 36 hours in mega ports such as Rotterdam, Los Angeles or Singapore.

The shipping industry is unlikely to fix itself soon, and there is little incentivising shipping companies to dock in the UK

However, with ports now either having too many empty containers or too few of them, depending on which end of the popular US to Asia routes they find themselves, shipping lines have reportedly instructed their captains to do the following: anchor off-shore until the US can return the empty containers that are congesting American ports, or have the Asian ports find containers to fill. With California to East Asia and East Asia to Rotterdam being the two most popular routes at present, the problem for the UK is that there is little incentivising the shipping companies to dock in the UK.

The shipping industry is unlikely to fix itself soon. For example, expanding the global supply of ships would take at least three years due to the time it takes to build new ones. Similarly, increasing shipping container supply is tricky while the factories that manufacture them – and their suppliers – continue to be affected by sporadic lockdowns; the majority of shipping containers are manufactured in China. Shipping companies are anyway reluctant to order more containers, given that the problem is not so much with supply – it’s more that the world’s containers aren’t currently where they are most needed.

Nor is the East Asia to Britain shipping route likely to pick up again in any meaningful way in the immediate future. Last year, China reportedly began subsidising the ships of its state-owned shipping companies to bring back containers from the US or Europe empty because it was worried that the pile-up was putting its position as Asia’s preferred low-cost manufacturing hub in jeopardy. That does not appear to have meaningfully addressed the problem, however. The British government was also reportedly considering introducing measures aimed at controlling the increased cost of shipping to China but decided against it because it would end up artificially adjusting trade flows and could, in effect, subsidise Chinese exports to the UK to the detriment of UK manufacturers.

So, it’s choppy waters for the foreseeable future, with a short spell of British exporters having to rely on alternatives such as air freight. Without a second front of subsidies sweeping in from the East, it looks like businesses hoping that international shipping will get the wind back in its sails again will be disappointed. Unfortunately, probably only time and the resumption of normal market activity can unravel the mess that the industry finds itself in.  

The post When will shipping between the UK and China recover? appeared first on Focus - China Britain Business Council.

After 618 came to an end a couple of months ago, overseas brands selling on cross-border e-commerce platforms in China started shifting their attention to the next major promotional festival in China, Single’s Day (also known as 11.11 or Double 11).

As one of the most competitive e-commerce markets in the world, China has a variety of requirements for both the e-commerce platforms and the merchants who sell on them, all of which are essential for achieving ongoing growth and consumer satisfaction. Therefore, the preparation work for Single’s Day, one of the biggest online shopping festivals in China, starts in July even though the actual event does not take place until November. Even if you are too late for this year’s event, this article should serve as a guide for when to start preparing in future years.

Managing inventory

Most people know that traffic and sales on e-commerce platforms in China peaks in November, which makes inventory planning and logistics preparations crucial to ensuring that there is sufficient stock replenished and ready for the expected large sales volume.

There are two main models of cross-border e-commerce logistics in China: bonded import and direct shipment. Regardless of which model a brand is using, there are key timings for inventory preparation.

Take Tmall Global. For Single’s Day 2021, brands selling through bonded warehouses and working with Cainiao as their logistics partner were required to do the following:

• Submit their replenishment plan before 27 August
• Get the products delivered to the port (by air, freight, or railway) before 27 September
• Get their products to the warehouse before 13 October

The process from inventory planning to getting products listed on an online store can be challenging for brands that are new to this journey. Many brands are new to preparing for such a largescale sales promotion and are unfamiliar with all the documents and communication needed for each step, including commercial invoices, packing specifications, shipment bookings, and arranging for land transportation from port to warehouse.

It is suggested that brands liaise closely with their contact from the e-commerce platform and obtain clear to-do lists regarding the information or details that are required in the preparation phase. Although brands can choose whether to handle the whole or any part of the transportation journey themselves (such as only international freight), working with one provider that can deal with every step is often the best choice when it comes to investment of time and effort.

One particular aspect that brands should consider is the unpredictability brought about by Covid-19. On the one hand, international freight shipments might be delayed from the country of origin; on the other hand, it may take a longer time for ports in China to release goods for domestic delivery due to the combination of the large volumes that need to be handled during the peak seasons and possible stricter Covid-19 inspections. It is suggested for brands to get ready to use other measures to bypass these potential hurdles, such as considering air freight or a global fulfilment centre (GFC).

Preparing store operations

In addition to inventory, preparation is also needed when it comes to store operations. The whole point of getting products ready to sell by the time the sales promotion arrives is to hold a successful campaign.

Usually, the portal for the Single’s Day campaign will open in September, which is also the time when brands can look at the requirements set by the platform for merchants to participate. These requirements can include store rating, years of store operation and base sales volume.

Merchants should also check the e-commerce platform they are using to determine if there are any new initiatives that they or their brands can take part in, such as category-specific promotional tools or specific advertising resources. If a brand submits a significant enough promotional budget for the planned festival, there is a chance that the platform contact for that category will reach out to the brand personally and negotiate cooperation opportunities.

A suggestion for overseas brands is to try to leverage possible opportunities with the goal of maximising exposure, store visits and sales, especially because these huge promotions are a crucial opportunity to receive substantial return on ad spend and investment. In addition, it is also very important to prepare for out-of-app promotions in order to preheat and build up hype, thereby boosting the store’s performance during Single’s Day.

Examples of pre-heat activities include paid media promotions and live streaming sessions prior to the shopping festival, which can be significant channels through which to bring in a tremendous amount of exposure, encouraging more potential customers to make purchases during the actual festival. All of this helps to create the busy and sales heavy atmosphere across China during October and November.

The post How to prepare your logistics for Singles’ Day appeared first on Focus - China Britain Business Council.

The cost of shipping between China and the UK increased by over 350% last year, severely impacting companies that rely on being able to move goods and manufactured parts between the two markets economically.

The cost increase can be attributed to numerous factors, but none more so than the impact of Covid-19 on the shipping industry and a mismatch between the timing of lockdowns around the world. In both the US and the EU, lockdown resulted in higher demand for consumer goods manufactured in China. While this incentivised Chinese manufacturers freed from lockdown to pack their wares into shipping containers for export, it has been difficult for US or European companies still affected by lockdowns to refill these containers for a return journey to China — leaving them effectively stranded.

Other low-cost manufacturing hubs, hoping to ship more goods to the locked-down US and EU, are reportedly now muscling in on the established China-Northern Europe route, meaning that any available ships and containers are being diverted to parts of Africa and South Asia.

With ports in the EU and the US at capacity in terms of the number of containers they can take, ships stuck in ports or lacking a crew, and warehouses either unstaffed because of lockdown measures or, as in China, perennially oversubscribed, companies are electing to store their goods in containers, limiting supply even further.

This briefing will explain why it has become more difficult for companies to secure containers to ship goods between the UK and China, the impact this is having on industry, and the steps that companies and governments are considering to reduce its impact.

Background

The shipping industry can perhaps best be conceptualised by imagining a Russian doll: The commodity the consumer wants moved is itself transported inside a series of other commodities: ships, shipping containers, cardboard boxes, the consumer good. Covid-19, and the lockdowns most markets have introduced to curb its spread, has resulted in each of these commodities attracting premium prices because they are all in high demand.

There is no easy way to resolve this problem. For example, expanding the global supply of ships would take at least three years due to the time it takes to build new ones. Similarly, increasing shipping container supply is tricky while the factories that manufacture them – and their suppliers– are affected by widespread lockdowns. Shipping companies are anyway reluctant to order more containers, given that that the problem isn’t so much with supply — it’s more that the world’s containers aren’t currently where they are most needed.

So where are the shipping containers?

The established trade routes of pre-pandemic times have been distorted to reflect the markets that are open for manufacturing and those that are open to taking more cheap consumer goods. As a result, the bulk of the world’s shipping containers appear to be in one of three places:

1. Stuck in the EU or the US: China came out of lockdown as the EU and the US entered lockdown. As people resigned themselves to spending more time at home, there was a surge in demand for consumer goods that are often manufactured in China, leading China’s shipping companies to send more ships and containers to these markets. However, there has been little or no incentive to return the shipping containers to China; with economic activity in large parts of the EU still limited, many of the containers would likely return empty.
2. Stuck in China: China’s warehouse storage is oversubscribed, meaning that companies that are unable to export goods because the US/European ports are at capacity have little choice but to store stock in any available containers, usually portside, until the West comes out of lockdown and this congestion can start to be cleared.
3. On ships diverted to Africa and South Asia to serve the US and EU markets: Low-cost manufacturing hubs across Africa and South Asia are reportedly vying to supply high levels of demand for consumer goods in the US, meaning that containers are increasingly stretched across competing supply chains.

All three outcomes result in the price of shipping increasing because there is greater demand and less certainty regarding shipping times, costs and loads. So even though demand for international shipping dropped overall by as much as 14% in volume and 21% in value last year, according to the World Trade Organization, a container that before the pandemic cost around £600 to ship from Harwich to Shanghai is now going for as much as £4,500.

How is it impacting industry?

Shipping companies are reportedly passing on costs incurred by holding containers at ports for longer through extra fees. Companies must then either absorb the increase in costs or pass it on to consumers, which might make their price points uncompetitive.

UK companies are beginning to report that the increase in shipping costs means they are making a loss on some sales; importing from China is, in turn, becoming a less viable business model. The UK’s Association of Domestic Appliances has said its members have reported increases in shipping costs of up to 300% since the start of 2020. “Signs of strain are building up and the situation is likely to intensify before it eases,” according to Capital Economics.

The picture is no prettier in China. Aware of the fact that shipping a container to the UK or Europe is not likely to make financial sense, come January shipping companies in China had reportedly began charging as much as £10,000 to ship a 40ft container that used to go for around £2,000 to the UK.

How is it impacting consumers?

Companies appear unwilling to push increased shipping costs onto consumers with markets for consumer goods currently so competitive. Shifting costs to consumers is anyway not always possible, especially if the company operates in business-to-business logistics or offers an end-to-end delivery model where contracts are drawn up months in advance, with liability for shipping costs often factored in. A particular issue currently is that the backlog caused by the pandemic goes back into 2020, meaning that companies are struggling to honour contracts drawn up when the cost of shipping was a third of what it is now.

Still, it looks like consumers will only be able to avoid higher prices for so long, with economists predicting that supply shortages and higher freight rates will restrict trade growth and contribute to temporarily higher inflation pressures over the course of the year.

What are Governments planning to do about it?

CBBC has made enquiries to both the British and Chinese Governments and has ascertained that both are aware of the rising cost of shipping and are seeking to remedy the issue.

China has reportedly been subsidising its shipping companies to bring back containers from the US or Europe empty because it is worried that the pile-up is putting its position as the preferred low-cost manufacturing hub in jeopardy. Of course, this is making it harder for US or European companies that are able to export to get hold of containers. In addition to this, at a press conference held by Li Xingqian, head of foreign trade at the Ministry of Commerce (MOCFOM), in January, it came to light that MOFCOM and the Ministry of Transport have been considering applying anti-trust measures against shipping companies in a bid to keep costs down, as well as other steps aimed at stimulating vessel supply, such as putting pressure on foreign shipping companies to resuming sailings that they had suspended due to poor profitability.

The CBBC understands from those with knowledge of the situation that it would be difficult for the UK Government to introduce measures aimed at controlling the increasing cost of shipping to China, and not only because the UK is a free-market economy. The risk is that subsidising the cost of shipping between the UK and China would further artificially adjust trade flows and could, in effect, subsidise Chinese exports to the UK to the detriment of UK manufacturers.

CBBC View

CBBC is aware that in an environment where costs are on the rise across the board, increases in shipping prices are having a particularly detrimental impact on the ability of UK firms to trade with China. Companies of all sizes need to move goods between the two markets, be they large multinationals exporting parts for assembly or small wholesalers in the UK that source the bulk of their merchandise from China. The CBBC will continue to monitor this issue and aim to keep members informed following any conversations it has with the British and Chinese governments and any other relevant stakeholders.

If you are a British company concerned about rising shipping costs, call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s market research and analysis services could help. 

The post Why has shipping between the UK and China become so expensive? appeared first on Focus - China Britain Business Council.

For many years now, UK importers have fallen into the trap of letting their Chinese suppliers ‘pay’ for freight of LCL (Less than Container Load) shipments from China to the UK.

On the face of it, it seems like a great deal. The supplier is offering to pay the freight costs and is taking on the headache of arranging the shipment. However, the reality couldn’t be further from the truth.

The actual arrangement involves Chinese consolidators (in conjunction with their UK counterparts) offering the suppliers a ‘rebate’ scheme. In return for using their consolidation service to the UK, the consolidators will offer the supplier a rebate of up to £200 per cubic metre of freight given to them.

Someone somewhere has to recover this amount of money being offered, and in simple terms, that someone will be the UK importer. When the shipment arrives in the UK, the importer will be made to pay overinflated, made-up costs so that the consolidator recovers the ‘rebate’ and can share these unscrupulous profits with their UK counterparts.

On their notice of arrivals document, they will see made-up charges such as:

• Interim Currency Adjustment Surcharge
• Currency Adjustment Factor
• China Import Service Fee

As the freight was pre-paid, there is no currency that needs to be exchanged or adjusted. This is just a made-up charge.

There are also service fees for documentation that can be well over £100, or terminal handling charges that are almost double what the industry norm.

Unfortunately, once the shipment arrives, there is no legislation on what the consolidators can charge. They can simply make their own tariff charges and will not release the shipment to the UK customer until all charges are settled.

So it is important that all importers are aware of the pitfalls of accepting ‘free shipping’ – there really is no such thing – and it’s likely to end up costing more in the long run. For importers looking to bring in goods from their Chinese suppliers, it’s important that they speak to UK professionals who have experience in the China market.

It is advised that importers purchase shipments on a Free On Board (FOB) basis, which enables the importer to control the charges and the schedule. This Incoterm rule specifies that all local charges in China are paid by the supplier’s account and the UK charges are controlled with the importer’s forwarder. There should be no hidden costs involved when receiving shipments through a reputable forwarder.

For more information on importing from China, contact gary.wilcox@jagufs.com

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