If it is determined that goods are to be exported in international trade, the relevant matters of freight can be entrusted to the freight forwarder. Firstly, it is necessary to understand several common transaction methods of international freight.

1. FOB Free On Board Price

Simply put, it means that foreign customers have already designated freight forwarders, and only the shipper needs to arrange for trailers and customs clearance at the port of departure. There are also EXW factory prices that can be delivered directly to the factory or at a designated location by the customer. Trailer customs clearance is arranged by the customer, and the customer can pick up the goods themselves and deliver them to the factory.

2. CIF cost plus insurance, shipping

Simply put, it means door-to-port (including port of departure trailer+customs declaration+sea freight). Currently, insurance is generally not included. Customers who require insurance are calculated based on the value of the goods, and the term CIP can also be used. However, CIF is generally only used in sea transportation, and is applicable to various modes of transportation, including multimodal transportation, such as air freight.

3. DDU Double Clear Duty Unpaid Delivery

DDP, which means delivery after double clearance and tax payment (including tax), is commonly understood as door-to-door. The "double clearance and one-stop" process often includes trailer at the port of origin, customs declaration, sea freight, and customs clearance at the destination port. Whether or not the goods need to be delivered to the door mainly depends on the customer's needs. It should be noted that DDP must provide the value of the goods, as tax payment depends on the value of the goods.

So when inquiring with the freight forwarder, it is best to first explain whether it is FOB/CIF/DDU/DDP, etc. If it is FOB, it is necessary to provide: goods name/container type/quantity/weight/loading address/port of departure/purchase order or documents. Of course, it may also be bulk cargo, and you don't need to provide the container type, only the quantity: a few square meters.

The difference between purchase order customs declaration and document customs declaration

Only enterprises/factories with export rights have documents, and a complete set of customs declaration documents needs to be provided to the freight forwarder/customs broker for customs declaration. The state encourages exports and provides tax refunds to enterprises with export rights. Therefore, enterprises with documentary customs clearance can mainly apply for tax refunds. The specific amount of tax refunds depends on the corresponding national policies of the goods.

Purchase order customs declaration refers to enterprises without export rights that rely on documents from others for customs declaration. Therefore, purchase order customs declaration does not require the provision of documents, and of course, they do not have the right to tax refunds.

CIF needs to provide:

The name of the goods/container type/quantity/weight/loading address/port of departure/purchase order or documents, as well as the destination port DDU/DDP, may need to provide the value of the goods/detailed address of the destination/consignee information based on the CIF information according to the customer's specific requirements.

When the freight forwarder receives the above information, they will provide a quotation to the shipper (customer) to confirm the quotation and then receive the order. Generally, the customer needs to provide the following information: packing list/record of cargo to be filled in by the customer and confirmed to be correct (including packing list information/shipping schedule, etc.)

Taking CIF as an example:

The freight forwarder arranges for trailers to be booked by the shipping company (specifying container number, license plate number, driver, and contact phone number), and issues SO (booking/picking list) to the shipping company

Give the packing list to the trailer driver, and the driver will take the packing list to the storage yard to make the order. After making the order, they will receive a "Equipment Handover List" (in multiple copies) and a lead sealed driver who will take the information to the designated storage yard to pick up the empty container. Then, they will go to the factory to load the container. After the factory loads the goods, they will seal the box with the lead seal (usually taking photos for evidence) and then pull the sealed container back to the dock.

Differences in transaction methods and customs declaration in trade

After the container arrives at the yard, the yard will ship and arrive according to the pre configured manifest provided by the freight forwarder. Only after the "pre configured manifest" and "arrival information" are available, can the customs broker declare the goods. It is usually best to leave two days for customs clearance (before the ship closes)

After customs clearance, the shipping company issues a bill of lading based on the arrangement of cargo carriers, and the general process for settling the fees is as follows. Other matters depend on the specific situation, and customers can pick up the container and clear customs after the goods arrive at the port with information such as the bill of lading/invoice/packing list.