Easily Overlooked but Very Important Details in Trades with China

Maybe all counterparts have experienced such a problem when they trade in China:

FIRST. Sometimes we use FOB term as agreed with the manufacturer, due to delivery problems, the manufacturer will be fined in case of delay in delivery. But in the actual case, the factory often uses the bugs of FOB term and delivers the cargo at the terminal to complete the transaction. In case of delayed delivery, they say the daily is caused by customs inspections, which makes you unable to investigate and affix their responsibilities and impose corresponding penalties. When you request for evidence, they tend to fake customs inspection notices to muddle through. You cannot verify as China’s customs system is not open,.

How to solve: 

1) Entrust an industry professional you know in China to verify and keep the screenshots, so the factory will be unable to justify themselves in the face of evidence.

2) You can find when the containers are picked up from a Chinese tier, when the container is released, when the customs inspects and when relevant procedures are completed within the sailing schedule as long as you have the corresponding qualifications and can access to the Chinese customs and tier system. The fact is that the systems are not open and has no English version, so we cannot be verify, but we have a free tool which can be used to query 100% accurate data.

SECOND. Sometimes we purchase from a number of factories, and our freight forwarder to help us collect finished goods for shipment. No freight forwarders would like to help us declare for some sensitive items, branded goods and commodities purchased from multiple factories because they do not have declaration documents. We have to find a freight forwarder. The problems many local freight forwarders choose to pass the order to a Chinese agent, creating necessary intermediate links and influencing smooth communication. Sometimes we have to wait for one or two business days before we are notified of whether the customs clearance is granted, what is worse, some Chinese freight forwarders charged us high customs clearance fees for identification of cargos not in compliance with customs provisions. Our local freight forwarders cannot verify either because they are not the direct operator. 

How to deal with: like what is mentioned above, you may entrust a friend in China to verify or resort to the said free tool, so that you will be told when the inspection took place, when the clearance will be granted and other dynamic information. 

Post time: May-13-2022