The biggest challenge of shipping from China to USA

Transporting consignments from china division to the US market is a real nightmare for many of the B2B enterprises. Being the first and second largest economy in the world



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In the case of cross-border transportation shipping from China to USA, transporting consignments from China to the US market is a real nightmare for many of the B2B enterprises. Being the first and second largest economy in the world respectively, both China and the US cross a very large number of transactions across their borders every day. Though, there are long distances, involved and the regulatory requirements takes a different bend, challenging the warehouses and the logistics teams more so.

Since this guide’s creation shipping from China to USA, it will cover some of the main concerns and questions that people have about shipping between China and the United States. While it is good to make sure you deliver all the requirements of a given process, understanding the flow will help you to do so while meeting all regulatory requirements.

TOP CHALLENGES WHEN SHIPPING FROM CHINA TO THE US

There are a few key hurdles that plague many companies trying to ship goods from China to the American market:

Language and cultural barriers - With Mandarin Chinese and English being the primary languages, effective communication between logistics teams can break down without translators. Cultural norms are also different.

Long transit times - Shipping by sea can take 4-6 weeks on average each way. Air freight is faster but significantly more expensive. This ties up working capital.

Complex customs regulations - Both countries have rigorous import/export laws around safety, security, and taxes. Missing some documentation can result in costly delays or seizure.

Huge distances - China and the US are located on opposite sides of the globe, separated by over 8,000 miles. Organizing long-distance transportation is a logistics nightmare.

Unexpected costs - Hidden fees like duties, taxes, and demurrage charges often inflate the real cost beyond initial quotes. This restricts profit margins.

By understanding these common stumbling blocks, companies can make informed choices to reduce risks. Let's examine the step-by-step shipping process in more detail.

SHIPPING GOODS FROM CHINA TO THE US: A STEP-BY-STEP GUIDE

Here are the typical stages involved in transporting goods from China to customers in the United States:

1. Packing and Preparation

Proper packing is crucial to avoid damage during the long journey. Use durable containers, cushion items, and seal securely. Ensure accurate packing lists, documents, and labelling in English.

2. Booking Cargo Space

Arrange shipping with a reputable NVOCC (non-vessel operating common carrier) like Chinadivision to book space on container vessels or cargo planes.

3. Export Procedures in China

Complete applications for export permits if needed. Obtain commercial invoices and packing lists. Arrange pre-shipment inspections.

4. Transportation to Port/Airport

Use licensed/bonded truckers to transport packed containers over land and deliver safely to deep-sea ports like Shanghai or air cargo terminals.

5. Sailing to the US by Sea Freight

Container ships ply regular routes, taking 4-6 weeks typically from Chinese to US West Coast ports. Track shipment online.

6. Arrival and US Customs Clearance

US Customs needs comprehensive manifests, customs declarations and other paperwork. Plan for potential inspections, sampling or physical exams.

7. Shipping to Final Destination

After customs, bonded truckers transport from arrival ports inland to delivery points across the continental US.

8. Delivery and Confirmation

Coordinated by the NVOCC, shipments are delivered to consignees. Confirm receipt promptly.

Let's take a closer look at some aspects that require special attention:

IMPORTANT CONSIDERATIONS WHEN SHIPPING FROM CHINA

Documentation

Filing complete and accurate documentation is paramount to avoid delays. Key docs include commercial invoices, packing lists, certificates of origin, import licenses if needed.

Labeling

Containers should have exterior labels displaying the names and addresses of shipper and consignee, plus cargo details. Interior labeling ensures easy identification and distribution.

Pricing and Terms of Trade

Assess costs realistically based on weight, dimensions, freight rates and all potential charges. Agree with Incoterms like FOB or CIF upfront to clarify responsibilities.

Insurance

Arranging adequate cargo insurance protects against risks of damage or loss during transportation. The minimum should be the cargo's actual cash value.

Customs Regulations

Different government agencies regulate inbound and outbound shipments. Companies must be fully compliant with customs rules covering duties, tariffs, quotas, sanctions etc.

Tracking Shipments

Online tracking gives real-time visibility into status updates from port-to-port. This ensures seamless handovers and speeds up tracing in case of delays.

Let's examine best practices for filling paperwork correctly:

KEY FORMS AND DOCUMENTATION FOR IMPORTING TO THE US

Commercial Invoice

Serves as the pro-forma invoice and should list detailed product descriptions, quantities,unit prices, discounts etc.

Shipper's Letter of Instructions (SLI)

Gives the details of the ocean carrier arrangement - vessel name, voyage number etc. Authorizes the broker to act on behalf.

NAFTA Certificate of Origin (for qualifying goods)

Necessary to claim preferential duty rates under North American Free Trade Agreement for imports from Canada or Mexico.

Importer Security Filing (ISF or 10+2 filing)

Mandatory filing to CBP supplying detailed information about incoming vessel, carriers, cargo etc for enhanced risk assessment.

Ocean Bill of Lading

Considered the title to goods. Issued by the ocean carrier and serves as the contract of carriage summarizing shipment details.

Delivery Order

Allows authorized party or broker to receive container releases from terminal after clearance.

Keeping apprised of regulatory changes and maintaining compliance is crucial for customs clearance. Let's explore some frequently asked questions now:

COMMON QUESTIONS ABOUT SHIPPING FROM CHINA TO THE US

Q. What is the average time and cost for shipping from China to the US?

A. By sea freight, the transit time is 4-6 weeks on average while door-to-door air freight takes around 3-5 days. Sea costs $3,000-$5,000/FEU, air $8,000-$12,000/CBM depending on weight/size.

Q. How can I track my shipment from China to the US?

A. Request tracking numbers from your NVOCC and track online using their website or common carriers like CMA CGM, Maersk, Evergreen. SMS alerts also keep you updated.

Q. What is the difference between FOB and CIF terms in China-US trade?

A. FOB (Free On Board) means the seller arranges/pays for transport to port of origin. CIF (Cost, Insurance and Freight) requires seller to arrange/pay delivery to named US port including insurance, duties/taxes clearance.

Q. Is additional insurance needed over regular cargo coverage?

A. International shipments face unique risks like delays, damages. Consider optional endorsements for extended coverage of perishables, electronics including war/strikes risks. Value-added services from Chinadivision also help ease risks.

Q. What documents are required by US customs for import clearance?

A. Essential import documents are ISF, commercial invoice, packing list, bill of lading, insurance certificate. Additional forms like FDA prior notice, EPA documents may be needed based on commodity.

Q. How can duties and taxes be minimized for Chinese imports?

A. Identify eligibility for free/lower trade programs like NAFTA, determine specific HS codes, consolidate small shipments, thoroughly research customs value to avoid extra assessments/penalties.

Conclusion

With the right logistics partner and diligent planning, paperwork processing and customs clearance time can be reduced significantly. But unexpected delays may still occur - so maintaining honest communication and flexibility is equally important.

Shipping cargo from China to the US requires careful coordination of documentation, regulations compliance, ocean/air transportation logistics and comprehensive tracking. Establishing a trusted partnership with an experienced NVOCC like Chinadivision offers B2B importers valuable knowledge and solutions at competitive rates.

Their end-to-end services ease the process with features like custom freight insurance, proactive customs clearance support, multilingual customer service and online visibility tools. Leveraging such expertise allows companies to import Chinese goods to the US market seamlessly and focus resources on growing sales. With the right logistics provider, international trade barriers no longer need to be roadblocks.

This content was first published by KISS PR Brand Story. Read here >> The biggest challenge of shipping from China to USA



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