For freight forwarding services and imports from China, you need a company experienced in navigating the import process. Identifying and avoiding common mistakes can help you save both time and money.
Here are a few of the most common mistakes freight forwarders make when shipping goods from China
Not Requesting Incoterms
To organize your shipment, including the sales contract, your Gold Coast freight forwarding company must request Incoterms from the company. The Incoterms are three-letter terms that designate the parties’ responsibilities in a sales contract. Incoterms are published by the International Chamber of Commerce for international commercial transactions. The wrong Incoterms or failure to specify Incoterms can lead to unexpected shipping cost delays and expenses.
Incorrect export documentation
Failure to provide correct and compliant export documentation to border control authorities is one of the most common mistakes freight forwarding companies and importers make. This information is crucial to customs clearance and the importation process in general. Depending on the method of transport, commercial invoices, packing lists, bills of lading or air waybills, and customs declarations will be required. In addition, improperly identified goods in your shipment may cause your cargo to be detained during import, preventing you from delivering products on time.
Declaring the incorrect customs value
In some cases, Gold Coast freight forwarding companies do not declare a customs value, resulting in unforeseen fees. Therefore, the clearance process at One Global Logistics is coordinated with customs brokers. A customs broker can request a binding ruling to ensure predictability in import duties. This is a cost-effective option if you have a large volume and value of freight to transport.
Shipping Cost Miscalculations
Inexperienced Gold Coast freight forwarding companies may underestimate the cost of shipping by sea. Sea freight is generally cheaper than air freight, but it also depends on whether you use FCL or LCL. This can be a cost-effective shipping option when your goods are of sufficient volume. Otherwise, you’re paying for space that isn’t being used, which can be expensive. Instead, you share container space with items owned by other companies in LCL or Less Than Container Load. Choosing this option is advantageous if you ship low-volume goods. To get the most value from your shipment, make sure your Gold Coast freight forwarding company is familiar with these shipping methods and selects the right one for your goods’ quantity.
Ignoring cultural and linguistic differences
Inexperienced Gold Coast freight forwarding company may not understand cultural differences or language barriers. If your freight forwarder imports goods on your behalf from China, they should be able to communicate effectively with local suppliers, even if you cannot. Chinese holidays may also impact the flow of goods, so they should be aware of them. Knowing this information is crucial for avoiding supply interruptions and fulfilling orders on time.
Misrepresenting the origin of a product
Importers and freight forwarders must note the correct Country of Origin in customs declarations. The information is needed to determine the relative risk of the cargo and assess it for import duty. You may face severe fines and criminal penalties if you fail to submit an accurate COO for your products.
Make sure your freight forwarder is reliable
At One Global Logistics, we are committed to quality control and delivering the best customer service. As a freight forwarding and logistics company, we have served clients in almost all parts of Australia States and worldwide for years.
