Sea container transport and import

What do you pay attention to when importing by shipping container?

If you are going to import products by sea container, you will have a lot to deal with. In practice, you cannot arrange everything yourself, but will have to seek help from professionals such as a freight forwarder. Below are the main points to consider for sea container transport. The example is based on China as a production country, but the following is also roughly correct if you are importing from another continent.

1. Import obligations

Check your import obligations. Now that you are importing stuff from China on a business basis, you are an importer. You must then regulate certain things. Since your goods are coming to Europe, European rules apply. The most important thing is that you have a so-called EORI number. This is a European registration number for international trade. Whether you can compile that number yourself or have to apply for a new one depends on your specific situation. Check the website of the Customs/Tax Office for that. In any case, you need to be registered with the Chamber of Commerce to do this. More information about the EORI number can be found on the site of the European Union.

2. Allowed products

Make sure the goods you want to import are allowed in the EU/Netherlands and meet all safety regulations. In practice, this means, for example, that consumer goods must have a valid CE certificate. Always be extra careful with 'difficult' products such as tobacco products, fireworks, medicines, plants and seeds, animal products, alcoholic products and other products with many requirements. With such products, we highly recommend using a company that has experience in that particular market and can advise on import requirements. However, not all products require CE certification. The European Union has compiled a list of all products that require CE certification.

Beware, some Chinese suppliers say they have the CE documentation in order but check this thoroughly. Each product should have its own CE certification. Suppose you import several types of lamps from China. It may well be that the factory in China has done a CE test for one and sends it along with all the different types of lamps. However, this is not valid: each lamp must pass the CE test. There should be a CE certificate for every variation of a product.

3. Calculate import taxes

To calculate the customs duties payable when importing goods, consider the following factors:

• The value of the goods
• The origin of the goods
• The customs tariff to be applied

Establish the 10-digit tariff classification number for each item. This number is used together with the certificate of origin and the value of the goods to determine your import duty. Next, check carefully whether you can still get out of costs with your revenue model. Perhaps customers have to pay a higher price due to higher costs. You can make the calculations on this EU website.

4. Place your order with a supplier/factory

There are several Chinese marketplaces where you can purchase all kinds of goods in bulk. The best known is Alibaba but Made-In-China is now also an established player. Often here you negotiate with an agent and not necessarily with the factory or supplier itself. Get ample quotes, compare and negotiate. It is highly advisable to first have a small number (a few samples) of each product shipped over. First test these products yourself for quality. This will allow you to know what you are sending over.

5. Establish shipping terms

Once you agree with your supplier, ask them for a pro forma invoice (or P/I which stands for Proforma Invoice). This is a non-binding document that clearly states the costs but is not yet an official invoice. Make sure this P/I contains the following elements:

• the harmonized system number
• the description and value per item
• the weight and dimensions of the package
• your purchase term.

You should then agree with the supplier to ship the container under FOB conditions from the nearest port. Make sure this is explicitly written down. If the port of Qingdao is closest to the factory, ensure that Qingdao FOB conditions are used.

As described elsewhere on this page, you should take everything very liberally. Production time, of course, varies from factory to factory, but always count on one and a half times as long as what the factory promises, so you won't be surprised. After a few orders, you can better estimate how long production will actually take. The broadcast time from the factory to your premises in the Netherlands also varies considerably, but 5 weeks is a minimum. This depends among other things on the location in China but above all on the available container space at that time. Sometimes this is no problem at all but sometimes a container has to wait weeks for a free spot on a ship.

Typically, it takes 12-18 weeks from the time of ordering until the goods arrive in the Netherlands.

6. Arrange a freight forwarder

Get quotes from several freight forwarders. There are many freight forwarders affiliated on Transportscanner who are happy to serve you. These parties can be found in the business directory. In addition, you can also place a quote request with multiple forwarders. They can take some or all of the process out of your hands. Once you have found a good one, share the contact information of your supplier or agent in China. The shipper takes it from here for the most part.

7. Track your shipment and receive your shipment

It can take up to five weeks for the ship to dock in the port of Rotterdam. Nowadays, all container ships can be tracked online so you always know exactly where your ship is at that time. Vesselfinder offers the map below that shows all cargo ships worldwide. The forwarder can tell you on which ship the goods are loaded.

The goods arrive at the port and must be cleared through customs. This is usually arranged by the freight forwarder. The freight forwarder will also need the Bill of Lading (B/L). You will receive this from the agent in China. Once the container is unloaded it will be cleared by customs.

In many cases, door-to-door transportation is used where the freight forwarder also arranges the last part of transportation from the port (storage) to your warehouse.

Next, make sure your warehouse or other storage area is completely ready to receive the goods. A container is delivered on a truck. In practice, you usually have a set amount of time to unload the container before you have to pay extra. So make sure you have arranged in advance enough manpower and the right materials (for example, a forklift) to unload the items.

Finally, check all goods as thoroughly as possible. If there is anything wrong or damage to the shipment, this is the time to report it to the supplier.