What you should know before importing from China

What you should know before importing from China

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China is a major trade partner, and many local businesses import regularly from there. But whether you are a first time importer or regularly take delivery of shipments from China, there are things you need to be aware of.

For example, many have found that they had to pay more than they bargained for. Charges like “Currency Adjustment Factor”, “Trade Surcharge” and many more creative names that don’t make much sense, often appear on the final forwarding invoice for your import shipment from China.

With the market in China becoming more and more competitive, many Logistics companies and consolidators offer their clients (exporters) quite a heavy kickback on ocean freight rates. These kickbacks are then charged to the importer and he is in for a surprise.

This is why it is time for South African importers to hit back and take control of their imports.

Chinese companies love to be in control of groupage consignments and ship on a cfr / cif basis and the exporter is sold what looks like a fantastically cheap ocean freight rate by a groupage operator/forwarder in the country of origin. But when the cargo arrives the importer is charged mind blowing prices to get his cargo released.

When this is queried with the local agent or the agent of the groupage operator, one is told that a major part of that amount has to be paid back to the country of origin. Making what looked like a cheap freight rate very expensive indeed.

Novotrans has already hit back at the punishing extra charges on their clients imports, by asking our customers to allow us to be in control of their imports through our more than 40 partners in China, from at least the port of origin, if not from ex works.

This way the importer knows in advance what he is in for and is in full control of his consignment.

Mode of operation is not only apparent with consolidation consignments from China, but from other Far East, South East Asian, and Indian sub-continent countries as well.

Generally, please allow us to spend some time with you to discuss your import requirements from the above mentioned origins since it may well be possible that by taking full control over your imports from ex works or fob, you may be able to save your company a lot of money. In addition you know from the word go the whereabouts of your consignment.