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Small Tips for Operating Ocean Export to the United States

10 Nov 2023

By Vincent Wen

Importing goods into the United States requires professional services, and the handling of goods upon their arrival at the port is equally crucial. If goods are not processed by a customs broker within 15 days of arriving at the port, they will enter the G.O. Warehouse (General Order Warehouse), which is the designated monitoring warehouse by the U.S. Customs. The fees  associated with G.O. Warehouse are quite expensive, so caution is essential.

In the context of shipping to the United States, all legitimate freight forwarders engaged in U.S. trade routes must have the qualifications of a freight-forwarding limited company registered with the Federal Maritime Commission (FMC) in the United States and possess an official NVOCC code. Otherwise, in case of any issues during transportation within the United States, you won't have the necessary legal protection. It's important tonote that not all primary freight forwarders are FMC-registered members, so be sure to confirm this in advance.

Confirming the Specific Destination:

In U.S. trade, many customers have warehouses located throughout the United States. Confirming the final destination is of utmost importance. Particularly, the United States has numerous places with the same names, such as Washington, where there are as many as 4 or 5 locations. If customers fail to provide state names and postal codes, there's a risk of shipping errors. Given the vast expanse of the United States, trailer costs can easily exceed a thousand U.S. dollars. Therefore, it's crucial to
clearly define responsibilities.

Port late pick-up Fees are generally categorized into two types:

1. Demurrage charges, start counting from the time containers are discharged at the port. Fees are incurred if goods are not picked within the free time limit, which is typically 2 days in the United States. The fees are charged by individual ports, and the rates may vary.

2. Detention charges, begin counting from the time containers are picked up. Fees are imposed if empty containers are not returned within the free time limit, which is typically 4 days in the United States. If an extension of the free time limit is required, an application must be made to the shipping company before the vessel departs.

Freight Pricing:

All freight forwarding companies for U.S. routes use contract prices. Not every freight forwarder has direct access to the pricing for U.S. routes. Many companies in the market utilize contract rates from industry peers. It requires significant capabilities to directly negotiate pricing for U.S. routes with major shipping companies. The U.S. has the Federal Maritime Commission (FMC) to regulate the transportation rates of all shipping companies in the United States, ensuring the protection of American customers' interests.

Weight Limits:

The weight limit here comprises the cargo weight and the container weight. Imported goods bound for the United States are subject to strict weight restrictions, primarily influenced by weight limits on U.S. inland roads. Generally, the weight limit for 20GP containers is 17.3 tons, while that for 40GP/HQ containers is 19.5 tons. However, different ports may have varying weight requirements.

Customs Clearance Process:

1. U.S. Customs receives the AMS declaration data from the exporting country as soon as the ship departs.

2. Local freight forwarding companies or customs brokers in the U.S. must receive the necessary documents for import and the arrival notice from the shipping company at least a week before the vessel's arrival.

3. Application for import customs clearance and inspections must be made to U.S. Customs, and the shipping company at the destination port is contacted to request the release of goods.

4. The release documents are provided to the trucking company or arranged for delivery by local agents to the specified warehouse of the consignee.

5. In the case of "TO DOOR" delivery, the transfer of goods must be conducted when the consignee is ready. Trucking companies typically provide a maximum of 2 hours for loading and unloading at the warehouse, with hourly charges for any excess time. It's imperative to ensure that the weight of the goods does not exceed the U.S. highway weight limit.

Furthermore, it's essential to be aware that the United States has one of the most complicated tariff determination processes in the world. If shipping under DDP terms, the shipper must provide the most accurate product names and H.S. codes to avoid disputes over tariffs.

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