By Richie Lin    Photo：CANVA

Many suppliers in Asia or even the buyers in the USA are still unfamiliar with what are the complete end to end procedures from the factories in Asia to the designated destinations in USA. So today we spend some time to talk about the basic FCL DDP procedures form Asian countries to USA and the related charges happening during the transit.

1. Confirming the cargo ready date of Purchasing Orders

After receiving the purchasing orders by customer in USA, we would immediately contact the factories in Asian countries the actual cargo ready date. If the cargo ready date cannot match the delivery window time period in USA, we would inform the customer either by pushing the factories speed up the productions or changing the delivery window. 

2. Booking space with shipping lines:

After confirming the final cargo ready date and the numbers of containers, we will book the space with shipping lines accordingly. Normally, we book the space with the estimate to departure (ETD) date 7 days after the cargo ready date. However, shipping lines keep using blank sailings recently to maintain the rates. Therefore, sometimes we need to select the space which has ETD more than 10 days after cargo ready date. If the products have battery inside or any dangerous goods, we need to provide SDS to shipping lines for review longer and the ETD will be much later.

3. Bring container to loading ports and filing export customs clearance:

After getting the space confirmation from shipping lines, we would send the shipping order (SO) to factories. Factories would transfer the SO to their trucking companies to inform them where to pick up the empty container to factories and where to return the loaded containers. Normally, the empty container can be picked up 7 days before the estimate to close (ETC) date of the booked vessel. Factories will also provide the commercial invoice, packing lists, and related documents to their customs brokers to file the export customs clearance. The loaded containers should be returned to the ports and export customs clearance should be finished before the estimate closing date for the vessel accepting the booked space.

4. Preparations of departure:

CBP (Customs and Border Protection) in USA requires each shipment to finish filing ISF (Import Security Filing) 48 hours before the vessel departure or will be fined USD 5000 for each shipment. After the vessel arrives at the loading ports, it will take around 48 hours to upload the containers which could catch up the ETC. Shipping lines will issue the Master Bill of Lading (MBL) in 48 hours after the vessel depart from loading port. And we would issue the House Bill of Lading (HBL) to the factories based on the information on MBL. Then the factories would decide if they wanted to telex release the HBL or they would send the original HBL to the customer in USA.

5. Arrival Notice

Shipping lines will send the arrival notice to our agent in the USA which is the consignee on MBL 7 days before vessels reach the ports of USA. Then our agent will transfer the arrival notice to the customs clearance brokers to do the preparations for filing the customs clearance. As far as the customs clearance is concerned, there will be a difference between the containers which will be picked up at the discharged ports and those which will be transferred to inland cities such as Chicago and Minneapolis by rail. For those which will be picked up at ports, the import customs clearance will be filed 5 days before the vessel calls the discharged ports. And for those which will be transferred inland, the custom clearance will be filed 5 days before the containers arrive at inland rail ramps.

6. Import customs clearance:

Whereas the containers will stay at ports or be transferred inland, the customs brokers will file entry to CBP and cause the customs clearance charge. If the products requiring FDA certificate or Lacey Act, it will cause extra FDA or Lacey Act filing fees. Since tariffs in the USA will be adjusted under Trump administration, consignees should discuss proactively with customs broker and the CBP about what HTS code to USE. After a 25% tariff is imposed on all steel products imported into the United States from any country. Steel melted & Pour Country must be listed on the invoice for each steel product and must provide value and weight (kg) of the steel component in the separate lines for duty calculations. For example: 2 pieces of Machines – 8431.31.0020. Product total weight is 50kgs with value $1000. We can declare two separate lines to declare duty.

1. 8431.31.0020, 2 NO, 40kg, $800 (less steel component value)

2. 9903.81.91, 10kg, $200 (steel Component value).

And it will cause customs inspection charges if the containers are selected by CBP to run customs inspections. After customs are released at ports or at the rail ramps, importers will need to pay the import duty, HMF (Harbor Maintenance Fee), and MPF (Merchandize Processing Fee) to CBP before picking up the containers for delivery. Consignee can also choose to file the import customs at the discharged ports for the containers which will be transferred to inland cities. But most consignees chose not to do this way because it is more secure when it is in bonded move to inland and the duty can be paid until shipment is received to manage their cash flow.

7. Containers arriving ports and inland rail ramps:

After the vessels arrive at the ports, containers will be discharged at the terminals of the ports. Normally the terminals will charge THC (Terminal Handling Charge). But THC in USA is already included in the ocean freight rate from Asia, it will not be charged again on USA soil. If the final delivery place on the MBL is the port, container would stay at port and wait for customs released by CBP. If the final delivery place on MBL is the IPI (Interior Point of Intermodal) such as Chicago, Detroit, shipping lines will transfer the containers to the railway companies to move them to the inland rail ramps to wait for customs release. And railway companies will not charge the movement on the rails because it is also included in the ocean freight rate from Asia. It normally takes 7~10 days to transfer the containers to inland rail ramp after it was discharged at the ports. However, due to port congestion, labor shortage in the ports and railway companies, sometimes it would take more than 14 days to transfer the containers to the inland rail ramps.

8. Delivering containers to the designated destinations:

When container is customs-released by CBP, our agent will receive pick-up number from shipping lines and will pass it to trucking companies. If the container shall be moved inland rail ramp, the pick-up number will be given after the container is unloaded from rail carts. Some rail ramps like Detroit can only give 2 calendar days free storage for every container. So, rail storage might happen if the container was unloaded at Detroit rail ramp during the weekend. Shipping lines usually provide 2 days free demurrage and trucking companies need to pick up the container before the LFD. Delivering container to destination will cause the drayage charge and two days chassis charge. If consignee needs us to drop the container at their doors and pick up the empty container later, the drayage would have to add the drop and hook charge. Shipping lines usually give four days free detention starting from the date of container picked up by truck. Therefore, we need to monitor closely with consignees the container empty return date to avoid the detention charge.

9. Extra charges might happen:

Chassis Split- If there is no chassis at the ports or rail ramps.

Pre-pull: When customer cannot accept the container but need to pick it up container to avoid demurrage.

Yard Storage: Needs to store the container to wait until customer can receive the container.

Overweight: If cargo weight is over 38500 pounds for 20GP and over 44000pounds for 40GP.

Rail storage: If container stays inside the rail ramps longer than two days free time given by railway companies.

Bobtail charge: Trucking company has no container to deliver when picking up the empty.

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