How FOB Shipping From China Works

Understanding FOB Shipping from China:

Clarifying the Responsibilities of Parties Involved

 

 

By now you might be asking yourself how FOB shipping from China works.

It doesn't matter whichever place you are shipping from in China. You could wish to go to FOB Shanghai or FOB Shenzhen.

Actually, to understand how FOB works, you need to know the responsibilities of parties to the FOB shipping from China.

 

FOB Shipping from China

 

This section discusses how FOB shipping from China works by looking at the responsibilities or the buyer and the seller.

 

 

Buyer's Responsibility in Shipping from China

The buyer, in this case, refers to you who is shipping your goods from China.

Among the responsibilities that you will handle during FOB shipping from China include:

 

§ Bearing the shipping risk

It is your duty as a buyer to bear the risks that might occur on your goods during the shipping period.

To minimize these risks, you need to take an insurance policy for your goods.

A reliable freight forwarder will be able to offer you competitive insurance rates for your goods.

 

§ Unloading cost

You must pay for the cost of unloading your goods at your port of destination.

Unloading involves removing your goods from the carrier once they arrive at your port of destination.

 

 

§ Paying for the FOB invoice

Once you receive your goods, it is your responsibility to pay for the cost of the invoice of your goods.

Your supplier will provide this invoice for you to make the payments.

 

 

§ Booking space for your goods.

You will be responsible for booking space on the carrier for the shipment of your cargo.

This is where the services of a forwarder come in handy.

Since they have the knowledge and networks, they will be able to offer the best deal for the shipping space of your cargo.

 

 

§ Paying for your cargo

Lastly, you will have to pay for the goods since they are yours.

You will do this as per the agreement you have with your supplier.

 

 

Seller's Responsibility in Shipping from China

On the other hand, your seller refers to the entity that you will be purchasing your goods from in China.

To facilitate your FOB shipping from China, your seller will handle the following responsibilities:

COSCO Shipping

 

 

§ Transport logistics for your goods

It is the responsibility of your supplier to organize and for and transport your goods from their premises in China.

They will use different means to transport your goods to the port of origin in China.

 

 

§ Terminal handling cost

When your goods arrive at the port of origin in China, your supplier will pay for the loading cost of your goods to the carrier.

Loading needs to consider the safety and nature of your goods.

As such, the more complex handling of your cargo during loading is, the higher the loading cost for your supplier.

 

 

§ Documents fee

It is the responsibility of your supplier to pay for the cost of producing the relevant documents for shipping your goods.

Such documents include the commercial invoice, the packing list, and a certificate of conformity.

 

 

§ Bearing certain risks

Your supplier will handle the risk occurring as a result of transporting your goods from their warehouse to the port of origin.

 

 

§ Customs clearance charges

Before shipping of your goods from China takes place, they will have to go through the customs clearance process.

To facilitate this process, your supplier may have to engage the services of a customs broker.

Your supplier will bear all the cost that arises from the customs clearance process as well as the cost of the customs broker.

 

 

§ License permits

Certain goods will require licenses before shipping out from China.

Your supplier has to have these permits and to pay for them before importing.

You may fail to ship your goods from China if they don't have such permits.