Home – New Forums Logistics Clarification on import service providors

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  • #991835
    prhunt
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    My first import deal has been going very well, and I am close to finalising it with the manufacturer in China.

    Unfortunately, I am hitting up against small but crucial areas of ignorance in the deal that are making me nervous.

    For example, I am now confused about Bills of Lading and who exactly handles that process (my freight forwarder?) and what my exact responsibilities are at each step. I don’t like unexpected surprises, and as much reading as I have done I am still finding steps that I didn’t know about (eg: customs labelling requirements beyond “made in china”).

    I feel like I may be taking too much of a risk by only using a simple customs agent / freight forwarder, as I don’t feel that they will coach me through these fundamental mistakes.

    I am now interested in employing a company that can assist me to iron out the wrinkles and give me the confidence in the process that I desire.

    I have read up on companies such as Easy Imex that provide these value added services and will communicate with your manufacturer with Chinese-speaking staff and make sure that you have fulfilled your requirements with the order, such as ensuring that you are fulfilling your customs requirements with labelling, etc, and that you are completing the order in the correct manner (30% downpayment with 70% after loading and requesting Bill of Lading be sent to the proper address, etc.) These are all things that I am still learning about and do not feel confident to manage in my first order.

    Easy Imex charges 2 – 3 times more than I could justify for my small $4000 order. What is Easy Imex’s service called? As in, is it 3PL, or some other type of business? I cannot find competitors to compare quotes until I know what the description of their role is.

    Alternatively, I would be willing to pay an expert to simply review the quote and documentation that I have and give me a specific list of bullet-point tasks that I need to complete to ensure that the deal goes smoothly.

    I have specific reasons to trust this manufacturer, but I still prefer to cover my behind as well as I can.

    Thank you.

    #1183600
    SourceSmart
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    Hello Prhunt,

    Good to see you progressing with your import..

    Jason had offerred to assist you and give some advice on another post i see..

    Feel free to send me a message with your number and i can give you a call.. Happy to help you in anyway i can.

    I dont need any payment..

    There has been a number of people on this forum that have helped me over the last few years or so :)

    Warren.

    #1183601
    LucasArthur
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    Morning

    Email sent, can’t explain how busy have been so my apologies for extended reply :(

    This area can be tricky if there are legal requirements on packaging, such as hand tools etc of which Warren may have some labelling expertise – from memory.

    It can also be important to speak with a bigger forwarder that has specialised areas in differing products as opposed to a one person admin processor for your paperwork/import. The larger boys can sometimes guide you (or nudge) in the right direction.

    On mobile so unsure of the business you are referring to (unless it’s fs sourcing IMEX on here?) although most of these services in China are sourcing agents or trade partners. Johny on this forum would be the buying agent of my choice here though.

    Not sure its what you are after though as they tend to source, coordinate and negotiate for you and do not necessarily know Aust best practices or legalities (after all they are china based).

    Hope I have hit the mark on that a little, if not hit us up again.

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1183602
    prhunt
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    Thanks again Jason.

    Warren’s chat this morning set me straight and I’m confident again to close the deal.

    Reading through all the past forum posts has taught me more than any other online source, so they are invaluable.

    I will pay 30%, then 70% upon receiving copy of bill of lading. Then they will “telex release” the bill of lading to my agent and hopefully it should all be sorted well before the container arrives in Sydney.

    Once I’ve confirmed with the manufacturer that the labelling adheres to customs requirements, I believe that I’ve covered all of my responsibilities (unless there’s anything I’m forgetting?)

    I have elected to not employ a QC agent in China simply because my order is so small and I know that the manufacturer is actively selling this exact item to major retailers in Australia.

    It’s a gamble, but if I lose all of this money it’s not going to be the end of the world.

    I now have a great import agent that is going above and beyond to answer my questions and guide me through it. Of course – it will all pay off for them when I become a millionaire loyal client ;)

    #1183603
    LucasArthur
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    Awesome to hear mate..

    Although you may feel ‘uncomfortable’ with some of the terms and so forth, its all pretty easy :).. Re BOL, mate telex or manual is no problem and your freight forwarder should stay on top of this as they will be the contact point for your supplier to send info to as required.

    Was pretty sure it wasnt a trade agent you were after LOL, so glad you knocked that over with Warren.. Really, importing is pretty simple and becomes overcomplicated when people try and do it ‘themselves’ or not employ decent help.. Although that comment can apply to any part of your business, the better ‘helpers’ you have surrounding you the easier it all becomes..

    Let us know how you go…

    Cheers
    Jason

    ps.. my biggest concern would be the legalities of labelling and insurances for electrical power tools (if this is the area) and the onus that falls on you if something should go wrong as the importer…

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1183604
    LucasArthur
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    prhunt, post: 214368, member: 62399 wrote:
    I will pay 30%, then 70% upon receiving copy of bill of lading. Then they will “telex release” the bill of lading to my agent and hopefully it should all be sorted well before the container arrives in Sydney.

    Howdy again

    Not sure if i am misreading this, although i am pretty sure that the manufacturer is not going to give you the BILL OF LADING prior to full payment being received. WHY? The Bill of Lading is like the titled to your home, and i am sure that most of us wouldnt hand that over until we are paid in full or their is a reputable middleman in the transaction (read bank here)..

    Sometimes the items have left the country prior to the BOL even being created as well, which can complicate it if you are not on top of it :)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1183605
    prhunt
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    Thanks Jason – concerning your ps; I’ve read through the customs guides on the government sites and as far as I can gather the requirements are just stating what the machine does. Which is the standard label which is on the tool now and on the other versions sold in retail in Australia. So it looks fully compliant.

    And yes, the other risks do fall on us as the importer, that’s why I’m doing my due diligence and confirming the certifications, etc.

    I will defiinitely update if the deal ends up a success! (or a failure ;)

    #1183606
    prhunt
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    Sorry, I must have written it wrong – the BOL would only be “telexed” to my agent once my remainder payment has cleared to the manufacturer – the only concern was about how long the original documents take to be sent, thus the “telex” option.

    The manufacturer only sends a copy of the BOL to prove that items were shipped.

    #1183607
    LucasArthur
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    prhunt, post: 214373, member: 62399 wrote:
    Thanks Jason – concerning your ps; I’ve read through the customs guides on the government sites and as far as I can gather the requirements are just stating what the machine does. Which is the standard label which is on the tool now and on the other versions sold in retail in Australia. So it looks fully compliant.

    And yes, the other risks do fall on us as the importer, that’s why I’m doing my due diligence and confirming the certifications, etc.

    I will defiinitely update if the deal ends up a success! (or a failure ;)

    It’ll be a success mate, i am sure of it :), you have been on top of all the nitty gritty from the outset and is awesome to see the homework you have put in.. The rewards will surely follow!

    Apologies, i wasnt trying to sound negative (so hope it didnt come across that way) it was just those are not my areas of expertise being power tools and labelling so just wanted to spell that out from my lay persons perspective :(

    Re the risk and insurances, mate you would be surprised at how many importers import and do not cover themselves with simple insurance. Product or public liability, its darn scary and i say that from past experiences.. Not good, so i always like to float that comment to importers that i havent had the privilege of actually sitting with..

    Look forward to seeing how it goes mate..

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1183608
    LucasArthur
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    prhunt, post: 214374, member: 62399 wrote:
    Sorry, I must have written it wrong – the BOL would only be “telexed” to my agent once my remainder payment has cleared to the manufacturer – the only concern was about how long the original documents take to be sent, thus the “telex” option.

    Awesome, that makes more sense.. i must have misread it, sorry.

    Either or is no real problem as your item, i am assuming sea freight?, sits for 2-4 weeks anyways before it needs clearance :) so there is time up your sleeve so to speak to get all docs in order. Being your CI, Decs, BL, etc

    Cheers
    Jason

    PS. how are you paying for it? should be there within 24-72 hours of payment being sent?

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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