nternational Transportation

Simple Procedures for Chartering and Booking Freight

A. Shipping

1.    An import/export company entrusts a shipping company to handle the consignment procedures and fills out a shipping note (also known as a "booking letter") to be submitted to the shipping company as a basis for booking.

2.    After receiving the shipping note, the shipping company reviews it, determines the shipping vessel, and returns the booking confirmation to the consignor. The shipping company then provides the full set of shipping orders to the import/export company for completion, and acts as the consignor's representative to handle the joint transport procedures with the shipping agent.

3.    After the goods have been inspected and released by customs, the captain or first mate signs the "goods receipt" (also known as a mate's receipt). The shipping company issues a temporary receipt to the consignor, indicating that the goods have been properly loaded. The consignor then presents the goods receipt to the shipping agent, pays the freight charges, and obtains the official bill of lading.

B. Customs Declaration

Customs declaration refers to the procedures for declaring import/export goods to customs before shipment. According to China's customs regulations, all goods entering or leaving the country must pass through ports, stations, or international airports with customs facilities and be declared to customs by the owner of the goods. After customs clearance, the goods can be collected or shipped for export.

Currently, when Chinese import/export companies handle customs declarations, they must complete an export declaration form, and provide a copy of the export contract, invoice, packing list or weight list, inspection certificate and other relevant documents to declare exports to customs.

C. Insurance

For export contracts based on C.I.F. price, the seller must promptly complete the insurance procedures with the People's Insurance Company of China and fill out the insurance application form before shipment. The insurance policy for export goods is generally handled on a case-by-case basis. The applicant should specify the name of the goods, insured amount, transportation route, transportation mode, sailing date, and insurance type when applying for insurance. Due to the large volume of business between Chinese import/export companies and the People's Insurance Company of China, the insurance application form is generally not completed, and instead the export goods list or shipment analysis form is used as a substitute for the insurance application form. The insurance company accepts the application and issues the insurance policy or certificate.

From the above stages of fulfilling export contracts, it can be seen that the connection between goods, documents, and ships is an extremely detailed and complex task.