Chinese suppliers often export goods to the port closest to their factory, and if your supplier is in Shunde, there is a high chance that you will receive a quote for “FOB Shunde”. We have compiled this guide to help you understand:

  • your quote,
  • the best incoterms when importing from Shunde to the UK, and
  • how to make sure your goods get to you in good condition.

If Possible, Pick the FOB Price

These three letters indicate at which point the supplier will hand over the products, and legal liability for the goods to you. Most of the time, suppliers will give you FOB quotes. However, slim profit margins are making many suppliers shift to EXW. Therefore you need a basic understanding of both incoterms.

EXW- Ex Works

The seller will avail the items for pick-up at the factory. You are responsible for transporting the items from the factory and covering all transport and insurance costs, along with export and import clearance. When working with a new supplier, they will most likely give you an EXW quote as it is their most competitive price.

FOB – Free On Board

A quote for “FOB Shunde” means that the seller will ship the goods to the port of Shunde, where your freight forwarder can pick them up. The seller will take care of export clearance and any damages to the goods. When you get your FOB quote, confirm that the seller is shipping them to Shunde port. FOB is popular because export ports are a convenient place to have a third party inspect the goods, and most freight forwarders have an office at or near the port where they can receive your goods.

Have The Goods Inspected Before Export

When trading on FOB terms, the best place to have your goods inspected is at the delivery location (Shunde port). Having a third party carry out a Container Loading Check (CLC) will ensure that your goods are produced to your satisfaction. It helps to have clear standards of quality, for example:

  • Cosmetic defects are categorised as “minor”
  • Defects impairing a product’s function are categorised as “major”, and
  • “Critical” defects are those that can cause harm to your consumer

  • Your purchase agreement should include a threshold for how many defects you’ll accept per product lot.
  • For consumer goods, set a standard of 4.0 for minor defects, 2.5 for major defects and 0 for critical defects.

  • Make sure that your products meet the standards and regulations for consumer safety in the UK, and that the supplier has provided the documentation to prove this

When importing from Shunde on EXW terms, your will have to get your goods inspected before they leave the factory. In that case, you can ask a third party inspection service to conduct an:

  • Initial Production Check (IPC) on all machinery and materials to be used in the production of your goods before production begins
  • During Production Inspection (DUPRO) to ensure that the factory is keeping in line with your specifications, and the schedule
  • Production Monitoring (PM) where you would order an onsite inspection every day for sensitive orders
  • Pre-Shipment Inspection (PSI), which in the case of EXW would be a pre-collection inspection, to confirm that your goods meet the requirements before they are finished and packed.

Once you are sure that your goods meet your requirements, you need to ensure that they reach you in good condition.

Get Cargo Insurance Cover

To get the best cover for your goods, compare insurance covers from several freight forwarders and cargo insurance companies. Freight forwarders generally offer better insurance than specialist cargo insurance companies. The best option is a comprehensive cover.

Incoterms also come into play here, as they define who is responsible for filing claims for damaged or lost goods. Therefore, you should read the terms of your quote carefully and understand how the contract divides the risks and responsibilities between you (the buyer) and the seller. This step can make a huge difference, especially when trading on terms like DAT, CIF and CFR.

Another step you can take to shield your goods against damage is to request for cardboard cover. Have all fragile items double boxed and the first box wrapped with bubble wrap and peanuts. Also, make sure that your packages are clearly labelled and readily identifiable. As a final step to shield yourself in case anything goes wrong, ask your freight forwarder to send you a copy of the insurance policy and any other documents along the way such as delivery notes and pick-up orders.

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Contact Barrington Today

When Importing from Shunde to the UK, you need a partner you can trust. This is where we come in. At Barrington freight, we pride ourselves on providing reliable shipping solutions for businesses and individuals alike. When you choose us, you choose to work with a friendly team that is honest and won’t overwhelm you with shipping jargon. We offer all our services, including international shipping, pallet forwarding and carrier services at a competitive price. Ready to ship with us? Visit our warehouse at the Bowden terminal in Basildon, Essex or contact us for a quote!

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