This Q & A requires a short preamble. The new importer chose to go against my book’s recommendation to use a local freight forwarder and has engaged a Chinese forwarding company to save money on the sea freight.
Q & A. 8
Q. The documents from my forwarder in China say CFR Long Beach CA. So do I need a Customs Broker to clear Customs here?
A. You will need more than the services of a customs broker. There will be a variety of charges once the container reaches Long Beach and from there to the point where you take delivery.
You have a couple of choices to make now, but each will cost you quite a lot.
1. Appoint a customs broker to clear the shipment. Arrange with a trucking company to collect the container and deliver to you. Make sure the trucking company regularly does port pickups. If they are not regulars, the driver will possibly have to sleep overnight in his truck before being allowed entry to load because he will be treated as an outsider. They should quote you for payment for port charges on your behalf and then they will collect those from you as part of their service.
2. Appoint a local freight forwarder to clear the shipment using their in-house customs agent, and arrange to have your container collected from the port and delivered to you. This would be my preferred option rather than try to synchronize clearance by one party and pick up by another. A freight forwarder also knows the importance of quick clearance and pick up to avoid extra costs.
I expect that the big cost saving on sea freight will be eaten up by these extra charges. Because your supplier has quoted you FOB Shanghai, I recommend that for future shipments you arrange shipping on a DAP (Specify your address) basis, because that will cover all of those costs from Shanghai to your warehouse.
See Chapter 3 for how to find a local freight forwarder.
Q & A. 8
Q. The documents from my forwarder in China say CFR Long Beach CA. So do I need a Customs Broker to clear Customs here?
A. You will need more than the services of a customs broker. There will be a variety of charges once the container reaches Long Beach and from there to the point where you take delivery.
You have a couple of choices to make now, but each will cost you quite a lot.
1. Appoint a customs broker to clear the shipment. Arrange with a trucking company to collect the container and deliver to you. Make sure the trucking company regularly does port pickups. If they are not regulars, the driver will possibly have to sleep overnight in his truck before being allowed entry to load because he will be treated as an outsider. They should quote you for payment for port charges on your behalf and then they will collect those from you as part of their service.
2. Appoint a local freight forwarder to clear the shipment using their in-house customs agent, and arrange to have your container collected from the port and delivered to you. This would be my preferred option rather than try to synchronize clearance by one party and pick up by another. A freight forwarder also knows the importance of quick clearance and pick up to avoid extra costs.
I expect that the big cost saving on sea freight will be eaten up by these extra charges. Because your supplier has quoted you FOB Shanghai, I recommend that for future shipments you arrange shipping on a DAP (Specify your address) basis, because that will cover all of those costs from Shanghai to your warehouse.
See Chapter 3 for how to find a local freight forwarder.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today