Guidance on export

For those who are willing to share information and experience, please assist in the compilation of general procedures/documentation/obstacles/requirements, etc on exporting from Taiwan.

Thank you in advance.

First things first.

You have an export license?

I assume you have one.

OK, when it’s time to export, get a freight forwarder specalizing in the area or freight form you want to use. Ship around, as B/L fee, container consolidation fee, customs broker fees, handling charges etc can vary a bit. Get a quote from them, and make sure to tell them when the goodies are expected to leave, as this can have an impact on freight pricing. also, if you sell CIF, you need to calculate the insurance. The formula is (commercial invoice amount x 1.1 x 0.004), as you would want to insure to 110% so you get more money out than just the value of the goods in case the goods are damaged. You will need the money to cover additional charges, and the insurance fee is small, 0.4% of total shipment value.

When the goodies are ready for shipment, you get a packing list from your supplier. (the manufacturer will often pack it for you, and remember to check the quality of the packaging, you don’t want them damaged). Then you also write a commercial invoice and you give them to the freight forwarder. Also remember to arrange pickup of goods, or get the supplier to do it for you(saves you work).

The freight forwarder will then get the goods onboard the ship and get the b/l from the shipping co. Also, they will get the export declaration, and forward it to you. Please note that you need to hang onto the export declaration, when you reclaim your sales tax. (5% of total invoice value)

When you ship, you can either pre-release the goods, or you can get the b/l in triplicate and send 2 of them to the customer, along with commercial invoice originals, and packing list originals. Only use pre-release when you trust the customer, or when they have already handed you the cash. If not, you can sit on the b/l till they cough up.

Things here run rather smoothly and fast. No major obstacles… But always check local requirements regarding packing etc. Australia for instance are not happy about wood packaging, and will require defumigation or cardboard pallets.

I like the terms in Ex-Works or FOB.
In this way, it saves you lots of time choosing forwarders, as well as calucating other costs. You could ask customer to choose a forwarder they prefer instead and be sure to get their account number of the carrier. :smiley:

[quote=“jenpenguin”]I like the terms in Ex-Works or FOB.
In this way, it saves you lots of time choosing forwarders, as well as calucating other costs. You could ask customer to choose a forwarder they prefer instead and be sure to get their account number of the carrier. :smiley:[/quote]

I agree, as you don’t need to muck around with ever-changing freight rates, shipping schedules etc. If I could sell everything ex works, then things would be a great deal easier.

BUT. the customers I have to contend with prefer DDP their warehouse, and don’t have a freight forwarder, as they are not all that used to importing. After all, most companies who are very experienced in importing from Asia will usually not use middlemen. Middlemen are good, where it’s something you want sorted without trouble, or where you are new in the game, or where it’s peripheral to your core business.

I recently put in an offer CIF Albuquerque… In other words delivered within their city limits but without duty and US customs broker paid. That’s still easy to calculate, jsut estimate the CBM’s get the ocean freight CBM charge, and then multiply the 2 figures and put it on top of the total amount.

Generally speaking, the difference between FOB and CIF is the ocean freight charge(in my case), and then a trifling amount in insurance, things only get really complicated, if you have to take care of everything at the receiving end.

Also… a drawback is that CIF prices are hard to kepe stable - and that every location will end up with its own price. However, the customers like it, and well, you have to accept.

Also, you can use your skills in arranging freight to add value for the customer. If you are a middleman, like I am, you will localize designs, you will will do QC, you will negotiate with both sides. If you are also able to get the freight sorted, so they will get the goods cheap and fast, then you have some additional value for the customer… And that’s important unless you own the factory. As a middle man, you are what your service and your wits are, and little else.

Here’s a useful site with lots of information: Export911 (it’s not specifically related to Taiwan, though).

Warning: If you have reason to believe that blinking, bright and non-matching colors may cause you serious harm, please switch your monitor to monochrome mode or wear dark sunglasses before clicking on the link above.

Great link, btw…

All the info I spent a small fortune buying books about on amazon.