What is Forwarding Company? Forwarding Company Review, Features

The so-called transshipment is to add a transfer agency between merchants and customers, so that when merchants cannot deliver goods to customers through existing logistics methods, they can use this transfer agency to indirectly deliver goods to customers. Such a transfer agency is a transshipment company.

About the forwarding company

A forwarding company is a third-party logistics company that mainly collects and forwards goods. The quality of a forwarding company mainly depends on its own internal management and the strength of the logistics company it cooperates with.

Reasons for the rise

1. Most foreign websites do not support direct mail to China, or the cost of direct mail to China is very high, while the price of forwarding companies is relatively low, generally 1 pound (1lbs, 454g) is around US$4, and now many forwarding companies support weight billing based on 100g, about RMB 7 per 100g.

2. Most of the shipping companies are founded by Chinese, so communication is more convenient.

Transfer process

The conventional transshipment process includes: receipt by the transshipment company - warehousing registration - warehousing - shipment - airport waiting - flight back to the country - customs clearance - domestic delivery.

The forwarding company is mainly responsible for the period from receipt to shipment, and the subsequent work is mostly outsourced to other international and domestic logistics companies.

General Operation

The conventional forwarding operation is that after placing an order on a shopping website, you go to the forwarding company's website to fill in the "arrival forecast", and the website will display the "arrival status" after the forwarding company signs for it; then you recharge on the forwarding website and submit the shipping instructions, and then the forwarding company will find the customer's goods from the warehouse and send them out. Each forwarding company has slightly different operating methods, and some have made some improvements on this basis. Please check their website introduction for details.

The main factors affecting the transportation cost

The first is the weight, volume, quantity, fragility, value of the goods, compulsory insurance, etc. The second is other value-added services.

Different packaging methods for transshipment

1. Consolidation: It means combining two or more different orders (orders from different websites, multiple orders from the same website) together and shipping them to the country.

2. Separation of boxes: Items purchased by multiple people in one order need to be checked out separately and sent to different addresses.

3. Grouping an order: Generally, the items are light and the shipping cost for shipping them separately is not cost-effective, so you can buy a few more items and ship them together in a box. This is called grouping an order.

4. Reinforcement: It means to reinforce the package on the basis of the original delivery package and then send it to the country.

5. Original box forwarding: the package is sent to the forwarding company's overseas warehouse and then directly loaded onto the machine for customs clearance and sent to the country without combining or dividing the boxes or reinforcing them. It is the fastest and generally the cheapest.

How to choose a transport company

1. Check the timeliness of the forwarding company;

2. Compare the prices of the forwarding companies;

3. Check whether the forwarding company includes tax;

4. Check whether the forwarding company has other value-added service fees, such as after-sales and customer service.

FAQ

Q: How to choose between a tax-free state address and an ordinary state address?

A: After registering a forwarding company, two forwarding addresses are usually provided, one is a tax-free state and the other is a taxable state. The tax value here is the consumption tax in the United States, not the tariff in China. In order to avoid consumption tax, most people will choose a tax-free state. However, it should be noted that some forwarding companies provide a higher quote for forwarding back to China from a tax-free state than from a taxable state, so we need to make a choice after weighing and comparing.

Q: Will there be tax on transshipment?

A: When goods are cleared, the principle of customs tax is simply to pay taxes if the goods exceed the scope of personal use and the value of the goods exceeds the limit. Customs regulations: For goods sent by mail, the customs shall collect import taxes according to law; if the amount of import tax payable is less than RMB 50 (including RMB 50), the customs shall exempt the import tax. When clearing customs, the customs does not check all the mails one by one, so sometimes it depends on luck.