Possibilities of customs clearance for your shipments

Since not every consignment is destined for the European Union market and therefore customs cleared for free circulation. Customs allow us to choose between different customs procedures when importing goods.
Here we would like to inform you about the most common customs procedures in Germany in the implementation of which we are happy to assist you:

  • The release for free circulation - Goods imported from a third country are cleared for free circulation on arrival in Germany and thus get the status as "community goods". You can then dispose of the goods freely. As a rule, this presupposes the payment of import duties (customs duty, import sales tax and, if applicable, special excise duties) for this product.
  • Transit clearance (T1) - Goods imported from a third country will not be released for free circulation on arrival in Germany. intended for (re) export or for transit only. A good example of this are goods that are imported via Germany but are destined for Switzerland.
    In the transit procedure, the forwarder ensures to the customs authorities that the goods to be transported are brought to customs in due time and in the unaltered state (complete) in the country of destination. Only there all import duties paid will be paid.
  • Transfer of the goods to a customs warehouse - In the customs warehousing procedure, goods may be stored for a fixed and undeclared period at certain approved locations or warehouses within the customs territory of the Community. During storage in a bonded warehouse, neither import duties nor commercial policy measures (for example, submission of import licenses or import licenses) are required.
  • The temporary use of your goods - In principle, import duties should only be levied on goods which are definitively retained and used in the customs territory of the Community. Goods which are only temporarily available for use in the customs territory of the Community may be placed under the temporary admission procedure. This procedure provides for a total or partial import tax exemption, and applies e.g. for trade fair and exhibition goods that would subsequently be re-exported.
  • Inward processing - In inward processing, non-Community goods are imported into the customs territory of the Community in order to leave the customs territory of the Community after processing, in the form of compensating products. The imported goods are exempt from import duties in this case.
  • Outward processing - goods are temporarily exported from the customs territory of the Community and undergo processing in a third country. Thereafter, the product is re-imported into the customs territory of the Community with total or partial relief from import duties for free circulation.

general average and its consequences for the importer

Actually, the MOL Comfort should arrive in Hamburg on 02.07.13 to fulfill it's regular service from China to Europe. On 17.06.13, however, the incomprehensible happened, the MOL Comfort comes into bad weather in the Arabian Sea and breaks into two parts. The fore and aft vessels of the MOL Comfort initially retain their buoyancy, but sink a few days later.

There are 4382 containers lost. The damage amounts to several hundred million euros.

Not a catastrophe scenario, but a bitter reality for freight forwarders, importers, and customers waiting for their deliveries. Have you ever thought what impact such a disaster could have on your business?
In close consultation with our insurance partner, we would like to show you the significant consequences of such an event, which is conceivable at any time, because the consequences for you can be of life-threatening importance.
Obviously one would think: Someone is going to to pay for my damage! Wrong, a recurring miscalculation. As a cargo owner you are suddenly confronted with a completely new and incalculable situation. The possible procedure in case of damage looks like this:

  • The shipping company explains general average according to international maritime law.
  • Consequence: The shipping company and the owner of the cargo are jointly and severally liable for the resulting damage to the goods as well as for the salvage and rescue costs.
  • Prevention: Concept of a general transport insurance for all your shipments. In this case, the transport insurer will assist you as follows:
  • He draws the required binding safety declarations
  • If necessary, makes supplementary payments of large-scale general margin (installment payments)
  • registers your claims in the relevant territory
  • introduces further follow-up actions (such as legal advice, peer review, etc.)

For explanation:

Average gross margin can be quite 5-6 digit sums and more.

Example: for 5 rescued undamaged containers in another ship fire disaster, transport insurers had to pay US $ 60,000 salvage costs.

  • If you have not concluded a separate transport insurance, you must pay the salvage costs yourself! Cargo owners without transport insurance must provide the pro rata recovery costs etc. in the form of advance payment or guarantees before delivery of the goods can take place. If no payments are made, the goods will be auctioned to the highest bidder.
  • Cargo owners of damaged goods with transport insurance receive the goods damage replaced. Furthermore, also in vain spent freight costs will be replaced. Co-insured can be further costs such. As air freight costs to achieve a replacement in the fastest possible way. A hedging of imaginary profits is also possible if your customer should no longer accept a replacement.
  • Cargo owners of damaged goods without transport insurance receive a maximum of 2 - 2.5 SDRs (special drawing rights) per kilogram of gross weight of the damaged goods. Thus, the compensation is usually well below the actual value of goods. Specially valuable goods cut extremely bad here! In this case, the cargo owners at the shipping company or the P & I Club have to meet this requirement in the present case. For example, in the Far East or any other place according to the terms of the bill of lading. As a rule, you will also need an experienced local lawyer who will incur further high costs for which you must enter. Until a payment is confirmed and actually done, pass usually 2-3 years or more. Your business could already be ruined during this time!
  • The insurance policies taken out by your suppliers for CIF transactions are often inadequate and unclear as far as the scope of insurance is concerned. Often the amount of the insurance premium decides here rather than paying attention to a regulation that is optimally coordinated for you in case of damage.

As a rule, the shippers conclude the policies with Asian insurers. This means that you may have to claim your damage in the Far East. What many importers do not know is the fact that according to Incoterms the transfer of risk takes place in the port of loading, even in CIF shops! This does not mean your supplier, but you have to claim your damage personally! This can be expensive and, above all, very lengthy.

Take the fate of MOL Comfort as an opportunity to get competent and comprehensive advice on the subject of transport insurance. From experience we know that many importers are only insufficiently informed about these risks.

Our longtime, experienced partner, WP Versicherungsmakler, Wilfried Peters in cooperation with the Sieveking Group, is always at your disposal to help and advise you. Just contact us!


Cost savings through optimal carton sizes

  • You know the problem from the daily business, due to poorly chosen board dimensions often cause large congestion losses on the euro pallets. This leads to more required cargo space, which ultimately has a negative impact on freight costs.
  • ATTENTION, this problem is often homemade! Anyone who points to the desired board dimensions when placing their order will save money on the subsequent transport.
  • Most recipients do not accept overpacked Euro pallets. Also in the wake by truck there are problems if the pallets exceed the measure of 120cm x 80cm.
  • As a result, when choosing the optimum box size, the following should be noted:
    • The boxes stowed on the pallet should completely fill the basic dimensions of the euro pallets, but not exceed them. (for example 4 x 29cm and 2 x 39cm)
    • It should always be about 1 cm as a loss of storage per box with planned as cartons are often bulky by sea.
    • To prevent the boxes from being pressed in and deformed, they should be completely filled with goods or filling material.

Please contact us before placing your order to your suppliers and we will work with you to determine the optimum box size based on the delivery conditions for your customers in Germany.

Damage minimization by loading on europallets already from factory in China

  • In consultation with you as an importer, we deliver new Euro pallets to the corresponding factory in China.
  • First, give us the palletizing instructions of the final recipient
    (Height, supernatant, weight)
  • Through our partners, we help the manufacturer to implement these requirements
  • The cost of this will be charged to either you or your supplier. Of course, the ownership of the pallets will pass to you when they are handed over to Germany.
  • The advantages are apparent:
    • Transport damage is minimized
    • Reloading processes at terminals are accelerated
    • Cargo securing during transport by truck is optimally supported
    • In the case of several articles per B / L fine sorting is omitted
    • Final recipient gets the goods properly handed over on pallets jammed

Damage prevention through proper packaging

  • We all know the problem from the daily business. Suppliers from the Far East save on cartons and pack their goods in boxes that are not suitable for sea transport and do not fill them with extra fillers to prevent the cartons from being pushed in. The result is always the same: heavily deformed and torn cardboard. It is not uncommon for some of the goods to be damaged as well.
  • The consequential damages are often underestimated. Again and again delays shipments, as the acceptance of the goods in bad cartons is not accepted by the end customer. There are extra costs for repacking the goods in new boxes and the re-delivery which could have been avoided.

What should you look for when packing

  • The boxes should be at least 2-wavy and properly glued.
  • The cartons should be completely filled with goods, alternatively the cavity in the carton can be filled up with filling material to prevent the cartons from being pressed in.
  • If the product is subject to breakage (for example, lamps or glass), this should be clearly noted on the boxes.
  • The goods and cartons should be protected from moisture to prevent the cartons from softening or even forming mold.
  • If a product needs to be protected from moisture, it is possible to hang what are known as "dry packs" for transport overseas into the containers.
  • When selecting the boxes, you should also pay attention to the correct board dimensions (see the card "optimal board sizes"). Here you can save money!

If you have any questions, please do not hesitate to contact us. We are happy to advise you.

 
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