For first time users of a shipping service,you may have many doubts and concerns about how to ship fedex and procedures regarding import, customs and documentation.The shipper that i use frequently is Fedex, so ill explain the easiest way to ship a small parcel through them.You may want to use it just once,or if you plan on importing at a regular intervals it may work out to be more economical.There are many courier companies out there,many of them smaller and cheaper,but in the next few paragraphs you will learn why its worth using Fedex.
What is a Fedex Account?
If you plan on using the service to get a parcel delivered just once,you need not go through the trouble of creating an account.In most countries, in order to make an account you have to be associated with a company in order to qualify for an account.
Why create an Account?
If you get approved for a , after furnishing the relevant details, you will be given a chart of special rates for import/export for various global regions.These rates are subsidized upto 30% compared to regular rates for customers without accounts. As shipping rates account for a big chunk of any import consignment, getting a huge 30% benefit on shipping charges is a godsend.
above-Fedex airway bill
What is required for account signup?
You will need documentation on behalf of your company addressed to various customs officials authorizing Fedex to ship and clear goods on your companies behalf.You will also have to furnish previous years tax information or submit sufficient proof that your company pays taxes along with documents to back the same.
How much duty will be charged?
Duty will be charged on the commercial invoice that is declared along with the goods.In some cases,the customs duty will be charged on an accessed value of the goods by the customs officials.According to an HS code of cutoms tariff rates for all types of imported goods, your customs duty could account for upto 20-25% of the value of the goods.Fedex does not have any control of how much duty will be charged.Before you order something from an overseas based website,make sure to roughly calculate how much the duty will be, by referring to the HS code handbook.Most Electronic products are free of basic duty,but other duties still apply,these could be in the range of 12%-15% of the value of the goods.Note that these duty charges are excluding the shipping charges that Fedex charges you.
Who will pay the duty?
The good part about shipping through Fedex is that in order to initiate a pickup for your import, all you need to do is give your Account number,and you receive your package at your doorstep,all paid.They take care of customs duties and the entire clearance procedure,all you have to do is sit back and home and wait.Customs duty is paid,and when your parcel reaches home,you clear the delivery person for the customs by cash..Since you have an account, they allow you 3 weeks to pay the shipping charges,but customs charges must be paid right then,at your doorstep.
How much will it cost?
The Entire shipping and customs experience will start at about $100. This is slightly more than what you may pay through other couriers, but Fedex gets it in good time and its a big name in the business,so i guess its worth it.Other factors that contribute to the price of shipping, is the shipment origin and mode of transport. For regions in the extreme east, and which are further away from the destination, charges will be more. Mode is either by sea or air.Air freight expensive,almost 4 times the cost but reaches you within 4-5 business days,whereas ocean freight can take as much as 35 days.Ocean freight charges are calculated in CBM, or cubic meters.This is a unit of volume, the more volume your cargo occupies,the more you pay, whereas air freight charges are calculated on the basis of weight.Ocean is ideal for large and heavy cargo, or even bulk purchases that fills up the entire container.A container can be filled halfway(LCL) or full (FCL).
Give me a jist of the entire Shipping process?
Say you order a Tablet from a Chinese Manufacturer through their website, you give the sales person your account number.The sales person contacts the Chinese provincial office of Fedex for a pickup and gives them your account number.Nothing is paid for the pickup at source.The pickup will generate a tracking number instantly which you can ask for to track your shipment from source to destination.Package arrives 5 days later, and the shipping bill will be mailed to you,for which you have 3 weeks to clear.