Friday, March 12, 2004

Shipping Costs

Re: [spiers] Shipping Costs


In a message dated 3/12/04 9:44:00 AM, sparksor@sbcglobal.net writes:

<< I have been given an

estimate of $10,800 for 20ft of container space from the

manufacturor. >>

*** Haha... Leo beat me to it... i was going to say " a great rate... for
Hazmat (Hazardous material)"

Anyway, like anything else, get three quotes, and you should certainly be
working with a customsbroker here in USA...

Also, this is hard to explain, but sometimes in biz you will find people who
are happy to lean on you starting out, too see how strong you are. A kind of
test. I don't want it to sound negative, but it is the idea, sort of, that
"if I don't test them somebody else will..." and if you are dumb enough to pay
$10,000 for freight, well, better the supplier knows this immediately than
later...

heck, car rental companies do this...yesterday I called and got a quote for
$90 a day... then $44, then $20... all in the same call with the same sales
rep. I don't get mad, i just know what the going rate is and I keep at it until
I get the going price.

Don't let this discourage you, you have us to ask, but more important, your
customsbroker would have steered you right... so it is important to work with
the people I recommended, in the sequence I recommend. Then you'll learn what
you need to know BEFORE you need to know it.

I had lots of help starting out, and as you can see, from Leo and others,
you do too!

John


Shipping Costs

RE: [spiers] Shipping Costs

That is rediculous. Unless you are shipping nuclear waste or something
toxic. Normally we pay around $1800/$2400 to Los Angeles for
dry-goods/refrigerated goods. You will want to check if it is a 20'
High-cube or not. Leo

-----Original Message-----
From: RoseFabHk [mailto:sparksor@sbcglobal.net]
Sent: Jueves, 11 de Marzo de 2004 10:12 p.m.
To: spiers@yahoogroups.com
Subject: Fwd: [spiers] Shipping Costs


I am in the process of estimating costs on a new product. I need to
ship by container from Shanghi China to Oakland, CA. This will be my
first experience using ship containers. I have been given an
estimate of $10,800 for 20ft of container space from the
manufacturor. This seems awful high to me. Anybody have any
experience in shipping by containers? I could use any advice on how
to obtain competitive rates from reliable shippers.

Thanks In Adavance

RoseFab


Shipping Costs

RE: [spiers] Shipping Costs

The amount you got must be kidding. According to my current shipping agent a
regular 20ft container from Shanghai China to Oakland is about $2000. I can
give you my agent's contact info if you need.


Fang Li
ESS Links

-----Original Message-----
From: RoseFabHk [mailto:sparksor@sbcglobal.net]
Sent: Thursday, March 11, 2004 7:12 PM
To: spiers@yahoogroups.com
Subject: [spiers] Shipping Costs


I am in the process of estimating costs on a new product. I need to
ship by container from Shanghi China to Oakland, CA. This will be my
first experience using ship containers. I have been given an
estimate of $10,800 for 20ft of container space from the
manufacturor. This seems awful high to me. Anybody have any
experience in shipping by containers? I could use any advice on how
to obtain competitive rates from reliable shippers.

Thanks In Adavance

RoseFab


Hong Kong order

Re: [spiers] Hong Kong order


In a message dated 3/12/04 9:23:18 AM, tiananmentrading@aol.com writes:

<< I'm about to place an order for baby garments in Hong Kong that I designed
(thanks to you I changed from "off the shelf" to my own concept).

***Congratulations! And you have the orders in hand to cover the supplier's
minimum production run?***

What is the
best payment terms? I have been working with the manufacturer for 1 1/2 years
and trust them but don't want to lose my shirt on some amateur mistake.

***If they haven't mentioned any, then best bet is visa mastercard. This is
not so strage, in fact Visa is working on the software to securely handle
transactions up to a $10 million by credit cards, for biz purposes (think of the
frequent flier miles!)

There are issues here, you personal card explicitly prohibits you using the
card for biz purposes... and the point of using visa mastercard is for the
security, and if you have a problem Visa/MC may not help you since you "abused"
your card.

The supplier may require you add say 2% to the invoice value to cover what
Visa/MC charges the supplier.

Assuming the value of the shipment is some $7000, and your card limit is
$5000 (I assume you all clear out your credit card balances each
month...ahem...),
then you'll need to mail in an extra $2000 to visa before the deal to create
a $5000 + $2000 = $7000 credit cover the transaction.

Anything less than $5000 should be under some special arrangement...over
that, normally a letter of credit is required.

(And after the last post regarding "checking credit on letters of credit" I
hope I made clear the EVERYONE gets checked by the banks under the rules, not
that anyone being checked is any sort of suspect.)***

How would you recommend proceeding? 1/3 down at production, 1/3 at time of
shipping and 1/3 at receipt of shipment? What else to watch out for? I know
you
have years of experience here. Please advise! >>

***Above about $5000, letter of credit, below that, visa/master card. If not
workable, keep in mind that he supplier is making maybe 10% on the deal, so
you 66% by the time he ships is still quite a risk for him. But ask him what
works.

Also, think this thru... planning a trip...? Can you tie in the delivery to
the docks overseas with you being there? Watch the goods boxed... see them
loaded, pay the supplier cash?

See what the supplier says...

John


Hong Kong order

Hi John,
I'm about to place an order for baby garments in Hong Kong that I designed
(thanks to you I changed from "off the shelf" to my own concept). What is the
best payment terms? I have been working with the manufacturer for 1 1/2 years
and trust them but don't want to lose my shirt on some amateur mistake.

How would you recommend proceeding? 1/3 down at production, 1/3 at time of
shipping and 1/3 at receipt of shipment? What else to watch out for? I know you
have years of experience here. Please advise!

Many Thanks,
Mary


Mary Morrison
Mooncakes/Tiananmen Trading, Inc.
Coral Gables, FL 33134
Tel: 786.552.1311
Fax: 305.460.9020

Websites:
www.tianantiques.com
www.moon-cakes.com


Thursday, March 11, 2004

Shipping Costs

I am in the process of estimating costs on a new product. I need to
ship by container from Shanghi China to Oakland, CA. This will be my
first experience using ship containers. I have been given an
estimate of $10,800 for 20ft of container space from the
manufacturor. This seems awful high to me. Anybody have any
experience in shipping by containers? I could use any advice on how
to obtain competitive rates from reliable shippers.

Thanks In Adavance

RoseFab


Wednesday, March 10, 2004

Letters of Credit

Re: [spiers] Letters of Credit


In a message dated 3/10/04 5:54:53 AM, cusacktf@woodwrighttools.com writes:

I am writting to the group to get a response to a problem I ran

into. I have been in contact with a manufacturer in China and I am

in the middle of negotiating the terms with him.

***yes, get ready to spend the next 30 years negotiating terms, as
adjustments are made efter every shipment, adjustments based on the new
information with
every shipment. It is a good thing.***


The product I am planning on importing is mechanical and may require

repairs over time, so I am requesting that he supply some

spare/maintenance parts as part of the order. He tells me he will

include the parts as part of the price of the saw in-leu of a

warranty, which he does not normally provide any warranty.

***Right, what they normally do it "supply some

spare/maintenance parts as part of the order" since there is a known failure
rate, but which units fail cannot be known in advance... thus, the most
sensible course of action is to cover the known failure rate with sufficient
supply
of spare parts.***

I decided

to check with US Customs on this type of arrangement, and they did

not seem to think this was a workable arrangement. Customs, does not

think having an entry on the invoice marked spare parts/ no charge

would be ok. If it is not shown on the invoice, then the packing

slip or carton counts would be out of sync, and if noticed would be a

problem.

***yes, AKA a federal crime, commonly referred to as smuggling. This is why
we all pought to talk to customs brokers, and not us customs service. Customs
are not businesspeople. Spare parts are not without value, so don't call
them what they are not. You supplier certainly is not giving the spare parts
for
free, he has worked them into the privce. Simply have the supplier back out
the spare parts prices from the total price, and itemize it all. And decalre
it all to customs.***


A second Issue that I ran into was that the Letter of Credit is

a "Credit Application", meaning it has to go through a credit

approval process that could take a week or more. I guess, I always

thought that the L/C was a simple application that you pre-paid. So

at this point, I am stalling the manufacturer, while I hope to

recieve an answer from customs and wait for the "Credit Application"

to be processed.


***Yes, homeland security/patriot act. This ticks me off... You cannot get a
mortgage without reports to homeland security. The process for determining
if you are a terrorist is similar to checking credit, so they just say they are
checking your credit. Since we are moving to a secret police state (it is
easier to track you than Osama) and your banker can go to prison for revealing
you are the subject of a secret police investigation, everyone just says
"credit check". Sadly, if you are innocent in USA, you have plenty to worry
about
now.

The bankers are required to know who you are, so it is just another layer.
Until we can elect some competent officials, we are in for Soviet Style
inefficiencies. (and no, I didn't vote democrat either...)

We survived a huge, pointless increase in govt intervention in the 70's and
we'll survive this too, but it sure makes us less competitive.***

John


Tuesday, March 9, 2004

Letters of Credit

I am writting to the group to get a response to a problem I ran
into. I have been in contact with a manufacturer in China and I am
in the middle of negotiating the terms with him.

The product I am planning on importing is mechanical and may require
repairs over time, so I am requesting that he supply some
spare/maintenance parts as part of the order. He tells me he will
include the parts as part of the price of the saw in-leu of a
warranty, which he does not normally provide any warranty. I decided
to check with US Customs on this type of arrangement, and they did
not seem to think this was a workable arrangement. Customs, does not
think having an entry on the invoice marked spare parts/ no charge
would be ok. If it is not shown on the invoice, then the packing
slip or carton counts would be out of sync, and if noticed would be a
problem.

A second Issue that I ran into was that the Letter of Credit is
a "Credit Application", meaning it has to go through a credit
approval process that could take a week or more. I guess, I always
thought that the L/C was a simple application that you pre-paid. So
at this point, I am stalling the manufacturer, while I hope to
recieve an answer from customs and wait for the "Credit Application"
to be processed.

Tom Cusack
President
Woodwright Tools, Inc.

PS. A couple of free resources on importing that I found are listed
below. This is not a recomendation to use any of these, just good
sources of information.

http://www.bankofthewest.com/pdf/importer.pdf

http://www.bankofthewest.com/pdf/exporter.pdf

http://www.ponl.com/external_media/pdf_files/media.1018.0.pdf


Sunday, March 7, 2004

Re: [spiers] Patented product


In a message dated 3/7/04 6:55:49 AM, johnkuo@hotmail.com writes:

<
I received some samples from a vendor in China and I noticed US patent

numbers on them. Can I freely sell products like that??>>

Ahem... what makes you think that something with a US Patent number on it has
a US Patent? Of course you can go online (uspto.gov) and see if indeed there
is such a patent number, or if there is, it is the same as the sample. And
then you can see if the patent expired...

Whether you can freely import something patented depends on if the
transaction is legitimate... which usually means checking with the patentholder,
if
there is one. And whether you can freely sell it usually means checking with
the
customer, if there is one.

But this begs the question, how come you are considering items that are
already made?

John