Modern-day Importance of Customs Brokers 

Modern-day Importance of Customs Brokers 

by | Jun 6, 2022 | Customs Broker, Customs Broker Miami, Customs Clearance, Import and Export Experts

 

The importation of goods is complex and has shown the modern-day importance of customs brokers. International imports have gone up significantly, with various factors contributing to this, like the growth of e-commerce and globalization. A significant number of importations means that more protection against the movement of illegal and dangerous goods is essential. Customs brokers ensure that importers follow the government guidelines.

Imagine a person or company that wants to begin selling a product internationally. This person may well benefit from a customs broker. For example, what if the seller is in China and gets their first customer in the United States? Since international trade has many regulations and costs, bringing the product to the U.S. may seem intimidating to the seller. The customs broker will help simplify the process.

Customs brokers may also help avoid penalties for importing goods. Let’s say that you are importing an item into the U.S. for the first time. You receive a message from customs saying that your import was classified incorrectly and that you will be fined. Being a first-time shipper, you may not be familiar with how to classify a good and make a mistake. You may also not receive the item you imported. Contacting a customs broker would have saved you money and time since brokers understand how to classify imports.

Another common daily case is the importation of pets. A first-time importer recently fell in love with a dog and wanted her to be imported into Miami. At first, the importation process was tedious, with a tremendous amount of paperwork. Bringing the dog through U.S. customs was stressful until they hired a customs broker. Now, the dog is in a loving home in Miami.

What are Customs Brokers

When freight enters a country, it goes through customs clearance before reaching its final destination. This process is handled by a customs broker. A customs broker is a company or individual that clears goods entering a country for a shipper. They act as the middleman between the importer and the country that they are importing to. A customs broker’s duties are to make sure that the importers comply with the country’s regulations that they are importing into. Customs brokers also ensure that your imported goods are under the correct harmonized code, which are part of a system that customs authorities use to assign taxes to imported goods. In few words, customs brokers act as guides for the entire customs clearance process.

Why do We Need a Customs Broker?

Most first-time importers are not familiar with the customs clearance process. If specific regulations regarding imports are not followed, it causes the importer trouble, and delays the entire supply chain. For example, in the United States, certain toys that are considered dangerous may be banned from importation. If you try to import an illegal toy, customs may fine you over $1000. Certain imports may also require a permit before entry.

Another example is soil, which is prohibited from entering the U.S unless the importer has a certified permit. There can be many CBP (Customs and Border Protection) regulations that an importer has to follow and memorize. To save time and speed up the import process, they can hire a customs broker. A customs broker also lets the shipper understand the taxes of importing. They may pay the importer’s duties to customs and then send the bill to the importer. This helps the shipper avert unnecessary expenses since customs brokers know the duties and taxes involved in your import.

Are You Looking for a Customs Broker?

Bringing goods into the United States can seem intimidating and stressful to importers. This can be whether you are bringing imports into the U.S. for the first time or a company that plans on continuously importing. One of the most prominent locations where shippers get goods into the U.S is Miami, Florida. Ranking in the top 10 ports in terms of volume of imports, Port Miami brought in 1,066,738 TEU (Twenty foot Equivalent Unit) in 2020. A1 Worldwide Logistics is a Miami based logistics company whose team is prepared to guide you through the customs clearance process. Our customs brokers help you clear dry cargo, perishable items, food products, automobiles, and much more through customs. Contact us at 305-821-8995 to clear your merchandise and start the importation process.

Port of Shanghai Opened for Freight Shipping 

Port of Shanghai Opened for Freight Shipping 

by | May 19, 2022 | Freight Forwarding, Import and Export Experts, Shipping Logistics, Supply Chain, Transportation

 

In the past few weeks, the Port of Shanghai had been working at a limited capacity due to the coronavirus pandemic. Now, operations in the port have opened to close to normal levels. Shanghai, China, has been on lockdown because of the “zero COVID” policy and has started to reopen in stages. This opening began with industrial production and manufacturing industries and then went to commercial businesses like stores and pharmacies. Additionally, The Port of Shanghai has slowly opened import and export operations. City authorities have noted that “normal life” will return to Shanghai on June 1, 2022.  

This reopening of the city and port is significant for the world of international shipping. When Shanghai and its port shut down, the shipping industry instantly felt the blow. Overseeing an estimated 744 million tons of cargo yearly, the Port of Shanghai is the largest and busiest seaport globally. The lockdown immediately increased the number of container ships outside the port by 195% and affected global supply chains. To prevent a backlog, 20,000 employees worked in the Shanghai port to keep it operating during the lockdown. The result was a throughput of 82% containers passing through the port in April compared to April of last year. 

What May Happen in the Upcoming Months 

As Shanghai returns to everyday life, the supply chains for various companies may resume pre-lockdown levels of normality. With increasing orders being placed from reopened manufacturing factories, the Port of Shanghai will feel increasing pressure. Not only is freight being exported out of the port but into the port as well. The need for trucks to move freight from and to the port will also rise. Because the Port of Shanghai is so extensive, the opening is highly positive for Shanghai and the world’s economy. 

Once the lockdown ends, different ports worldwide may experience a higher volume of containers than usual. This is due to the containers pent up in the Port of Shanghai. Ports like the Port of Rotterdam, which has dealt with congestion in the past, may feel the load. The Port of Los Angeles has been stable during the lockdown due to assistance from the port of Ningbo. When the Port of Shanghai went on lockdown, the Ningbo port took its freight and moved it to the Port of Los Angeles. This movement was done with a priority and helped alleviate pressure for both ports. With the holiday season approaching in a few months, ports and shippers may have to prepare early for any circumstance.  

Shipping World Continues to Move  

During the last few years, the pandemic and the lockdowns have made their presence known in the world of international shipping. On the one hand, the urgency to have freight shipped has increased due to a spike on ecommerce and, on the other, staff dealing with shippings at the ports and through all the supply chain has been limited (public health restrictions). 

Shippers may need more than ever to move their goods and we’re here to help. If you plan on importing/exporting freight from anywhere internationally, contact A1 Worldwide Logistics at 305-821-8995 to get started. With the biggest port in the world fully operational, we want to make sure your cargo is transported with no problems. A1WWL has experience importing cargo from China such as vehicles, electronics, metal clothing, etc. We also have exported machinery, luxury items, furniture, and much more from the U.S. to China. 

Covid Shipping Surge and the Panama Canal

Covid Shipping Surge and the Panama Canal

by | May 13, 2022 | COVID-19, Freight Forwarding, Shipping Logistics, Technology

 

Over the past few decades, international commerce has seen technological advancements which allowed an increase in the cargo shipped globally. A recent development was the expansion of the Panama Canal, one of the most significant structures built for maritime trade connecting the Atlantic and Pacific Oceans. Yearly, it is responsible for the transit of over 13000 cargo vessels. Shippers especially felt the canal’s expansion during the COVID crisis, when the amount of freight shipped internationally grew exponentially.

Neopanamax Locks

In April of 2006, the former president of Panama announced the Panama Canal expansion project. Along with deepening current channels and increasing the water levels, the project included adding a third set of locks to the canal. In 2016, builders completed the Neopanamax locks, increasing freight volume moved through. Before 2016, the Panama Canal only had two sets of locks which allowed for a capacity of 5000 TEUs (Twenty Foot Equivalent). The Neopanamax permitted ships with 15000 TEUs to pass through, which meant more ships could go across. Canal Authority predicts that the cargo tonnage moved through the Panama Canal in 2005 will double by 2025.

Covid-19 Shipping Surge and the Panama Canal

When the COVID-19 pandemic started to make its way globally, most of the world’s nations imposed lockdowns. Instead of driving to a local store for merchandise, many goods were purchased online and delivered to the customers. This tread continued to rise even after the lockdowns ended. The number of freight containers shipped internationally increased significantly due to the COVID pandemic. More goods were purchased online and imported from different countries. The increased capability of Panama Canal has proved to be a key component in the context of the shipping surge generated by the pandemic.

One example of this is the transportation of grain exports from the U.S. Grain exports such as corn and soybeans are a common commodity moved through the Panama Canal. The Neopanamax locks allowed vessels to carry 25% more of bulk grain compared to when the canal had two sets of locks. COVID-19 further increased the need to export grains globally through the Panama Canal. In 2020, the value of global wheat exports rose by 10.9% compared to 2019 due to the demand. The Panama Canal’s expansion aided in streamlining the grain exportation. Another example of the positive impact of the Panama Canal’s expansion is the movement of LPG (Liquified Petroleum Gas) carriers to China.

The U.S. LPG exports rose 32% from January-July 2019 to January-July 2020.  LPG exports like propane and butane are popular shipments to Asia. This is because China has the highest manufacturing output globally, and factories use LPG in creating polypropylene, a material used to produce plastic. LPG carriers in the U.S use the Panama Canal as the easiest way to reach China. Some other industries that could benefit from the Canal expansion are the automotive and the manufacturing ones, whose products will be more easily moved from the USA to Asia. If you need to have your goods cleared or shipped, contact A1 Worldwide Logistics at 305-821-8995 to begin the process. We have a team of experts ready to help you in the exporting/importing journey from US to China and all around the world. 

freight shipping market

Importing Agricultural Goods into the U.S.

Importing Agricultural Goods into the U.S.

by | Apr 28, 2022 | Agricultural imports, Import and Export Experts, Shipping Logistics, Supply Chain

 

Before importing agricultural products into the United States, you need to be aware of many regulations. Guidelines to import can be extensive; this article will give you a basic understanding of what to expect. Agricultural goods are products derived from animals or crops used for human consumption and sustainability. Some examples include fruits, vegetables, livestock, raw materials, fuel, etc. This article will describe the general process for importing. However, call A1 Worldwide Logistics at 305-821-8995 for a comprehensive explanation.

FDA Requirements for Importing Agricultural Goods

The Food and Drug Administration (FDA) ensures that food and medicine coming into the U.S. meet safety requirements. To begin importing into the U.S., you must register your facility with the FDA. Your “facility” is where the agricultural good was manufactured and packaged before being imported. Failure to register with the FDA may result in civil penalties such as detention holds and fines for your product. After registering, the FDA will assign you an agent to inspect and ensure that your products meet safety requirements. It is also necessary to have all the required permits for importing your goods. Find a customs broker to learn more about the permits and documents needed.

The importer has to send prior notice documents no more than 15 days before the goods arrive at the U.S. Information such as registration number, country of origin, product code, and more should be on the prior notice documents. The FDA also requires that your fruits and vegetables are appropriately labeled before entering the U.S. The types of label formats permissible by the FDA depend on the packaging and type of product. Once the goods arrive at a port of entry, a customs agent will inspect them before being released. The inspection prevents potential threats such as diseases, pests, and other threats from entering the U.S.

USDA Requirements for Importing Agricultural Goods

The U.S. Department of Agriculture (USDA) enforces its regulations for importing agricultural goods as well. The USDA has different rules and services depending on the agricultural cargo imported. For example, the USDA has the Food Safety and Inspection Service (FSIS) for poultry, meat, and egg products. The FSIS makes sure that meat and egg products are safe for import into the U.S. The guidelines depend on the type of import; however, the eligibility depends on the country. The country has to be certified by the FSIS to allow importation into the U.S.

Countries that are certified have a certain number of goods eligible for importation which the FSIS determines using three categories. The three categories are Process Category, Product Category, and Product Group. Goods that are qualified for importation also have labeling and permit requirements based on the product. Similar to FSIS, the USDA also has the National Plant Protection Organization (NPPO), regulating plant importation. The NPPO ensures that the fruits and vegetables imported into the U.S. have the correct permit and certificate.

Once the agricultural goods reach the U.S., the Customs and Border Protection will ensure that you have the correct paperwork filled out. Finally, the imported goods will be moved to an import establishment for inspection before being released. If you need a customs broker to assist with the paperwork, contact A1 Worldwide Logistics at 305-821-8995. Our experts will guide you through the importation process and answer any questions.

 

China’s Lockdown and its effects on supply chains

China’s Lockdown and its effects on supply chains

by | Apr 12, 2022 | Freight Forwarding, Shipping Logistics, Supply Chain

 

Several districts in China have been on lockdown for the past few weeks due to Covid, and the impact is now being felt on global supply chains. As outbreaks began to surge in Shanghai, the lockdown has lengthened until further notice. This was after an announcement of 16766 positive coronavirus cases on April 5. Even before the lockdowns returned to China in March, many supply chains worldwide struggled to keep up with the overwhelming demand. With some of the world’s biggest ports being shut down, global supply chains may feel more significant stress.

In the past few years, the demand for shipping internationally has risen significantly. After the coronavirus made its way worldwide, ordering goods online instead of driving to a store became more common. When goods are bought online, they tend to be transported from different countries like China. While the number of goods shipped rose, the coronavirus was still present. Limited workers, lockdowns, and other effects of the coronavirus started to show in the supply chains of different companies globally.

How does this impact supply chains

One of the leading exports out of ports like Yantian and Shanghai located in China are electronic products. Manufacturers that create electronic products for large companies like Apple, Tesla, Samsung, and others are being forced to suspend operations. Foxconn, an electronics supplier to Apple, has recently announced that it will pause operations in Shanghai. Since Foxconn is one of Apple’s biggest suppliers, this may lead to product shortages in the next few weeks. The supplier outages will affect the supply chains of Apple and dozens of other electronics companies as well.

Companies have decided to move their manufacturing facilities away from lockdown zones to keep supply chains going during the current lockdown. However, the goods still have to be transported to the ports by truck. Not only are several highways shut down in the lockdown zones, but truck drivers also have to test negative for Covid a certain period before bringing containers to the ports.

Not only will the lockdowns affect production, but the shipping of the products as well. Because many ports in China are shut down, shipping orders can become delayed. China has some of the most prominent ports in the shipping world and many orders may be backlogged. This could mean that ports in Europe and the United States will increase inbounding cargo in the near future, further growing congestion in those ports. The ports in the Los Angeles area saw their fair share of issues last year. From equipment shortage to the backlog of vessels stuck at the ports, the lockdowns in China may prolong the challenges.

A1 Worldwide Logistics

Although different supply chains may be strained at the moment, the world of shipping is continuing. Freight is still being moved internationally. However, much greater precautions than usual may have to be taken when transporting goods. You must be informed of what to expect. If you need assistance with any part of your supply chain, contact A1 Worldwide Logistics at 305-821-8995. Our services include international shipping, customs clearance, trucking, warehousing, etc.