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My company is planning to import from a Factory in China and the incoterms are FOB. I would like to know the procedure and all the documentations required for the import to Dubai. This is through Sea Shipment.
Thanks
"FOB China "term stands for the freight payment & terminal handling charges in port of designation which will be pay by consignee or buyer of the cargo to the carrying agent/freight forwarder in port of discharge.
Documents
1.Commercial Invoice with attestation from chamber of commerce (Origin)
2.Packing list
3. Certificate of Origin
4.Bill of lading
5. In case of L/C - Bank payment receipt / demand draft copy
6. certificate of insurance / shipment advice copy
In dubai - custom declaration has to go through online "E-Misrshal" for both freezone & LLC company ... Pay your duty amount according to your HS Code of the product .
1.Custom declaration
2. Duty Payments receipt
3.E- Gate Pass
after above online process arrange transportation....
Generally if it is FOB-Free on Board (in your case it is FOB China), the responsibility of Risk & cost of the materials belongs to Seller up to loading the materials into vessel. Then the Risk and cost of the Material transferred to the buyer from the on board vessel of the port of loading. So the buyer have to bear all the cost like Freight/Insurance/Clearance/Customs/ unloading until the delivery to end user warehouse/site.
About documents is as usual like Invoice/Packing List/Certificate of Origin/Bill of Lading/and additional documents like Certificate of Vessel/Insurance Certificate in addition to any other documents required as per the LC Terms, if it is under LC.
Hope the above is clear for your question. And you can contact your freight forwarder to double check about the requirements.
"Free on Board" means that the seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point.
Documents:
1-Bill of Lading.
2-Commercial invoice attested by chamber of commerce in China.
3-Proper packing list.
4-If the shipment include electrical goods certificate of conformity is required
FOB is the term stands for Freight on Board. The responsibility of shipper is until he boarding the shipment in the vessel and the rest of responsibility will be in charge of consignee. About the documents, it should be HBL/Invoice/Packing List/Certificate of Origin/LC-if bank payment receipt/and some gov't certificate like phytosanitary certificate (if the shipment is for plants and animals).
documents the sellers should send it to you are invoice , packing list and original bil og loading "03 original & 03 copies". certificate of original of europe EUR1 form example. bank documents
Delivery Terms FOB means : From Port of Origin to Port of Distination.
1. We need to Conatct Shipping agent to get the Fob Quation from port of origin ( China ) to Port of Origin ( Dubai ).
After getting quation from diffrent forwarder we will confirm cheapest one considering the transit time.
following documents needed to release the shipment from sea port.
1. Commercial Invoice with legalize and cerfied by Local Chamber of Commerce.
2. Packing List
3. Certificate of origin ( attestation from Local Chamber of Commerce.
4. Bill of Lading
Sea freight shipping from China is perceived as a major hassle when importing products. As a professional in procurement, I can state with confidence that sea freight and shipping is not what should keep you up at night.
There are far more complex issues when importing from China. However, Importers still have reason to be concerned about freight related issues.
While the process is straightforward, and part of an established and functional international system, the learning curve can be pretty steep.
Incoterms, FCL, LCL, Bill of Lading. For starters, the terminology can be discouraging just by itself. On top of that, most people in the industry can barely explain, in plain English, how the sea freight process works from A to Z.
Shipping Incoterms are international standard codes that decides when and where cargo shall be transferred between the supplier and the importer.
For example, FOB (Free on Board) only includes transportation from the factory, to the port of destination (i.e., China). In addition, FOB also includes all export procedures, which are required to ensure that the cargo can be legally exported.
However, from the port of destination (Dubai), you must arrange forwarding to the final destination.
You can, on the other hand, book DAP (Delivered at Place), which includes shipping from the factory in China, to a specified address overseas. Such as your office or warehouse.
When you get a quote from a supplier, you must always specify the incoterm you want.
Your cargo must be sufficiently protected, from the dusty factory floor to a damp warehouse in Shanghai, and finally stacked in a container for up to a month.
A lot can happen in this time, and you need to be sure that your export packaging is up for the task.
One might think that the supplier could be trusted to manage this on their own. That is not the case.
Chinese suppliers have a tendency to use cheap and substandard export packaging materials.
To ensure that your cargo is protected during transportation, you can use the following checklist:
However, you will need to pay for transportation to the port of loading in China and the cost for export clearance papers.
Both of these costs are included if you order shipping according to the following terms: FOB, CIF, DAT and DAP.
However, export clearance is not included when buying according to EXW (Ex Works) terms.
Normally, an Import license is not required
There are, however, a few exceptions:
The required documents as follow:
1-Bill of Lading.
2-Commercial invoice attested by chamber of commerce in China.
3-Proper packing list.
4-If the shipment include electrical goods certificate of conformity is required
The documents require for the import from china to Dubai is as follows.
1. original bill of lading copies
2. commercial invoice
3. Purchase order
4 certificate of origin
5 bill of entry
6 import license
If the payment is made by LC ..letter of credit.
The exporter sends to the importer the original bil of lading along with the certificate of origin , invoice , packing list and other documents as detailed in the sea import .
This enables the importer to clear the cargo with the customs of the importing country.
FOB-Free on Board (in your case it is FOB China), the responsibility of Risk & cost of the materials belongs to Seller up to loading the materials into vessel. Then the Risk and cost of the Material transferred to the buyer from the on board vessel of the port of loading. So the buyer have to bear all the cost .. This is for FOB.
