Google Answers Logo
View Question
 
Q: Reducing import shipping costs to the USA ( No Answer,   4 Comments )
Question  
Subject: Reducing import shipping costs to the USA
Category: Business and Money
Asked by: denny1965-ga
List Price: $2.00
Posted: 24 Jul 2005 21:15 PDT
Expires: 23 Aug 2005 21:15 PDT
Question ID: 547468
I would like to know some inexpensive ways to ship merchandise for my
new business globaly. I was given a quote of $8-$10 per kg using
UPS,DHL and EMS. For example, I was going to buy 100 shirts from India
and have them shipped to me in the USA. The cost of the shirts which
has a total weight of about 66lbs or 30 kgs is $500. But, I am going
to have to pay $250 -$300 on top of that to have them shipped by a
carrier with a delivery time of about 7 days. They are coming in 4
boxes with dimensions of 14x14x14 inches.

Is there a shipping service that may be cheaper but would have a
longer delivery time?

Could I possibly get lower rates since I will be shipping items on a
regular basis globaly?

Could I join forces with another company and share the cost with other business?

Are their any suggestions to lower my worldwide import shipping costs to the USA?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Reducing import shipping costs to the USA
From: borisshah-ga on 25 Jul 2005 04:46 PDT
 
Hi There.

For a question as large and multi-faceted, you definitely need to offer more money.
Subject: Re: Reducing import shipping costs to the USA
From: scovel-ga on 25 Jul 2005 12:05 PDT
 
Have you tried http://www.uboxworldwide.com/

Not knowing where from or where to you are shipping- a quick estimate
on FedEx from my house in NC to Delhi Sadar Bazar using the dimensions
you gave came back with a quote of $422.05 for FedEx International
Economy which has a time definite delivery in 4 to 5 business days.
Subject: Re: Reducing import shipping costs to the USA
From: lawclerknyc-ga on 12 Aug 2005 17:32 PDT
 
Hello, I will offer some BASIC guidance. To import from India into the
USA, in addition to the cost of frieght, you will have to pay duty
(tax) to US Customs for each shirt, and hire a customs broker to clear
the shipment through the US Customs process. It is important to
distinguish the cost of the frieght from the cost of the duty. It
appears the rates you were given include the customs duty. Your
shipper should quote you the duty rate and frieght seperately.

By going to the US Customs website and doing a search you can find the
duty rate for your particular item you are importing. You need to know
the exact content of the shirts to arrive at the duty amount. I would
guess the rate is between 9% of your first cost (charged by
manufacturer) to 29% of first cost.

As you found out by going to Fedex, UPS, etc the frieght rate is high,
duties notwithstanding, because you ar enot a volume shipper yet. If
you contact a customs broker (google: customs brokers, your city) they
will be affiliated with a commerical air frieght carrier and/or
commercial frieght airliner and probably offer you a rate to start of
US$3.00 - US$6.00 per kilo. If you truly will be importing higher
quantities more often the rate will probably be reduced to under $3.00
a kilo.

The weight measurements is usually a volume weight as opposed to
actual weight, so make sure your supplier packs the merchandise as
efficently as possible. If they loosely pack or hang 100 shirts the
cost will be more than if they fold flat each shirt and leave no space
in the box.

As far as shipping to your customers, UPS is the most reliable
service. Open your own account. Include the cost of UPS in the selling
price, or add it to the invoice totals. In time UPS will grant a
discount to you.

~~~~~~~~

Here is some extra guidance that I sense you might benefit from: When
you markup your product and decide on your selling price. Make sure
you include cost of frieght and duty, and additional handling
materials such as cartons, tape, etc. You should always know this
total cost of goods before you produce or buy in quantity, because
then you can know upfront your price needed to break even. Only then
can you determine if the deal is a profitable one. Eg: If you need to
sell the items at $40.00, you should know your total cost including
frieght and duty before you place an order because you might find out
later the particular garment and fabric content has a high duty which
might bring your cost to close to or above your selling price ! Or
maybe you realize you need to see the item at $60.00 and there is no
marlet or too much competition to sell at $60.00.

Best of luck !
Subject: Re: Reducing import shipping costs to the USA
From: seller28300-ga on 23 Aug 2005 09:53 PDT
 
Below are some information I came accross in the web site.
http://www.customs.ustreas.gov/linkhandler/cgov/toolbox/publications/trade/iius.ctt/iius.doc

The best way is to break down into smaller portion. 

MAIL ENTRIES
Importers have found that in some cases it is to their advantage to
use the national postal service ? that is, a country's mail system,
rather than courier services ? to import merchandise into the United
States. Some benefits to be gained are:

?	Ease in clearing shipments through Customs. The duties on parcels
valued at $2,000 or less are collected by the letter carrier who
delivers the parcel to the addressee (see note below).

?	Savings on shipping charges. Smaller, low valued packages can often
be sent less expensively through the mails.

?	No formal entry required on duty free merchandise not exceeding $2,000 in value.

?	No need to clear shipments personally if under $2,000 in value.

	Joint Customs and postal regulations provide that all parcel post
packages must have a Customs declaration securely attached to the
outer wrapping giving an accurate description of the contents and
their value. This declaration can be obtained at post offices
worldwide. Commercial shipments must also be accompanied by a
commercial invoice enclosed in the parcel bearing the declaration.

 
Each mail parcel containing an invoice or statement of value should be
marked on the outer wrapper, on the address side, ?Invoice enclosed.?
If the invoice or statement cannot be conveniently enclosed within the
sealed parcel, it may be securely attached to the parcel. Failure to
comply with any of these requirements will delay clearance of the
shipment through Customs.

Packages other than parcel post ? for example, letter class mail,
commercial papers, printed matter, or samples of merchandise ? must
bear on the address side a label, Form C1, provided by the Universal
Post Union, or the endorsement ?May be opened for customs purposes
before delivery,? or similar words definitely waiving the privacy of
the seal and indicating that Customs officers may open the parcel
without recourse to the addressee. Parcels not labeled or endorsed in
this manner and found to contain prohibited merchandise, or containing
merchandise that is subject to duty or tax, are subject to forfeiture.

A Customs officer prepares the Customs entry (a form) for mail
importations not exceeding $2,000 in value, and the letter carrier at
the destination delivers the parcel to the addressee upon payment of
duty. If the value of a mail importation exceeds $2,000, the addressee
is notified to prepare and file a formal Customs entry (also called a
consumption entry) for it at the Customs port nearest him. A
commercial invoice is required with the entry.

A Customs processing fee of $5.00 will be assessed on each item of
dutiable mail for which a Customs officer prepares documentation. The
postal carrier will collect this nominal fee on all dutiable or
taxable mail along with the duty owed. There is also a postal fee (in
addition to prepaid postage) authorized by international postal
conventions and agreements as partial reimbursement to the Postal
Service for its extra work in clearing packages through Customs and
delivering them.

NOTE: The following general exceptions apply to the $2,000 limit: 

Articles classified in Subchapters III 
and IV, Chapter 99, HTSUS 
Billfolds and other flat goods
Feathers and feather products 
Flowers and foliage, artificial or preserved 
Footwear 
Fur, articles of 
Gloves 
Handbags 
Headwear and hat braids 
Leather, articles of 
Luggage
Millinery ornaments
Pillows and cushions
Plastics, miscellaneous articles of 
Rawhides and skins
Rubber, miscellaneous articles of
Textile fibers and products
Toys, games, and sports equipment
Trimmings

 
The limit for these articles is $250, except for textiles (fibers and
products). Virtually all commercial shipments of textiles require
formal entry, regardless of value.
Unaccompanied shipments of made to measure suits from Hong Kong, a
category that includes single suits for personal consumption, also
require a formal entry regardless of the suit?s value.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy