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Ready to pay to your supplier in China? STOP! Talk to a customs broker to avoid hidden fees.
YOU’LL LEARN:
- What are the costs of import from China to New Zealand
- Which freight incoterms to choose and why
- All fees included in the NZ port fees
- Extra fees that you should account… View moreReady to pay to your supplier in China? STOP! Talk to a customs broker to avoid hidden fees.
YOU’LL LEARN:
- What are the costs of import from China to New Zealand
- Which freight incoterms to choose and why
- All fees included in the NZ port fees
- Extra fees that you should account for
- How to calculate the cost of importing 1+ pallet from China to NZ
TABLE OF CONTENTS:
00:37 - #1. Freight
01:09 - Bonus tips #1. The incoterms
01:54 - #2. NZ port fees
03:34 - #3. Extra fees
05:59 - Bonus tips #2. Calculate your fees for 2+ pallets
07:05 - Bonus tips #3. Consider insurance
TRANSCRIPTION:
Max: Hello. We are talking about costs to import one pallet of goods – or more pallets – from China to New Zealand. My name is Max; this is Alex.
#1. FREIGHT
We are going to start immediately without any useless information.
If you import one pallet – which is roughly 1 cubic meter and 300 kilos of general cargo – from the closest/main port in China – whether it’s Shanghai, Ningbo, Shenzhen – to the main port in New Zealand.
I would allow for ocean freight that cost 50 USD for 1 cubic meters. The transit time is going to be roughly 20-30 days from port to port.
Alex: Max, what are the terms?
BONUS TIPS #1. THE INCOTERMS
Max: Good point, Alex. The most and the safest incoterms would be FOB, which is “Freight on Board”.
You could also be often offered with CIF, which includes the ocean freight from China to New Zealand. I would absolutely decline this offer because there would be a lot of hidden fees.
Alex: Can you name those hidden fees for us?
Max: First of all, you don’t know what would be the port charges in New Zealand; you don’t know the company that will invoice you for the fees upon their arrival in New Zealand.
Alex: It’s FOB then.
Max: It’s 50 USD, which is roughly 70 NZD.
#2. NZ PORT FEES
Max: Then, the most common fee that all freight forwarders will charge you will be the New Zealand port fee. You should allow 100 NZD for 1 cubic meters.
Alex: What are those port fees?
Max: When you import one pallet in a full container, there could be ten importers in this container and they all will share this cost. This 100 NZD is a part of the full cost of 1000 NZD or 2000 NZD.
Alex: What are you paying for exactly?
Max: It’s a port fee to unload the container from the ship and put it on the ground at the port in New Zealand –and it’s roughly the same fee in all major ports in New Zealand.
It also covers things like container cartage of the same container from the port to the closest warehouse.
Alex: And unpacking of the container?
Max: Yes, that includes taking the goods out of the container.
Alex: Did you say it was a 100 NZD?
Max: 100 NZD for 1 cubic meter only. This process would take at least 2-3 business days to unload the container from the ship, put it on the ground or in the truck, and take the goods out of the container.
Alex: The arranging can be longer if your customs clearance takes more time.
Max: Yes. If you enjoy this information, make sure you subscribe and ask any questions right now – we will answer every single one.
#3. EXTRA FEES
Max: Last but not least, all other small fees, which we call extra fees. In New Zealand that could be your import customs brokerage fee, documentation fees, and agency handling fees. I would allow a minimum of 250 NZD.
Alex: I couldn’t call them the small fees. They are the biggest part. What do they consist of? Why are they so much higher than anything else? How much is brokerage fee, for example?
Max: If it’s a simple commodity – like furniture, up to 5 different products – customs brokerage fees would be 100 NZD. Documentation fee is another 100 NZD. 50 NZD is for the agency handling fee.
You have to pay these fees – the customs broker and freight forwarder will have to spend some time talking to the different shipping lines, organize the truck, and explain you, the importer, the process.
That’s the time you have to pay for, obviously.
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