Ⅰ、The common commodity, transport facility and transport range of bulk cargo: 

Import bulk cargoes from world major ports to Chinese Ports (Tianjin Port, Guangdong Port, Qingdao Port); and export the cargoes from Chinese Ports (Tianjin Port, Bayuquan Port of Liaoning, Yingkou Port and Qinhuangdao Port) to the world. 

Major goods of bulk cargo import are: coal, ore, grain, chemical fertilizer, feed, barley, etc. 

Major transport facilities: whole ship transportation which is also named as shipping by chartering. The freight of goods involved in chartering is on the low side. Determine the charter party in accordance with price terms of CIF and FOB of trade in goods. There are three means of chartering: voyage charter, time charter and bareboat charter. And most company would choose voyage charter and pay the freight to the ship owner. 

Ⅱ、Transport means of bulk cargo:  

The whole ship is divided into two types: Panama bulker (less than 70,000 tons) and Capsize bulker (more than 80,000 tons) 

Ⅲ、Transport procedures of bulk cargo 

1、Understand the following questions from customers when inquiring: 

(1)Transport means: Panama bulker or Capsize bulker

(2)Port of loading and port of discharge 

(3)Name and quantity of cargoes 

(4)Loading rate and discharging rate 

(5)Waterline of loading port and discharging port 

(6)Estimated transport time 

(7)Customer unit, contact person, telephone number, telex, email, fax, etc. 

The freight company would inform customer of the charges of chartering, customs declaration and freight in accordance with the above information. 

2、Learn about the loading time and discharging time of customers: 

The freight company should inform customers in advance of providing the full set of photocopies of required declaration documents in accordance with arriving time since sign the transport agency and customs declaration agreement with customers. 

3、Time limit of import declaration: the customs would levy fee for delayed declaration in the 15th day since the date of entry, and customs would levy overdue payment in the 15th day since the date of tax bill issued. 

4、Inspection declaration procedures: application for inspection—payment of commodity inspection—certificate of inspection for goods inward/outward—draft survey—sampling inspection—award the quality certificate 

Customs declaration procedures: declaration—inspection—levy taxes—release—customs clearance 

5、Documents for customs declaration and inspection declaration: 

Documents for inspection declaration: entrust letter of inspection, inspection declaration, contract, invoice, foreign weight certificate of water gauge, quality certificate 

Documents for customs declaration: customs power of attorney, weight certificate, certificate of inspection for goods outward, insurance policy, photocopy of LC 

Ⅳ、Payment of chartered freight 

The payment of chartered freight is not always in accordance with contract terms and shall be in accordance with the contract signed with ship owner. 

1、Terms of CIF and CNF: pay the freight to get B/L on the shipping date  

2、Terms of FOB: pay the freight in 10 days since shipping date, or pay the freight after the ship arriving at destination port 

Ⅴ、Calculation of tax

Import tariff shall be paid mainly in accordance with CIF price term, and CNF and FOB shall be exchanged to CIF when calculating tariff. 

Import tariff: dutiable price X customs duty rate 

Import value added tax: (dutiable price tariff tax) X value added tax rate 

The product party should pay export tariff which required in Customs Goods Taxes. 

Ⅵ、Legal fee: 

Customs tariff, value added tax, commodity inspection fee 

Ⅶ、Port transit time  

Submit the bill of payment of tariff to the customs after paying tariff in deposit bank, and customs would stamp on B/L with releasing stamp in accordance with paid proof. Meanwhile, customs would design the transportation plan according to the cargoes flow provided by customers: inland river transportation, railway transportation and road transportation, then submit the released B/L together with other documents to business division of port authority. 

Ⅷ、Charter business 

Freight company could expand the business of chartering, formulating the chartering term in accordance with discharge capacity. Due to the long time and low efficiency of discharging, we could sign the term of customary quick despach which is good for us. But the freight may be higher than others. 

Term FOB of chartering transportation could reduce the costs of customers, increase freight profits of our company. Meanwhile, renting Chinese ships could reduce the loss of foreign exchange. 

The development of chartering business could enhance the reputation of our company, and establish solid foundation to the comprehensive development of business and the work of logistics. 

Ⅸ、Example 

Description of cargoes                                                        

Commodity name: coal (steam coal)

Quantity: 162662

Contract value: USD 4759490.12

Description of ship: 

Name of ship: LOWLANDSGLOR

LOA：289 meters

BEAM：45 meters

DRAFT：17.8 meters

Hatches: 9 

Description of loading

Port of loading: Australia Gladstone 

Loading date: February 17, 2002

Departure date: February 21, 2002

Date of arriving in anchorage: March 6, 22:00

Date of berthing: March 9, 14:00

Departure date: March 14, before dawn

Shipping time: 14 days 

Comprehensive customs duty rate: 19.78%

Terms in trade: CIF QINGDAO

Operation process: 

Settlement for letter of credit: due to the settlement for letter of credit occurs after the accomplishment of loading, and it takes long time to submit the B/L and relevant documents to bank and to be fetched by bank, so the original documents have not been fetched when the ships arriving at the port. Under this circumstance, customers shall be notified to fax the photocopies of whole set of required documents to customs before the ships arriving at the port, and customs shall inspect the cargoes according to the provided documents. Certificate of inspection for goods inward shall be issued by commodity inspection. Pick up the commodity inspection personnel to do the work of draft survey when the cargoes are delivered to the anchorage and berth. The captain would send first manifest data to shipping agent in accordance with B/L. After recording the draft data, the captain would send     to shipping agent and customs would exchange for D/O sheet in accordance with original B/L. If the original B/L has not been fetched, shipping agent would consult with ship owner to unload the cargoes with guarantee letter. Unloading has no effect on advanced customs declaration. 

Apply for advanced customs declaration with completed photocopies of whole set of declaration documents. Customs would do an on-site inspection according to declared documents, taxing according to provided data on manifest and then issue the       . Tax-payment unit will pay the tariff in accordance with designated account and submit the tariff sheet to the customs. At last, customs would stamp on B/L with releasing stamp in accordance with tax payment voucher. 

Design the transportation plan according to the cargoes flow provided by customers: coastal transportation, inland river transportation, railway transportation and road transportation. Submit the transportation flow, transportation schedule and released B/L to business division of port authority, and then the business division would arrange loading time according to our flow plan. Quality certificate, weight certificate of water gauge shall be issued after commodity inspection in 15 days since accomplishing discharging. And customs would issue verification sheet of customs declaration according to situation of discharging. 

After accomplishing the whole operation procedures, we would provide customers with all lists of expenses together with certificate concerned with cargoes and customs declaration, and settle accounts. 

The above business operation procedure is only a general procedure. The specific problems of transportation and customs declaration may be changed according to different situations.