The FedEx that everyone has come to know and love is actually a group pf companies that operate under the umbrella of the FedEx corporation. The four companies that comprise FedEx corporation are:
FedEx Home delivery is part of FedEx Ground. Clarification of this organizational structure will help home residents understand why they cannot pick up the FedEx home delivery package at the FedEx Express office and why you cannot drop a home delivery package at a FedEx drop box.
Home residents are often confused about “these rules” but we are here to help.
We know from our surveys that small business shippers have specific concerns that they want addressed when looking for a shipping company to handle their shipping needs:
What are the shipping basics?
How to prepare a waybill?
What are the different services?
How should I pack my packages?
How do I arrange for a pickup?
What service(s) do I need for my business?
How can I get the best rate for that service(s)?
We have evaluated the DHL, Fedex and UPS small business centers for their ability to address these concerns in an easy to understand format.
Our overall impression… In our opinion UPS small biz center has the best combination of organization, ease of use and information value in their small business center. They use rich media in a way that enhances the information and address most of the concerns listed above in a way that help the small business shipper understand what UPS has to offer.
The Fedex small business center in an effort to add more value has made their small business center a little bit more confusing than necessary (see below). However we place them second in terms of value that the interface provides to the shipper because they address some money concerns of the small business shipper .
Finally the DHL small business center has a very simple interface (sometime less is more) to internal pages within their website that address small business shipper concerns. This interface addresses most of the above concerns fairly easily.
A word about rates…
Getting rates from a shipping company is the holy grail of the small business shipper. DHL indicates that they provide 10%discount for signup but it does not show the rates. Fedex offers several incentive discounts that eventually expire along with several co-promote specials but again no rate sheet. Finally UPS provides no indication of any discounts or rate sheets.
Sign up for all three
There is no law that say that a shipper cannot have more than one shipping account. We recommend signing up for an account with all three. Get access to the rates and compare the rates against the service. Use one carrier for one service that suits you and another carrier for the other. As your volume begins to grow renegotiate your rates base on your volume.
How to prepare a waybill?
After three clicks we were able to get to the page that provide information on how to prepare a waybill. Waybill Help
What are the different services?
From the small business center we were able to find the different services available DHL Services
However we were not able to find our way back to the small business home page after this.
How should i pack my packages?
Even though we were not able to work our way back to the home page, we were still able to find out about packing our packages from interface. Packaging
How do i arrange for a pickup?
Also we were able to find out how to arrange for a pickup. DHL Pickup
What service(s) do I need for my business?
No real consultation on my business delivery need.
How can I get the best rate for that service(s)?
The website does not show the rates without first signing in and getting and account but the customer is offered a flat 10% off rack rates when they sign up online. This however is no different form what an individual person would get for signing up. There is no expiration for this 10%. DHL Open an account
How to prepare a waybill?
Fedex has a shipping 101 guide that can easily be missed because they keep it under articles and FAQs section. In the shipping 101 they show some screen shots for filling out a waybill online. Fedex Shipping 101
What are the different services?
From the small business center we were able to find the different services available however you might miss it. After clicking on either Express, Ground or Freight you are directed to a page that looks like a advertisement. You are supposed click on the menu items on the right side of what looks like an advertisement and then click on the picture inside you can see the services. We find this very confusing but we are here to help. Here are the links. Fedex Express Fedex Ground Fedex Freight
How should I pack my packages?
Again we almost missed this because it falls under articles and FAQs section (sometimes people don’t realize that their question is an FAQ). However by now we are trained to look for things in the Articles and FAQ section. Packaging Options
How do I arrange for a pickup?
The page for pickup can only be accessed with a Fedex account. However the shipper is told where to go to arrange for a pickup. Fedex Pickup
What service(s) do I need for my business?
They have a solutions tool that walks you through you needs and provides a recommended service. If the tool cannot provide a service then they provide a sales number. Fedex Solutions Tool
How can I get the best rate for that service(s)?
While Fedex does not provide specific rates they do offer several interesting discounts and co-promotions.
15% Discount when you sign up only on FedEx Express® shipment
for 4 months when you use ship manager. After the 4 month period it will reduce to 10%. This is what is known as an incentive to sign up. See our Free Report for Small Business shippers about to sign an agreement.
Now through Dec. 31, 2008, receive 55% off your base rates on LTL (less-than-truckload) shipments of 150 lbs. or more each time you ship within the contiguous U.S., with FedEx Freight or FedEx National LTL.
5% off eligible shipments paid with American Express
Amazon Services will offer FedEx customers five months waived subscription fees, a value of $199.95, to Amazon Service’s Pro Merchant Program.
QuickBooks users can save money by registering for special rates on FedEx Express and Ground shipping.
FedEx and Stamps.com have teamed up to offer FedEx customers a $100 savings with Stamps.com Premier.
UPS SMALL BUSINESS CENTER
UPS has two websites directed at the small business shipper. UPS small biz and the UPS whiteboard. We recommend that you stay away from the UPS whiteboard unless you have allot of time to watch cartoons and click on graphics that do not provide solid information. Stick with the UPS small biz center. The shipping demo video gives very good insight into how their user interface looks. It is informative and worth the time to watch.
What service(s) do I need for my business? UPS also has a solutions finder designed to help you zero in on what shipping services or products you will need. UPS Solutions Finder
How can I get the best rate for that service(s)?
No indication of rates or discounts. UPS OPEN AN ACCOUNT
The following table is compilation of all DHL, Fedex and UPS resources that are available to users WITHOUT first having to create an account or submit information. We find that this is useful to our readers who don’t necessarily want to commit to a carrier in any way while they search for basic shipping information. If we have missed a resource then it is way too hard to find on the website as we have poured over all three.
We have awarded prizes in the following categories: Best International Shipping Guide which goes to DHL for their easy to read and understand primer on international shipping. Best Country Profiles which goes to UPS for their very organized, informative and easy to read country profiles section. Best Free Tool which goes to DHL for their Harmonized Tariff Code/ Schedule B number tool Best Document Library to DHL for their exhaustive compilation of international documents needed for shipping.
This video is intended to be a primer on shipping international to Columbia. It outlines the holidays to avoid, commodity restrictions, basic documents and provides important Columbian international shipping resource links.
Products on the “free” list automatically approved upon presentation of the import application or the “Registro de Importacion”.
Import licenses come in two varieties:
prior licenses (non-automatic licenses within the context of the WTO)
import registrations (automatic licenses within the context of the WTO)
Non-automatic prior licenses apply to products associated with the production of illegal drugs, national defense, health, the environment and used goods.
Import Duties
Import duties are assessed on the CIF (cost + insurance + freight) value of goods.
Customs valuation is based on the real transaction value (commercial invoice).
All importers of goods with a value of US $5,000 dollars and above must present an additional form, known as the “value declaration”, in which the importer must state the real value of the merchandise. This document supports the import declaration and import registration document.
Taxes and Fees
There is 16 percent value added tax applied on CIF + duty
A Customs Fee of 1.2 percent applied on CIF
Excise taxes ranging 20 – 40 percent on alcoholic beverages, spirits, cigarettes, etc. applied on CIF + duty
This video is intended to be a primer on shipping international to China. It outlines the holidays to avoid, commodity restrictions, basic documents and provides important Chinese international shipping resource links.
Cargo Shipments are further subdivided into three categories:
1. Non dutiable samples and or advertising materials
2. Dutiable samples and or advertising materials
3. Formal Entry Shipments
Basic Documents for Import Into China
1. Commercial Invoice or Pro Forma Invoice
2. Waybill (provided by the carrier)
3. Packing List
4. Certificate of Origin
5. Shipper’s Export Declaration
The dutiable value of an imported good is known as its CIF value.
CIF Value=(Normal transaction price of the good) + (packing, shipping, and insurance costs) + (Any commissions).
Import Duties consists of Import Customs Duty (IAD), Value added Tax (VAT) and any Excise or tax (CT)
Import duty rates are divided into three classifications:
1. Most Favored Nation (M.F.N.) or Normal Trade Relations
2. Asia-Pacific Trade Treaty rates (Former Bangkok Agreement (BA) Rates)
3. General (Gen) Rates.
A word about Most Favored Nation Status
The moniker Most Favored Nation is really a misnomer and poorly understood by the general population. Most Favored nation status just means that China is part of the World Trade Organization and enjoys normal trading relations with the United States which includes reciprocal tariff preferential agreements. The Unites States is trying to phase out the term however other countries still use it.
Import Tax or Value added Tax
Value added Tax currently 17% on the CIF value for most items.
The Shipper’s Export Declaration (SED) is a commerce department form (Form 7525-V) that is required by law to enable the Census Bureau to compile official U.S. export statistics. This form is required for materials originating in the United States or Puerto Rico only.
The conditions under which an SED must be filed are as follows:
• The value of a single Schedule B commodity exceeds $2,500.00
• The shipment is traveling under an export license
• The destination includes territories that are currently experiencing strained relations with the United States such as Cuba
Shipments from the U.S. to Canada do not have to be reported in an SED except those requiring an export license.
How Do I fill out the form?
Most shippers will fill out the form on AESDirect.gov. The unfortunate thing is that when you register you need to take a tutorial and pass a certification exam to show that you know how to use the site before you can actually use the site. This can be frustrating especially if you are under a time constraint. In addition the tutorial which must be downloaded is a little confusing at first. It is ironic that the tagline for AESDirect is “Reducing Export Stress With AES” as my stress level increased dramatically when I found out that I had to sign up, take tutorial and certification exam before I could use their system.
The certification exam is made up of 30 questions and you must score 90% to pass the exam. In order to facilitate your tutorial process we have outlined the information that is important to AESDirect. This outline along with the tutorial should help you pass the certification exam on the first go around.
How do I pass the Automated Export System (AES) tutorial.
The tutorial is broken down into 5 segments:
• Introduction to AES
• USPPI Profile Maintenance
• Consignee Profile Maintenance
• Freight Forwarder Profile Maintenance
• Creating a Shipment
Important Lessons from the tutorial
Here are some points that were emphasized in the AES tutorial that you may miss taking the exma the first time around.
1. Do not use “&” when filling out form.
2. Do not use “-” when filling out form.
3. After entering information hit Tab and/or enter to proceed.
4. To retrieve a shipment you need a shipment number.
5. When the shipment is retrieved you get access to the USPPI, ITN and XTN
6. To check the status of a shipment you go to the shipment report center and you get an email message.
7. AES assigns the ITN number.
8. To delete a shipment you need the USPPI and the shipment number.
9. Consignee profiles are linked to USPPI
10. Freight Forwarder profiles are linked to USPPI and must be created by the USPPI
11. All profiles can be searched by name.
12. Each USPPI profile contains company information and cargo origin information.
13. You need a cargo origin information for all shipment locations.
14. One profile can have many cargo origin locations.
15. To fill out a USPPI profile you need a company name, EIN, contact name and number.
16. When looking for a USPPI you can enter part of name and look up corresponding USPPI for a match.
17. When you select the USPPI the EIN get populated in the shipment declaration being prepared.
18. The USPPI need to fill out the profile for the freight forwarder.
19. The consignee profile gets attached to a USPPI.
20. The freight forwarder or the USPPI fills out the consignee information.
21. When creating a shipment you can add more that one email for responses by separating them by commas.
22. The shipment number is always created by the shipper up to 17 characters and must be unique.
23. Transport reference is mandatory for vessel shipment.
24. There is a lookup table for port of exports codes. Input a “?” to get to table.
25. There is a lookup table for port of unlading codes. Input a “?” to get to table.
26. Input departure date using the following format mm/dd/yy.
27. Fill in the best estimate for the date of departure if you do not know it for sure.
28. Mode of transport has to be filed in.
29. When there are various segments involved in the shipping of an international item such as manufacture, shipment, usage etc., the USPPI is always the entity in the US that benefits monetarily from the shipment.
30. Each SED created has to be connected to a USPPI.
31. To input the Schedule B or Harmonized Tariff Code use the line item option.
32. There is a lookup feature for Schedule B or Harmonized Tariff Code.
33. Schedule B or Harmonized Tariff Code is a 10 digit number.
34. Do not use any “.” in the number.
35. The quantity of the commodity is always in units designated in the Schedule B or Harmonized Tariff Code rounded up to the next whole number.
36. Commodity value is always in dollars.
37. Commodity gross weight must be in kilograms.
38. Although a commodity does not require an export license it still may require and SED.
39. Clear section will clear everything from a particular section.
40. The number of profiles templates that can be created is neither 1000 nor 50.
The following two sources provide more detailed information about Automated Export System (AES):
Electronically Submitting Your Shipper’s Export Declaration - The Automated Export System (AES) was implemented to provide an alternative method for exporters to submit their Shipper’s Export Declarations (SEDs) as well as ensure compliance with the applicable laws governing the exportation of …
HR 5828 Would Significantly Change the Current AES Environment - See “Foreign Trade Regulations: Mandatory Automated Export System Filing for All Shipments Requiring Shipper’s Export Declaration Information,” 70 Federal Register 2005 (February 17, 2005). As the Federal Register notice’s title …
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