Qingdao

Importing from Qingdao to the UK

The Port of Qingdao, located on the Yellow Sea in Qingdao, Shandong Province, China, is one of the ten busiest ports worldwide.

Qingdao Port serves several major factory districts, with key districts including Shibei. Known for its industrial and commercial mix, Shibei houses numerous manufacturing plants, especially in the fields of machinery and building materials.

It also serves the Huangdao district, which is significant for its petrochemical industries, machinery, household electrical appliances and pharmaceuticals.

What are FOB and EXW terms?

UK shippers importing from Qingdao Port will need to decide between two types of Incoterms: FOB and EXW.

FOB (Free On Board)
Under the FOB incoterm, the seller is responsible for delivering the goods to the nearest port and managing all associated costs and risks until the goods are loaded onto the shipping vessel. After the goods are on board, the responsibility shifts from the seller to you, the buyer. You are then responsible for covering the transportation costs from the port of shipment to your final destination, as well as customs clearance and any other related fees.

EXW (Ex Works)
The EXW term places minimal responsibility on the seller, requiring them only to make the goods available at their premises, such as a warehouse or factory. As the buyer, you assume full responsibility for loading the goods and managing all aspects of transportation, including export and import procedures, customs clearances, and transit insurance.

Sea Freight service options from Qingdao to the UK

When importing sea freight from Qingdao to the UK, shippers typically have two options:

FCL (Full Container Load): This option involves shipping goods in a container that is exclusively used by one shipper, allowing for the transport of larger or more numerous items securely.
LCL (Less-than-Container Load): Suitable for shippers who do not have enough goods to fill an entire container, LCL allows for sharing container space with other shippers, making it a cost-effective choice for smaller shipments.

Do you need an export licence?

The Chinese Ministry of Commerce has organised goods into three distinct categories:

Approved goods (automatically licensed)
Restricted goods
Forbidden goods

The Ministry of Foreign Affairs provides export licences that include details about the exporter, buyer, cargo, its value, and the method of transportation.

A licence is required to export items that fall under the restricted category. Foreign trade companies (FTCs) in China that export to their UK subsidiaries are also required to obtain an export licence.

However, conducting trade under Free on Board (FOB) terms with a supplier waives the need for such a licence.

Documents needed to clear customs

To guarantee the safe arrival of goods from Qingdao Port to the UK, businesses need to compile the essential documentation, which includes: