Shanghai

Importing from Shanghai to the UK

The Port of Shanghai, situated near Shanghai city, has risen to prominence as the busiest port in the world. Key districts connected to the Port of Shanghai include:

Baoshan (a major industrial hub, particularly known for its steel manufacturing),
Pudong New Area (a key economic and financial district in Shanghai, hosting many high-tech industries, financial services, and trade)
Minhang (a district known for its heavy machinery and equipment manufacturing).

What are FOB and EXW terms?

Businesses planning to import goods from Shanghai to the UK should familiarise themselves with two key international trade terms, or 'incoterms': FOB and EXW.

FOB (Free on Board)
Under FOB terms, the seller is responsible for delivering the goods to the nearest port and covering all associated costs and risks until the goods are loaded onto the shipping vessel. Once the goods are on board, ownership and responsibility shift to you, the buyer. You will then be responsible for paying import fees, customs clearance fees, and transportation costs from the port of origin to your final destination.

EXW (Ex Works)
Under EXW terms, the seller’s only obligation is to make the goods available at their location, such as a factory or warehouse. As the buyer, you will assume responsibility for all aspects of the export and import process, including loading the goods, obtaining insurance, and managing customs clearance, thus bearing most of the responsibility.

Sea Freight service options from Shanghai to the UK

When shipping goods from Shanghai Port to the UK, importers can choose from two main shipping options, depending on the volume of their cargo:

FCL (Full Container Load): In FCL shipping, the shipper's cargo occupies an entire container, which is exclusively used for their goods alone.

LCL (Less Than Container Load): LCL shipping is utilised by shippers who do not have enough goods to fill an entire container. In this method, they share container space with other shippers, making it a suitable option for smaller cargo volumes.

Do you need an export licence?

The Ministry of Commerce (MoC) categorises goods into three groups: "approved goods," "restricted goods," and "forbidden goods." Export permits issued by the MoC detail information about the exporter(s), buyer(s), cargo, its value, and the transportation method. A licence is required to export items that are categorised as forbidden. Additionally, Foreign Trade Companies (FTCs) in China need a licence when exporting to their UK subsidiaries. However, trading under FOB (Free on Board) terms with an overseas supplier does not require a licence.

Required import documentation for customs clearance

UK businesses importing from Shanghai Port need to prepare the following essential documents: