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Customs and Shipping for Global Factory Relocations | IES

Written by Admin | Feb 26, 2019 7:37:00 AM

Relocating a factory is no easy feat.

But it only gets more complex when you add international shipping logistics and customs regulations to the mix.

With great complexity comes huge potential for disruption, so it’s vital that every link of the chain is strong and every box has been ticked.

From delayed paperwork to random inspections, customs and shipping are the areas most likely to derail your timeline if not handled with care.

So, where should you begin? What are the common pitfalls? And what steps can you take to keep your project on track?

In this guide, we’ll break down the essentials of customs and international shipping for factory relocations. So you can move forward with confidence and ensure your project goes smoothly.

Getting the documentation right

The success of any international shipment begins with getting your documents in order. 

For customs purposes, a factory relocation (despite involving no actual sale) still requires documentation similar to a commercial transaction.

Here are the key documents you'll need:

    • Commercial invoice: This serves as a customs declaration, detailing the transaction between the exporter and importer. It should include the shipper and consignee details, a description of the goods, their value, and the terms of sale. Accurate valuation is crucial, as customs authorities use this to assess duties and taxes.
    • Packing list: This itemises the contents of the shipment, including quantities, weights, and dimensions. It aids customs officials in verifying the shipment and facilitates efficient handling.
    • Certificate of origin: This document certifies the country of origin of the goods, which can affect tariff rates under various trade agreements. In the UK, Chambers of Commerce typically issue these certificates.

It's important to note that requirements can vary by country. China, for example, may require additional documents such as a bill of lading, import licenses, or inspection certificates, depending on the nature of the goods.

Importing equipment into the UK? Head to our article here for a breakdown of the documentation you’ll need.

Navigating customs regulations

Any complications you’ll encounter when exporting outside of the EU usually come from customs.

Before exporting, all shipping data must be uploaded into the customs database. Depending on the destination country, the system might prompt you for additional information, so it’s critical to be prepared in advance.

You should also note that every country has its own set of customs rules, and they can vary widely. China’s customs rules (which are notoriously stringent) will be quite different from Australia’s, for example.

If you’re not familiar with local customs regulations, or don’t have the necessary documentation at your fingertips, you could face delays lasting days or even weeks.

Finally, factor into your timeline that customs agents can (and often do) perform random checks, and there’s no way to prevent them. What you can do, however, is allow for timing buffers in your schedule to absorb potential disruptions.

Packing smart

How you pack equipment for export can significantly influence the success of your move. 

Poor packing can lead to damage, delays, special handling costs or even customs issues.

We recommend:

    • Export-grade materials: Use an appropriate crate, as well as materials that meet international shipping standards to ensure durability and compliance. For example, more than 70 countries subscribe to ISPM 15 for solid wooden packaging.
    • Detailed labelling: Clearly label all packages with contents, handling instructions, relevant shipping marks, packing list and destination details.
    • Compliance with destination requirements: Some countries have specific packaging regulations, such as restrictions on certain materials or requirements for fumigation certificates.
    • Get an expert’s advice: Consult an expert on the specific laws and customs requirements for the country of arrival to avoid a crate getting stuck in customs.

Ultimately, it’s about helping ensure equipment arrives at its destination as safely and efficiently as possible. And packaging plays an important role in making that happen.

Find out more about why quality export packing is essential for international shipping in our article here.

By air or by sea?

There’s no one-size-fits-all approach for transporting equipment. 

In fact, whether you move goods by air or sea typically depends on four core factors:

  1. Size and weight: Some pieces of equipment can be dismantled and shipped in smaller parts, but others are too large for air transport. Oversized or heavy equipment usually goes by sea.
  2. Cost: Air freight is faster, but tends to be significantly more expensive. Sea freight takes longer, but is generally more cost-effective for large or heavy equipment.
  3. Time: Tight deadlines might make air the only viable option. A hybrid approach (air for urgent items, sea for the rest) can be an adequate compromise.
  4. Equipment sensitivity: Equipment that’s more susceptible to damage from vibrations and environmental factors may require more controlled conditions. For example, sea freight can expose equipment to moisture damage for long periods of time, while road freight can expose it to vibrations.

Sometimes, the circumstances dictate the choice for you.

If you're working to a tight deadline, air freight might be the only practical option.

On the other hand, particularly large consignments may not even fit certain aircraft or standard containers, limiting your choices.

And factors like permit requirements or unexpected customs hold-ups can quickly inflate the cost of road transport.

The key is to plan early and weigh up all the variables to reach the optimal solution for your equipment.

See our article: Incoterms Explained: Your Guide to Freight Shipping Terminology

Anticipate last-minute changes

One of the biggest mistakes you can make during an international relocation is to overpromise on timelines. 

Customs holdups, shipping delays, or unforeseen restrictions can throw off even the most organised plans.

Always build in time buffers, especially when relying on air freight or shipping into countries with tight import controls.

Some factors are just beyond your control. 

Size matters

Decommissioning is a complicated process.

Some larger pieces of equipment simply can’t be disassembled. While others are more modular and can be taken apart and put back together again with minimal fuss.

Be sure to factor in ease of disassembly during the factory relocation site survey. 

Oversized or heavy equipment may also require special handling, permits, or routing considerations, especially for air freight. Your equipment is also far more likely to be noticed by customs officials if you’re sending large shipments of multiple containers, so be prepared.

Relocate your factory with total confidence

At IES, we have extensive experience in managing complex international factory relocations across various industries, including semiconductor, pharmaceutical, and manufacturing. 

Our comprehensive services encompass planning, export packing, customs compliance, and transportation, ensuring a seamless transition for your operations.

Head to our turnkey relocations service page here to find out how we can support your project.