Originally Posted by rainbowdash
As regards C&F V FOB obviously its only a 1st timer that would get caught out, unless he is stupid and fools himself again.
Suppose a company imports 2 containers a month and uses the same freight forwarder in China and never gets burnt (the FF in China of course must have an associated office or agent in Dublin anyway)
What is the difference in price between sending C&F with a reputable forwarder in China and sending goods FOB using the China forwarders Dublin associate.
My point being, is there any real saving to be achieved by using a reputable C&F agent in China V using a Dublin based company and doing it FOB?
My understanding is the seafreight bit is fixed regardless of which agent you use and most of the charges at Dublin are fixed anyway, regardless of who you use?
Interesting point you make there.
In theory, the forwarders in China are likely to get earlier notice of new (lower) rates. The market being extremely competitive in China, means that savings are being passed on instantly.
However, if you are dealing with a reputable organisation in Ireland, there may be several advantages that a Chinese forwarder may not be able to offer.
For instance, if you import from outside the EU, apart from the (likely) duty, you are also liable to pay the VAT @23% upfront. Granted, the VAT is a deductible input in your VAT return, so you can claim it back. However, more and more Irish based forwarders offer the option of eliminating the VAT outlay by clearing the containers at the point of transhipment (e.g. Rotterdam / Antwerp). This assists with the importers cash flow as the liability for the import VAT is transferred to his periodic VAT return. This avoids the cash outlay (and then wait till the next VAT return to claim it back).
To the best of my knowledge, Chinese Freight Forwarders would not be familiar with this process (nor their Irish counter parts) so, therefore it may be an advantage to deal with an Irish forwarder on the basis of FOB Chinese port.
I am sure there may be other advantages, but that is one that comes immediately to mind.