Nuances of customs clearance and transportation of goods to Russia from Korea and back

Over the past 20 years, the Korean economy has undergone significant changes, and close cooperation with Russia has played a large role in this. Economic relations between the countries are actively developing. In recent years, Korea has been included in the TOP 10 trading partners of Russia. As for North Korea, trade relations with this country are also developing, however, this process is hampered by international sanctions, the lack of good communication routes and sufficient financial resources on the North Korean side.

ATTENTION! We work only with legal entities.

To quickly and safely receive and send cargo, you need to know the rules and features of cargo transportation from Korea to Russia.

Cargo structure

The following are exported from South Korea to our country:

• cars;
• household appliances and electronics;
• measuring equipment;
• optical instruments;
• cosmetics;
• engineering products;
• mineral raw materials;
• synthetic fiber;
• metals and metal products;
• petroleum products;
• rubber products;
• agricultural raw materials;
• footwear and textiles.

Large industrial enterprises of South Korea are concentrated in the province of Chungcheongbuk-do and the Incheon region. In turn, Russia exports to South Korea:

• petroleum products;
• food products;
• chemical industry products;
• agricultural raw materials;
• metals and products made from them;
• pharmaceutical products;
• vegetable and animal fats.

From North Korea (DPRK) Russia imports:

• metal products and pure metals;
• footwear and textiles;
• chemical products;
• equipment;
• wood and pulp and paper products.

And it exports similar goods as to South Korea. The volume of cross-border trade between the Russian Far East and the DPRK has tripled in recent years.

Types of transportation and cargo from Korea

Small shipments that belong to different buyers but follow the same route are called groupage cargo. In this case, delivery payment is divided between customers in proportion to the weight or volume of the transported goods. This is a significant plus for those who buy little by little, as it allows them to save money. But at the same time, delivery times sometimes increase, since it takes time to fill, say, a 20-foot container with cargo from different customers. And then you have to wait for the processing of customs declarations for each piece of cargo. Often, some inconsistencies are found in the documents, which causes customs clearance to be delayed.

If the shipment is large and belongs to one client, then it is transported as general cargo, the goods occupy the entire cargo volume of transport, accordingly, the cost of transportation is paid by one client, and is not divided between several persons. As a rule, the entire logistics chain here is concentrated in one company, which eliminates unpleasant surprises such as mis-sorting of goods in a warehouse or lengthy customs clearance.

The SB Cargo company works with any of the mentioned turnkey options with the preparation of all accompanying documentation.

Delivery of groupage cargo from Korea

When people talk about expanded trade cooperation, they mean that the possibility of concluding commercial transactions is present at both the public and private levels. This means that anyone, not necessarily a large businessman, can order and buy goods. Therefore, it should be possible to cheaply send small consignments of goods, which cannot occupy the entire volume of the vehicle, even if we are talking about a truck.

Such an opportunity exists when delivering goods from South Korea and is called groupage cargo. Its essence is that a unit of transport transports cargo belonging to different buyers, and that this cargo follows the same route. The benefit for customers is that payment of delivery costs is divided between them in proportion to the weight or volume of their shipment. The disadvantage of this method is the increase in delivery time, associated, firstly, with the formation of a heterogeneous order (there is a special term for this - cargo consolidation), and secondly, with an increase in the time spent on customs clearance, since one vehicle has to be processed several (and sometimes many) declarations.

The general scheme for delivery of groupage cargo from Korea to Russia is as follows:

• First, a shipment of goods is transported from the warehouses of the manufacturing company to consolidation warehouses owned or leased by the trucking company. In the case of South Korea, this could be either a dedicated container cargo terminal or a port terminal;
• here the cargo is processed (labeling, taring, if necessary, the goods are repacked into another container);
• the next stage is customs clearance of goods intended for transportation in one vehicle or container;
• then the goods are loaded onto transport (airplane or sea vessel) and delivered to Russia;
• here customs clearance of cargo takes place on the Russian side;
• the final stage is delivery of piece goods to the end consumer.

It should be noted that large carriers usually have their own consolidation warehouses in large Korean cities, which speeds up and reduces the cost of groupage cargo formation. Small firms are forced to use rented space, so the cost of such services can be noticeably higher, although not necessarily so. For this reason, issues of logistical (and legal too) cargo support should be treated with due attention. And the point here is not only in the time and financial losses associated directly with the organization of delivery of groupage cargo from Korea. Difficulties may also await you at the stage of processing transport and customs documentation, which is due to the specifics of South Korean legislation in this matter.

A properly chosen business partner is able to resolve a number of important issues:

• select a reliable supplier from the Korean side;
• provide all possible assistance in matters of establishing foreign economic contracts;
• process the client’s cargo (delivery to the consolidation warehouse, repack if necessary);
• deliver consolidated goods to Russia by agreed transport;
• provide assistance in completing customs procedures on both sides of the border.

If we talk about the cost of delivery of groupage cargo, it depends on two important components - distance and type of cargo (oversized/oversized).

The approximate cost of delivery from Busan (the largest Korean port) to Russian cities can be estimated from the following table:

Note: dimensional cargo is considered to be cargo whose characteristics are within 250 kg/cubic meter. meter, oversized - cargo with parameters up to 500 kg/cubic. meter.

Delivery routes from South and North Korea

Due to difficult relations with neighbors, only two delivery methods are used from South Korea to the border with Russia:

• air;
• sea ​​deliveries.

Transit through the territory of the People's Republic of China for road transport is excluded.

Air delivery of groupage cargo is often carried out to St. Petersburg. Goods are transported by cargo or cargo-passenger flights that arrive at Pulkovo Airport. A route to the Baltic states or Finland is also used, where the goods are then reloaded onto planes flying to cities of the Russian Federation, or by road transport. However, these are not the only options. You can deliver cargo by plane to Moscow, Vladivostok, Novosibirsk. To cities where there are no international airports, cargo is transported using connecting flights on domestic airlines.

There are 6 international airports in South Korea:

• Incheon;
• Gimpo;
• Cheongju;
• Daegu;
• Jeju;
• Gimhae.

Cargo flights to the Russian Federation are more often carried out from Incheon and Gimpo. These airports are geographically close to Seoul. Gimhae is used less frequently. It is located in Busan.

The air route is preferred by many of our company's clients. The undoubted advantages are that this is the most efficient method for long distances, especially when the time factor is critical. The average time for delivery of urgent cargo is 2-3 days, for regular cargo – up to 5 days.

Those who work with goods that tend to depreciate quickly, such as electronics, spare parts, household appliances or perishable food products, most often choose the more expensive, but quicker route. Sometimes delay can be critical. Also, this transportation method is optimal for high-tech electronics and medical equipment.

The cost of air cargo transportation consists of:

• cost of booking a place;
• fuel surcharge;
• filling out the air waybill;
• freight prices;
• the cost of the security fee.

The cost of air transportation will significantly exceed the cost of sea transportation. The calculation for a specific weight and type of cargo will be made by a consultant when contacting SB Cargo. General tariffs can be found on the company's website. The complexity of the process is that airlines have increased requirements for packaging. Oversized, perishable or dangerous goods may be priced significantly more, this should be kept in mind.

Sea container deliveries from South Korea

Currently, for most countries trading with Korea (including Russia), sea transport is prevalent. The country has five major international ports - Jinhae, Busan, Incheon, Sokcho, Gunsan, Pohang, Masan, Gwangyang, Mokpo, Donghae, Yeosu, Ulsan. On the Russian side, delivery from South Korea is practiced to the ports of Vladivostok, Nakhodka (due to the short distance these are the most popular routes), St. Petersburg and Luga (Baltic direction). Delivery to the Black Sea is not practiced due to the long duration and increased cost.

But transshipment is often used through the ports of Western Europe (Hamburg, Antwerp, Kiel, Rotterdam, Bremen), the Baltic states (Tallinn, Klaipeda, Riga) and Scandinavia (Turku, Kotka, Helsinki). Here the cargo is reloaded either onto ships heading to Russian ports or onto vehicles. As an alternative, ferry and feeder transport lines are often used, which are quite common in the Baltic, as are Short Sea services. Delivery by rail is used only for cargo transportation from Far Eastern ports to the European part of Russia via the Trans-Siberian Railway.

In addition to low cost, container transportation of goods (in particular, by sea) has the following advantages:

• standard container sizes allow you to use scarce vehicle space with maximum efficiency;
• it is possible to deliver almost any cargo (of course, in accordance with international rules for container transportation);
• Container transportation most fully corresponds to common multimodal transcontinental algorithms and schemes that provide the opportunity to eliminate cargo transshipment when changing the type of vehicle used;
• delivery using modern containers guarantees maximum safety and security of transported goods;
• Container cargo transportation allows you to monitor the location of cargo at any given time;
• This method of delivering goods reduces its cost for the buyer, reduces transportation costs, and saves time when carrying out loading and unloading activities.

Transportation of goods from Korea to Russia by sea is carried out using universal/specialized containers of different sizes (20/30/40 feet) of all modern types - DV/DC, HT/HC, GP, OT, RC, FR.

It does not matter whether groupage or general cargo is transported. In most cases, the company chartering the ship rents containers for transportation. Her responsibilities include checking their technical condition, as well as returning containers to their owners (empty or loaded with new goods).

Checklist for a reliable transport company

To avoid financial and moral problems, it is recommended to understand what characteristics a reliable transport company has. You've come to the right place if it offers:

• cargo insurance, preferably from representatives of well-known insurers;
• financial support when processing foreign trade transactions;
• registration of required certificates and consultation with specialists at any stage;
• quality control with an agent visiting production;
• representing the client’s interests in customs authorities;
• additional cargo packaging for greater safety.

Customs clearance of cargo and goods

When transporting goods internationally, goods from countries that are not members of the EAEU must be cleared through customs according to the rules established at the legislative level. This procedure includes:

• obtaining permits and certificates,
• declaration;
• passing customs inspection;
• currency and documentary control;
• release of cargo.

At each stage, sensitive control and participation of the importer is required. Sometimes, or rather almost always, if the declarant is engaged in customs clearance on his own, customs clearance turns out to be a very exhausting undertaking that takes a lot of time and effort. Many companies avoid possible problems by turning to professional customs brokers.

Customs clearance of goods from Korea can be performed both in St. Petersburg and in other cities of Russia, using the possibility of remote declaration. The declaration, together with all documents, is submitted electronically to the EDC.

In the declaration, among other data, it is necessary to indicate the classification codes of goods according to the nomenclature of foreign trade activities and customs value. Customs services pay special attention to checking the reliability of this information.

Using the HS code, the declarant must determine the import duty rate and, taking into account additional legislative nuances, calculate the amount of customs payments, including duty, VAT and customs duty. Funds must be deposited in advance into a single current account of the Federal Customs Service of Russia.

Temporary import and export of goods from Korea is possible using the ATA Carnet. Thanks to a special procedure, it will be possible to save on customs duties and reduce the time the cargo spends at the customs post.

The customs clearance of some goods from Korea has its own specifics:

1. Complex telecommunications devices, for example, laptops, tablets, smartphones, must be accompanied by notification.
2. Products of famous brands cannot be imported without the written permission of the copyright holder. The list is given in the Register of Intellectual Property Objects.
3. The Republic of Korea is a developing country, therefore, upon presentation of a certificate of origin, the declarant has the right to take advantage of preferences. If the documents are accompanied by a Form A certificate of origin, a reduction factor of 0.75 applies to some goods under HS codes.

SB Cargo services

SB Cargo offers a full range of services for the delivery and customs clearance of goods from Korea. We will develop a logistics scheme, perform loading/unloading, sealing, and help with the preparation of certification documents and cargo insurance.

Delivery can be carried out according to two schemes: to the client’s contract and to our contract. In the latter case, we become an agent of foreign economic activity and fully conduct the transaction with the supplier. In the first case, the client himself acts as a participant in foreign economic activity, and he will need to manage document flow, prepare reports for tax authorities, etc.

In any case, SB Cargo, for its part, guarantees customers complete transparency of the process, which allows customers to be confident in the fast delivery of goods and their safety. Partners trust our many years of experience and reputation because we constantly monitor and improve the quality of our work.

Transportation of specific and dangerous goods, multimodal routes, monitoring of all changes in legislation is the key to peace of mind and success of our clients.

Contact us by phone or email (write from corporate email). By providing us with accurate data on the cargo, you will receive a calculation of the cost of delivery by the selected mode of transport, as well as the cost of customs clearance, taking into account the list of tasks that will be assigned to the customs representative.

Groupage cargo from China

Reflections on the delivery of groupage cargo from China to Russia.

In our understanding (in the workers' and peasants' way), prefabricated shipments are any consignments that do not reach the weight and volume of shipment in 20

foot containers.

In the case of China, the estimated cost of delivery for groupage cargo is limited to the delivery cost of a 20-foot container, approximately $1,900 (Shanghai-Moscow) on FOB terms (EXW plus $700)

If the shipping cost is less than or equal to $1900 per shipment and separately plus customs payment.

If the cost of delivering groupage cargo exceeds the cost of delivering a 20-foot container, then it is already profitable to drive in a 20-foot container, although again there are conditions under which it would still be better to drive in a truck.

– you need speed, then 20 ft will definitely be longer than delivery by a groupage truck

– the cargo is not far from the China-Russia border or near Beijing (up to 500 km)

- FOB delivery terms upon delivery (the price of the goods includes delivery of cargo to the place of shipment and the cost of export operations in China, at which the Chinese supplier is ready to deliver the cargo to Beijing at its own expense or make a discount on the cost equal to FOB.

– the main advantage of transporting groupage cargo by trucks is the savings of the customer’s money, with delivery times significantly lower than delivery by groupage containers.

– time for groupage cargo formation from Beijing to the border is 2-3 days

(120 cubic meters) and regular shipment of trucks on Friday weekly

– receipt, packaging and inspection of goods is carried out at consolidation warehouses in Beijing, Yiwu, Guangzhou, Suifenhe.

Delivery of consolidated cargo from China - stages:

– Resolving the issue of delivering the customer’s cargo from the manufacturer’s warehouse to one of our consolidation warehouses in China (Beijing, Yiwu (Yiwu), Guangzhou or Suifenhe), cargo inspection offices are located in Beijing (checking the cargo for compliance with what is stated in the packing list)

– Reception of cargo at one of our warehouses in Beijing, Yiwu (Yiwu), Guangzhou, Suifenhe and subsequent inspection, repackaging (we insist on proper packaging of cargo, reducing the risk of damage to goods to a minimum), labeling.

– Customs clearance (preparation and submission of a customs declaration (CD)

– After customs clearance, delivery and shipment follows through various transport companies, depending on the speed and cost of delivery

A) Air dispatch from Artyom airport

B) Order and delivery in trucks to customers from Vladivostok to the recipient’s warehouse

C) Sending by transport or PACK or “Baikal service” from 12 (Moscow) to 17 days in Russia (to Murmansk or Astrakhan)

D) Sending by fast train up to 8 days to Moscow, 4-5 to Novosibirsk and 3 days to Krasnoyarsk

E) Sending cargo arriving in Vladivostok by truck, in 20 or 40 ft containers

Delivery times for groupage cargo from China to Russia:

– Delivery times for groupage cargo depend on the delivery method, the client’s wishes and external factors, for example, weather conditions when shipping by sea (storms in the Korean region or in the Baltic), and when delivering by truck, periodically falling snow

– Our company has always been based on the interests of the customer, and not on our own benefit, therefore, when calculating the cost and delivery time, we strive to achieve a balance in which delivery will be fast enough, and at the same time inexpensive

– Delivery by air: 3-5 days

(includes customs clearance at the airport of arrival) – the highest cost of delivery and customs clearance

– Delivery by road + air: from 12 to 17 days

– Delivery of euros by truck to Vladivostok with subsequent shipment by plane to any point in Russia where there is an airport, but the main points for receiving air cargo are still large cities with direct flights to Vladivostok or Chita

– Delivery by road + railway (or road): 17-28 days.

The most economically advantageous delivery

– Groupage cargo in China

transported on our own vehicles (
130
cc trucks with a carrying capacity of
up to 35 tons
) and in Russia by 110 cc trucks

– Sent using one of the reputable transport companies specializing in the delivery of goods across Russia (“PEK” or “Business Lines”)

– After customs clearance and release of cargo from the temporary storage warehouse

reloaded into
20 and 40 ft
Delivery of groupage cargo by road from China

– Automatic delivery of goods from China is a real opportunity to deliver your cargo cheaper than with container shipments. Motor transport allows you to develop flexible logistics schemes for the delivery of goods both in China and Russia

– Over the years of work in the field of transportation of consolidated cargo from China, our company has acquired its own vehicles, loaders, warehouse workers, storekeepers and cargo packers, as well as warehouses in the largest trading regions of China and Russia

– If the conditions set by the client suggest that delivery within Russia will be carried out on trucks and not by rail, then our company is ready to deliver the cargo to any region of Russia in the shortest possible time

– On the territory of Russia we have at our disposal trucks with a loading volume of 90 m3 and 100 m3

The main advantages of auto delivery of goods from China to Russia:

– Short delivery times

(You don’t need to wait for the whole container to be formed, your cargo is sent without delay)

– Door to door delivery

(You indicate the address, and the cargo arrives exactly there)

– Mobile loading/unloading

(Vehicles are loaded and unloaded almost everywhere)

– Our company:

– insures groupage cargo from China

– packages them securely

– when requested by a client, he can always tell his location with an accuracy of a kilometer

The main advantages of transporting groupage cargo by containers from China to Russia

– Sending inexpensive goods not packed in plywood, groupage cargo to China

– Sending cargo from the south of China, subject to waiting time for collection of a 40-foot container (up to 7 days)

– Consolidated cargo in the direction China – Russia is one of the most economical ways to deliver small-sized cargo

In addition to these two cases, sending groupage containers is more expensive than sending groupage cargo by trucks (auto)