Ocean Freight Operation Manual

A. Shipment Tracing

As soon as we receive sales information from the agent, we will immediately contact the supplier. The expected cargo readiness and shipping information will make first prealert. One day after closing, we will send out a second alert with the specific details. To ensure that space will be available, customers are requested to confirm booking with us 5 days before closing. The requirement is especially important, particularly during peak season.

B. Customs Closing

Per customs regulation, 2 to 3 days before the boarding/departure date, the shipment ex Keelung should complete cargo delivery and documents submittance before 12:00 PM on the closing date. Cargo delivery, however, is allowed within 5 days before closing. For shipments ex Kaohsiung, LCL cargo is subject to the Keelung Rule, but FCL deadlines can be extended to 3:00 PM.

C. Export Permit, Quota

The shipper has to get their appointed customs broker to apply and get the permit two days before closing.

D. Boarding Date

This is a legal date shown on our House B/L which will be recognized by the negotiation bank which corresponds to the L/C shipping date.

E. Sailing/Departure Date

Will be on the same date of boarding or the next day. It will also be on the same day of the house B/L issuing date.

F. House B/L Date

In practice, the documents will be issued on the same day as the date of departure. It is very important that the B/L is presented by the shipper to the negotiation bank before the L/C expiration date. The shipper must note that the documents cannot be issued to NVOCC or carriers earlier than the boarding date because heavy penalties from the government will be imposed.

G. Shut Out Failure of Export Cargo Inspection/Space Obtaining/Consolidation

This is the most important practice for sea freight operation in Taiwan. According to customs rule, all shipments that passes through customs examination on closing date will be treated as exported. Therefore, the cargo after closing and before the boarding will be bonded by customs. If failure occurs, we have to get a shut-out memo from the customs office which is issued after departure to remove the goods to another terminal appointed by the shipping line with the next available sailing. In the case of a shut-out, the next vessel we can choose is one that makes closing no less than 3 days after the previous sailing.

H. Documentation - L/C Nomination

In order to ensure smooth handling, proceed with standard operation. It is required to have the following statement indicated to L/C: "FORWARDERS BILL OF LADING TO BE ISSUED BY MANTRACO OCEAN LTD." To clear up the market and to place more liabilities on the sea freight forwarder, the government published a re-organized rule at the beginning of 1986. This rule asked all sea freight forwarders to fulfill the following qualifications:

1. Capital not less than NTD 7,500,000

2. Performance in past in handling sea freight

3. Personnel with at least 5 years experience on management

4. Cash deposit NTD 3,000,000

Mantraco Ltd. is one of the less than 200 companies which are qualified and legally licensed sea freight forwarders in Taiwan.

I. Charges

1.Customs Clearance - UNDER REQUEST.
Most of the suppliers have their own broker to handle the clearance; therefore, our service is under request.

2.Trucking - UNDER REQUEST.
In Taiwan, trucking is separately licensed and most of the suppliers are engaged with their own trucking companies, so this is also under request.

3.B/L Handling Charge - NTD 300- per HOUSE B/L

4.Stuffing Charge
CFS charge, NTD 210/CBM or 1000Kgs. This charge is collected on the terminal's behalf. This is only applicable to LCL shipments.

5.Container Lift On/Off Charge
This is only applicable to FCL shipments and some carriers include it in sea freight charges. In this case, we will collect this charge on the carrier's behalf.

NOTE: No matter the trade term is FOB or C&F, the charges listed under item will always  bear from the suppliers.

J. Documents Mailing
All relative shipping documents will be sent by express mail 5 days after shipment departure.

K. Others
1.Partial Payment
The ocean freight is either prepaid by the supplier or collected form consignee according to the rule. It cannot by paid in partial payments nor may more than one party make the payment.
2.Freight payable with the third party or at the third country is acceptable.
3.Corrections
Less than four corrections made on B/L is acceptable, in case of more than five,
we have to reissue the House B/L and charge NTD 200/BL as otherwise, the negotiation bank will treat it as unclear B/L and refuse the payment.
4.Separate B/L - Acceptable
In case of one shipment no matter if it's in FCL, LCL or FCL+over flow, to be cut in more than one House B/L is acceptable
5.Earlier B/L Issued - Not acceptable as explained in item F.
6.Bank Date - Principally Not Acceptable
This is often required by suppliers because most of them make very tight production schedules. In order to save L/C amending charges and confirm that the late shipment is accepted by the consignee, we need a written letter of guarantee or instruction from the consignee to authorize us.
7.Charges of Items in House B/L
7.1 Shipper - Only accepted with a guarantee letter from the original shipper.
7.2 Consignee -
Acceptable with a guarantee letter from shipper which should be referred before cargo is released at destination
7.3 Discharging Port -
Accepted before arrival with guarantee letter from shipper but all containers shifting charges must be prepaid by shipper. This is provided for new discharging port ship's calling.
7.4 Measurement, Weight
Not acceptable. The figures shown on House B/L stick to customs survey report, not export's packing list or commercial invoice, the claim on such can only be referred upon arrival with official surveys report in destination. In case of a difference within +5% of original figure, it will be recognized as no error and the party which referred the claim has to bear all expenses concerned.
7.5 Payment Terms, Cargo Contents, Number of Packages - Not acceptable.
8.Shipper's Own Container - S.O.C.
The amount of the freight deduction granted depends on the Carrier's rate policy
9.Shipper's Own Consolidation
To be allowed by customs in bonded terminal and operated by licensed sea freight forwarder as according to the rule. The container is not allowed to be used as parts of equipment of transportation in Taiwan, unless delivery terms is CY (FCL)
10.Claim
Shortage, Damage must be referred within two weeks after arrival with official survey report.

2. Import - Taiwan Sea Port: Keelung, Kaohsiung

A. Arrival Notice

The arrival notice will be issued five days before the shipment arrives. We will urge the consignee or their appointed customs broker to apply for an import permit upon receiving the notice

B. Documents Exchange
1. The import shipment certification will be referred three days before arrival to the carrier. This will enable the carrier to amend the manifest to the customs authority and issue the delivery order accordingly.
2. For consignee or appointed customs broker latest three before arrival, they have to get commercial invoice, packing list, import permit and original House B/L issued by our agent in export area to exchange the delivery order together with payment to us.
3. If the late declaration on Point 1 and 2 or the contents of delivery order doesn't correspond to the import permit, case customs will fine from NTD 4,500 - NTD 12,000 per entry. Apart from that, per customs regulation, the unit of package must be clearly stated in packing list as carton with piece for each, otherwise, customs fines will also be imposed.

C. Import Handling Charge

The import handling charge will be NTD 600 / shipment which will be debit to  consignee.

D.C.O.D. Service

We may accept the C.O.D. House B/L in U.S. Currency with and additional 10% Service charge.