Freight Forwarding Process Explained

If you think compliance is simply a cost center, look no further than what’s happening with Temu and Shein. A Congressional oversight committee report called out the Chinese behemoth marketplaces in 2023 for failing “to maintain even the facade of a meaningful compliance program.” The result? Scrutiny, legal risk, and reputational damage. But let’s be clear—this isn’t just about two companies. For importers, customs brokers, and marketplaces alike, compliance isn’t optional. Compliance is not only the backbone of any company with an international supply chain, but it actually can be the difference between going big and going home. Why do compliance programs matter? 👉 For Importers: - Forced labor bans, de minimis restrictions, and tariff changes are evolving - Compliance programs allow you to implement agility quickly, and be ready to pivot alongside fast-changing changing regulations - Without a compliance program, you could be shipping goods that violate U.S. or other laws—leading to seizures, fines, and loss of supplier relationships Temu’s risk? It could be yours. If your supply chain isn’t fully traceable, how do you know your goods are compliant? The answer: prioritizing master data and proactive screening 👉 For Customs Brokers: - If your clients get hit with compliance violations, you do too (it's your license on the line after all) - You’re expected to be the expert in regulatory shifts like Uyghur Forced Labor Prevention Act (UFLPA), tariff exclusions, and de minimis eligibility changes - A strong compliance program ensures you’re not just processing entries—you’re protecting your clients and your business 👉 For Marketplaces: - Your entire platform is at risk if you don’t enforce compliance on sellers - Temu’s “we’re not the importer of record” argument is falling apart—lawmakers are making it clear that marketplaces facilitating noncompliant imports will face consequences - If you aren’t vetting suppliers and enforcing compliance rules, your marketplace could be next in the crosshairs The bottom line? Compliance can't be an afterthought. Temu and Shein have been getting their act together since this report. Their situation is a warning: If you don’t build a strong compliance program proactively, it will be forced upon you reactively. I help companies secure their transactions at origin, validate supplier compliance, and ensure smooth customs clearance—companies have launched my program as quickly as 60 days. #customscompliance #tariffs #ecommerce

Still using EXW for exports? That could be a compliance risk hiding in plain sight. Many exporters still use EXW (Ex Works) because it looks simple. But in reality, EXW often creates more risk than control. Why? You lose visibility over who actually handles the freight. The buyer chooses the forwarder. You may not know who is moving your goods. Export customs clearance can become unclear. In many countries, the exporter should control or at least oversee export formalities. Under EXW, that often gets blurred. You may lose control over proof of export. And if you cannot prove the goods were exported, that can create problems for VAT, audits, and compliance records. Sanctions and export control risks increase. If you do not control the export process, how confident are you that screening, declarations, and regulatory obligations are properly handled? You shift responsibility, but not necessarily liability. That is where many companies get caught off guard. In practice, many exporters may be better served using FCA (Free Carrier) instead of EXW, especially when compliance and documentation matter. EXW may look convenient. But convenience can be expensive. Is your company still using EXW on the export side? If yes, what is the reason, and have you assessed the compliance risks behind it? #TradeCompliance #CustomsCompliance #ExportControl #Incoterms2020 #GlobalTrade #SupplyChain #InternationalTrade #Customs

If your cargo touches a Chinese port — loading OR discharging — your standard bill of lading just became a legal liability. China's revised Maritime Law takes effect 1 May 2026. Most shipping professionals haven't read it yet. Here's what you need to know before it's too late. 👇 Two changes. Massive consequences. ① Article 295 — Your foreign governing law clause may be unenforceable. -That English law clause on your bill of lading? -That London arbitration clause? In a Chinese court, they may count for nothing. Chapter IV of China's Maritime Code now applies mandatorily to every international shipment where China is the port of loading OR discharge — regardless of what your B/L says. This isn't a technicality. This is a structural shift in how maritime disputes will be resolved. ② Article 93 — Abandoned cargo is now YOUR financial problem. -If your consignee fails to collect at a Chinese port, the costs land on the contractual shipper. -Not the cargo owner. Not the consignee. The contractual shipper. Which means if you're a freight forwarder or NVOCC who booked in your own name — you are now carrying a statutory balance-sheet liability for storage, demurrage, and disposal costs at Chinese discharge ports. Even if you don't own a single box of that cargo. This affects YOU if you are: ▸ A freight forwarder booking in your own name ▸ An NVOCC issuing house bills of lading ▸ A liner carrier with standard English-law B/Ls ▸ A cargo insurer with subrogation assumptions built on foreign law ▸ An exporter whose buyer might one day walk away from goods at a Chinese port ▸ A trade finance professional funding shipments to or from China The questions you need to answer this week: ✅ Does your B/L governing law clause survive Article 295? ✅ Do your agency agreements indemnify you against Article 93 costs? ✅ Does your cargo insurance cover abandoned cargo liability? ✅ Is your dispute resolution strategy built for enforcement geography — not just contractual preference? The bottom line: Contracts still matter. Enforcement geography now matters more. A foreign-law bill of lading is still a valid contract between the parties. But the moment a dispute lands before a Chinese maritime court — and Chinese courts are arresting more vessels and hearing more cases than ever — that foreign law clause has very limited reach. The revised law is already passed. The clock is running. 📖 I've written a detailed article breaking down both provisions — Article 295 and Article 93 — with the full scope of exposure, practical action steps for each type of market participant, and verified links to the official NPC legislative text. If you trade to, from, or through China by sea — read it before 1 May.

It blows my mind how many carriers and even brokers still don’t understand US–Canada cabotage laws. This is not complicated, yet I see it ignored constantly.   This is not my opinion, it is the LAW.   A US driver can pick up a shipment in the US and deliver it to Canada, then return empty or load a shipment in Canada only if it goes back to the US. Likewise, a Canadian driver can transport freight into the US and then return empty, or pick up a US load heading back to Canada. That is it.   What they absolutely cannot do is CABOTAGE, which is transporting freight entirely within the other country.   A Canadian driver cannot haul within the US, and a US driver cannot haul within Canada.   It is black and white. Every week, I see carriers and brokers who clearly don’t know this, asking drivers to perform illegal moves, and it is the driver who ends up on the hook for violating federal immigration and customs laws.   These regulations come directly from U.S. Customs and Border Protection and CBP’s guidelines for cabotage (see 19 CFR § 123.14(c)) , along with broader cross-border movement rules codified under Treasury Decision 99‑10 and sections of U.S. Customs law like 19 USC § 1592. On the Canadian side, the CBSA clearly prohibits foreign-based vehicles from performing point-to-point domestic movements unless it is immediately before or after an international shipment (see CBSA Memorandum D3‑1‑5 and Customs Tariff 9801.10)   So here the thing: If you do not know these laws—DO NOT TOUCH cross-border freight. You are not acting like a professional, you are acting like a liability. You are risking your driver’s legal status and your company’s compliance, and worse, your negligence will end up hurting your clients. Cross-border logistics is not a beginner sandbox. It is regulated, specialized and unforgiving. Learn the rules or get out of the way.