help goods on water but now they are holding B/L for more money

contracted with company in China goods were FOB to port now they are saying if we don't pay transportation cost to port they will not send Bill of Lading to customs agent and we will not be able to get goods through customs.The goods are on the water to US and they were behind schedule shipping so what is easiest way to get through process without paying blackmail money.We paid for goods as agreed ,never agreed to pay transportation it was in contract they pay

Get a Chinese lawyer to call them and demand resolution ASAP.

That alone will usually resolve it if they see you mean action.


...if need be World law's Chinese staff can assist as well, email them.

If the shipment is FOB you are paying the freight, in which case the freight company should forward the shipping documents to you? The supplier should have supplied packing list and commercial invoice to the freight company but responsibility for surrendering the b/l should be with the freight forwarder.

Do you know who is handling the freight? If so, contact them and explain that you need the documents. You need to get it resolved before the shipment lands as it will start getting expensive for storage.

[d6555]

Originally Posted by Unregistered contracted with company in China goods were FOB to port now they are saying if we don't pay transportation cost to port they will not send Bill of Lading to customs agent and we will not be able to get goods through customs.The goods are on the water to US and they were behind schedule shipping so what is easiest way to get through process without paying blackmail money.We paid for goods as agreed ,never agreed to pay transportation it was in contract they pay

next time use your own forwarder.

if FOB price,you need to pay for the shipment.

FOB = Freight on Board at destination described/listed... You pay shipping from that point.
FOB just means that they will throw it on the truck for you.
C & F = Cost of goods and Freight to destination.
new inco terms are like CPT--Exworks etc.

You should have a Customs broker helping you... If they are any good they'll know whats legal...Who are you using?

I would suggest chalking it up to learning pay it and get it moving since you won't get any money back anyway... You've already got money invested and you need to decide which is cheaper to forfeit the load or pay the freight and if you pay the freight you will at least have something (recevied product) to offset the expense.

The other problem you will run into and it is highstakes robbery is that the shipping company & customs will take the shipment into demurrage at the rate of $150-$200 per day for the first 4-5 days, and then it will be like $500 per day. The supplier is not going to pay it they already got the money...If you want what you paid for you better pay the freight or else you will learn a $3000 demurrage lesson and still pay the freight in the end.

you may also want to negotiate a better price for the next shipment from this supplier as a way of helping you through it... usually if they sell another load they reduce it to work out.

if it was in contract it would not say FOB, it would read C and F. I don't think you have to worry about being scammed, I just don't think you realized the terminology. All you need is a good customs broker, but you'll still have the pay the freight if it was FOB on Bill of Lading...If it is a mistake on the suppliers end he can change it, or you can fight with him later... If it is consigned to you, you better pay it and keep it moving...Also you'll have to pay customs-duty-insurance-Bond-surcharges and maybe some excise tax depending on what it is.