Retransportation from the Callao Port in Peru! Help needed!

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Emergency help! A batch of mechanical parts we sent to our Peruvian client has been stuck at Callao Port for nearly a month due to the client's clearance failure. The client has explicitly stated that they cannot clear customs and wants the goods to be returned. The freight forwarder said the return shipping fee might exceed the value of the goods. This is our first time dealing with return shipments to South America, and we're worried about customs auctions and the client refusing to pay. How can we handle this step by step to minimize losses? The situation is urgent!

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Expert Q&A

Grace Wang
Grace WangYears of service:10Customer Rating:5.0

Senior Foreign Trade ConsultantStart a Chat

Your situation is quite typical. Peruvian customs is quite strict in handling stranded goods. First,immediately verify the customs supervision status of the goods to confirm whether they have entered the countdown period for abandonment (usually 60-90 days). You need to prepare complete original export customs declarations,invoices,packing lists,and proof of failed customs clearance from the Peruvian importer to apply for repatriation permits from the customs. The key point is that the HS code must be consistent with the original export,otherwise it will be regarded as a new import. It is recommended to immediately entrust a qualified AEO-certified customs declaration agency at the CALLAO port,which can expedite the approval process. Risk reminder: If the goods have been listed for auction by the customs,the repatriation application will be rejected,so speed is of the essence. Additionally,when repatriating the goods to China,prepare the repatriation certificate to apply for duty-free treatment from the domestic customs to avoid secondary tax payments.

Eric Zhou
Eric ZhouYears of service:6Customer Rating:5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

First, let's do some calculations: The free storage period at CALLAO port is typically 7-10 days. By now, the daily demurrage and storage fees may have already accumulated to thousands of US dollars.

Step 1: Have the freight forwarder immediately apply to the shipping company for an extension of the free container period. Every bit of savings counts.

Return shipment options:

- If the cargo value is high and time is urgent, opt for air freight (3-5 days but expensive).

- If the cargo value is average, choose sea freight (3-4 weeks but more cost-effective).

The key is to find an international freight forwarder with branches in Peru, as they can directly handle customs supervision warehouse pickups.

Cost estimation:

- Return sea freight fees are typically 1.2-1.5 times the original export freight costs.

- Add Peru's export declaration fees and domestic customs clearance fees, and the total cost should stay within 30% of the cargo value to be cost-effective.

**Immediately request the Peruvian freight forwarder to take a screenshot of the cargo status in the port system to confirm whether any penalties have been imposed.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

The client's customs clearance errors led to the return of the goods, and defining responsibilities is the core of the negotiation. Immediately send an official email (attached with timeline evidence) stating that the goods were delayed due to the client's customs clearance documents. According to the contract terms, the additional costs incurred from the return of the goods should be borne by the client. However, to maintain long-term cooperation, we can negotiate a shared responsibility: for example, we will bear the return shipping costs, and the client will bear the fines and document fees at the Peruvian port. At the same time, we require the client to provide a written "Goods Abandonment Declaration" and "Return Authorization Letter", which are essential documents for customs clearance and evidence for subsequent legal accountability. If the client refuses to cooperate, we will imply that we will report the case to China Export & Credit Insurance Corporation (Sinosure) and list them on the industry blacklist. Remember, our attitude should be firm but leave room for negotiation, such as "We understand the complexity of customs clearance, but we need to face the costs together", which both pressures the client and preserves the possibility of cooperation. Finally, the payment terms for return shipping fees must be changed to 100% prepayment to avoid secondary risks.

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