How to manage split shipments from China

Agree the split before releasing goods

Record the agreed split against the original purchase order: products, variants, quantities, destination, transport method and planned dispatch dates. Give each shipment its own reference. Confirm who approves release, who pays extra freight and handling, and whether the remaining goods will stay at the factory or move into storage.

Ask the factory to confirm what is finished, inspected, packed and still outstanding for each shipment. A partial dispatch should not silently change the specification, unit price or payment terms for the remaining order. Record any agreed change alongside the purchase order.

Track goods and money in separate balances

Keep a line-level quantity ledger showing ordered quantity, agreed cancellations, dispatched quantity, received quantity and accepted quantity. Calculate the unshipped balance from the agreed order quantity less cumulative dispatches. Track goods in transit separately from goods still at the factory, and record shortages or rejected goods without treating them as an automatic cancellation.

Keep a separate payment ledger showing goods value for each shipment, deposit allocated, further payments, agreed credits and unpaid balance. Agree whether the deposit is spread across shipments or held against the final dispatch. Before paying, reconcile the shipment invoice to that ledger rather than treating the full order balance as due merely because some goods are ready.

Build a document pack for each shipment

Ask for a shipment-specific commercial invoice and packing list, linked to the original purchase order and shipment reference. Show the goods travelling in that shipment, not the full ordered quantity. Keep the complete order invoice and payment reconciliation available as supporting records. Use our customs document guide for the underlying document checklist.

Match product descriptions, quantities, carton markings, weights and values across the shipment documents. File the relevant transport document and customs entry against the same reference. Send the broker the deposit allocation and any shared-cost schedule so a payment request for the remaining balance is not mistaken for the full goods value.

Allocate costs without confusing customs value

For internal costing, charge identifiable freight, clearance and delivery costs to the shipment that incurred them. Allocate genuinely shared charges using a recorded basis that reflects the cost, such as weight or volume for freight. Keep the allocation schedule and check that it accounts for the supplier and carrier invoices without duplicating charges. Use landed-price costing for the overall cost categories.

Customs valuation uses the total payment made or to be made for the imported goods, not just the unpaid balance. Ask the broker to confirm how freight and insurance to the UK border should be treated in customs value. Give the broker the shipment goods value and supporting cost breakdown; ask them to confirm any allocation of tooling or other shared valuation additions. See what goes into customs value.

Import VAT valuation starts from the customs value for duty. Keep the broker's VAT valuation working separately from your internal allocation spreadsheet, and ask them to explain any additions. Record actual duty, import VAT and clearance charges against the relevant shipment rather than applying an average order estimate to every arrival.

Close each shipment, then close the order

After delivery, compare warehouse counts with the packing list and update received and accepted quantities. Record damage, shortages and disputed amounts against the shipment concerned. Agree whether the remedy is replacement goods, a credit or another action, and update the outstanding order without overwriting the original records.

Before closing the purchase order, reconcile cumulative dispatches, receipts, agreed cancellations, invoices, payments and credits. Investigate any remaining quantity or money balance. Keep unresolved claims visible even if all planned shipments have arrived, and retain the shipment packs together with the master reconciliation.