Tips for importing from China
Some people are planning to import something from China to start their small business and, they assume it'd be a lot easier and cheaper to buy directly from Chinese manufactories and skip a local wholesaler or other middle steps.To start with, there are some tips that may be helpful to you:
- You need to have a good estimate of the landing cost before you make your order. Landing cost = cost of the goods fob + transport costs by forwarder + import duties (if any) + local transport costs + cost of service providers (inspections, agents, etc.). There may be many hidden costs and you can consult an import management company, but the best way to avoid bad surprises is by making a first order of a small quantity, and collect all costs and fine tune your landing cost estimate.
- Pay attention to import duties. Import duties depend on hs code of the goods you import, the countries of origin (China) and destination. If your Chinese supplier has some export experience, he shall know what is the HS code for your product, but do your homework and check the product description of the HS code corresponds to the product you import. Definitions are sometime vague. A wrong HS code may delay the custom clearance of your shipment.
- Payment for Chinese exporters is most often made by T/T, but many Chinese suppliers also accept other forms of payment, such as cash, credit card, check, or even PayPal. A letter of credit is commonly used in trade with China too. Go to your bank to get detail formality and cost.
- Export agents in China are very commonly hired by Chinese exporters. Some of these export agents are also 3rd-party suppliers, others just provide export services.
- Neglecting compliance can be very costly. This may force you to pay expensive and unexpected customs duty, such as anti-dumping duty, as well as risk delaying your customs clearance. This will cost you expensive storage fees at a railway station or container yard.
- Visiting trade shows is a great way to see suppliers face-to-face.
- Usually an initial deposit of between 30-50% will be requested by a Chinese Manufacturer to get your product/order into production.
- To make sure you're dealing with a professional, try making a phone call with this wholesaler. When this wholesaler sounds unprofessional or doesn’t carry on with business-like conversations or just answers with a simple “Yes” or “Hello” without mentioning his name or the business, then you might be dealing with fakes.
- Websites offer their physical addresses and contact details. But if their website doesn’t, then you need to be careful. Ask for their contact details and if they don