Important Tips of Import from China

6 Oct

Import to the western world from China may not be as easy as what people would think mainly because the export mechanism of China is somehow different form import mechanism in the western world. Importers also have to deal with many issues that domestic trade would never encounter, such import duty, imports cost, “import to” destination customs compliance and international logistics. If you are planning to import to your country directly from China on your own, here are some important tips for your reference.
import duty from import to customs compliance imports cost Pay close attention to business nature of your potential import supplier. You may want to make sure whether they are actual manufacturers, third party import supplier, or trade agents in China. Dealing with manufacturers and import suppliers, i.e., exporters, have respective advantages and disadvantages in terms of imports cost and convenience. Manufacturers tends to have faster responses to your requests for product designs, developments and production arrangements. You may also cut imports cost to certain extent. However, the third part import supplier and professional exporter typically have much broader channels and connections in various industries so they may better satisfy your broader needs for diversified products. In addition, professional exporters in China may be able to save you some hassles as they tend to have more experiences in dealing with potential issues related to import export, such as customs compliance, import duty and logistic arrangement. In general, working with any “fourth-party” import supplier is not desirable so not recommended.

import duty from import to customs compliance imports cost Establishing close but healthy personal relationship with key staff, preferably the management of your potential import supplier is very important in the process of import to your country. You will always need help from import supplier. As a matter of the fact, the word “Guanxi”, meaning “relationship” in translation, is a very famous and popular term in China’s business arena. Please keep in mind that saving other’s face is an important gesture in Chinese culture.

import duty from import to customs compliance imports cost You must have a good estimate of the landing cost, i.e., “import to destination” cost, before placing your order with a import supplier in China. The landing cost is the sum of FOB cost of goods, transportation costs quoted by your freight forwarder including the ocean freight, land freight and local freight as well as port/warehouse charges, import duty and other imports cost imposed by logistic service providers such as inspection charges, agent fees etc. There may be some hidden imports cost in the chain. We would advise you to obtain advise from import oriented consulting firm to find out what hidden imports cost could potentially incur in the import process of your specific products. The simplest way to avoid surprises in imports cost is to make a small test order.

import duty from import to customs compliance imports cost Pay attention to import duties. Import duty assessments are based on HS code of the goods you are importing, the country you import from, and destination you import to. If your Chinese import supplier has some export experience, they shall have the HS code available for determining import duty rate of your product at your “import to customs”. However, you still should do your homework by verifying HS code and import duty rate corresponding to the product you import to your country. In some cases, the import duty is somehow vague. A wrong HS code in the bill of lading may result in unnecessary import duty, fail customs compliance and delay customs clearance of your shipment.

import duty from import to customs compliance imports cost If you just started to import from China to your country, you should pay attentions to payment terms. A letter of credit is commonly used and also suggested to use in trade with the import suppliers in China, especially when import from them for the first time. Consult with your bank to obtain detail formality and cost.

import duty from import to customs compliance imports cost There are two types of export companies in China. One is actual import supplier that directly handles goods and merchandise for exporting. The other is called “export agent” that is hired by manufacturers to process import export documents. The export agents may also provide certain logistic services to the manufacturers.

import duty from import to customs compliance imports cost Pay attentions to customs compliance at the “import to” destination. Failure to fulfill customs compliance can be very costly. It may significantly delay customs clearance and force you to pay extremely high and unexpected customs taxes such as anti-dumping import duties. Delays in customs could result in storage cost at a railway station or container yard. Therefore, it is critical to make sure the shipment you import from China fulfill customs compliance and all products in the shipment comply government regulations of the “import to” country. Any “import to” customs may decide to inspect a shipment on a random basis. Assisting the inspection is also a part of customs compliance.

import duty from import to customs compliance imports cost Visiting import shows and international trade fairs is a great way to meet potential import suppliers face-to-face. You can find the lists of upcoming trade fairs from import sourcing websites. Most of trade fairs featuring Chinese manufacturers and suppliers are hosted in large cities in Asia, such as Hong Kong, India, Dubai and Shanghai.

import duty from import to customs compliance imports cost If the goods you import to America from China must have wooden packing, fumigations are required before being allowed to import to the United States. All wooden packaging for import to the States must also meet the nimp15 treated wood specifications. Such customs compliance must be certified in official import documentations including “bill of lading”. You should obtain advises from import freight broker for more information on this matter.

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